Gold News & Info

Source:Matt Warden, American Gold Exchange

AustinRecord low U.S. Treasury yields and escalating Hong Kong jitters helped boost gold to an early morning high of $1,546.10 per ounce, its highest price since April 2013, before it retreated lower to settle at $1,514.10 for the day following a Trump administration announcement that the U.S. would delay imposing 10% tariffs on some Chinese imports until after the Christmas shopping season.

Gold was buoyed overnight as 30-year Treasury note yields hit record low territory, falling to as low as 2.1%. 10-year Treasury note yields fell to a 3-year low of 1.62%, slightly higher than the all-time low of 1.44% set in 2016. Gold demand tends to increase as Treasury note yields decrease because the opportunity cost of holding gold instead of Treasury notes is reduced.

Hong Kong riot police clashed with protestors at the Hong Kong airport overnight, stoking fears that the confrontation was entering a new phase and raising concerns that greater intervention may follow by mainland China, adding risk to the outlook for world economic growth. In response, safe-haven demand for gold pushed the price to a 6-year high, but the price began to ebb after the protestors dispersed and the risk of further violence was avoided.

The morning sell-off from 6-year highs in gold accelerated after the U.S. Trade Representative's (USTR) office stated that it would exclude many consumer electronics, toys, footwear and clothing from additional 10% tariffs until December 15, marking an abrupt pull-back from the hardline stance announced only two weeks ago when President Trump said he would impose a 10% tariff on $300 billion of Chinese goods starting September 1. A spokesman for the USTR office also said trade negotiations would resume in two weeks. The de-escalation was received as a positive step by the marketplace, further reducing near-term demand for safe-haven assets like gold.

Except for palladium, the other precious metals followed gold lower, with silver and platinum both down 0.4%. Palladium tacked on an otherwise impressive 1.4%.

At the Comex close: December gold ended the day down $3.10, closing at $1,514.10; September silver dropped 8 cents to $16.98; October platinum fell $4.00 to $859.70; September palladium rose $20.70 to $1,451.50 an ounce.