AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.
2/18/2020: Gold tops $1,600 on COVID fallout
Source: Bill Musgrave, American Gold Exchange
Austin — Gold surged 1.1% to close above $1,603 as stocks were pressured by coronavirus fallout, stoking demand for safe-haven assets. It was the metal's highest finish since March 2013.
Apple announced that the COVID-19 epidemic will prevent the company from meeting its sales forecasts for the second quarter due to plant closures and supply-chain disruptions in China. The surprise warning spooked stock markets, pulling the Dow and Global Dow lower by 0.6% as investors shied away from risk.
Benchmark US Treasury note rallied alongside gold on flights to safety, pushing yields down to two-week lows. Government bonds in Germany, Japan, and the UK also rose.
Capping gold's gains, the dollar rose 0.4% against major rivals after weak German investors confidence hammered the euro to the lowest level in nearly three years against the buck. A stronger dollar typically weighs on gold and other commodities by making more expensive n other currencies.
Upbeat US data also supported the dollar. The Empire State manufacturing index hit a nine-month high this month, lending a glimmer of optimism to the beleaguered sector as the limited US-China trade deal removed some uncertainty. Separately US homebuilder confidence dipped but remained near an all-time high in February.
The other precious metals were also higher, with silver jumping 2.4% while platinum and palladium rose 2.6% and 7.8%, respectively.
At the Comex close: April gold gained $17.20 to $1,603.60; March silver climbed 42 cents to $18.15; April platinum picked up $25.10 to $993.90; and March palladium jumped $180.90 to $2,497.60 an ounce, a new record.
Metal | Ask | Change | |
---|---|---|---|
Gold | $2,348.51 | $26.53 | |
Silver | $27.65 | $0.36 | |
Platinum | $921.44 | $7.47 | |
Palladium | $1,022.01 | $-15.01 |