Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.6% to close above $1,942 as traders took profits from nine straight days of gains that have taken the metal to a sequence of new record highs. Grim coronavirus and GDP data led to selloffs across most financial markets, catching gold in the downdraft.

The Commerce Department reported GDP plunged an astounding 32.9% in the second quarter, the biggest contraction since the Great Depression, as COVID-19 forced closures of businesses across the nation.

Without the $3 trillion relief package passed in May, most economists agree, the decimation would have been far greater. A key component of that aid, the federal $600-per-week unemployment benefit, expires tomorrow. Congress has yet to agree to a new fiscal plan.

Most of the economic contraction occurred before the lifting of lockdowns in June. But the subsequent rebound has become increasing tenuous as infections skyrocketed in July. Although new cases appear to be plateauing, the daily death toll surged to 1,400 yesterday, the highest in two months.

And the resurgent pandemic is starting to harm the labor market. First-time claims for unemployment benefits rose for the second week, with more than 1.4 million workers newly laid off.

Adding to the uncertainty, President Trump tweeted today that the presidential election might have to be delayed because of what he sees as possible voter fraud.

The Dow fell 0.9% and the dollar dropped 0.5% as pandemic and political anxiety gripped the markets.

The other precious metals fell much harder than gold, with silver losing 3.9% while platinum dropped 4.8% and palladium surrendered 5.6%.

At the Comex close: August gold slid $11.10 to $1,942.30; September silver dropped 96 cents to $23.36; October platinum lost $45.90 to $912.60; September palladium dumped $126.30 down to $2,134.90 an ounce.