Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinExtending last week's rally, gold climbed 0.8% to close at a one-month high above $1,766 as rising COVID-19 cases and central bank easing weakened the dollar and boosted demand for alternative stores of value. The metal traded as high as $1,779 before sliding back on a late-session uptick in stocks.

The World Health Organization reported its biggest one-day rise in coronavirus cases on Sunday, with more than 180,000 new infections in 24 hours. Brazil and the US led the way with more than 54,700 and 36,600 cases, respectively. Percentages of positive tests and hospitalizations also rose.

Global cases of COVID-19 now top 9 million with 2.3 million in the US. Half of US states report rising trends in infections.

Boston Federal Reserve President Eric Rosengren, an influential member the FOMC, warned on Friday that the continued spread could hamper the US economic recovery, and that more fiscal and monetary stimulus will likely be needed. is

To lift the economy out of the deepest contraction since the Great Depression, the Fed has already pledged unlimited quantitative easing, slashed interest rates to near zero, and promised to keep them there through 2022. These policy moves are bullish for gold because they debase the dollar and boost the risk of long-term inflation.

The dollar fell 0.6% against major rivals, lifting gold and other commodities priced in it for global trade by making them less expensive overseas.

Oil prices increased on the weaker dollar and reduced output by major producers, with WTI picking up 2.1%. Gold often trade in sympathy with oil as a hedge against energy-related inflation.

Capping gold's gains, Wall Street staged a late session rally behind surging tech stocks. The Nasdaq rose 1% while the Dow and S&P 500 added half as much.

The other precious were also higher, with silver adding 0.3% while platinum and palladium climbed 2% and 1.8%, respectively.

At the Comex close: August gold gained $13.40 to $1,766.40; July silver added 5 cents, to $17.90; July platinum climbed $16.40 to $843.70; and September palladium rose $33.70 to $1,942.10 an ounce.