Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.5% to close near $1,879 as rising jobless claims and optimism about new stimulus weakened the dollar and spurred bargain-hunting after three down sessions.

Weekly jobless claims rose unexpectedly to 870,000 last week, the Labor Department reported, suggesting the labor market is losing momentum as fiscal stimulus fades and COVID-19 cases increase. More than 26 million Americans are now receiving ongoing unemployment benefits, well above the peak during the Great Recession in 2009.

Meanwhile, prospects for new stimulus turned brighter after Rep. Richard Neal, Chair of the Ways and Means Committee, said the House is putting together a new $2.2 trillion aid package that could be voted on as soon as next week.

The dollar reversed earlier gains to slipped 0.1% against major rivals as Forex traders speculated that the stalled aid package might be passed. A falling dollar supports gold and other commodities by making them less expensive n other currencies.

The other precious metals were mixed, with silver rising 0.4% while platinum and palladium dropped 0.6% and 1.4%, respectively.

At the Comex close: December gold added $8.50 to $1,876.90; December silver rose 9 cents to $23.20; October platinum dropped $5 to $838; and December palladium shed $31.40 to $2,226.90 an ounce.