(Kitco, Wednesday May 8th, 2019 ) – Gold prices are moderately lower in midday U.S. trading Wednesday. Some safe-haven demand overnight and in early U.S. action gave way to selling pressure tied to a tweet from President Trump that sounded upbeat on a U.S.-China trade deal being reached this week. June gold futures were last down $4.50 an ounce at $1,281.20. July Comex silver was last down $0.071 at $14.855 an ounce.
U.S. stock indexes were solidly lower in overnight trading but quickly recovered those losses when Trump tweeted that China is coming to Washington this week to reach an agreement with the U.S. on trade. This situation is still very much up in the air and the marketplace is still skeptical any deal will get reached this week. However, a deal cannot be ruled out, either, given Trump’s propensity to make knee-jerk moves.
World stock markets were mostly lower in anxious trading overnight. Earlier news reports said China will not agree to the U.S. demands on intellectual property laws.
In other important news Wednesday, Iran’s government said it will stop complying with some commitments it made in the United Nations nuclear deal in 2015. The U.S. pulled out of the agreement last year and put more sanctions on Iran—namely it’s oil exports. This week the U.S. sent a naval task force to the Persian Gulf, including an aircraft carrier, due to what the U.S. said were threats against the U.S. in the region.
China reported today its exports showed a surprising drop of 2.7% in April, year-on-year, compared to a 14.2% gain in March. China’s imports rose 4.0% in the same period. This economic data seems to underscore the damage to China’s economy from several months of U.S. tariffs on Chinese imports.
The key “outside markets” today see the U.S. dollar index trading near steady. Meantime, Nymex crude oil prices are firmer and trading just above $62.00 a barrel.
Posted By :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com