Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 2.7% to close at a 7-week high near $1,947 as the outcome of the US presidential election grew less uncertain, pressuring the dollar and boosting demand for both risk assets and alternative stores of value. The metal then pushed above $1,950 in electronic trade after the Fed reaffirmed its commitment to easy money.

With the Democrats apparently poised to win the White House while Republicans retain control of the Senate, investors embraced the prospect of divided government by diving further into stocks. All three major US indexes rose more than 2.2% on expectations that gridlock will prevent the rollback of Trump tax cuts and business-friendly reductions in regulation.

The dollar index tumbled more than 0.8%, with the buck plumbing an eight-month low against the safe-haven yen, as growing political certainty encouraged Forex traders to pursue riskier currencies. A weaker dollar supports gold and other commodities by making them less expensive overseas.

At the conclusion of its two-day meeting on monetary policy, the Federal Reserve pledged to employ its full range of tools to help the economy recover from the COVID-19 pandemic.

The central bank has said it will keep interest rates near zero for at least the next three years while putting downward pressure of the yield-curve though aggressive quantitative easing, purchasing $120 billion per month in Treasurys and mortgage-back securities.

Gold rose and the dollar fell further after the Fed's statement. Tantamount to printing money, QE weakens the dollar and deepens negative real interest rates, both of which are bullish for gold.

The other precious metals were also sharply higher, with silver jumping 5.4% while platinum and palladium rose 3.4% and 3.3%, respectively.

At the Comex close: December gold gained $50.60 to $1,946.80; December silver jumped $1.30 to $25.19; January platinum rose $29.80 to $899.90; and December palladium added $76, to $2,383.60 an ounce.