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Gold Posts Worst Day of 2020 Amid Stronger Dollar, Phase One Trade Deal

Summary:
Gold futures recorded their worst full trading session of 2020 as a strengthening US dollar and a soon-to-be-signed phase one trade deal impacted the yellow metal to kick off the trading week. Gold prices have had a good start to the new year, but they may take a breather amid bearish developments over the next week. February gold futures tumbled .60, or 0.62%, to ,550.40 per ounce at 19:07 GMT on Monday on the Comex division of the New York Mercantile Exchange. This represented the lowest finish for the precious metal since January 2. Gold prices have been making gains nearly every session so far this year, advancing more than 2%. Silver, the sister commodity to gold, is also falling to start the trading week. March silver futures slipped %excerpt%.09, or 0.5%, to .015 per ounce.

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Gold futures recorded their worst full trading session of 2020 as a strengthening US dollar and a soon-to-be-signed phase one trade deal impacted the yellow metal to kick off the trading week. Gold prices have had a good start to the new year, but they may take a breather amid bearish developments over the next week.

February gold futures tumbled $9.60, or 0.62%, to $1,550.40 per ounce at 19:07 GMT on Monday on the Comex division of the New York Mercantile Exchange. This represented the lowest finish for the precious metal since January 2. Gold prices have been making gains nearly every session so far this year, advancing more than 2%.

Silver, the sister commodity to gold, is also falling to start the trading week. March silver futures slipped $0.09, or 0.5%, to $18.015 per ounce.

The metals market is taking a hit on several trends that are normally bearish for bullion

The US dollar had traded higher for most of the session, topping the 97.50 mark. It was not until the end of the Monday session that the greenback pared its gains and ended the day down 0.01% to 97.35. A stronger buck is bad for commodities priced in dollars because it makes it more expensive for foreign investors to purchase.

On the geopolitical front, the US-Iran conflict has ostensibly subsided, erasing last week’s fears that tensions would escalate moving forward. Also, the US and China are scheduled to sign the first phase of a comprehensive trade deal in Washington on Wednesday. Vice Premier Liu He will visit the White House to sign the landmark agreement with President Donald Trump, which has already lifted equities on Monday.

While the public is still in the dark on the details, it was learned that the Treasury Department would remove China from its list of currency manipulators. It was also reported that Beijing would increase its imports of all US goods, not just agriculture.

In other metal commodities, February copper futures surged $0.045, or 1.55%, to $2.86 per pound. February platinum futures shed $3.90, or 0.4%, to $982.10 an ounce. March palladium futures picked up $8.30, or 0.4%, to $2,081.20 per ounce.

If you have any questions and comments on the commodities today, use the form below to reply.


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Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

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