Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinWith US financial markets closed for Presidents Day, gold climbed 0.6% in electronic trade to just under $1,330 as rising optimism about a trade deal between the US and China pressured the dollar, boosting demand for alternative store of value.

The trade summit between the US and China resumes this week in Washington after both sides reported progress toward resolving the tariff war that has slowed world growth. While few details have been forthcoming, President Trump was upbeat in his assessment on Friday. Headway toward an agreement may postpone the deadline of March 1, when duties on $200 billion in Chinese goods are scheduled to rise from 10% to 25%.

World stocks rose on the prospect of trade détente between the world's two largest economies. Japan's Nikkei jumped 1.8% and the MSCI World Index added 0.6% to reach a 10-week high.

The dollar slipped 0.2% as forex traders shifted back toward riskier and commodity-centered currencies like the Australian dollar. Last week, the buck rose to a two-month high because of the trade dispute. As the world's most-liquid currency, it often benefits from flights to safety during periods of risk aversion.

A trade resolution is expected to support higher gold prices because it will strengthen the yuan against the dollar, making the metal less expensive in the world's largest gold-consuming nation, thereby stoking demand.

The other precious metals also gained in electronic trade. April gold rose $7.60 to $1,329.70; March silver added 4 cents, to $15.78; April platinum picked up $1.10 to $808; and March palladium climbed $25.80 to $1,433 an ounce.