Gold Holds Above $1,200 Before Labor Day Weekend | August 31
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Gold Holds Above $1,200 Before Labor Day Weekend

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Gold Holds Above $1,200 Before Labor Day Weekend

The gold price was up modestly Friday but pared earlier gains, trading at $1,202/oz. Gold prices in Shanghai dipped to 266 yuan per gram ($1,210 per ounce).

U.S. markets will be closed Monday in observance of the Labor Day holiday.

Spot silver was also just barely above unchanged this morning at $14.53/oz.

Copper prices lost another 1.2%, slumping to just $2.68 per pound.

Platinum and palladium were each back where they started yesterday, trading at $790/oz and $975/oz, respectively.

Trump Dominates Headlines

President Trump grabbed the media's attention to end the week—but this time it was for a series of economic proposals rather than any "off-the-field" scandals.

Trump image ©Gage Skidmore

Trump told Bloomberg reporters that he is considering changes to how investments are taxed. His plan may include indexing capital gains taxes to inflation.

This would undoubtedly cut the tax bill for many Americans who sell stocks, real estate, or other investments. More details are expected in the coming weeks.

The president is also planning an executive order that would impact how people save for retirement. The proposal would amend the rules governing how long funds can be kept in a retirement account like a 401(k) before they must be withdrawn.

Beyond these domestic concerns, President Trump also reiterated that he may pull the U.S. out of the World Trade Organization (WTO). This comes in addition to yet another round of new tariffs the White House plans to impose against China.

Commodity markets were jittery following the wide-ranging interview. Crude oil prices fell: WTI crude dipped just barely below $70 per barrel and Brent crude fell to about $77.50/bbl. October crude futures in Shanghai traded just shy of $74/bbl (505.6 yuan per barrel).

Trade War Persists

Trade fears dragged stocks lower for the second straight session as we head into the long weekend.

September has proven to be historically bad for stocks—and, in turn, also usually a good month for gold. Analysts still overwhelmingly predict that the Fed will raise interest rates at its September meeting, as well.

Markets got another reminder that the trade war is not exclusively focused on China. Trump has warned that he wants the European Union to do more than just drop its tariffs on American automobiles, an example from an earlier agreement.

Naturally, the EU is issuing its own threats, vowing to push back against the U.S. if Trump seeks changes to the handshake deal he reached with EU Commission President Jean-Claude Juncker.

European indices were down as much as 1.0% Friday morning.

Bonds saw fresh safe-haven demand, pushing the 10-year Treasury yield three basis points lower to 2.83%.

Nonetheless, the USD was up 0.25% to 94.9 on the DXY index.

This knocked the euro down 0.33% to $1.163 while the British pound lost 0.3% to $1.297. The Japanese yen also benefited from some safe-haven flight, firming up to ¥110.8 per dollar.

Stocks in Tokyo ended about flat last night. The Hang Seng index in Hong Kong lost nearly 1.0% while shares in Shanghai closed down 0.5%.

The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.

About the Author

Everett Millman

Everett Millman

Analyst, Commodities and Finance
Managing Editor

Everett has been the head content writer and market analyst at Gainesville Coins since 2013. He has a background in History and is deeply interested in how gold and silver have historically fit into the financial system.

In addition to blogging, Everett's work has been featured in CoinWeek, Advisor Perspectives, Wealth Management, Activist Post, and has been referenced by the Washington Post.

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