Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged down 0.1% to hold near $1,802 as upbeat reports on a COVID-19 drug lifted equities and pressured safe-haven assets. The metal finished the week 0.7% higher for its fifth consecutive weekly rise.

Gilead Science reported its antiviral drug remdesivir has substantially improved recovery and reduced deaths related to the coronavirus in late-stage clinic trials. The data boosted the company's stock by more than 2%.

The welcome news comes one day after more than 60,000 new cases of COVID-19 were reported in the US, the most ever in a single day. New spikes were also reported in Asian cities that had successfully contained the virus earlier, including Tokyo, Hong Kong, and Melbourne.

Wall Street rallied behind the Gilead boost, driving the Dow higher by 1.4% while the S&P 500 and Nasdaq added 0.9% and 0.4%, respectively. Yields on benchmark 10-year Treasury notes fell as traders shifted toward risk.

Backstopping gold, the dollar slipped against major rivals after US producer prices fell 0.2% in June. With inflationary pressures muted, the Fed will have an even freer hand to keep interest rates near zero for years. Low interest rates weigh on the dollar by reducing yield, lifting gold and other commodities by making them less expensive in other currencies.

The other precious metals were mixed for the day but higher for the week. Silver added 0.5% for a weekly rise of 4%. Platinum dipped 0.1% but climbed 1.7% this week. Palladium rose 1.6% for a weekly win of 3%.

At the Comex close: August gold dipped $1.90 to $1,801.90; September silver added 9 cents, to $19.05; October platinum dropped $1 to $845.90; and September palladium rose $31.20 to $1,994.40 an ounce.