Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.3% to close under $1,689 as a stronger dollar pulled investors way from alternative store of value.

The dollar index climbed nearly 0.5% as foreign exchange traders moved into safe-haven currencies after weak global economic data triggered expectations of deeper monetary easing in the Eurozone and UK. The yen also rallied, jumping rose to more than a seven year high against the euro.

Business activity in the Europe and the UK tumbled almost to a standstill as COVID-19 lockdowns closed factories, stores, and restaurants. Eurozone retail sales fell by the most on record in March. British construction suffered its biggest drop ever.

A rising dollar often pressures gold and other commodities priced in it for global trade by making them more expensive in other currencies.

Adding to pressure on gold, the world's largest bullion refineries announced they are restoring operations after six weeks of full or partial coronavirus closures. Switzerland's Valcambi and Argor-Heraeus, and South Africa's Rand Refinery will return to full production, easing fears of bullion shortages that have helped to lift prices. Together they account for around one-third of global production.

The other precious metals were mostly lower, with silver platinum dropping 0.6% and 2.5% while palladium edged up 0.1%.

At the Comex close: June gold lost $22.10 to $1,688.50; July silver dropped and dime to $15.02; July platinum fell $19.20 to $765.50; and June palladium added $2.40 to $1,758.90 an ounce.