Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 1% to close above $1,758 as weak jobs data drove yields and the dollar lower, boosting demand for alternative stores of value. It was the metal's highest finish in six weeks.

Initial jobless claims rose unexpectedly last week, with 744,000 newly unemployed Americans filing for benefits through the states and another 151,000 though a temporary federal relief program. It was the second straight week of rising claims.

More than 16 million people are receiving ongoing unemployment benefits, compared to fewer than 2 million before the pandemic began.

Treasury yields rolled back as the sobering data pushed investors back toward safe-haven assets. Lower yields support gold reducing the opportunity cost for holding it instead of bonds.

The dollar fell to a two-week low, losing 0.4% as Forex traders took to heart the Fed's message, evident in in yesterday's FOMC minutes, that near-zero interest rates and quantitative easing will remain in place for years to come. A weaker dollar buoys gold and other commodities by making them less expensive in other currencies, lifting overseas demand.

The other precious metals were also higher, with silver rising 1.3% while platinum and palladium added 0.3% each.

At the Comex close: June gold surged $16.60 to $1,758.20; May silver gained 34 cents to $25.59; July platinum picked up $3.50 to $1,235.40; and June palladium climbed $7.20 to $2,628.30 an ounce.