Gold News & Info

Source:Dana Samuelson, American Gold Exchange

AustinGold fell 1.4% to a weekly low of $1,206.40, pressured by a stronger dollar which continued to edge higher following the Fed’s reiteration yesterday that further interest rate hikes “at a gradual pace” are to be expected in the coming months. While expected, this forward guidance virtually guarantees a fourth interest rate hike this year by the Fed at the conclusion of their December 18-19 meeting.

The dollar was also boosted by White House trade advisor Peter Navarro’s comments in a speech at the Center for Strategic & International Studies in Washington, D.C. this morning. Navarro said, "If there is a deal, if and when there is a deal, it will be on President Donald J. Trump's terms. Not Wall Street terms. " Markets interpreted these comments, implying U.S. business leaders were privately undercutting U.S. trade negotiations with China, as indicating that a major trade deal between President Trump and President Xi Jinping of China at the G20 meeting later this month in Buenos Aries was unlikely.

Concerns over the health of the global economy were underpinned by a year on year 12% decline in Chinese auto sales in October, and the skidding price of oil, which fell into a technical bear market yesterday after dropping 20% from its recent peak. Ongoing economic weakness in China and a declining oil price have helped to boost the allure of the U.S. dollar due to greater relative U.S. economic strength, while simultaneously modifying concerns of inflation rising faster than anticipated.

At the Comex close: December gold fell $16.50 to $1,208.60; December silver slumped 28 cents to $14.14; January platinum fell $14.30 to $856.00; and December palladium shed $18.60 to $1,097.50 an ounce.