Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied 2.9% to close near $1,638 as shocking job losses due to COVID-19, and grim economic projections from the CBO boosted demand for safe havens.

The accelerating spread of coronavirus is driving the US economy into a sharp recession, with more than 6.6 million Americans filing for first-time unemployment benefits last week, the most ever. More than 10 million new claims have been file in the past two weeks alone.

The Congressional Budget Office said today the unemployment rate will exceed 10% in the second quarter, and GDP will contract by more than 7%, based on information available through March 27. Dallas Fed President Robert Kaplan said today the unemployment rate is likely to be 15%.

WTI crude oil rocketed nearly 25% higher on hopes for supply cuts as Russia and Saudi Arabia are reportedly on the cusp of ending their price war. President Trump tweeted that the two major producers are expected to cut output by 10 to 15 million barrels, alleviating a global supply glut that sent US benchmark oil prices 65$ lower during the first quarter.

Gold often trade in sympathy with oil as a hedge against energy-related inflation.

Led by energy shares, Wall Street rallied on the surge in crude, with the Dow and S&P 500 rising 2.2%.

Creating headwinds for gold, the dollar rose another 0.5% against major rivals as the prospect of a long and painful global contraction pushed Forex traders toward the perceived safety of the world's de facto reserve currency. A rising dollar tends to weigh on gold and other commodities by making them more expensive overseas.

The other precious metals were mostly higher, with silver and platinum rising 4.8% and 1.7% while palladium dropped 0.9%.

At the Comex close: June gold gained $46.30 to $1,637.70; May silver surged 67 cents to $14.65; July platinum added $12.20, to $730; and June palladium dropped $19.10 to $2,121.70 an ounce.