Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rebounded 2.6% to close near $1,526 after new emergency measures by the Fed to increase liquidity enticed bargain-hunters back into the market.

The Federal Reserve dusted off another stimulus program from the financial crisis, announcing that it will buy short-term corporate debt to pump more money into credit markets that have all but seized up because of the coronavirus pandemic.

Following Sunday's announcement of an emergency rate cut and $700 billion in quantitative easing, the new move shows the Fed's willingness use all tools to prevent a full-scale meltdown of the US economy.

Most economist see a recession as a foregone conclusion as businesses close and layoffs ramp up, with the only questions being how deep and how long.

Stocks rebounded sharply after plunging around 12% yesterday as traders cheered the new liquidity measures. The Dow added 5.2% while the S&P 500 and Nasdaq picked up 6% and 6.2%, respectively.

Capping gold's rise, the dollar jumped 1.5%, with business and investors seeking out the most liquid. A stronger dollar pressures gold by making it more expensive in other currencies.

The other precious metals were mixed, with silver and palladium dropping 2.5% and 0.3%, respectively, while platinum rose 1.2%.

At the Comex close: April gold gained $39.30 to $1,525.80; May silver fell 32 cents to $12.50; April platinum added $7.60, to $665.30; and June palladium dropped $4.50 to $1,509.60 an ounce.