AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

2/5/2020: Gold rises on bargain hunting

Source: Bill Musgrave, American Gold Exchange

Austin — Gold rose 0.5% to close near $1,563 as bargain-hunters swooped in after yesterday's 1.7% tumble. The gains came despite upbeat US data that lifted stocks and the dollar, suggesting solid underlying demand.

Private payrolls added 291,000 jobs in January, according to the ADP, far exceeding forecasts. And separately, the ISM reported the services sector grew at the fastest pace in six months, lifting hopes that GDP growth may accelerate in the first quarter.

Wall Street rallied on the upbeat data, with the Dow rising 0.6% and the Global Dow 2.5%, as markets recovered from recent damaged caused by the coronavirus pandemic. Treasury yields also rose as investors tracked back into risk assets.

Contributing to risk appetite were unconfirmed reports out of China of a treatment for the devastating illness that has infected nearly 25,000 and killed nearly 500 people. The World Health Organization downplayed the reports, saying "there are no known therapeutics."

The dollar gained for a third session, adding 0.3% against major rivals as haven currencies like the yen and Swiss franc receded. A rising dollar pressures gold by making it more expensive in other currencies.

The other precious metals were mostly higher, with silver and platinum adding 0.2% and 2.2%, respectively, while palladium slipped 0.4%.

At the Comex close: April gold gained $7.30 to $1,562.80; March silver picked up 4 cents to $17.61; April platinum jumped $21 to $978.10; and March palladium fell $8.90 to $2326.70 an ounce.