Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinExtending last week's rally, gold added another 0.2% to close above $1,793 as a falling dollar and rising coronavirus cases spurred demand for alternative stores of value despite upbeat US data. The metal gained 0.5% last week for its fourth straight week of higher prices.

The ISM services index jumped to 57.1% in June from 45.4% in May, the biggest monthly increase in the survey's history, as bars, restaurants, dentists, and other service providers were allowed to reopen. Any reading over 50% indicates expansion.

Wall Street jumped on the positive news, with the Dow adding 1.7% while the Nasdaq added 2.2% to reach a new intraday record. Risk appetite was also stoked by a 5% surge in Chinese blue chips driven by optimism for a sharp recovery in the world's second-largest economy.

The dollar fell nearly 0.5% against major rivals led by the Chinese yuan, which posted its best day in six months. A falling dollar supports gold and other commodities priced in it for global trade by making them less expensive in other currencies.

Meanwhile, confirmed new cases of COVID-19 topped 2.9 million in the US, with more than 130,000 fatalities. Fifteen states have reported record-high daily infections in July, with overall cases climbing in 38 states.

The other precious metals were also higher, with silver climbing 1.4% while platinum and palladium added 0.7% and 1.3%, respectively.

At the Comex close: August gold gained $3.50 to $1,793.50; September silver picked up 26 cents to $18.58; October platinum climbed $6.10 to $837.70; September palladium rose $24.70 to $1,952.30 an ounce.