AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.
8/5/2020: Gold jumps to another record close
Source: Bill Musgrave, American Gold Exchange
Austin — Gold jumped 1.4% to close above $2,049 as disappointing payrolls data and rising stocks weakened the dollar, boosting demand for alternative store of value. It was the metal's seventh record finish in the past eight sessions.
Private payrolls added merely 167,000 jobs in July, far below June's 4.3 million, as the resurgent spread of COVID-19 caused new business closures in hard-hit states. The slowdown came mainly in the leisure and hospitality sectors as restaurants, bars, and hotels were forced to curtail reopening.
Other areas of the economy fared better in July. The services sector edged up to 58.1%, according to the ISM index, where anything over 50% signals expansion relative to the previous month. Activity remains far below pre-pandemic levels, however.
Wall Street rallied sharply on unexpectedly strong corporate earnings and expectations that governments will continue to pour unprecedented stimulus into the global economy. The Dow climbed 1.4%, led by an 8% surge in Disney, while the S&P 500 and Nasdaq rose 0.6% and 0.5%, respectively.
The dollar extended its recent slide, dropping another 0.5% on speculation that other major economies will rebound from the coronavirus more quickly that the US. A falling dollar supports gold and other commodities priced in it for global trade by making them less expensive in other currencies.
The other precious metals were also sharply higher, with silver rising another 3.3% while platinum and palladium added 3.5% and 2.1%, respectively.
At the Comex close: December gold gained $34.70 to $2,049.30; September silver climbed 86 cents to $26.89; October platinum rose $33.90 to $989.10; and September palladium picked up $44.90 to $2,215.50 an ounce.
AGE Gold Commentary
Gold is gathering momentum to begin its assault on the previous record high of $1,911 and then push above $2,000 ... read more