Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 1.1% to close above $1,903 as the dollar and equities weakened further, lifting demand for alternative assets. The metal has rebounded 2% in the past two sessions after dropping nearly 5% last week on dollar strength.

The dollar fell 0.4% against major rivals, repeating yesterday's slide, as Forex traders shifted back toward the euro, Swiss franc, and British pound. Upbeat data on US consumer confidence, which rose this month by the most in 17 years, reduced the safe-haven appeal that recent rallied the buck to a two-month high.

A falling dollar tends to support gold and other commodities priced in it for global trade by making them less expensive in other currencies.

Further pressuring the dollar and lifting gold, Speaker Nancy Pelosi said today that negotiations with Treasury Secretary Steven Mnuchin on a new stimulus package may be completed this week. The new $2.2 trillion relief bill released by the House yesterday will aid unemployed Americans and businesses damaged by COVID-19. But the additional stimulus also has the potential to ignite inflation and depreciate the dollar, both of which are viewed as reasons to own gold.

Wall Street pulled back with the Dow and S&P 500 dropping 0.5% while the Nasdaq slipped 0.3% as investors took profits from a three-day rally.

The other precious metals were also higher, with silver adding 3.6% while platinum and palladium rose 0.6% and 2.5%, respectively.

At the Comex close: December gold gained $20.90 to $1,903.20; December silver jumped 84 cents to $24.45; October platinum rose $4.90 to $887.50; and December palladium climbed $58.20 to $2,329.30 an ounce.