Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up 0.2% to close near $1,676 as rising coronavirus concerns and a burgeoning oil price war between Russia and Saudi Arabia drove a massive selloff in stocks, pushing investors into safe havens.

With global infections of COVID-19 continuing to rise, drastic measures are being taken to control the outbreak. Italy has quarantined nearly a quarter of its population in its northern industrial heartland. Schools and universities in the US are closing their doors; concerts and sporting events are being cancelled; and workers are being forced to stay home from their jobs.

With global supply chains interrupted and demand for goods and services at risk, recession worries are gripping the markets. The Dow and S&P 500 both plunged another 6.5% while the Global Dow tumbled more than 7%. Wall Street's so-called fear gauge, the CBOE volatility index, reached the highest level since December 2008.

In a devastating one-two punch, oil prices tumbled 25% after Saudi Arabia effectively launched a price war with Russia, sending stock and commodity markets into deeper turmoil.

Gold reached an intraday high above $1,703 before being pulled back on profit-taking and margin calls on other assets. As the selloff mounted in stocks, leveraged investors were forced to find cash to cover their losses. Being one of the most liquid assets, and after rising 6.8% last week, gold was an easy target.

Yields on Treasurys tumbled to record lows as investors sought safety. For the first time ever, yields on 2-year, 10-year, and 30-year Treasurys all fell below 1%. The dollar lost 1% against major rivals, in part on speculation that the Fed will cut interest rates again this month.

The other precious metals were lower, with silver dropping 1.2% while platinum and palladium fell 3.7% and 1.4%, respectively.

At the Comex close: Gold for April added $3.30, to $1,675.70; May silver dropped 21 cents to $17.05; April platinum fell $33.60 to $862.80; June palladium slid $33.50 to $2,405.70 an ounce.