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3/4, 7:31 PM (Source: TeleTrader)
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Precious metals stay in red despite equity selloff

Spot gold reversed a chunk of losses on Monday after touching $1,282.96 per troy ounce for the first time since January 25, but remained in negative territory together with silver for the fourth session in a row. Stocks on Wall Street pulled back abruptly and the Dow Jones Industrial Average lost more than 400 points at the daily low, but markets showed little enthusiasm for precious metals, which investors normally turn to upon signs of turbulence. Instead, they opted for Treasury bonds and the Japanese yen, while the Swiss franc surrendered its gains.

Construction spending in the United States declined 0.6% in December, impacting sentiment. The yellow metal normally benefits from bets on inflation, but macroeconomic data has been indicating sluggishness in prices. Of note, Secretary of State Mike Pompeo contributed to the overall shift today, saying trade talks with China could still be terminated in the last moment. His remarks apparently countered news reports that a deal is in the making.

Gold dipped 0.39% to $1,286.36 at 1:29 pm ET. Silver tumbled 0.57% to $15.08 for one ounce after sinking to $15.06, a year-to-date low. Platinum declined 2.32% to $837.68. Today it fell to $835.66, a level unseen in ten days. Palladium was 0.79% in the red at $1,530.9 per ounce following a decrease to $1,514.48 for the first time in a week.

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