Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.7% to close above $1,903 as rising COVID-19 cases and pullbacks in equities and the dollar boosted demand for alternative assets. Bargain-hunters also helped bid up the metal after yesterday's 1.8% slide.

A spike in coronavirus infections in the Midwest and West pushed the US death toll above 216,000 while 16 states reported the highest number of new cases since the pandemic started. Nationally, average daily cases have risen 21% in the past two weeks.

The COVID surge as winter approaches, when indoor activities are expected to increase exposure, is raising concerns about the possibility of new social restrictions and another economic downturn.

Meanwhile, another round of pandemic relief appears to be off the table again after Treasury Secretary Steven Mnuchin said fiscal stimulus is unlikely until after the election. The White House has vacillated between the outright rejection of additional spending and proposals of nearly $2 trillion, leaving markets dizzy.

Wall Street slid after Mnuchin's comments, with the Dow and S&P 500 dropping around 0.6% while the Nasdaq lost 0.8%. Safe-haven Treasurys rose alongside gold, pressuring yields.

The dollar dropped 0.2% against major rivals, lifting gold and other commodities priced in it for global trade by making them less expensive overseas.

Rising wholesale inflation also support the metal after the US Produce Price Index rose more than expected in September, adding 0.4% for the month and year-over-year.

The other precious metals were mostly higher, with silver and palladium rising 1.1% and 0.9%, respectively, while platinum fell 1.1%.

At the Comex close: December gold gained $12.70 to $1,907.30; December silver climbed 27 cents to $24.40; January platinum lost $9.90 to $863.40; and December palladium added $22 to $2,366.30 an ounce.