Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.7% to close under $1,464 as seeming progress in US-China negotiations rekindled hopes for a trade deal, undercutting demand for safe havens. The metal surrendered all its gains for the week but remains up 14% so far this year.

China has reportedly invited top US trade negotiators for a new round of talks, saying it will work with the US to resolve the 16-month trade war that has damaged global growth. Vice Premier Liu He, China's chief negotiator, said he is "cautiously optimistic" that the so-called "phase one" pact will be completed.

Treasury yields rose on the trade optimism, snapping a three-day losing streak, and the dollar rose against major rivals. Higher yields pressure gold because it is a non-yielding asset, while a stronger dollar weighs on the metal by making it more expensive in other currencies.

The gold price was backstopped by a new round of soft US data. The Mid-Atlantic Fed region posted a sharp slowdown in factory orders and shipments in November. And the US leading economic indicators index fell in October for the third straight month. A weighted gauge of 10 indicators, the LEI has posted negative six-month growth for the first time in three years.

The other precious metals were also lower, with silver sliding 0.3% while platinum and palladium dropped 0.3% and 0.6%, respectively.

At the Comex close: December gold lost $10.60 to $1,463.60; December silver slid 5 cents to $17.05; January platinum dipped $2.50 to $917.50; and December palladium shed $9.90 to $1,731.90 an ounce.