Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.5% to close under $1,732 after the dollar and equities rose on hopes that the economy may be edging toward reopening. The metal climbed as high as $1,768 in intraday trade before sliding back after unemployment claims fell from the previous week.

The federal government is reportedly in discussion with state governors to establish a framework for relaxing coronavirus-driven closures of American society. While a full reopening remains unlikely anytime soon, the prospect is fueling optimism that the pandemic may have crested, and some version of normalcy is on the horizon.

Wall Street rose on these glimmers of hope, with the Dow adding 0.2% while the S&P 500 rose 0.6%. The tech-heavy Nasdaq jumped 1.7% after Amazon and Netflix surged to record highs behind shelter-in-place demand for their goods and services.

Paradoxically adding to the uptick in risk appetite, 5.2 million new claims for unemployment benefits were filed last week. The only silver lining behind this staggering number is that it is a million fewer than totals for each of the two previous weeks, suggesting the carnage in the economy maybe be subsiding. More than 22 million people have filed for benefits since March 21, around 13.5% of the workforce.

Other US data was frightening. Manufacturing in the mid-Atlantic Fed region plummeted to the lowest level since 1980. National home builder confidence fell to the lowest level since 2012, and new-home construction tumbled 22% in March, the most since 1984.

The dollar added 0.6% against major rivals, pressuring gold and other commodities priced in it for global trade.

The other precious metals were mostly lower, with platinum and palladium falling 1.4% and 1.5%, respectively, while silver added 0.8%.

At the Comex close: June gold slid $8.50 to $1,731.70; May silver gained 12 cents to $15.62; July platinum fell $11.30 to $793.30; and June palladium dropped $32.90 to $2,120.70 an ounce.