Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold fell 2.9% to close at $3,210 after hints from the White House about possible trade deals lifted Treasury yields and the dollar, eroding demand for alternative stores of value. Silver slid 1% to finish at $32.19 an ounce.

President Trump said today that trade deals might be reached with Japan, South Korea, and India, and that there is a "very good chance" of an agreement with China.

All three main US stock indexes rose to one-month highs, fueled by trade war optimism and higher-than-expected quarterly earnings from Microsoft and Meta.

Benchmark 10-year Treasury yields crept higher as investors shifted out of bonds and into risk assets. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds for safety.

The dollar jumped 0.7% on the prospect of easing trade-war tensions, pressuring gold and other commodities by making them more expensive in other currencies.

Against this backdrop, US data pointed again towards economic slowing. Manufacturing fell further into contraction, according to the ISM. And first-time jobless claims surged 18,000 to 241,000 last week, the highest level in eight months.

Tomorrow's nonfarm payrolls report will provide a measure of the health of the labor markets.

Platinum and palladium added 0.1% and 0.4%, respectively.

At the New York spot close; gold fell $95 to $3,210; silver slid 34 cents to $32.19; platinum picked up $1 to $964.80; and palladium rose $3.90 to $978.90 an ounce.