Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up less than 0.1% to close near $1,906 as surging COVID-19 cases and slipping economic data hammered risk appetite and boosted demand for safe-haven assets. It was the metal's fifth win in the past six sessions.

Coronavirus infections rose sharply in the US and Europe, with new cases hitting daily records and the death toll surpassing 225,000 in the US. Spain has announced a state of emergency; Italy is imposing 6pm curfews on restaurants and bars; and France is now the most-infected nation in the eurozone.

The Chicago Fed reported national economic activity has slowed for the third straight month, signaling another loss of momentum after a recovery burst in early summer.

Meanwhile, negotiations on another pandemic relief package have stalled amidst intransigence and finger-pointing. While both sides remain publicly optimistic, the window of opportunity is rapidly closing on a deal before the election.

Equities tumbled on the pandemic surge, with the Dow losing around 2.7% and the Global Dow 2%, while Wall Street's so-called fear gauge, the VIX volatility index, rose to a seven-week high. Treasurys gained with gold on flights to safety, depressing yields.

Capping gold's gains, the dollar added 0.2% against major rivals led by the euro, which eroded under pressure from COVID's second European wave. A stronger dollar typically weighs on gold and other commodities by making them more expensive overseas.

Gold was further limited by plunging oil prices as demand concerns and rising Libyan output knocked WTI crude down 3.3% to $38.55 per barrel. Gold often trades in sympathy with oil as an inflation hedge.

The other precious metals were lower, with silver falling 1% while platinum and palladium lost 3.2% and 1.3%, respectively.

At the Comex close: December gold added 50 cents, to $1,905.70; December silver dropped 25 cents to $24.42; January platinum lost $29.30 to $877.40; and December palladium fell $29.90 to $2,368.70 an ounce.