Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.2% to close at a one-week high above $1,837 as the dollar fell on weak US data and rising stimulus hopes, lifting demand for alternative stores of value. It was the metal's third straight winning session.

Small business owners are increasingly pessimistic about their prospects despite the accelerating roll out of vaccines, according to the National Federation of Independent Business, the country's biggest lobbying group for small businesses.

The organization's optimism index fell to the lowest level of the pandemic in January. The share of business owners expecting condition to improve in the next six months fell to the lowest level in seven years.

Separately, a government survey showed businesses sharply cut back on hiring in December, with layoffs escalating amid pandemic closures.

Labor market concerns are increasing the pressure on Congress to move forward quickly with the $1.9 trillion pandemic relief bill proposed by the Biden administration. After securing a filibuster-proof path through the Senate via a procedural rule known as budget reconciliation, Democrats now expect the bill to be signed into law by mid-March.

The dollar fell 0.5% again major rivals as traders speculate that the size of the stimulus, along with ongoing easing from the Fed, will add to structural imbalances in the economy and weaken the currency in the longer term. A weaker dollar supports gold and other commodities priced in it for global trade by making them less expensive in other currencies, strengthening overseas demand.

The other precious metals were mixed, with silver and palladium sliding 0.6% and 0.7%, respectively, while platinum rose 1.6%.

At the Comex close: April gold gained $3.30 to $1,837.50; March silver dropped 17 cents to $27.40; April platinum rose $19.20 to $1,194.40; and March palladium slid $16.20 to $2,320.60 an ounce.