Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.6% to close under $1,496 as optimism about US-China trade and Brexit stoked risk appetite, dulling demand for safe havens.

President Trump said negotiations toward a partial trade deal with China are moving ahead more quickly than expected. The upbeat report comes after Friday's official statement from the US Trade Representative's office stating that the two nations are close to completing parts of an agreement to de-escalate the trade war.

Global stocks rallied on the upbeat sentiment, with the S&P 500 rising to a new record. The MSCI All Country World Index, which tracks shares across 47 countries, rose to the highest level in 21 months.

Also supporting risk appetite, the European Union agreed to a three-month Brexit extension, giving British PM Boris Johnson time to restructure the terms of divorce between Britain and the EU. The extension reduces the likelihood that Britain will crash out of the union with no trade agreements in place, something that would almost certainly damage both economies.

Gold's slide was backstopped by a weaker dollar, which fell 0.1% against major rivals as traders speculate that the Fed will cut interest rates again when it meets this week. Lower rates pressure the buck by making it less attractive to Forex traders seeking yield. A falling dollar, in turn, supports gold by making it less expensive in other currencies.

The other precious metals were mixed, with silver and platinum falling 0.3% and 1.5%, respectively, while palladium surged 2% on persistent supply deficits.

At the Comex close: December gold fell $9.50 to $1,495.80; December silver slipped 5 cents to $17.88; January platinum fell $14.30 to $919; and December palladium jumped $35.10 to $1,779.30, another record high.