Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.6% to close above $1,872 as the deepening pandemic damped risk appetite and new hopes for fiscal stimulus lifted demand for alternative stores of value. The metal ended the week down 0.7% for its second straight weekly loss, pressured by euphoria over strong vaccine reports from Moderana and Pfizer/BioNTech.

Treasury Secretary Steven Mnuchin said today that he will meet with Republican congressional leaders and White House chief of staff Mark Meadows to try to rekindle talks on a new aid to combat the effects of the coronavirus. The news follows signals from Charles Schumer and Mitch McConnell late yesterday that they, too, are willing to resume negotiations on the long-frozen stimulus package.

The welcome thaw comes against the backdrop of a raging epidemic that threatens to derail the economy. Without additional assistance, millions of unemployed Americans will lose subsistence benefits by the end of the year, and many state and local governments will ebb towards bankruptcy.

The dollar edged lower on the stimulus talk, supporting gold and other commodities priced in it for global trade. Additional stimulus, like deeper easing from the Fed, adds to the risk of currency debasement and long-term inflation, both of which are bearish for the dollar and bullish for gold.

Wall Street traded lower, with the Dow and S&P 500 dropping 0.7%, as optimism over promising vaccines gave way to pessimism about the near-term effects of rising covid cases and the threat of new lockdowns.

The other precious were higher for the day and mixed for the week. Silver added 1.3% for the session but still fell 1.6% this week. Platinum rose 0.6% for a weekly gain of 6.8%. Palladium rose 0.2% but still ended the week down 0.3%.

A the Comex close: December gold gained $10.90 to $1,872.40; December silver rose 32 cents to 24.36; January platinum added $5.70, to $957.20; and December palladium picked up $3.50 to $2,323.30 an ounce.