Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold jumped 3% to close at a one-week high above $1,738 as rebounding oil prices lifted demand for most commodities. The metal was further boosted by new stimulus package that will flood another $500 billion into the economy.

Oil prices rebounded from a 21-year low as an escalation in tensions between the US and Iran prompted concern about Middle East output. President Trump tweeted the Navy had instructions to "destroy any and all Iranian gunboats," adding to regional tensions.

WTI crude for June rose nearly 20% to close near $14 per barrel, just two days after the May contract traded in negative territory, a first. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The Senate passed a new stimulus package, adding another $500 billion to the $2.2 trillion already pouring into the economy to staunch the bleeding from COVID-19. Wall Street promptly rallied on the promise of more cash, with all three major US indexes rising more than 2%.

Gold rose despite the renewed risk appetite as investors hedged their worries that unprecedented stimulus will stoke the possibility of inflation and currency debasement while doing little prevent a protracted slump.

The dollar rose 0.2% against major rivals as deep concerns about the global economy continued to propel Forex traders into the world's de facto reserve currencies.

The other precious metals were mostly higher, with silver and platinum adding 3.1% and 0.9%, respectively, while palladium slid 0.8%.

At the Comex close: June jumped $50.50 to $1,738.30; May silver climbed 46 cents to $15.34; July platinum rose $6.90 to $765.30; and June palladium fell to $15.40 to $1,892.20 an ounce.