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


2/27/2020: Gold ends flat after early rise

Source: Bill Musgrave, American Gold Exchange

Austin — Gold ended nearly flat on Comex in choppy trade, dipping 60 cents to close at $1,642.50. The metal traded above $1,662 earlier in the session on deepening fears about the impact the coronavirus, only to recede as futures traders took short-term profits.

For the first time, new COVID-19 cases outside of China have surpassed those within China itself, confirming fears that the epidemic has gone global. South Korea, Italy, and Iran have sharply higher rates of infection; Brazil has reported its first case; and the US, with 60 confirmed, has reported a new infection that has no known connection to China.

Wall Street tumbled for the sixth straight day, with all three major indexes losing around 4.5%. The S&P 500 is down more than 11% and Nasdaq 12% from their peaks less than two weeks ago. Blue Chips like Microsoft and Best Buy have joined Apple in warning about falling earnings because of supply disruptions.

The dollar fell 0.5% against major rivals as traders speculate that the Fed will have to slash interest rates to offset slower growth and falling inflation because of the coronavirus. The likelihood of a quarter-point cut in March has jumped from 33% to nearly 60% in the past 24 hours, according to CME FedWatch. By June, the odds are now 95% for a quarter point and 77% for at least a half-point reduction.

Lower rates tend to weaken the dollar by making it less attractive to Forex investors seeking higher yield. A weaker dollar, in turn, supports gold and other commodities priced in dollars for foreign trade by making them more expensive in other currencies.

The other precious metals were mostly lower, with silver and platinum dropping 1% each while palladium added another 1.7% on global supply shortages.

At the Comex close: April gold dipped 60 cents to $1,642.50; May silver fell 18 cents to $17.74; April platinum lost $9.30 to $905.50; and June palladium rose $44.90 to $2,711.70 an ounce, a new record.


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.


2/25/2020: Gold falls on profit-taking

Source: Bill Musgrave, American Gold Exchange

Austin — Gold fell 1.6% to close at $1,650 as traders took profits despite sharply lower equities. The metal had risen 6.5% over a nine-session rally that propelled it to a seven-year high of $1,676.

Global equity markets crumbled as spread of the coronavirus outside of China stoked fears of a global recession. Iran, Italy, and South Korea have seen a sharp rise in confirmed cases in the past few days, leading officials to question whether the epidemic can be contained. The Dow fell more than 3% for a second session, tallying its worst two-day slide, while the Global Dow plunged 5.2%.

Treasury bonds rallied as investors sought safety, pushing yields on benchmark 10-year notes to a new record low.

The dollar fell another 0.4% against major rivals as traders speculated that the Federal Reserve is likely to reduce interest rates to offset fallout from the coronavirus. CME FedWatch puts the odds of at least one rate cut by June at 81%, down from 47% one week ago.

Falling interest rates are bullish for gold because they weaken the dollar and thereby make gold less expensive in other currencies, boosting global demand.

The other precious metals were mostly lower, with silver and platinum dropping 3.6% and 4.3%, respectively, while palladium rebounded from yesterday's 3.2% fall by adding 5%.

At the Comex close: April gold gave back $26.60 to $1,650; March silver fell 69 cents to $18.19; April platinum fell $41.90 to $932.30; and March palladium climbed $126.50 to $2,647.80 an ounce.


2/24/2020: Gold jumps on COVID-19 spread

Source: Bill Musgrave, American Gold Exchange

Austin — Extending last week's 3.9% rise, gold jumped another 1.7% to close near $1,676 as the global spread of COVID-19 rattled markets, undercutting risk appetite and stoking demand for safe havens. The metal has now rallied for nine straight sessions to its highest close on Comex since February 2013.

An abrupt rise in coronavirus cases outside of China is fanning fears that the epidemic may be more difficult to control than expected. Italy, Iran, and South Korea have reported sharp increases, and Afghanistan and Iraq now have their first confirmed cases.

Wall Street tumbled on worries that the epidemic may freeze supply chains and strangle trade, severely damaging a global economy already weakened by protracted trade conflict. The Dow tanked 3.5% while the Global Dow lost 3%.

