Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.9% to close above $1,882 after strong economic data in China and the prospect of new fiscal stimulus in the US undercut the dollar, lifting demand for alternative stores of value.

China's national office for statistics reported industrial profits grew in August for the fourth straight month, suggesting that the world's second largest economy is recovering from pandemic shutdowns.

Meanwhile, Nancy Pelosi said over the weekend that a deal on additional fiscal stimulus could be reached soon. With the US recovery flagging with the expiration of earlier stimulus, the House has approved $2.2 trillion in new aid to unemployed Americans and businesses harmed by coronavirus closures. A compromise bill could be approved in early October, according to reports.

Wall Street rebounded on the news, with the Dow adding 1.5% while the S&P 500 and Nasdaq rose 1.6% and 1.9%, respectively. The Global Dow rose 2%.

After rising 1.8% last week, the dollar retreated 0.4% as traders shifted back toward riskier assets. A falling dollar supports gold and other commodities priced in it for global trade by making them less expensive overseas.

Ongoing economic and geopolitical certainty also fed safe-haven demand for gold despite today's uptick in risk sentiment. Tensions with China rose after a federal judge overturned the Trump administration's ban of TikTok, the Chinese social media platform that has become a battleground for Sino-US trade relations.

The other precious metals were also higher, with silver climbing 2.2% while platinum and palladium rose 4.8% and 2.2%, respectively.

At the Comex close: December picked up rose $16 to$1,882.30; December silver gained 51 cents to $23.60; October platinum jumped $40.60 to $882.60; and December palladium added $49.30, to $2,271.50 an ounce.