Silver 1000-oz Futures Market News and Commentary
Dec Comex gold (GCZ19) on Monday closed down -12.0 (-0.79%), and Sep silver (SIU19) closed down -0.182 (-1.06%). Metals prices moved lower Monday as an easing of U.S./China trade tensions fueled a rally in stocks that curbed the safe-haven demand for precious metals. Trade tensions eased Monday and the dollar rose after U.S. Commerce Secretary Ross said Monday that China's Huawei Technologies has been granted a 90-day extension to do business in the U.S. Also, White House economic director Kudlow said on Sunday that recent phone calls between U.S. and Chinese trade negotiators have been "positive." The yuan on Monday fell -0.11% to 7.0507 yuan/USD, just above last Tuesday's 11-1/4 year low of 7.0726 yuan/USD. On the positive side for gold was Monday's downward revision to Eurozone July CPI to a 2-1/2 year low of 1.0% y/y from 1.1% y/y. The weak inflation picture prompted ECB Governing Council member Muller to say Monday that "Eurozone inflation clearly trails the target, and this may mean the ECB will have to add stimulus." Additional stimulus from the ECB may further boost demand for gold as a store of wealth. Ongoing trade and geopolitical tensions, along with dovish central bank expectations, have sparked fund buying of precious metals as long gold positions in ETFs rose to a 6-1/4 year high last Friday and long silver positions in ETFs rose to a new record high last Friday.