Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.3%, holding above $1,480, after upbeat reports on US-China trade talks stoked risk appetite, causing traders to take some profits from yesterday's 1% surge and shift back toward risk.

Bloomberg reported the US and China are getting closer to a "phase one" trade pact and should final finalize the terms before new tariffs kick in on December 15. The news comes one day after President Trump discussed putting off the deal until after the 2020 elections, causing stocks to plummet and gold to rally sharply on safe-haven demand.

As if on cue, US equity indexes jumped on the prospect of a reduction in the 17-month trade war that has slowed growth at home and abroad. The Dow and S&P 500 rose nearly 0.7% while the Nasdaq added 0.6%.

The rise in risk appetite came despite another round of disappointing US economic data. ADP reported the private sector added merely 67,000 jobs in November, the least in six months and less than half the amount forecast.

And the ISM services index slowed again in November, reflecting the impact of tariffs on products offered by the service-oriented companies that constitute around two-thirds of economic activity. While the crucial sector is still expanding, it has trended sharply lower since hitting a 13-year high late last year.

The other precious metals were mostly lower, with silver and platinum dropping 1.9% and 1.1%, respectively, while palladium added 1.2%.

At the Comex close: February gold slid to $1,480.20; March silver fell 33 cents to $16.92; January platinum dropped $9.80 to $901.80; and March palladium added $21, to $1,845.40 an ounce.