Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.7% to close under $1,706 as optimism over the reopening of global economies and a possible coronavirus vaccine boosted stock markets and eroded demand for safe havens.

As COVID-19 closures are gradually lifted in large parts of the US and overseas, risk appetite is also rising as investors contemplate a post-pandemic world. Air travel in the US and Germany is beginning the rebound, and travel restrictions are being eased in Spain and other Eurozone nations.

Americans felt comfortable to gather in larger grouped over the Memorial Day weekend, with beaches, restaurants, and stores reopening in limited ways in various parts of the country.

Meanwhile, more drug companies are reporting progress toward a possible vaccine. Noravax and Merck have started human trials, raising the number of contenders in clinical evaluation to 10, according to Fundstrat.

Equities rallied sharply on the upbeat sentiment, with the Dow and Global Dow surging 2.8%. Meanwhile Treasury prices and dollar fell alongside gold and as traders shifted out of safe-haven assets.

The other precious metals were mixed, with silver and platinum dropping 0.6% and 1.5%, respectively, while palladium rose 0.6%.

At the Comex close: June gold fell $29.90 to $1,705.60; July silver slid a dime to $17.60; July platinum lost $14.10 to $873.30; and June palladium added $12, to $1,989.10 an ounce.