Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 3.1% to close under $1,478, its lowest finish since December, as panicked investors rushed into cash in another COVID-19 liquidation.

Wall Street resumed its historic plunge, with the Dow tumbling another 10% on growing concern that the coronavirus pandemic will mean protracted shutdowns of many nations. Expectations are increasing that record-high levels of corporate and household debt will result in bankruptcies and recession as businesses close and layoffs mount.

The US government is working on plans to support individuals and businesses in this time of unprecedented crisis, including direct payments to many or most Americans of as much as $2,000. Emergency loan facilities as well as lower interest rates and quantitative easing have already been announced.

Nonetheless, markets are in a frenzy of selling, with individuals and funds liquidating many assets in pursuit of cash. Liquid assets like gold, silver, and even Treasurys are easy targets as investors scramble to cover losses elsewhere.

The dollar surged 1.5% to a three-year high against major competitors as global Forex traders sought the perceived safety of the US currency. The rising dollar further pressured gold and other commodities priced in it for global trade by making them more expensive in other currencies.

Oil plunged further, with WTI crude dropping nearly 20% to under $22 per barrel on fears of a supply glut driven by global recession and the burgeoning price war between Russia and Saudi Arabia. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also sharply lower, with silver falling 5.8% while platinum and palladium lost 9.1% and 6%, respectively.

At the Comex close: April gold fell $47.90 to $1,477.90; May silver lost 72 cents to $11.77; April slid $60.30 to $605; and June palladium surrendered $89.80 to $1,419.80 an ounce.