Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.2% to close under $1,908 as rising COVID-19 cases and stronger equities lifted the dollar, undercutting demand for alternative stores of value.

A resurgence of the coronavirus in Europe is raising concerns that new restrictions on commerce may be just around the corner, undermining the global recovery. With new cases in the UK reaching the highest levels May, PM Boris Johnson is instituting new rules to curb the spread, including pub and restaurant curfews and more stringent requirements on wearing masks.

France is also implementing new measures, with more than half the country now designated as "red zones" where the virus is progressing epidemically with more than 50 positive cases per 100,000 inhabitants. And new infections in Spain have spiked above 10,000 per day, prompting Madrid to impose partial lockdowns and call in the army for assistance.

Meanwhile, new daily cases in the US rose above 52,000, the most in more than five weeks, while the death toll has surpassed 200,000.

The dollar extended its recent rally, rising another 0.3% as Forex traders have shifted from euros and pounds to the perceived safety of the US currency. A stronger dollar weighs on gold and other commodities by making them more expensive overseas.

After yesterday's dramatic selloff, US equity indexes rebounded somewhat as bargain-hunters swept in despite rising COVID cases and the lack of new fiscal stimulus from Congress. The Dow added of 0.2% and the S%P 500 0.6% while the tech-heavy Nasdaq jumped 1.2%, led by a 4% leap by Amazon.

The other precious metals were mostly lower, with silver adding 0.6% while platinum and palladium fell 2.1% and 2.3%, respectively.

At the Comex close: December gold dropped $3 to $1,907.60; December silver rose 14 cents to 24.52; October platinum slid $18.17 to $857.40; and December palladium lost $52.10 to $2,229.60 an ounce.