Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up 0.1% to close above $1,811 despite a sharp rebound in equities as renewed worries about Covid and global growth lifted demand for safe havens. The metal rallied to just under $1,826 earlier in the session before pulling back on profit-taking.

All three major US stock indexes rose sharply as bargain-hunters returned to the market after yesterday's selloff. The Dow and S&P 500 each rebounded 1.7% while the Nasdaq added 1.8%.

The aggressive Delta variant is driving Covid-19 cases and deaths much higher around the world, clouding the outlook for global economic growth. In addition, tensions between the US and China are escalating over the Chinese hack of Microsoft email server software earlier this year. And the prospects for a large US infrastructure spending bill have dimmed because of stubborn partisanship in Congress.

These factors combined to hammer stocks yesterday as traders shed risk and piled US government bonds, driving benchmark 10-year Treasury yields under 1.2%.

The pendulum swung back somewhat today, with the Dow making up much of its 2.1% tumble as traders felt the selloff was overdone despite worries about growth and the pandemic.

Yet the appetite for safety remains. The dollar added 0.1% as Forex traders shied away from riskier currencies. Treasury yields ticked up slightly but remained near five-month lows. And the gold price firmed despite higher yields and a stronger dollar, which tend to weigh on the metal by increasing the costs for holding it.

The other precious metals were mostly lower, with silver and platinum dropping 0.6% each while palladium added 1.8%.

At the Comex close: August gold picked up $2.20 to $1,811.40; July silver lost 15 cents to $25; October platinum slipped $6.20 to $1,065.20; and September palladium climbed $47.70 to $2,640.40 an ounce.