Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold surged another 0.9% to close at a one-month high above $1,756 as weak U.S. economic data and rising tensions with China undercut the dollar and boosted demand for safe havens. The metal ended the week with a gain of 2.5%.

Retail sales plummeted by 16.4% in April, the most on record by a huge margin. With consumer spending comprising around 70% of the economy, real GDP is projected to contract by more than 46% in the second quarter, according to the Atlanta Fed.

U.S industrial output also collapsed last month, plunging a record 11.2% as factories around the country closed because of the coronavirus. Production of motor vehicles and parts fell 70% while non-automotive manufacturing fell 10.2%.

Adding to market worries, President Trump blocked shipments of semiconductors to Chinese tech giant Huawei Technologies, the latest salvo in a renewed trade war. China is reportedly weighing retaliatory measures.

The dollar fell 0.1% against major rivals, supporting gold and other commodities priced in it for global trade by making them less expense overseas.

Wall Street overcame deep losses to achieve modest gains on reports that the House will authorize more than $3 trillion in additional stimulus to combat the devastating effects of COVID-19 on the economy. The Dow closed 0.3% higher while the S&P 500 picked up 0.4%.

The other precious metals were also higher for the day and week. Silver soared 5.7% for a weekly rally of 8.2%. Platinum rose 5.4% to pull out a weekly rise of 3.5%. Palladium added 3.3% to gain 2% for the week.

At the Comex close: June gold jumped $15.40 to $1,756.30; July silver soared 91 cents to $17.07; July platinum climbed $42.10 to $817.10; and June palladium added $59.70, to $1,857.90 an ounce.