Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold eased 0.7% to close under $1,644 as revised Federal guidelines for containing the coronavirus lifted risk appetite, rallying equities and reducing demand for safe-haven assets.

President Trump said he is extending guidelines for social distancing until the end of April to stall the spread of COVID-19. The statement revised his earlier goal of reopening the country for business by Easter, something health experts and scientist agreed would be counterproductive to containment.

Wall Street cheered the change in approach, with the Dow rising 2.9% while the S&P 500 and Nasdaq picked up 3.2%. Shifting from defense to offense, traders took profits from last week's 10% gold rally to bargain-hunt in risk assets.

The dollar also rebounded, rising 0.8% against major rivals as global central banks stepped up their easing and stimulus programs. China cut a key interest rate and Singapore moved aggressively today to increase liquidity and cushion economic losses. Japan, the eurozone, and the UK have all joined in the coordinated monetary easing.

Oil plunged 6.5%, with WTI crude dipping temporarily under the psychologically important $20 per barrel level. Falling global demand due to the coronavirus, combined with a price war between Russia and Saudi Arabia, has generated a global supply glut driving prices to an 18-year low.

The other precious metals were mostly lower, with silver and platinum dropping 2.8% and 2.4%, respectively, while palladium inched up less than 0.1%.

At the Comex close: June gold fell $10.90 to $1,643.20; May silver lost 40 cents to $14.13; July platinum dropped $17.80 to $723.80; and June palladium added 80 cents, to $2,197.60 an ounce.