Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 1.3% to close above $1,727 as dismal US economic data and a huge expansion of Eurozone stimulus weakened the dollar, boosting demand for alternative stores of value.

The European Central Bank nearly doubled its commitment to quantitative easing, boosting its Pandemic Emergency Purchase Program by another $675 billion and extending it until June 2021. The bond purchases come atop a huge EU fiscal plan and ambitious German spending to reboot the region's economy.

The dollar fell 0.5% as the euro rallied behind the bold moves by the ECB. A falling dollar supports gold and other commodities priced in it for global trade by making them less expensive in other currencies.

Fueling new worries about the COVID recession, the US trade deficit jumped nearly 17% in April to more than $49 billion as exports tumbled 20% to a 10-year low. The widening trade gap will further weigh on Q2 GDP, which economists are projecting to decline at an annual rate of 27%.

Another 2.4 million Americans applied for first-time unemployment benefits last week through state and federal relief programs marking the 11th straight week with more than 2 million filings. Tomorrow's release of the federal nonfarm payrolls report for May is expected to reflect an unemployment rate above 19%.

The other precious metals were mixed, with silver and palladium sliding 0.6% and 1.8%, respectively, while platinum added 0.5%.

At the Comex close: August gold surged $22.60 to $1,727.40; July silver dipped a dime to $18.06; July platinum added $4.50, to $865; and September palladium fell $35.40 to $1,922.80 an ounce.