Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied for a fifth session, rising 0.9% to close near $1,885 as weaker stocks and a bitcoin selloff sent investors scurrying for alternative assets. The metal the pulled back into the low $1,870s after minutes from the Fed's April meeting showed some members were open to reductions in quantitative easing.

The European Central Banks warned that risks of financial instability are rising in the common market because of the uneven impact of Covid and the ongoing need for fiscal support in damaged economies. Abnormally high corporate debt may lead to rising insolvency, while over-inflated valuations may lead to price when stimulus is removed.

Risk sentiment fell on the caution, with the Dow and S&P 500 losing 0.5% and 0.5%, respectively, while the Global Dow dropped 1.1%.

Separately, bitcoin crashed as much as 40% after China announced a ban on digital currencies in conducting business. Saying crytocurrencies are not real currencies, the People's Bank of China will prohibit China's financial institutions cannot facilitate their use in transactions.

Gold rallied as traders shifted out of stocks and bitcoin ahead of the Fed's release of the minutes from it last meeting. The metal then gave up some of the day's gains, dropping as much as $15 after several Fed members reportedly stated that they were open to discussing reductions in quantitative easing, the Fed's $120 billion per month bond buying program.

The other precious metals were lower, with silver and palladium dropping 1.1% while fell 2.3%.

At the Comex close: June gold added $16.90 to $1,884.90; July silver lost 32 cents to $28.01; July platinum slid $23.60 to $1,197; and June palladium slipped $18.30 $2,871.50 an ounce.