Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.7% to close under $1,724 as plunging oil prices pressured commodities and easing coronavirus restrictions stoked risk appetite, prompting traders to take profits from last week's 2.2% rise for the metal.

U.S. oil futures collapsed again, with June WTI crude losing more than 26% to under $12.50 per barrel, the second-lowest settlement on record for a current contract. Recent overproduction by OPEC and Russia, combined with drastically lower demand because of COVID-19, has resulted in a global supply glut with few places to store the excess.

Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Separately, Wall Street rallied on plans for more states and nations to cautiously reopen for commerce after weeks of lockdown. Spain, Italy, Belgium, and Australia are taking steps towards normalization. Here at home, Alaska, Oklahoma, and Georgia are beginning to lift restrictions on businesses and socializing despite warnings from public health officials.

The Dow and Global Dow jumped 1.5% and 2%, respectively, while US Treasury prices fell with gold as investors shifted toward risk assets.

The other precious metals were mostly lower, with silver and palladium dropping 0.4% and 4.6%, respectively, while platinum added 0.4%.

At the Comex close: June gold slipped $11.80 to $1,723.80; May silver dropped 5 cents to $15.21; July platinum picked up $3.20 to $777; and June palladium lost $90.50 to $1,894.80 an ounce.