Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.8% to close above $1,589 as deepening anxiety about contagion combined with soft US data to pressure stocks and the dollar, boosting demand for safe-haven assets. It was the metal's highest finish since early April 2013.

The Chinese coronavirus has now infected more than 7,700 people and killed 170, with 99% of the cases and all fatalities in China. But the SARS-like virus has spread to 15 counties and is reportedly being transmitted between people outside of China, raising new concerns of a global pandemic.

Wall Street bounced between small gains and losses as traders weighed the possibility that the outbreak could undermine global growth and harm corporate profits. The Dow was near-flat while the S&P 500 slipped 0.2%. The Global Dow plunged 2%.

Treasury bonds rallied alongside gold on flights to safety, pushing yields on benchmark 10-year notes down to a three-month low. The US yield curve briefly inverted, with short-term Treasurys returning more than long-term, on growth worries.

The Commerce Department reported the US economy grew 2.1% in Q4 and 2.3% in 2019, the slowest annual rate in three years. Consumer spending, which accounts for nearly 70% of GDP, slowed to just 1.8% in Q4.

The dollar declined 0.2% against major rivals after the GDP release. A softer buck supports gold and other commodities by making them less expensive overseas.

The other precious metals were also higher, with silver surging 2.9% while platinum and palladium rose 0.5% and 0.6%, respectively.

At the Comex close: April gold gained $13.20 to $1,589.20; March silver jumped 51 cents to $17.99; April platinum added $5.20, to $980.50; and March palladium climbed $13.50 at $2,215.70 an ounce.