Pressure on Dollar Lifts Gold Prices

APMEX

8/20/2018 10:41:23 AM

Daily Gold & Silver Market Report – 08/20/2018

The price of Gold rose during international trading Monday as hopes of easing tensions between China and the U.S. began to spread. These hopes put pressure on the U.S. dollar, increasing demand for Precious Metals that already improved after the price of Gold hit 19-month lows. According to a report in Business Day, Gold prices fell 2.2 percent last week, marking six weeks of consecutive decline. U.S. Gold futures were also up.

Overall in 2018, spot prices for Gold have fallen 13 percent since reaching a peak in April. The ongoing strength of the U.S. dollar this year has continually challenged all Precious Metals but especially Gold, which has long been considered a safe-haven investment. The dollar index, a measurement of the American currency against several others, was at 96.175 during international trading Monday, after reaching the highest levels since June 2017 late last week. The dollar index then saw the worst same-day decline in almost a month Friday afternoon.

Investors Focus on Sino-U.S. Trade Talks; Precious Metals Trade Green

Spot prices for Gold have been on a small but consistent climb since trading began Monday. Analysts are pointing to two specific reasons. First, Gold hit a 19-month low last week, which caused an influx in demand from bargain hunters and short-term traders. According to a release published by Nasdaq, multiple events in Europe also contributed to the shift. These events include gunshots fired at the U.S. embassy in Ankara, positioning Italy in conflict against the European Union, alongside the Sino-U.S. trade discussions occurring later in August. The path of the U.S. dollar also slowed amidst talks with Chinese and U.S. officials in Washington D.C. The price of Gold, Silver and all Precious Metals are predicted to see minor price swings, directly impacted by the updates and outcome of the scheduled trade talks.

Bitcoin Prices Fall Again as Gains Seem Temporary

Prices for Bitcoin and all cryptocurrency opened low this week, with all significant players trading at a decline in New York Monday morning. Many economists in the Bitcoin community found new optimism last week after many cryptos saw growth, some rising 25 percent Tuesday. However, some industry insiders remain unconvinced that these gains are anything more than a temporary lift. Fundstrat Global Advisers Technical Strategy Specialist Roby Sluymler said in an article published by MarketWatch, “ BTC is bouncing from critical support at its 2018 trading range lows between 5,775-6,000 and is beginning to reverse its August downtrend. A move above first resistance between 6,545-6,842, near the declining[15-day moving average], is needed to suggest recent strength is anything more than a minor bounce.” Bitcoin futures also traded low Monday morning.

At 11:39 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,188.80 Up $8.90
• Silver, $14.78  Up $0.05
• Platinum, $793.90  Up $13.60
• Palladium, $923.10  Up $20.20

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