Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold held steady, inching down less than a dollar to close above $1,735, as concerns about a possible pandemic second wave kept safe havens attractive despite a stronger dollar and rising global stocks.

New coronavirus cases of jumped in Arizona, Florida, Texas, Oregon, and Oklahoma today, raising concerns that new government lockdowns may be required to contain the resurgent pandemic. COVID-related hospitalization in Texas, Florida and Nevada rose to record highs.

The unwelcome news quelled risk appetite, pushing the Dow and S&P into late-session losses of 0.7% and 0.4%, respectively, after they spent most of the day firmly in the black. The Nasdaq held onto a gin of 0.2% while the Global Dow jumped 2.3%.

Fueling early-session risk appetite, US housing starts rose 4.3% in May, and building permits jumped 14%, suggesting resilience in the crucial housing sector. In addition, Fed Chair Jerome Powell reiterated today that the central bank will continue unprecedented monetary stimulus and near-zero interest rates for the foreseeable future.

The dollar rose 0.2% against major rivals as COVID concerns pushed Forex traders back into safe-haven currencies. A stronger dollar pressures gold and other commodities by making them more expensive overseas.

The other precious metals were mostly lower, with silver adding 0.7% while platinum and palladium lost 0.7% and 0.9%, respectively.

At the Comex close: August gold dipped 90 cents to $1,735.60; July silver rose 12 cents to $17.78; July platinum dropped $5.70 to $838.20; and September palladium lost $17.20 to $1,925.50 an ounce.