Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 1% to close at $1,985.90, a new all-time high finish, as economic and political worries lifted safe-haven assets despite an uptick in the dollar and a solid rally in tech stocks. The metal rose 4.7% for the week and 10.3% in July for its best month in more than four years.

Consumer sentiment faltered in July after two months of improvement, with the University of Michigan index dropping below 73, nearly the lowest point since the pandemic began. Americans are growing increasingly doubtful the recession, which began officially in February, will end anytime soon as COVID-19 cases ramp up and more regions re-institute closures.

With consumer spending comprising around 70% of GDP, the depressed sentiment does not augur well for an economy that plummeted by 33% during the second quarter, he most since the Great Depression.

Worries about November also weighed on investors after President Trump tweeted yesterday that he might try to postpone elections. While he has no authority to do so, the mere suggestion adds another element of chaos into markets already reeling from uncertainty.

Benchmark 10-year Treasury notes rallied alongside gold on flights to safety, knocking overnight yields down to the lowest point since March 9, when financial markets panicked because of the emergent coronavirus.

Gold's tenth rise in the last 11 sessions came despite a a good day for tech stocks and the dollar. The tech-heavy Nasdaq index rose by 1.1% after strong performances by Apple, Facebook, and Amazon.

The dollar added 0.4% against major rivals but still lost around 4% for July, notching its worst month since September 2010. A weaker dollar supports gold and other commodities by making them less expensive in other currencies.

The other precious metals were mixed for the day but sharply higher for the month. Silver jumped 3.7%, today pushing its monthly gain to nearly 30%. Platinum added 0.7% for a monthly increase of 8%. Palladium edged down 0.5% but still rose 9.1% in July.

At the Comex close: December gold, the most-active contract, gained $19.10 to $1,985.90; September silver jumped 85 cents to $24.22; October platinum added $6.30, to $918.90; and September palladium dropped $10.40 to $2,145.30 an ounce.