Traders hammer gold back to December levels
DAILY MARKET REPORT – AFTERNOON UPDATE
Traders hammered gold back to last December’s levels as commodities across the board took a hit on elevated concerns about a heavy escalation in the trade war between the United States and China. Bloomberg is reporting that China-US trade talks have ground to a complete halt. Stocks markets across the globe also took a hit with the Dow finishing down 219 on the day. The yuan, which has led currencies lower against the dollar over the past few days, finished at its lowest level since late 2016. Gold finished the day down $14 at $1242. Silver was down 21¢ at $15.79.
In a Reuters report this afternoon, William Rhind, chief executive officer at fund manager GraniteShares Inc, took a longer term view: “At the moment,” he said, “the positive inflationary pressures caused by trade tariffs are being beaten back by dollar strength. As the tariffs take hold and the market adjusts to the effects, we expect inflationary pressures to increase, which will benefit holders of gold and commodities.” Pushed to background today, producer prices logged a 3.4% gain led by rising oil and gasoline prices. Tomorrow we have the consumer price index report. MK