Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold futures surged almost 1% to close near $1,810 as the accelerating spread of coronavirus raised new concerns about the economy, dulling risk appetite and boosting demand for safe havens. It was the metal's highest finish since September 2011.

Wall Street fell today as traders took profits from the recent rally and re-calibrated their outlook because of the resurgent pandemic. All three major indexes tumbled at the end of the session, with the Dow losing 1.4% while the S&P 500 and Nasdaq dropped 0.9% and 0.5%, respectively.

Treasury prices rose and yields fell as investors shifted toward safety.

New US coronavirus infections averaged 50,000 per day last week, the highest on record and more than twice the daily average of one month ago, while the US death toll surpassed 135,000. Hospital beds are reportedly scarce in Florida, Arizona, parts of Texas, and elsewhere, while many testing facilities are being overrun.

Several Fed members warned today that the economic recovery is now facing stronger headwinds than just a few weeks ago, noting that the resurgent spread is likely to reduce consumer spending and cause additional layoffs in the labor market going forward.

Capping gold's gains, the dollar added 0.2% against major rivals as risk aversion overtook the markets. A stronger dollar tends to weigh on gold and other commodities by making them more expensive in other currencies.

The other precious metals were mostly higher, with silver and platinum adding 0.6% and 3%, respectively, while palladium slipped less than 0.1%.

At the Comex close: August gold gained $16.40 to $1,809.90; September silver added 12 cents, to $18.70; October platinum rose $25.50 to $863.20; and September palladium dipped 70 cents to $1,951.60 an ounce.