Gold near a one-month high as the yellow metal fluctuates through the early morning hours driven by disappointing job numbers and new hopeful trade comments from President Trump.
Gold rose significantly on Tuesday after U.S. President Donald Trump said that it might be better to wait until after the 2020 presidential election in November to sign a trade deal with China.
That was yesterday.
This morning, gold dipped on today’s hopeful China trade talk from Pres. Trump breathed life into the stock market. The Dow regained 150 points at the opening bell, and has now regained 200 points from yesterday’s slide. Gold is holding on above the $1,480 level.
Trump’s comments yesterday caused bullion to climb Tuesday as investors turned to the yellow metal as an alternative investment and a hedge against uncertainty as equities sold off sharply. Gold had decreased in recent weeks as a deal between the two superpowers appeared close. The metal skyrocketed earlier this year as the sides squared off.
Relations between the U.S. and China had already been growing fraught as the U.S. Congress last week voted to support protesters against Beijing-backed leaders of Hong Kong. The House of Representatives on Tuesday approved a bill that would impose sanctions on Chinese officials over human rights abuses against Muslim minorities, prompting the Chinese to threaten possible retaliation, Bloomberg reported.
February gold futures rose 1% Tuesday to settle at $1,484.40 an ounce on Comex, the highest settlement for a most-active contract in almost a month. Gold futures slid 2.8% in November. The Dow Jones Industrial Average closed down 280 points Tuesday after tumbling more than 400 points in intraday trading. Currently, the February contract is at $1,480.60.
Trump’s comments on China came on the heels of an announcement Monday of tariffs on U.S. steel and aluminum imports from Brazil and Argentina, adding to market jitters.
Gold did get a boost this morning when ADP payroll numbers for November increased by just 67,000, well below the forecast of 150,000.
Silver climbed 2% Tuesday, with the March futures contract settling at $17.25 an ounce on Comex. Futures fell 5.3% in November. Both spot platinum and palladium also rose.
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