Sovereign bond yields plunged in the US, Europe, and Japan as investors scramble for safety. Benchmark 10-year Treasury yields dropped near the record low of 1.32%.

The other precious metals were mixed, with silver jumping 1.9% while platinum and palladium more directly tied to industry and trade, slipped 0.2% and 3.2%, respectively.

At the Comex close: April gold surged $27.80 to $1,676.60; March jumped 35 cents $18.88; April platinum dipped $1.90 to $974.20; March palladium fell $84.10 to $2,521.30 an ounce.


2/21/2020: Gold surges 1.8% to 7-year high

Source: Bill Musgrave, American Gold Exchange

Austin — Gold surged 1.8% to close at a seven-year high near $1,649 as weak US data and the spreading COVID-19 pandemic drove investors to shed risk and pile into safe-haven assets. The metal has now rallied for eight straight sessions, posting a weekly rise of 3.9%, its strongest since last June.

IHS Markit Purchase Managers Index for service-oriented businesses fell in February to the lowest level since 2013, signaling contraction in this key sector for the first time since 2016. Manufacturing fell to its lowest level in six months, barely escaping contraction.

Comprising around nearly 70% of the economy, the services sector has been a bulwark against recession over the past 18 months as trade wars have damaged manufacturing and slowed growth. Both sectors reported concerns about the impact of the coronavirus as the main drivers of weakness.

Separately, the National Association of Realtors said existing home sales fell by 1.3% in January, mainly because of inventory shortages.

Equity markets plunged on the combination of weak data and pandemic fears, with the Dow and Global Dow falling 1% while the tech-heavy Nasdaq plunged 2%.

Treasury yields fell for a fifth day, with 30-year yields dropping to an all-time low, as investors sought safety in government bonds and gold.

The dollar receded from a three-year high, dropping 0.5% on rallies in safe-haven currencies like the yen and Swiss franc. A weaker dollar typically lifts gold and other commodities priced in it for global trade by making them cheaper in other currencies.

The other precious metals were mixed for the day and higher for the week. Silver climbed 1.2% for a weekly rise of 4.5%, the most since August. Platinum slipped 0.3% but held a weekly rise of 0.8%. Palladium added another 1.2% today and 12.5% this week.

At the Comex close: April surged $28.30 to $1,648.80; March silver climbed 21 cents to 18.53; April platinum dipped $2.90 to $976.10; and March palladium rose $31.50 to $2,605.40 an ounce.


2/20/2020: Gold rises for seventh session

Source: Bill Musgrave, American Gold Exchange

Austin — Gold rose another 0.5% to close at a seven year high above $1,620 as the spread of COVID-19 outside China rattled stock markets and boosted demand for safe havens. It was the metal's seventh straight winning session.

South Korea reported a sharp spike in cases of coronavirus infection, including its first death, while 2.5 million people in the city of Daegu were told not to leave their homes. Japan also reported two new death from the SARS-like illness. More than 75,000 cases and 2130 deaths have been confirmed, mostly in China.

Wall Street fell on the news as investors fretted over the pandemic's impact on global growth. The Dow and S&P 500 dropped 0.4% while the tech-heavy Nasdaq fell 0.7%.

US treasury bonds rallied alongside gold, driving yields lower, as investors fled to safety. Yields on 30-year Treasurys fell close to their all-time low.

The other precious metals were mixed, with silver finishing nearly flat while platinum fell 2.5% and palladium rose 0.1%.

At the Comex close: April gold gained $8.70 to $1,620.50; March silver added less than a cent, to $18.32; April platinum dropped $25.50 to $979; and March palladium picked up $2.70 to $2,573.90 an ounce.


2/19/2020: Gold rises on safe-haven inflows

Source: Bill Musgrave, American Gold Exchange

Austin — Following yesterday's 1.1% surged, gold gained another 0.4% to close near $1,610 as ongoing coronavirus concerns offset rallies in stocks and the dollar to spur safe-haven demand. It was the metal's highest finish since March 2013.

Risk appetite returned to Wall Street after China reported fewer new cases on COVID-19, the deadly coronavirus that has closed factories and disrupted global supply chains. While official Chinese statistics are often considered suspect, the 1,750 new cases reported would be the smallest daily increase in more than two weeks.

