Gold Prices, Friday, August 23rd, 2019 :
| Bid/Ask | 1505.30 / 1506.30 | |
| Low/High | 1493.00 / 1508.20 | |
| Change | +7.80 | +0.52% |
| 30daychg | +80.00 | +5.61% |
| 1yearchg | +320.70 | +27.07% |
(Kitco, Friday, August 23rd, 2019) – Gold prices are moderately higher and have erased modest overnight losses in early U.S. trading Friday. News just out that China plans to retaliate against the recently announced U.S. trade tariffs by slapping its own tariffs on U.S. goods coming into China has quickly sapped trader and investor risk appetite, and in turn boosted safe-haven gold. December gold futures were last up $4.50 an ounce at 1,513.00. September Comex silver prices were last up $0.075 at $17.115 an ounce.
U.S. stock indexes sold off on the China tariff announcement, while U.S. Treasury prices moved well off their overnight lows.
The China news has at least temporarily overshadowed what was expected to be the economic highlight of the week: Friday morning’s 10:00 a.m. EDT speech by Federal Reserve Chairman Jerome Powell, at the Kansas City Fed’s symposium in Jackson Hole, Wyoming. The Fed was deemed by the marketplace to be leaning significantly easy on their monetary policy, until late this week. Comments from Fed officials at the Jackson Hole confab appear to be walking back notions the Fed will embark on a series of interest rate cuts in the coming months. Traders hope Powell will provide more clarity on the Fed’s monetary policy intentions.
Dow turns positive after Powell pledges to sustain the economic expansion
The Dow Jones Industrial Average erased a decline of more than 150 points on Friday after a speech from Federal Reserve Chairman Jerome Powell.
The 30-stock index traded just above the flatline. The S&P 500 trimmed losses to trade 0.3% lower while the Nasdaq Composite was down 0.4%.
Powell said in a speech from Jackson Hole, Wyoming that the Fed will do what it can to sustain the current economic expansion. “Our challenge now is to do what monetary policy can do to sustain the expansion so that the benefits of the strong jobs market extend to more of those still left behind, and so that inflation is centered firmly around 2 percent.”
He also noted there is no “rulebook” for the current U.S.-China trade war, adding that “fitting trade policy uncertainty into this framework is a new challenge.”
But the chairman noted the U.S. economy is doing well and is “close to both goals,” referring to price stability and inflation. The speech comes as both the Fed and Powell are under an unprecedented siege from an angry president while worries over a recession loom.