Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold futures climbed 0.4% to close at $1,897.50, the highest finish ever, as rising conflict with China combined with mixed data and a falling dollar to spur more safe-haven buying. The metal has risen for six straight sessions, posting a weekly gain of 4.8%.

China today ordered the US to close its consulate in Chengdu, heating up a simmering cold war with the US. The move came in retaliation to the US demanding the closure of the Chinese consulate in Houston for its alleged assistance in stealing intellectual property.

The latest escalation of tensions between the world's two largest economies raised new fears that global growth, already damaged by the coronavirus pandemic, will be slower to recover. US and global equities fell, with the Dow dropping 0.5% while the Global Dow lost 0.6%.

Risk appetite was further pressured after Market's flash PMI data showed the US services sector remained in contraction in July, despite the widespread re-opening of commerce. Including media, transportation, technology, retail, and food service, service industries comprise nearly 70% of the economy.

The dollar fell another 0.2% against major rivals led by the safe-haven yen, which jumped to a four-month high. The euro soared to a 22-month high against the buck on the back of improving eurozone data and the massive $858 billion coronavirus rescue plan approved by the EU this week.

The other precious metals were mixed for the day but higher for the week. Silver slid 0.6% but still surged 15.6% this week. Platinum dropped 0.8% but rose 12% for the week. Palladium added 2.4% today and 11% this week.

At the Comex close: August gold rose $7.50 to $1,897.50; September silver lost 14 cents to $22.85; October platinum fell $7.80 to $956; and September palladium climbed $54.30 to $2,294.10 an ounce.