Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold dove another 4.6% to close under $1,516 as risk appetite suddenly revived on hopes for coordinated stimulus to prevent a coronavirus-driven global recession. The metal lost 9.3% for the week, its biggest weekly drop since 2011, as investors liquidated the metal to cover losses in other asset classes.

Following their worst day since October 1987, all three major US stock indexes rallied more than 9% as investors bet on lower interest rates and other interventions by governments and policymakers to address the economic fallout from the pandemic. Stocks were still in bear-market territory, defined as a fall of 20% since recent peaks.

The US, Britain, Japan, Canada, and the Eurozone have all announced stimulus packages that include various combinations of lower interest rates, easier bank loans, and sovereign bond purchases to increase liquidity in financial markets that have fallen into near-panic.

The dollar rallied for a second session, adding another 1% as investors shift decidedly in US assets. Other currencies must first be exchanged into dollars to purchase Treasurys, helping to lift the buck.

Adding to Wall Street's recovery, President Trump declared a national state of emergency, freeing up some $50 billion federal funds to combat the coronavirus spread. Congress and the administration are reportedly nearing agreement on an aid package that will further mitigate the fallout.

The US Mint announced it has temporarily sold out of 1 oz American Silver Eagle bullion coins. Demand has exploded because of COVID-19, with March sales rising to 2.32 million from just 650,000 in February.

The other precious metals were sharply lower for the day and week. Silver dropped 9.4% for a weekly decline of 16%. Platinum lost 4.9% today and 17% this week. Palladium tumbled 21.2% to a weekly loss of 38%.

At the Comex close: April gold fell $73.60 to $1,516.70; May silver lost $1.50 to $14.50; April platinum slid $37.90 to $743.90; and June palladium shed $405.80 to $1,509.10 an ounce.