Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.6% to close above $1,962 as softer US data cast a pall over the recovery, stifling risk appetite and boosting demand for safe havens. The metal notched its second straight weekly increase of 0.7%.

The Conference Board's index of Leading Economic Indicators slowed for a second month, rising 1.2% in August after 2% in July and 3.1% in June. A weighted gauge of 10 indicators, the LEI signals fluctuations in business cycles. It's slowing suggests the summer's rebound may be stalling out.

The US current account deficit surged in Q2, according to the Commerce Dept, as the spring's pandemic closures weighed far more heavily on exports more than imports. Representing 3.5% of GDP for the period, it was the biggest slice of the economy since Q4 of 2008. Large deficits typically create headwinds for GDP growth and can undermine investor confidence.

On a more positive note, consumer sentiment inched up in September, according to the University of Michigan survey, rising to 78.9 from 74.1 in August. But the survey also showed consumers becoming more pessimistic about their finances following the expiration of Federal unemployment benefits at the end of July. Income uncertainty in Q3 and Q4 may curtail consumer spending, which constitutes around 70% of GDP.

Wall Street rolled back on the downbeat data, with the Dow falling 0.6% and the S&P 500 0.9%. The tech-heavy Nasdaq fell 1.1%. President Trump's order banning TikTok and WeChat downloads added to economic tensions with China and pressured the tech sector.

The dollar fell 0.2% against major rivals led by the yen, which surged to a seven-week high on safe-haven inflows. Loose monetary policies from the Fed, uncertainty over US elections, and rising China trade tensions all weighed on the buck. A weaker dollar supports gold and other commodities by making them less expensive overseas.

The other precious metals were higher for the day and mixed for the week. Silver added 0.1% for a weekly rise of 1%. Platinum recouped 0.8% but still dipped 0.1% for the week. Palladium gained 2% today and 2.3% this week.

At the Comex close: December gold gained $12.20 to $1,962.10; December silver picked up 3 cents $27.13; October platinum added $7.60, to $938.50; and December palladium climbed $45.50 to $2,380.80 an ounce.