Positive U.S.-China Trade Agreements Could Boost Silver

APMEX

1/18/2019 1:29:04 PM

Daily Gold & Silver Market Report – 1/18/2018

• Gold pulls back for the second-consecutive day.
• Investors remain cautious but optimistic regarding trade war and Brexit negotiations.
• Positive trade developments could mean boost for industrial Silver.

With recent statements from the U.S. Federal Reserve that interest rate hikes could stop for 2019, many analysts have predicted a down year for the dollar. This weakening alone could be good news for dollar-denominated assets such as Silver. But positive outcomes from other globally significant negotiations could also provide a boost, according to Investing.com. Trade talks are underway between the U.S. and China to resolve recent tariff disagreements. If these talks end harmoniously, it could boost commodities including Silver. With more cost-efficient access to Silver bullion for industrial use, demand for the Precious Metal could increase substantially.

The outcome of new Brexit negotiations could challenge the bullish Silver market, however. The article says downward pressure could come “if and when there is real progress made on Brexit to allow the Bank of England and, to a lesser degree, the European Central Bank to tighten their policies. Only then could the U.S. Dollar Index start to break down more aggressively, boosting the metals’ prices as a result.”

Gold Pulls Back as Stocks Crawl Upward

Friday morning, Gold futures slid downward as many investors turned back to stocks. This slide represents the second day of pullback from recent high prices for Gold, according to MarketWatch. Buyers seem to be taking an optimistic outlook on trade negotiations between the U.S. and China. Both countries have started to see the negative results of the tit-for-tat tariff war over the last few months, leading to more willingness to compromise.  

Other investors remain cautious, however, due to the volatility caused by Brexit and the failure of the initial withdrawal plan. The ongoing partial government shutdown in the U.S., now at 28 days and counting, has only seen a limited market reaction so far but has the potential of creating more significant challenges. All Precious Metals were down Friday morning, proving market confidence is very strong. Gold has long been seen as a safe-haven investment during times of economic turmoil.

At 2:20 p.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,285.40 Down $9.90
• Silver, $15.46 Down $0.14
• Platinum, $801.10 Down $11.20
• Palladium, $1,385.00 Down $11.20

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