Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.7% to close above $1,745 as Fed Chair Jerome Powell pledged yet more monetary easing to stimulate the economy, undercutting the dollar and lifting alternative stores of value.

Speaking before the Senate Banking Committee, Powell emphasized that the Federal Reserve stands ready to inject yet more money into the economy to pull it out of the deepest contraction since the Great Depression.

Separately, Boston Fed President Eric Rosengren said today the unemployment is projected to remain in double-digits through the end of the year despite the reopening of the economy.

US central bankers have already slashed interest rates to near zero and promised unlimited quantitative easing (QE) to support the economy. In addition, they have committed to backstopping $500 billion in rescue loans for business while creating other lending facilities.

Tantamount to printing money, QE floods the economy with cheap cash to promote lending and spending, albeit at the risk of debasing the dollar and increasing long-term inflation. Gold rallied to its all-time high of $1,911 in 2011 after three rounds of limited QE following the financial crisis.

The dollar fell 0.3% against major rivals on the prospect of deeper easing, supporting gold and other commodities priced in it for global trade by making them less expensive in other currencies.

The other precious metals were also higher, with silver climbing 2.5% while platinum and palladium rose 2.3% and 2.4%, respectively.

At the Comex close: June gold gained $11.20 to $1,745.60; July silver picked up 43 cents to $17.90; July platinum added $20.30, to $889.60; June picked up $47.60 to $2,074.70 an ounce.