Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinExtending its rally to three days, gold climbed another 0.7% to close above $1,842 as traction for a new stimulus package weakened the dollar and lifted alternative assets. It was the metal's highest finish in nearly three weeks.

Senate Majority Leader Mitch McConnell signaled possible support for another coronavirus aid package, citing positive movement toward a compromise in Congress after a bi-partisan group proposed $900 billion in new spending. McConnell's endorsement, were it to come, would remove a major impediment to completing a deal.

The development is bullish for gold as a hedge against inflation and currency devaluation, both of which as viewed as possible consequences of stimulus spending by the government and monetary easing by the Federal Reserve.

Wall Street was also lifted by stimulus bets, with the Dow and Nasdaq rising 0.6% and 0.4%, respectively, while the S&P 500 picked up 0.2%.

Further whetting risk appetite, the UK granted emergency approval of the Pfizer/BioNTech vaccine, becoming the first nation to move forward with vaccinations against the deadly virus.

Meanwhile, the global death toll from the pandemic rose above 1.49 million, with more than 20% occurring in the US. More than 100,000 Americans were hospitalized for COVID-19 yesterday, a one-day record, and 2,885 died from the virus, also a daily record.

The dollar fell another 0.4%, plumbing a fresh 30-month low, on speculation that progress in fiscal stimulus and vaccine developments will help rescue the economy. A weaker dollar supports gold and other commodities by making the less expensive in other currencies.

The other precious metals were mostly higher, with silver and platinum rising 0.2% and 2.6%, respectively, while palladium dropped 3.8%.

At the Comex close: February gold climbed $12.10 to $1,842.30; March silver rose 6 cents to $24.14; January platinum picked up $26.50 to $1,038.60; and March palladium dropped $90.30 to $2,317.90 an ounce.