Happy Friday, traders! Welcome to our weekly recap of the action and drivers in the precious metals and Dollar markets.
As we slide towards the close of a tightly traded week for gold prices, the yellow metal is holding on through a typical (but mild) Friday afternoon sell-off to maintain support at $1490/oz; silver spot prices have once again set above $17.50/oz.
So, what kind of week has it been?
Risk Appetite Weaker on Monday But Rallies on Tuesday to Send Gold Prices Lower
With the holiday, there was no meaningful US data to contend with, nor was there much in terms of news flow. Market sentiment seemed rooted in the “risk-off” camp, driven to some degree by the pessimistic tint to the reports around eleventh hour Brexit negotiations that dimmed Friday’s optimism that the EU and UK might hammer out a deal. The primary mood-killer in the lightly attended US session appeared to be the market’s closer look at the “phase one” handshake deal that the was announced between the US and China at the end of last week.
On closer inspection, it’s become clear that all we have at the moment is a handshake deal that it’s lacking in formal specifics. So, while risk markets were willing to trade on the idea that the situation may not deteriorate further in the near term, there’s low confidence in the idea that US-China trade relations are about to improve.
To that end, it was becoming clear that scrutiny and specificity—which the Chinese were already asking for on Monday—might be the enemy of this initial deal, and the US delegation that seems to consistently prioritize market-positive headlines over brass-tacks agreements.
Read more of the recap on the gold market for the week of October 14 – 18 on the GoldPrice website HERE