Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold added 0.3% to close at a fresh 7-week high near $1,952 as skyrocketing COVID cases, a slowing labor market, and the likelihood of a Biden win pressured the dollar, stoking demand for alternative assets. The metal rallied 3.8% this week to notch its biggest weekly win in more than three months.

One day after exceeding 100,000 new daily coronavirus cases for the first time, the US reported 120,000 infections yesterday with 1,100 deaths. Average daily cases have increased 54% over the past two weeks, with records being set in 13 mostly rural states.

As the pandemic has ramped up, the pace of hiring has slowed down. The economy created 638,000 new jobs in October, the fewest since the jobs recovery began in May, according to the government's latest nonfarm payrolls report. Although the unemployment rate dipped to 7.9%, more than 10.1 million Americans remain out of work because of COVID.

Meanwhile, the highly contentious US presidential election continues to play out with the counting of mail-in and provisional ballots in several crucial swing states. As the totals roll in, odds are rising that Joe Biden will become the next president, although not without steep legal challenges from the Trump campaign.

The dollar extended its recent slide, dropping another 0.3% against major rivals on speculation that a Biden presidency will result in bigger stimulus from Congress and deeper easing from the Fed, increasing the risk of long-term inflation and currency devaluation.

The buck fell 1.7% this week for its biggest weekly dop in nearly four months. A weaker dollar typically lifts gold and other commodities by making them less expensive in other currencies.

The other precious metals were higher for the day and week. Silver rose 1.9% for a weekly rise of 8.5%, its best since early August. Platinum edged up 0.1% today for a 6% gain this week. Palladium jumped 4.9% for a weekly gain of 12.8%, its strongest since late March.

At the Comex close: December gained $4.90, at $1,951.70; December silver rose 47 cents to $25.66; January platinum slipped 50 cents to $899.40; and December palladium surged $116.40 to $2,500 an ounce.