Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold added 0.1% to close above $1,283 as the dollar dipped and equities plunged on renewed trade tensions with China, supporting safe-haven assets.

US officials cancelled a planning meeting with China on trade this week because of conflicts over rules on intellectual property rights. The meeting was intended to pave the way to broader agreements before the March 1 deadline, when temporarily-suspended tariffs will be reinstated by both sides.

The news caused investors to shed risk assets, driving the Dow and S&P 500 down 1.7% and 1.8%, respectively, while the tech-heavy Nasdaq dumped 2.3%. US Treasury notes rallied on flights to safety.

The dollar edged lower against major rivals, pressured by the UK pound, which rallied on reports that leadership in the Labor and Conservative parties are brokering an extension of the Brexit March deadline with the EU.

Gold's gains were limited by a sharp decline in oil prices, with both WTI and Brent crude losing around 2% on renewed fears of a global economic slowdown. China posted its slowest growth in 30 years for 2018, and the IMF has cut its global growth forecast for 2019, largely on continued weakness from China. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also lower, with silver sliding 0.5% while platinum and palladium lost 1.4% and 2.1%, respectively.

At the Comex close: February gold added 80 cents, to $1,283.40; March silver slid 7 cents to $15.33; April platinum dropped $10.90 to $791.20; and March palladium lost $28.60 to $1,306.50 an ounce.