Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.7% to close at a one-week low under $1,862 as surging covid cases and diminished stimulus hopes lifted the dollar, undercutting demand for alternative store of value. It was the metal's third straight losing session.

The pandemic death toll passed 250,000 in the US yesterday as daily cases and hospitalizations continued to rise, prompting new restrictions in many parts of the country. New York City closed its schools again and the CDC issued a warning against traveling for the Thanksgiving holiday.

The hotly spreading virus is taking its toll on employment. First-time jobless filings though states rose last week for the first time in month, reaching more 742,000, while federal claims rose 233,000, according to the Labor Department.

Dallas Fed President Rob Kaplan warned today that the covid-hobbled economy could slide into a double-dip recession before vaccines are widely available. Several Fed officials, including Chair Jerome Powell, have recently urged Congress to provide additional fiscal stimulus to prevent deeper damage.

But many analysts see another stimulus package as increasingly unlikely in the near term. Vaccine announcements from Pfiser/BioNTech and Moderna in recent days have reduced pressure on the Senate to pass another aid package, and President Trump's focus remains elsewhere.

Ending a five-session losing streak, the dollar added 0.2% against major rivals as Forex traders grew anxious about the pandemic and discounted additional fiscal spending by the government. A rising dollar typically weighs on gold and other commodities by making them more expensive in other currencies.

The other precious metals were mostly lower, with silver and palladium dropping 1.6% and 1.5%, respectively, while platinum edged up 0.1%.

At the Comex close: December gold fell $12.40 to $1,861.50; December silver dropped 40 cents to $24.05; January platinum dipped 80 cents to $951.50; and December palladium lost $34.20 to $2,319.80 an ounce.