Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.7% but held above $1,800 as traders took profits from the recent rally and the dollar rebounded, undercutting demand for alternative store of value. The metal had risen around 1.5% since early last week, reaching the highest level since September 2011 on growing concerns about the coronavirus pandemic and tensions with China.

The dollar gained 0.3% against major rivals after weak retail sales in China pressured the yuan and the ECB left monetary policy unchanged, prompting traders to shift back into the perceived safety of the buck. A stronger dollar weighs on gold and other commodities by making them more expensive overseas.

US retail sales increased by more than expected in June, rising 7.5% as more Americans purchased autos and resumed dining out after months of lockdowns. The resurgence of COVID-19 infections in many states is expected to create headwinds to further spending, however, as more states roll back their reopening plans.

The Labor Department reported another 1.3 million people filed for first-time unemployment benefits last week, slightly fewer than the previous week. Around 32 million Americas are receiving ongoing benefits after being laid off because of the pandemic.

Wall Street rolled back despite the positive data, with the Dow dropping 0.6% while the S&P 500 and Nasdaq declined 0.5% and 0.9%, respectively.

The other precious metals were mostly lower, with silver and platinum dropping 1% and 0,7%, respectively, while palladium picked up 0.8%.

At the Comex close: August gold slid $13.50 to $1,800.30; September silver dropped 19 cents to $19.57; October platinum shed $6.20 to $837; and September palladium added $15.10, to $2,025.10 an ounce.