Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rocketed another 1.8% to close at a new all-time high of $1,931 as a plunging dollar and escalating concerns about the coronavirus pandemic stoked demand for safe havens.

The metal shot past Friday's record finish of $1,897.50 and the previous intraday high of $1,923.70 from September 6, 2011, reaching a new intraday record of $1,941.90 before slipping back to $1,931. Gold has now risen 28% so far this year, including more than 5% over seven straight winning sessions.

The dollar tumbled another 0.7% to a two year low against major rivals on expectations that the resurgence of COVID-19 will hamper the US recovery while other major economies, which have done a better job of containing it, will continue to strengthen. The buck has now fallen 2.3% over the past week.

Further weakening the US currency is the expectation that the Federal Reserve will amplify its commitment to near-zero interest rates when it meets on monetary policy this week. The central bank has already pledged not to raise rates until 2023. A falling dollar supports gold and other commodities by making them less expensive overseas.

Orders for long-lasting durable goods rose 7.3% in June, slightly more than forecasts, as the economy reopened after months of lockdowns. But with the US posting more than 1,000 COVID-19 deaths per day for the past five days, those gains are in jeopardy as more regions reimpose closures.

The other precious metals were also sharply higher. Silver soared another 7.2% while platinum and palladium added 1.1% and 3.3%, respectively.

At the Comex close: August gold gained $33.50, to $1,931; September silver jumped $1.65 to $24.50, the highest level since August 2013; October platinum added $10.60, to $966.60; and September palladium climbed $75.60 to $2,369.70 an ounce.