Both gold and silver traded sharply lower, before recovering and closing in positive territory. Gold futures basis the most active June Comex contract traded to an intraday low of $1284.90 before recovering. As of 4:00 PM Eastern standard time gold futures are currently up $2.20 and fixed at $1297.50.
Silver also traded under strong selling pressure in early morning trading breaking below $15.00 per ounce after hitting an intraday low of $14.86. However just as in the case of gold, silver staged an impressive recovery and is currently up just over $0.02 currently fixed at $15.13.
Market sentiment for the precious metals is based upon recent optimism that the current negotiations which began yesterday in Washington between the Chinese delegation and the United States will bring the two superpowers closer to a resolution ending their current trade dispute.
According to Jim Wyckoff of Kitco News, “Traders and investors worldwide are still generally upbeat, due in part to optimism the U.S. and China will soon reach a trade deal. Reports said President Trump will today meet with Chinese Vice Premier Liu He in Washington. He is part of the Chinese trade delegation in town. Reports say the U.S. and China are very close to a trade deal. The marketplace is wondering if Trump will today mention a summit meeting with Chinese President Xi Jinping to seal the trade deal.”
Traders are also being extremely cautious as they await the release of the U.S. Labor Department’s trade report on Friday. Currently analysts have predicted that the Labor Department’s numbers will come in at 175,000 new jobs added last month.
Palladium and Platinum Ratio Narrows
For the second day in a row there has been a huge convergence as prices between the two sister metals; platinum and palladium narrow. Platinum prices soared above $900 an ounce for the first time since May 2018, with futures up 3.24%, and after factoring in today’s gain of $28.50 current pricing is at $902.70. At the same time palladium is experiencing another strong decline, and after factoring today’s 3.2% ($44.10) decline is currently fixed at $1334 per troy ounce. Last week resulted in a tremendous price decline in palladium in which over a period of two days the precious white metal gave up over $200, platinum prices in essence closed unchanged during this same week.
Wishing you as always, good trading,