Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.7% to close at a one-month low under $1,880 as surging COVID-19 cases in the US and Europe hammered equities, forcing investors to sell liquid assets to cover losses.

A surprising spike in coronavirus cases rattled the markets today as the global total passed 44 million with nearly 1.2 million deaths. The US reported a record 500,000 new cases in the past week, bringing the total to 8.8 million.

France, Germany, Spain, and the UK have implemented new restrictions on commerce and socializing, raising fears that lockdowns may further undermine the slowing economic recovery.

Global equities sold off hard on the pandemic concerns. All three major US indexes plunged more than 3.5% and the Global Dow dropped 3.1%, sweeping down liquid assets like gold and silver in a rush to cash.

The dollar jumped 0.6% against major rivals on flights to safety, further undercutting gold and other commodities priced in it for global trade by making them more expensive overseas. Treasury's also rallied, undercutting yields.

Gold was further pressured by sharply lower oil prices as WTI crude plunged 6.3% on concerns that a new round of COVID lockdowns would smother demand. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also lower, with silver losing 4.9% while platinum and palladium dropped 1.3% and 4.4%, respectively.

At the Comex close: December gold lost $32.70 to $1,879.20; December silver shed $1.21 to $23.36; January platinum slid $11.80 to $875; and December palladium tumbled $103.30 to $2,250.60 an ounce.