Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.4% to close above $1,484 as new measures to restore liquidity to global financial systems prompted investors to shift out of cash. The metal still dropped 2.1% for the week, pressured by mass liquidations of most assets as the growing covid-19 threat panicked markets.

The Federal Reserve announced new emergency moves to end a global dollar crunch and keep essential funds flowing to US state and local governments. In coordination with other central banks, the Fed will enhance dollar liquidity swap lines to enable more banks, governments, and corporations to service dollar-denominated debts.

Financial markets had all but seized up in the past week, creating a major cash crunch as investors liquidated virtually everything in fear of a global recession.

Equities extended their historic slide, with the Dow and S&P 500 falling another 3.2%, as traders weighed the effectiveness of the government's ability to cushion fallout from the pandemic. It was Wall Street's worst week since 2008.

The dollar eased on the new liquidity measures but remains up around 4% for the week. A strong dollar pressures gold and other commodities priced in it for global trade by making them more expensive in other currencies.

Oil tumbled further, with WTI crude losing another 21% to under $20 per barrel, on virus-related demand concerns and the ongoing price war between Russia and Saudi Arabia.

The other precious metals were higher for the day but mixed for the week. Silver rebounded 2.1% but still lost 14.6% for the week. Platinum rose 4.3% today but slid 16% this week. Palladium added 0.7% today and 2% this week.

At the Comex close: April gold gained $5.30 to $1,484.60; May silver rose 25 cents to $12.39; April platinum climbed $25.70 to $622.50; and June palladium picked up $10.80 to $1,540.20 an ounce.