Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 1.6% to close at a three-week high above $1,926 as brighter prospects for another round of fiscal stimulus pressured the dollar and boosted demand for alternative stores of value. The metal finished 1% higher for the week, scoring its second straight weekly win.

President Trump returned to the bargaining table on COVID relief, offering a revised $1.8 trillion package to counter the $2.2 trillion bill passed by the House. The new bid comes after the President called off talks altogether, then proposed a "skinny" deal to bailout airlines and give cash directly to the American people.

Wall Street rallied on the news, pushing the Dow and S&P 500 up 0.5% and 0.8%, respectively, while the Nasdaq jumped 1.1%, putting all three indexes on track for their best week since August.

The dollar tumbled to a two-week low on the stimulus view, losing 0.6% against major rivals as traders shifted toward riskier currencies like the euro. A falling dollar supports gold and other commodities by making them less expensive overseas.

Coming atop the $4 trillion already spent this year on pandemic relief, and alongside historically accommodative monetary policies from the Fed, additional stimulus increases the risk of long-term inflation. Investors have historically turned to gold as a hedge against inflation and the erosion of purchasing power.

The other precious metals were higher for the day and week. Silver jumped 5.2% for a weekly rise of 4.5%. Platinum climbed 3.5% to manage a gain of 0.3% for the week. Palladium rose 2.5% today and nearly 6% this week.

At the Comex close: December gold surged $31.10 to $1,926.20; December silver climbed $1.23 to $25.11; January platinum rose $30.30 to $894.30; and December palladium jumped $60.20 to $2,463.20 an ounce.