Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 1.5% to close at a one-week high of $1,668 as the escalating coronavirus epidemic pressured stocks and the dollar, fueling demand for alternative assets.

California declared a state of emergency and the Seattle area closed its schools because of increasing cases of COVID-19. The mysterious virus has now infected more than 97,000 and killed more than 3,300 worldwide, including 177 cases and 11 fatalities in the US.

Wall Street crumbled, with the Dow falling around 3.7% on expectations of reduced demand for goods and services. The International Air Transportation Association warned today that airlines alone are likely to lose more than $100 billion this year.

Treasury bonds rallied alongside gold on flights to safety, driving benchmark 10-year yields to record lows below 1%.

The dollar fell 0.5% to an eight-week low on speculation that the Federal Reserve will be forced to slash interest rates further to offset damage to the economy. In its first emergency meeting since the financial crisis in 2008, the Fed already cut its benchmark rate by a half-point this week.

Falling interest rates pressure the dollar by making it less attractive to Forex investors seeking higher yield. In turn, a weaker dollar supports gold and other commodities priced in it for global trade by making them cheaper overseas, thus stimulating demand.

The other precious metals were moistly higher, with silver and palladium rising 0.9% and 3.5%, respectively, while platinum slid 1.1%.

At the Comex close: April gold jumped $25 to $1,668; May silver rose 15 cents to $17.39; April platinum dropped $9.50 to $865.70; and June palladium climbed $84.40 to $2,469.40 an ounce.