Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rose sharply for a second day, adding 1% to close near $1,722 as traders took profits from a solid rally in stocks to hedge their positions ahead of tomorrow's conclusion of the Fed's meeting on monetary policy.

Having rebounded 2.3% in the past two sessions, the metal has now recouped all its losses after last Friday's nonfarm payrolls report showed 2.5 million jobs were added in May.

Wall Street paused after an impressive rally fueled by the stunning jobs report and the reopening of much of the America after COVID closures. Dow and S&P 500 both snapped six-day winning streaks, falling 1.1% and 0.8%, respectively, while the NASDAQ added 0.3% for a new record high.

The National Bureau of Economic Research said the US entered a recession in February, well before the full impact of the coronavirus on the economy. GDP fell at an annualized 5% in the first quarter, while the Q2 contraction is projected to be 20% or more.

The Labor Department reported layoffs declines in April but remained close to the highest on record as businesses across the country closed for the pandemic. By most estimates, full recovery in the labor markets will take years.

Treasurys rose alongside gold on flights to safety, depressing yields.

The Fed concludes its two-day meeting on monetary policy tomorrow. After slashing interest rates to near zero and pledging unlimited quantitative easing in emergency meetings in March, the central bankers are expected to stay the course with unprecedented stimulus for the foreseeable future.

The dollar fell nearly 0.3% against major rivals as traders expect an extremely dovish outlook from the Fed. Monetary easing and near-zero interest rates pressure the dollar by flooding the financial system with cheap liquidity. Gold thrives in this environment as a hedge against long-term inflation and currency debasement.

The other precious metals were lower, with silver sliding 10 cents while platinum dipped less than 0.1% and palladium lost 3.4%.

At the Comex close: August gold gained $16.80 to $1,721.90; July silver dipped a dime to $17.79; July platinum gave up 60 cents to $860.60; and September palladium lost $69.80 to $1,967.10 an ounce.