The gold and silver ratio travelled between 83.87 and 84.66 with a bullish bias as gold surges on. However, Gold for December delivery on Comex dropped $9.60, or 0.6%, to settle at $1,506.20 an ounce.
While December Silver was losing 3.5 cents, or 0.2%, to $17.884 an ounce. The futures were marking their first losses for four sessions following the Federal Reserve earlier in the week disappointing the bears with a hawkish rate cut and unlikely to cut as immediately as in the next few months as first anticipated.
A data-dependent Fed was not committing to further rate cuts and markets will now be looking closely to progress with US/Sino trade talks over the next few weeks.
Trade talks are now critical again
In an article in the South China Morning Post, Michael Pillsbury, Donald Trump’s adviser on China, was reported saying that the president is ready to escalate the trade war if a deal is not agreed soon – a prospect that will kick off a risk-off environment, cap US stocks that are testing summer highs again and support precious metals higher, and likely force the hand of the Fed yet again.
