Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.6% to close above $1,810 despite a rebound in equities and yields as concerns about the global recovery weakened the dollar, boosting alternative stores of value. The metal rallied 1.5% for the week, scoring its third straight weekly win and biggest since late May.

All three major US indexes rebounded sharply today as bargain-hunters swept into the market, with the Dow adding 1.3% while the S&P 500 and Nasdaq picked up 0.9% and 1.1%, respectively. Worries that the hyper-aggressive Delta variant of Covid-19 may slow global growth prompted investors to take equity profits off the table yesterday. Today the pendulum swung in the other direction.

After falling as low as 1.25% in the previous session, benchmark 10-year Treasury yields rebounded modestly to 1.35% as some investors shifted back into oversold stocks. Rising yields are typically a headwind for gold because they increase the opportunity cost for hold it instead of bonds as a safe-haven asset.

Still, the dollar fell 0.3% against major rivals on lingering concerns about growth after China announced deeper monetary easing. A falling dollar supports gold and other commodities by making them less expensive in other currencies, boosting overseas demand.

The other precious metals were higher for the day but mixed for the week. Silver picked up 1% for the day and but lost 1% for the week. Platinum rose 2% today and 0.7% this week. Palladium added under 0.1% today and a weekly increase of 0.8%.

At the Comex close: August gold gained $10.40 to $1,810.60; September silver added a quarter, $26.23; October platinum rose $21.20 to $1,095.70; and September palladium edged up $1.80 to $2,812 an ounce.