Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.2% to close under $1,248 as easing trade tensions between the US and China caused stocks and the dollar to tick higher, reducing demand for alternative assets.

The Dow added 0.6% and the S&P 500 0.5% after China resumed imports of US soybeans and confirmed that negotiations are underway for a broader trade deal. Optimism was muted, however, after President Trump said China will have to make further concessions to end the trade war.

The dollar added 0.1% against major rivals after the ECB left interest rates unchanged while ECB chief Mario Draghi said risks to the Eurozone were shifting to the downside. The dovish comments put pressure on the euro and lifted the buck, pressuring gold and other commodities by making them more expensive overseas.

The US budget deficit ballooned to $205 billion in November as the government took in 1% less in revenue while spending 18% more, mostly on defense, veterans, and Medicaire. The CBO forecasts a deficit of $974 billion for this fiscal year, or 4.6% of GDP.

The other precious metals were mostly lower, with silver edging up less than 0.1% while platinum and palladium fell 1.2% and 0.3%, respectively.

At the Comex close: February gold slipped $2.60 to $1,247.40; March silver added less than a penny, $14.86; January platinum fell $9.60 to $797.50; and March palladium lost $3.80 to $1,190.70 an ounce.