Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rose for a second session, adding 0.6% to close above $1,830, as weak US data and growing optimism about fiscal stimulus weakened the dollar and lifted demand for alternative stores of value.

Democrat Congressional leaders Nancy Pelosi and Chick Schumer announced their support for a pandemic relief package that has bi-partisan support in the House and Senate. Steny Hoyer, the House Majority leader, said a deal could be worked out in principle by this weekend.

The $900 billion aid bill appears to strike a viable compromise between the $2.2 trillion package passed by the House months ago and the Senate's $500 billion plan.

Meanwhile, the resurgent pandemic continues to take its economic toll. ADP reported private payrolls added 307,000 jobs in November, the smallest number in four months. Separately, the Fed's Beige Book reported "little or no growth" in four of its regions due to sharp increases in COVID-19 cases.

The dollar fell to a fresh 30-month low on expectations of additional fiscal stimulus, supporting gold and other commodities priced in it for global trade by making them less expensive overseas.

Gold has risen nearly 2.7% in the past two days on the view that another round of stimulus spending, like monetary easing from the Fed, could lead to sharply higher long-term inflation. Gold is often held as a hedge against the currency devaluation and loss of purchasing power associated with high inflation.

The other precious metals were mixed, with platinum adding 0.8% while palladium slid 0.9% and silver finished nearly flat.

At the Comex close: February gold rose $11.30 to $1,830.20; March silver dipped one cent to $24.08; January platinum added $8.20, to $1,012.10; and March palladium slid $21.50 to $2,408.20 an ounce.