Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.4% to hold above $1,775 as resurging coronavirus cases prompted investors to shift into cash, boosting the dollar and undercutting alternative stores of value. The metal hit an intraday high above $1,796 before sliding back on profit-taking.

New US COVID-19 cases jumped 30% over the past week, according to Johns Hopkins data, while hospitalizations also rose in Texas, California, Arizona, and 13 other states.

Wall Street sold off as the spike in infections raised the possibility that the reopening of the US economy may stall, adding to job losses and snuffing out the nascent recovery. The Dow and S&P 500 plunged 2.6% while the Nasdaq dropped 2.2%.

The dollar rallied 0.5% on flights to safety as investors liquidated other assets in favor of cash. A stronger dollar weighs on gold and other commodities priced in it for global trade by making them more expensive in other currencies.

Adding to risk off sentiment, the IMF cut it global economic forecast for 2020 to -4.9%, nearly two percentage points lower than in March. The US economy is projected to contract by 8%.

The other precious metals were also lower, with silver falling 2.2% while platinum and palladium dropped 4.9% and 3.2%, respectively.

At the Comex close: August gold slipped $6.90 to $1,775.10; July silver shed 39 cents to $17.67; July platinum fell $41.80 to $804.60; and September palladium lost $62.60 to $1,888.50 an ounce.