Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged slightly higher, adding less than 0.1% to close above $1,884 despite rising equities as investors balanced appetite for safe havens with hope that the coronavirus pandemic may have reached its peak.

U.S. stocks finished higher, with the Dow and S&P 500 both adding 3.4%, as optimism grew that the economy may re-open sooner rather than later. The flattening of infection and fatality curves in Europe this week prompted President Trump to say later yesterday that we might reaching the top of the curve here.

Supporting stocks and gold, Congress is working on another bailout package of $1 trillion to support individuals and small businesses affect by widespread shutdowns in commerce. The new stimulus follows $2.2 trillion approved late last month and the promise of unlimited quantitative easing from the Federal Reserve.

The minutes from the Fed's March 15 meeting, released today, projected two possible scenarios for the economy. The optimistic one has recovery beginning in Q3 of this year; the pessimistic forecast expects a recession to last into 2021. By slashing interest rates by a full point and launching unprecedented amounts of QE for the first time since the financial crisis of 2008, the central bank apparently put its money on the second scenario.

Former Fed Chair Ben Bernanke, who helped guide the economy out of the financial crisis, said yesterday that the economy could shrink by 30% this quarter and take a couple years to regain its footing. Pimco, one of the world's biggest investment houses, also projects 30% contraction this quarter, leading to 5% overall contraction for the year.

The other precious metals were mostly lower, with silver and platinum dropping 1.8% and 1.5%, respectively, while palladium inched up less than 0.1%.

At the Comex close: June gold added 60 cents, to $1,684.30; May silver dropped 28 cents to $15.21; July platinum fell $11.40 to $733.60; and June palladium crept up 90 cents to $2,095.20 an ounce.