Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.8% to close just above $1,923 at a fresh one-month low as optimism about US-China trade relations lifted the S&P 500 and Nasdaq to new highs, undercutting demand for safe havens.

Top trade officials from China and the US reported a productive phone meeting to reaffirm the Phase One trade agreement to limit tariffs and coordinate policies going forward. The improved tone comes after months of mutual recriminations over everything from intellectual property to the handing of the coronavirus outbreak.

Wall Street cheered the news, driving the S&P 500 and Nasdaq higher by 0.4% and 0.8%, respectively, to new all-times highs. The Dow slid 0.2% after Apple tumbled ahead of a 4-1 stock split. Treasury yields rose as investors shifted toward risk assets.

Risk appetite was unabated by surprisingly weak consumer data. The Conference Board's Consumer Confidence index plummeted to a six-year low this month as the COVID-19 pandemic's resurgence stoked pessimism about job prospects. Consumer spending comprises roughly 70% of GDP.

The dollar fell 0.3% against major rivals, stemming gold's slide, as the grim consumer outlook reinforced expectations that more stimulus is on the way from the Fed and Congress. A falling dollar supports gold and other commodities by making them less expensive overseas.

The other precious metals were mixed, with silver dropping 1.3% while platinum and palladium added 1% and 0.3%, respectively.

At the Comex close: December gold slid $16.10 to $1,923.10; September silver fell 33 cents to $26.27; October platinum gained $9.50 to $934; and September palladium added $6.40, to $2,171.90 an ounce.