Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.7% to close at a one-month high near $1,930 as the dollar extended its recent losses on expectations for a stimulus deal, spurring demand for alternative stores of value. It was the metal's third straight winning session.

Hopes ramped up that a coronavirus relief package may be settled before the election after President Trump said he is willing to accept a large bill. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are "narrowing their differences," according to spokespeople from both sides, although Senate Majority Leader Mitch McConnell does not favor a deal.

The dollar extended its recent pullback, dropping another 0.5% against major rivals to reach a seven-week low. The prospect of additional stimulus reduces the safe-haven allure of the US currency and increases the risk of higher inflation, which undermines the buck's purchasing power.

Fed Governor Lael Brainard warned today that failure to provide pandemic relief would lead to a "slower and weaker recovery." With interest rates near zero and unprecedented monetary easing already coming from the Federal Reserve, fiscal stimulus is the most direct route to promoting recovery.

The Fed's Beige Book for October underscored the tepid state of growth. Economic activity across most of the nation is "slight to moderate," with the retail sales sector plateauing after a recent uptick.

The other precious metals were also higher, with silver rising 1% while platinum and palladium rose 1.9% and 0.4%, respectively.

At the Comex close: December gold gained $14.10 to $1,929.50; December silver rose 26 cents to $25.24; January platinum added $16.60, to $893.90; and December palladium climbed $9.80 to $2,427.50 an ounce.