Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold added 0.2% to close above $1,518, the highest level since early September, as falling bond yields and caution over record-high stock prices drew investors toward safety. The metal gained nearly 2.5% for week, its strongest weekly rally in more than four months.

Yields on benchmark 10-year Treasury notes fell 1.2%, and 2-year notes fell 3.4%, as appetite for the safety of government bonds grew despite–or perhaps because of–another day of record-high US stock indexes.

With exuberance over the prospective signing of a limited US-China trade pact stoking remarkable risk appetite, many traders are growing concerned that stock valuations have climbed too high and are destined for a pullback.

A lack of concrete details on the so-called "phase one" deal is also giving investors pause, pushing them toward safety. Eighteen months of tariffs have created substantial headwinds for global growth. It remains unclear whether the deal, once signed, will contain enough provisions to substantially change the prospects for 2020.

The dollar fell 0.5% against major rivals led by the euro, which rallied to a 10-day high behind upbeat data. The Eurozone's trade surplus and inflation rose more than expected in October, suggesting the region's economy may be stabilizing after slipping toward recession earlier in the year.

The other precious metals were mixed for the day but higher for the week. Silver dropped 0.3% but ended the week nearly 4% higher. Platinum slid 0.2% today but rose 4% this week. Palladium added 0.6% for a weekly rise of 4%.

At the Comex close: February added $3.70, to $1,518.10; March silver dropped 5 cents to $17.94; April platinum slid $2.30 to $956.60; March palladium climbed $12.60 to $1881.20 an ounce.