Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.4% to close above $1,817 as rising coronavirus cases and a falling dollar boosted demand for alternative assets. Silver jumped 2.2% to close at $20.19, the highest level in nearly four years.

The global number of COVID-19 cases surged above 14.5 million today with more than 606,000 deaths, while infections in the US are approaching 3.8 million with more than 140,500 deaths. All 53 states and territories have reported rising cases over the past 14 days.

Concerned about the pandemic's consequences for the Eurozone economy, EU leaders are meeting in Brussels to hammer out a relief fund, expected to be around $850 billion. The euro edged up 0.1% on the stimulus hopes while the dollar fell 0.1% against major rivals. A weaker dollar supports gold and other commodities by making them cheaper overseas.

Meanwhile, Congress is expected to launch a second stimulus package to prevent the US economy from backsliding on the coronavirus resurgence. The new aid bill comes on top of $3 trillion in relief from earlier this year. A key part of the first package, Federal unemployment support, expires this week, dimming prospects for improvement in consumer spending, the mainstay of GDP.

Gold and silver typically thrive under expanding monetary and fiscal stimulus, which flood the financial system with cheap liquidity and increase the risks of currency debasement and higher long-term inflation. Gold rose to its all-time high of $1,911 in 2011 after two years of sustained global stimulus.

The other precious metals were also higher, with platinum adding 1% and palladium 1.8%.

At the Comex close: August gold gained $7.40 to $1,817.40; September silver rose 43 cents to $20.19; October platinum picked up $8.30 to $857.90; and September palladium added $37.70, to $2,109.40 an ounce.