Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.2% to close above $1,225 as optimism about a possible trade deal with China rallied equities and the dollar, dimming demand for alternative stores of value.

In a Fox News interview, President Trump said he expects China and the US to make a "great deal" on trade, adding that he has billions of dollars in additional tariffs ready if an agreement doesn’t materialize.

Although few details were forthcoming, the suggestion that the trade war could end was enough to spark risk appetite, sending the Dow 1.5% higher while the S&P 500 rose 1.2%.

The dollar rose 0.3% against major rivals, especially the euro, which fell sharply on reports that eurozone GDP rose 1.7% in the third quarter, less than forecast. A stronger dollar typically weighs on gold and other commodities priced in it for international trade by making them more expensive overseas.

Also pressuring gold, oil fell 1.3% to a two month-low on expectations that domestic inventories will rise further as global growth slows. Gold often trades in sympathy with oil as a hedge against energy-relative inflation.

The other precious metals were mixed, with silver and platinum adding 0.1% and 0.2%, respectively, while palladium fell 2.3%.

At the Comex close: December gold dipped $2.30 to $1,225.30; December silver added 2 cents, to $14.46; January platinum rose $2.10 to $839; and December palladium lost $23.40 to $1,055 an ounce.