Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinExtending last week's 7% rally, gold rose another 0.5% to close above $1,761 on safe-haven inflows as weak corporate earnings undercut equities. It was the metal's highest finish since October 2012.

With the US economy on lockdown because of COVID-19, investors braced for the start of a corporate earnings season that promises to be extremely weak. The Dow fell 1.4% and the S&P 500 1% while the Nasdaq rose from losses to a 0.4% gain behind strong performances by Amazon and other tech firms.

Weaker oil also weighed on energy shares as concerns about global demand outweighed an agreement by OPEC, Russia, and the US to cut production by 9.7 million barrels starting in May. WTI crude fell 0.5% to $22.65 per barrel.

The dollar edged down 0.1% against major rivals as traders speculated that the Fed would provide yet more easing as the coronavirus-driven recession drags on.

The central bank has already taken extreme steps like slashing rates to near zero and promising unlimited quantitative easing, both of which devalue the dollar by radically increasing the money supply. Gold thrives in this environment as hedge against loss of purchasing power.

The other precious metals were mixed, with silver dropping 3.2% while platinum and palladium rose 0.2% and 2.9%, respectively.

At the Comex close: June gold gained $8.60 to$1,761.40; May silver fell 52 cents to $15.54; July platinum added $1.20, to $749.80; and June palladium climbed $60.70 to $2,170.70 an ounce.