Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold was nearly flat in regular trade, edging down a dime to close above $1,472, as safe-haven demand from trade uncertainty was neutralized by profit-taking. The metal then edged down a buck in electronic trading after the minutes from the Fed's last meeting, released following the Comex close, were upbeat on the US economy.

The pending "phase one" trade deal between the US and China may not happen this year after all, according to Reuters. Talks have stalled over two main points: Beijing's willingness to buy $50 billion in farm goods, and Washington's commitment to lowering tariffs. The limited deal was supposed to finalized before additional tariffs are imposed on December 15.

Talks have become further complicated by China's violent crackdown on pro-democracy protests in Hong Kong. Yesterday, the Senate unanimously passed a human rights resolution in support of the protestors, drawing the ire of China. President Trump has warned that he will "raise the tariffs even more" if no deal is reached.

Wall Street slid on the rising trade tension, with all three major US indexes dropping 0.5%. The dollar edged up 0.1% against major rival, pressuring gold by making it more expensive in other currencies.

Gold had rallied above $1,479 early in the session as trade worries pulled investors into safe havens, only to settle back to near-flat as traders took profits from two winning sessions.

Further eroding the gold price, the minutes from the Fed's recent meeting on monetary policy showed the central bank to be more upbeat on the economy than expected. Members "generally viewed the economic outlook as positive," and felt global risks to growth "had eased somewhat."

The other precious metals were mixed, with silver dipping less than 0.1% while platinum and palladium added 0.8% and 0.3%, respectively.

At the Comex close: December eased a dime to 10 cents to $1,474.20; December silver dipped half a cent to $17.115; January platinum gained $7.70 to $920; and December palladium rose $4.40 to $1,741.80 an ounce.