Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.6% to close under $1,684 as rising risk appetite prompted traders to take profits from yesterday's 2.9% rise. The metal leapt above $1,742 earlier in the session on a short-covering rally before receding towards the close.

US equity markets also rallied for much of the session, lifted by hopes that the coronavirus pandemic might be easing in some key regions. Spain and Italy, where 40% of global COVID-19 fatalities have occurred, have reported declining death rates for several days. Fatalities have also plateaued in New York, the hardest-hit state in the US.

But like gold, all three major US indexes reversed direction toward the end of the session, falling from big gains to small losses as investors wrestled with the novel uncertainty generated by the pandemic.

Congress is moving quickly to pass another round of stimulus to lessen the economic damage. Following the $2.2 trillion signed into law last month, the new package will provide at least another $1 trillion to support individuals and small businesses.

Stemming gold's slide, the dollar fell 0.8% against major rivals as traders shifted toward riskier currencies. A weaker dollar typically supports gold and other commodities pried in it for global trade by making them less expensive overseas.

The other precious metals were higher, with silver rising 2.1% while platinum and palladium added 1.8% and 0.8%, respectively.

At the Comex close: June gold slid $10.20 to $1,683.70; May silver climbed 31 cents to $15.48; July platinum picked up $13 to $745; and June palladium added $17.50, to $2,094.30 an ounce.