Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.4% to close under $1,896 after upbeat US data and improving prospects for a stimulus deal boosted stocks and undercut demand for safe-haven assets. The metal ended September with a loss of 4.2% but still rose 5.2% for the third quarter, marking its eighth consecutive quarterly gain.

ADP reported private payrolls added 749,000 jobs in September, beating forecasts and suggesting the labor market may be re-accelerating after a summer slowdown due to resurgent COVID-19 cases.

Separately, the Chicago PMI showed business conditions surged this month to the highest level in nearly two years, suggesting that manufacturing in this industry-heavy region in rebounding. While the PMI reflects the belief among surveyed executives that business is improving, it does not quantify the amount of improvement or the level of output, which remains well below pre-pandemic levels.

Wall Street jumped on the data, with the Dow adding 1.2% while the S&P 500 and Nasdaq both picked up 0.8%. Further fueling risk appetite, Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin both expressed optimism that a breakthrough in negotiations on new stimulus package could happen soon.

The dollar was little changed, dipping less than 0.1% to close the month with a gain of 1.8%. A stronger dollar typically weighs on gold and other commodities by making them more expensive in other currencies, dulling demand overseas.

The other precious metals were mixed for the day and month. Silver dropped nearly 4% today and 18% for the month, although it still rose 26% for the quarter. Platinum fell 1.3% for a monthly decline of 5%. Palladium was essentially flat, dipping less than 0.1% for the day, while gaining 2.3% this month.

At the Comex close: December gold slipped $7.70 to $1,895.50; December silver dropped 95 cents to $23.49; January platinum added $11.50, to $909.20; and December palladium inched down $1.20 to $2,330.50 an ounce.