Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinExtending yesterday's 2.5% rally, gold added another 0.7% to close above $2,012 as bond yields and the dollar continued to slide on pandemic and geopolitical concerns, lifting alternative stores of value.

The dollar fell 0.6% against major rivals, pushing the ICE Dollar Index to a 27-month low. Net bearish bets against the buck rose again, ballooning to their largest since May 2011, as traders speculate that the lagging US response to covid and growing political disarray about stimulus and the upcoming presidential election will further undermine the recovery.

The dollar fell more than 4% in July, posting its biggest monthly decline in 10 years, as the reopening of communities after lockdowns corresponded to rising coronavirus cases and fatalities. At the same time, stimulus relief for small businesses and laid-off workers dried up, clouding the outlook for the economy.

Unprecedented easing from the Federal Reserve has further undermined the dollar's value, stoking concerns about long-term inflation and helping to lift gold to new all-time highs. A weaker dollar supports gold and other commodities priced in it for global trade by making them less expensive in other currencies.

Yields on benchmark 10-year Treasurys slid again on growing tensions with China after the US Commerce Department issued new prohibitions against telecom giant Huawei Technologies. Falling yields support gold, which offers no yield itself, by reducing the opportunity cost for holding it instead of bonds.

The other precious metals were mostly higher, with silver and platinum rising 1.5% and 0.8%, respectively, while palladium dipped 0.2%.

A the Comex close: December gold gained $14.40 to $2,012.10; September silver added 41 cents, to $28.08; October platinum picked up $7.50 to $975.40; and September palladium dropped $5.50 to $2,228.30 an ounce.