Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rose another 0.4% to close above $1,752 as expectations for further monetary stimulus from the Fed undermined the dollar, boosting demand for alternative stores of value despite rising risk appetite.

Minutes from the Federal Reserve's last meeting showed it poised to provide yet more stimulus to lift the economy out of its deepest contraction since the 1930s. Fearing the "substantial likelihood of additional waves" of COVID outbreaks "in the near or medium term," the Fed reiterated its pledge to use all the tools at its disposal.

Unlimited quantitative easing, near-zero interest rates, and a host of novel backstops for business and banks have already been unveiled to promote lending and spending. All these measures flood the economy with cheap liquidity, raising the long-term risk of currency devaluation and inflation.

The dollar fell 0.5% against major rivals as traders reacted to the pledges of yet more easing. A weaker dollar supports gold and other commodities priced in it for global trade by making them less expensive in other currencies.

Rising oil prices also supported the gold price. WTI crude 5.2% to a 10-week high above $33.60 per barrel on a second-straight weekly decline in domestic fuel reserves. Gold often trade in sympathy with oil as a hedge against energy-related inflation.

Gold's gains came despite a strong day on Wall Street, with the Dow and S&P 500 rising 1.5% and 1.7%, respectively, on hopes that the reopening of commerce in many states this weekend will reboot the economy.

The other precious metals were also higher, with silver adding 0.7% while platinum and palladium climbed 5.1% and 4.1%, respectively.

At the Comex close: June gold gained $6.50 to $1,752.10; July silver added 13 cents, to $18.03; July platinum jumped $44.90 to $934.50; and June palladium climbed $84.70 to $2,159.40 an ounce.