Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.3% to close under $1,845 as pandemic worries and a dour outlook from the Fed rallied the dollar, pressuring alternative assets.

Risk aversion gripped the markets behind worries that the surging pandemic and slow rollout of vaccines will slow the US economy in the first quarter. All three major US stock indexes tumbled to their lowest levels since late October, with the Dow falling 2.1% while the S&P 500 and Nasdaq lost 2.5%.

Adding to negative sentiment, the Fed warned that COVID-19 "continues to weigh on economic activity" and "poses considerable risks to the economic outlook." As expected, the central bank left interest rates near zero and quantitative easing unchanged at $120 billion per month at its meeting on monetary policy, which ended today.

The dollar jumped 0.5% against major rivals as traders sought out safe-haven currencies. The euro was knocked 0.5% lower after Germany, the eurozone's biggest economy, slashed its growth forecast from 4.4% to 3% for this year.

A stronger dollar weighs on gold and other commodities by making them costlier in other currencies, undercutting overseas demand.

The other precious metals were also lower, with silver falling 0.5% while platinum and palladium dropped 2.6% and 0.6%, respectively.

At the Comex close: February gold slid $6 to $1,844.90; March silver fell 15 cents to $25.39; April platinum declined $28.40 to $1,079; and March palladium lost $14.50 to $2,310.50 an ounce.