Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dropped 1.9% to close under $1,839 on profit-taking after upbeat vaccine news and stalled stimulus negotiations lifted the dollar, undercutting demand for alternative stores of value. The metal had rallied nearly 6% over the previous six sessions.

One day after Great Britain became the first Western nation to begin a mass COVID-19 vaccination program, Canada has approved the coronavirus vaccine developed by Pfizer/BioNTech, opening the door to widespread inoculations. The US will hold FDA approval meetings for the vaccine this week.

Meanwhile, momentum toward new pandemic relief slowed in Congress as Republicans and Democrats argue. While both sides seem to agree the package should be $900 billion, they differ on who gets aid and how. The GOP wants one-time stimulus checks to individuals while Dems are holding out for extended benefits for the unemployed and support for local and state governments.

Equities retreated along with gold on the stimulus impasse, with the Dow and S&P 500 falling 0.5% and 0.8%, respectively, while the Nasdaq slid 1.8%. Tech shares were hardest hit as traders rotated from growth shares to cyclicals on hopes for a recovery next year.

The prospect of additional money flooding the economy is bullish for both stocks and gold because it encourages risk-appetite and promotes inflation.

The dollar bounced 0.2% higher against major rivals, pressuring gold and other commodities priced in it for global trade.

The other precious metals were also lower, with silver losing 3% while platinum and palladium fell 1.8% and 1.6%, respectively.

At the Comex close: February gold slid $36.40 to $1,838.50; March silver lost 75 cents to $23.99; January platinum dropped $18.50 to $1,018.50; and March palladium shed $37.30 to $2,290.60 an ounce.