Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.5% to close at $1,810 as rising coronavirus cases, a falling dollar, and hopes for additional stimulus boosted demand for alternative stores of value. The metal ended the week 0.5% higher for its sixth straight weekly win.

The resurgence of COVID-19 in the US continues to drive the markets, raising concerns that the nascent economic recovery of May and June could be unsustainable. New cases in the US jumped to more than 70,000 overnight to set a record, with 14,000 in Florida alone. Texas reported 10,000 new cases in the past 24 hours. California has returned to lockdowns on businesses.

Consumer sentiment tumbled this month because of rising virus fears. The University of Michigan index fell to 73.2, close to the lowest level of the pandemic, giving up almost all the gains of the past two months.

Wall Street was mixed, caught between anxiety about further closures and hopes for additional fiscal stimulus to revive the economy. The Dow fell around 0.2% while the S&P 500 and Nasdaq each rose by that amount. Treasury yields fell as traders shifted back toward safety.

The dollar dropped 0.4% against major rivals led by the euro, which rallied to a four-month high as the EU convenes to map out a comprehensive recovery plan for the region. A falling dollar lifts gold and other commodities priced in it for global trade by making them more expensive overseas.

The other precious metals were higher for the day and week. Silver rose 1% today and 3.7% this week. Platinum climbed 1.5% for pull out a weekly increase of 0.4%. Palladium added 2.3% today and 3.9%, this week.

At the Comex close: August gold gained $9.70 to $1,810; September silver climbed 19 cents to $19.76; October platinum added $12.60, to $849.60; and September palladium rose $6.60 to $2,071.70 an ounce.