Precious Metals See Gains as U.S. Dollar Dips

APMEX

12/3/2018 1:57:50 PM

Daily Gold & Silver Market Report – 11/30/2018

• U.S. dollar dips amid sell-off, boosting Gold prices.
• Palladium sees record high, near parity with Gold. 
• Investors eased but cautious about the future of U.S.-China tariffs.

On Monday morning, Precious Metals prices were up following a U.S. dollar sell-off driven by news regarding the U.S.-China trade war. At the G20 summit in Argentina, U.S. President Donald Trump and Chinese President Xi Jinping agreed to hold off on new trade tariffs for an additional 90 days. Nasdaq published a Reuters report observing a 1 percent increase for Gold, hitting the highest price in nearly a month. Palladium reached a record high spot price, coming within $12 of parity with Gold. This reassuring news led many to sell off dollar assets, which made Gold less costly for those trading in non-U.S. currencies. For much of 2018, the dollar has been a safe-haven investment for many, due to the U.S.-Chinese trade war. Rising interest rates in the U.S. also presented a challenge for Precious Metals. Silver and Platinum also saw price increases Monday morning, driven partially by a statement made by President Trump on Monday that China has confirmed support for cutting import tariffs on cars made in America.

Investors Watch for Developments in U.S.-China Tariff Negotiations

After discussions between President Trump and China’s leader Xi Jinping, it was announced that the U.S. would not leverage a 10 percent tariff increase toward China on January 1, as previously stated. This update is good news for Precious Metals investors, but the vague nature of the agreement has many market watchers waiting for new developments in the coming week, according to Investing.com. While both sides agreed to 90 days of further discussions, if no resolutions are found, the 10 percent tariffs will increase to 25 percent.
It is widely accepted the U.S. Federal Reserve will raise interest rates again in December, with could put new pressures on Gold. On Tuesday, the Reserve Bank of Australia will disclose its own interest rate benchmark along with data regarding economic conditions. As a major supplier of Gold bullion products, this news could bear significant influence on the market. The ongoing volatility caused by Brexit will likely continue this week, as Britain’s parliament kicks off five days of debate surrounding the current Brexit plan with a vote looming on December 11. On Wednesday, European Central Bank President Mario Draghi is scheduled to speak in Frankfurt, Germany.

At 2:05 p.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,234.60 Up $11.40
• Silver, $14.48 Up $0.26
• Platinum, $810.10  Up $9.30
• Palladium, $1,209.30  Up $19.70

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