Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.8% to close at a one-week low above $1,725 as the dollar rallied on resurgent global pandemic worries, pressuring alternative stores of value.

Germany will extend lockdowns and ask citizens to stay home over the Easter holiday as Europe enters a brutal third wave of Covid-19 infections. Much of the EU suspended the use of AstraZeneca vaccine in recent weeks because of concerns over potentially fatal blood clots. This came after a patchy and delayed vaccination rollout and premature reopening in some regions.

The dollar jumped 0.7% against major rivals as Forex traders shifted toward the perceived safety of the greenback, speculating that the US vaccination effort will be more effective and the recovery more rapid than in the EU. A rising dollar pressures gold and other commodities by making them pricier overseas.

Gold slide was backstopped by falling bond yields as investors sought protection from the economic consequences of Eurozone lockdowns. Falling yields support gold by decreasing the opportunity cost for holding it instead of bonds as a safe-haven asset.

The other precious metals were mostly lower, with silver and platinum dropping 2.1% and 0.8%, respectively, while palladium added 0.7%.

At the Comex close: April slid $13 to $1,725.10; May silver shed 54 cents to $25.23; April platinum fell $9.40 to $1,174.60; and June palladium gained $17.10 to $2,617.30 an ounce.