Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.6% to close above $1,780 as surging coronavirus cases cast a shadow on the US economic recovery, hammering stocks and boosting demand for safe havens. The metal added 1.6% this week to notch its third straight weekly win.

New cases of COVID-19 in the US topped 40,000 today, a new record, causing hard-hit states to roll back plans to end commercial closures. Texas and Florida, among the first states to reopen, ordered all bars to shut down again. New York, New Jersey, and Connecticut will impose 14-day quarantines on visitors from some states.

Wall Street tumbled on growing pandemic worries, with the Dow dropping nearly 3% while the S&P 500 and Nasdaq lost 2.3%. Treasurys rallied alongside gold on flights to safety, pushing yields down to the lowest levels in nearly three weeks.

The risk-off sentiment came despite some upbeat data. Consumer spending rebounded by a record 8.2% in May after cratering by an astonishing 12.6% in April. Comprising around two-thirds of GDP, spending will be crucial for a sustained economic recovery.

However, consumer sentiment dipped in slightly June as rising COVID-19 cases and the prospective loss of emergency jobless benefits, which expire next month, dimmed the outlook. Confidence in Washington's ability to manage the economy sank to the lowest point since President Trump was elected, according to the Commerce Department.

Capping gold's gains, the dollar rose as traders fled risk-related currencies like the euro. A stronger dollar pressures gold and other commodities by making them more expensive overseas.

The other precious metals were higher for the day and mixed for the week. Silver added 0.8% for a weekly rise of 1.1%. Platinum climbed 1.3% today but fell 1% this week. Palladium rose 2.7% this session but ended the week down 0.7%.

At the Comex close: August gold gained $9.70 to $1,780.30; July silver rose 14 cents to $18.04; October platinum, now the most-active contract, picked up $10.80 to $819.30; and September palladium added $49.30, to $1,894.40 an ounce.