AGE Daily Gold Update

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

2/26/2020: Gold slips on oil, dollar

Source: Bill Musgrave, American Gold Exchange

Austin — Gold slipped 0.4% to close above $1,643 as the dollar rebounded slightly, oil fell, and traders continued to take profits from gold's nine-session rally to a seven-year high on Monday. The metal rebounded in electronic trade, pushing back above $1,650 after hours as stocks retreated from early gains on coronavirus fears.

US markets became more jittery today after officials in New York quarantined 83 people from COVID-19 who returned recently from China. With sharp increases in confirmed cases in Italy, Iran, and South Korea, officials have that he epidemic is certain to reach the US.

US stock index retreated from early-sessions gains, with the Dow and S&P 500 both sliding into losses while the Nasdaq held a rise of 0.4%. Investors have pulled $3.3 billion out of mutual funds and ETFs in the past week on concerns about the global economic impact of COVID-19

The dollar rebounded from a two-week low, rising as much as 0.2% against major rivals, after Fed Vice Chair Richard Clarida said monetary policy won't change in response to the epidemic at this point.

In recent sessions, the dollar has dollar has been weakened by speculation that the Fed will need to cut rates by June to offset damage to the economy. A falling dollar typically lifts gold and other commodities making them less expensive overseas.

Oil prices fell for the fourth day, with WTI crude dropping 2.3% to close under $49 per barrel on worries about the spread of the coronavirus outside China and its impact of demand. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mostly lower, with silver and platinum both dropping 1.9% while palladium rose 2%.

At the Comex close: April gold slid $6.90 to $1,643.10; May silver, the most active contract, dropped 36 cents to $17.91; April platinum lost $17.50 to $914.80; and June palladium, the most active, jumped $52.50 to $2,666.80 an ounce.