Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.4% to close near a two-week low under $1,788 as crashing oil prices drove down commodities across the board, forcing investors into cash and undercutting alternative stores of value.

In another day of extremely volatile trading, oil extended its historic selloff as pandemic fears and a global supply glut hammered the energy industry. WTI crude futures for June lost 43% to close under $12 per barrel, the lowest finish for the most-active contract since the crash of 1999.

The plunge comes one day after the May contract plummeted into negative territory, meaning traders were willing to pay suppliers not to deliver oil. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Wall Street tumbled again as the collapse in oil prices and weak corporate earnings reinforced fears that the global economy is entering the deepest slump since the 1930s. The Dow and Global Dow fell 2.3% and 2.9%, respectively, while the S&P 500 lost 2.9% and the tech-heavy Nasdaq 3.5%.

The dollar was up 0.4% against major rivals as investors scurried for cash to cover losses in stock, commodity, and oil markets. A rising dollar pressures gold and other commodities by making them more expensive overseas.

In a report published today, titled "The Fed Can't Print Gold," Bank of America is raising its 18-month gold forecast to $3,000 per ounce. Citing unprecedented easing and monetary stimulus from governments and central banks, BOA expects demand for gold to rise sharply as a hedge against currency debasement.

The other precious metals were also lower, with silver and platinum losing 4.7% while palladium shed 10.3%.

At the Comex close: June gold fell $23.40 to $1,687.80; May silver dropped 74 cents to $14.88; July platinum lost $37.60 to 758.40; and June palladium shed $219.90 to $1,907.60 an ounce.