Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinRising for a second session, gold added 0.6% to close near $1,955 despite rebounding equities after an improving outlook for the Eurozone weakened the dollar, boosting demand for alternative stores of value.

The European Central Bank is expected to revise its GDP forecasts higher when it meets tomorrow, reflecting a positive view of economic recovery from the coronavirus pandemic. Monetary policy is projected to be supportive of the euro and deeper monetary easing is unlikely, according to reports.

The dollar fell nearly 0.3% from a four-week high, pressured by strength in the euro following the optimistic expectations for the region. Commodity currencies like the New Zealand and Australian dollar, which are often read as a gauge of risk appetite, also rose sharply against the buck.

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

Gold's gains came despite a rise in risk appetite as Wall Street rebounded on bargain-hunting after a three-day selloff. The Dow added 1.6% while the S&P 500 rose 2%. One day after plunging more than 4% into correction territory, the tech-heavy Nasdaq recouped 2.7%, led by behemoths like Apple, Microsoft, and Amazon, which have benefited from the new stay-at-home economy created by COVID-19.

The other precious metals were also higher, with silver picking up 0.3% while platinum and palladium rose 1.6% and 0.5%, respectively.

At the Comex close: December gold gained $11.70 to $1,954.90; December silver added 9 cents, to $27.08; October platinum climbed $14.60 to $924.90; and December palladium picked up $12.40 to $2,318.20 an ounce.