Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.3% to close at $1,723 as optimism over stimulus and vaccines drove Wall Street to its best day in months, undercutting demand for safe-haven assets. The metal rose to an intraday high above $1,757 before retreating into its fifth straight down session.

The House approved the Biden administration's $1.9 trillion pandemic stimulus package on Saturday morning, passing the bill on to the Senate. Democratic lawmakers are pushing to have it signed into law by March 14, when federal unemployment benefits expire.

A vaccine from Johnson & Johnson received full approval from both the FDA and CDC over the weekend, opening the door for immediate, widespread distribution. The newest weapon in the pandemic fight requires only a single dosage, whereas the two vaccines currently in use require two shots several weeks apart.

Wall Street soared on the upbeat news. The Dow rallied 2.1% for its best day in four months, while the S&P 500 jumped 2.5%, its strongest session since last June. The Nasdaq surged 2.9% for its biggest percentage rise in a month.

Treasury yields and the dollar both rose as traders rotated toward risk, pressuring gold. Higher yields increase the opportunity cost for holding the metal; a stronger dollar makes it more expensive in other currencies, dulling overseas demand.

Also fueling risk sentiment, US manufacturing grew in February at its fastest pace since the pandemic began, with the ISM index jumping to a two year high above 60%. With the accelerating rollout of vaccines and additional stimulus in the pipeline, business leaders are increasingly optimistic about the recovery.

The other precious metals were higher, with silver adding 0.9% while platinum and palladium picked up 0.5% and 1.5%, respectively.

At the Comex close: April gold slid $5.80 to $1,723; May silver climbed 24 cents to $26.68; April platinum added $6, to $1,191.320; and June palladium rose $35.50 to $2,349 an ounce.