US equities surged on the upbeat news, with the Dow adding 0.5% and the tech-heavy Nasdaq, more dependent on Chinese factories, added 1%.

Expectations for more monetary stimulus in Asia also boosted risk appetite. China will reportedly inject yet more cash into its economy to offset coronavirus damage, especially to airlines, which have been hammered by travel restrictions. This follows $175 billion in stimulus announced two weeks ago and a reduction in medium term interest rates.

The dollar climbed to a three-year high against major rivals as the yen tumbled 1.5% on easing coronavirus worries and rising concerns about Japan's economy, which shrank at the fastest pace in six year in December. A stronger dollar typically weighs on gold by making it more expensive overseas.

Gold was also supported by rising oil prices, which finished near a three-week high after the US imposed sanctions on a division of Russian oil giant Rosneft, adding to supply concerns. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Wholesale inflation rose sharply in January, with the PPI increasing 0.5%, the biggest monthly increase since late 2018. But analysts attributed much of the spike to transient causes like temporary trade margins that will not raise costs in the longer run.

The other precious metals were also higher, with silver rising 0.6% while platinum and palladium added 1.3% and 3.9%, respectively.

At the Comex close: April gold gained $6 to $1,609.60; March silver rose 12 cents to $18.27; April platinum rose $10.60 to $1,006.30; March palladium jumped another $73.60 to $2,594.90 an ounce, a record.


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.


2/17/2020: Gold dips in electronic trade

Source: Bill Musgrave, American Gold Exchange

Austin — With US financial markets closed for the Presidents Day holiday, gold dipped around 0.1% to $1,584 in electronic trading as new stimulus measures from China lifted global stocks, tempering demand for safe havens. The metal was also pressured by profit-taking after last Friday's rise to a two a-week high above $1,586.

China's minister of finance announced yesterday that Beijing will cut interest rates on medium term loans to offset the economic impact of the coronavirus, known as COVID-19. The new monetary intervention follows the injection of $175 billion in liquidity into China's financial markets, announced in early February.

Stock markets in Europe and Asia cheered the move, with the Shanghai Composite Index leading the way with a surge of 2.3% as investors shifted into risk assets.

The spreading COVID-19 epidemic has now infected nearly 72,000 people and caused 1,775 deaths, with all but five fatalities occurring in China. Major factories have closed in China, Japan, South Korea, and elsewhere, disrupting global supply chains and taking an untold toll on global growth.

Underpinning the gold price, Brent crude oil extended last week's 5.2% rally, adding another 27 cents to $57.59 per barrel on expected production cuts from OPEC and Russia. Gold often trades in sympathy with oil as a hedge against energy-related inflation.


2/14/2020: Gold rises to two-week high

Source: Bill Musgrave, American Gold Exchange

Austin — Gold added another 0.5% to close at a two-week high above $1,586 as coronavirus worries and soft US data boosted demand for safe-haven assets. The metal posted a weekly rise of 0.8%.

Chinese authorities reported more than 5,000 new cases and 121 new deaths as the deadly coronavirus, now known as COVID-19, continued to rattle markets. The Dow slipped 0.2% and the Global Dow 0.6%.

US economic data added to risk-off sentiment Retail sales were weaker than expected in January, calling into question whether consumer spending can continue to be the primary support of the economic expansion. While overall sales rose 0.3%, the core number used to calculate GDP showed no increase.

Industrial production fell for the fourth time in five months, adding to the woes of the beleaguered manufacturing sector. Supply-chain disruptions because of COVID-19 are expected to further hamper a rebound.

One the plus side, consumer sentiment rose to a 15-year high in January, according to the University of Michigan survey, with Americans feeling good about record-high stock markets and low unemployment.

US Treasurys rallied alongside gold on flights to safety, driving down yields on benchmark 10-year notes.

The other precious metals were mixed for the day and week. Silver added 0.7% today for a weekly rise of 0.2%. Platinum dropped 0.6% today and less than 0.1% this week. Palladium dropped 1.5% today but gained 4.8% this week.

  

Metal Ask      Change
Gold $1,574.23           $-70.57
Silver $16.60           $-1.23
Platinum $863.14           $-44.86
Palladium $2,602.32           $-295.50
In US Dollars