Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.5% to close under $1,570 as traders took profits from a six-week rally that has lifted the metal to new six-year highs. Upbeat US data and easing fears of a pandemic lifted equities, dulling demand for safe havens.

Global markets stabilized today as the chief of the World Health Organization expressed confidence in China's ability to contain the outbreak of coronavirus that has killed 106 and infected more than 4,500. While most of the confirmed cases are in central China, the mysterious SARS-like virus has spread to at least 14 countries, with the number of known cases jumping nearly 60% in the past 24 hours.

US equity markets rebounded sharply on the (perhaps premature) relaxation of coronavirus contagion fears, with the S&P 500 rising 1% and the Nasdaq 1.5% as bargain-hunters re-entered the markets after yesterday's selloff.

Also supporting risk appetite, US consumer confidence jumped in January to the highest level in five months as low unemployment, record-high stock markets, and an interim trade agreement with China lifted spirits.

Less promising were data on business investment. Outside of military expenditures, new orders for key capital goods fell in December by the most in eight months. Considered a proxy for business investment, these orders contracted in Q2 and Q3, and are expected to be lower for Q4 when all the numbers are in.

The non-partisan Congressional Budget Office published its forecast for 2020, predicting the economy will grow at a "solid" 2.2% this year. However, the federal budget deficit will hit $1.015 trillion in 2020 and average $1.3 trillion per year for the next decade.

The other precious metals were mostly higher, with platinum and palladium adding 0.3% and 0.5%, respectively, while silver fell 3.3%.

At the Comex close: February gold slipped $7.60 to $1,569.80; March silver dropped 60 cents to $17.46; April platinum rose $3.30 to $995; and March palladium climber $11.50 to $2,185.10 an ounce.