Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 1.6% to close at a one-week low above $1,740 as abysmal economic data fueled liquidations in most markets, prompting traders to take profits from the metal's 9% rally over the previous six sessions.

US retail sales tumbled in March by a record 8.7% as much of the economy shut down because of COVID-19. Most retailing sectors contracted, with auto dealers and gas stations hit the hardest, falling 27% and 17%, respectively.

US factory production and other business activity also cratered because of the coronavirus. The Fed's Beige Book reported sharp contractions in economic activity in every region and sector. National manufacturing plunged 6.3% in March to the lowest point since 1946, as the nation was gearing down from WWII war production. New York's Empire State index plummeted a record 57 points in April to the lowest reading ever.

Globally, the IMF is forecasting the world economy will contract 3% in 2020, the deepest drop since the Great Depression in the 1930s.

Wall Street reeled as institutional investors abruptly shifted out of risk assets into cash and government bonds. The Dow lost 2% and S&P 500 fell 2.3%, rebounding slightly from early-session lows.

The dollar rose 0.6% against major rivals as Forex traders sought refuge in de facto global reserve currency and US Treasurys, which must be purchased with dollars. A stronger buck weighs on gold and other commodities priced in it for global trade by making them more expensive in other currencies.

The other precious metals also fell, with silver dropping 3.9% while platinum and palladium lost 1.8% and 1.5%, respectively.

At the Comex close: June gold slid $28.70 to $1,740.20; May silver lost 63 cents to $15.51; July platinum fell $15.10 to $804.60; and June palladium shed $31.80 to $2,153.60 an ounce.