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


5/29/2020: Gold rallies to 3.3% monthly win

Source: Bill Musgrave, American Gold Exchange

Austin — Gold rallied 1.4% to close near $1,752 as rising oil prices and deepening tensions between the US and China continued to fuel demand for alternative stores of value. The metal gained 3.3% for the month.

Silver rose another 3% to $18.50, notching a monthly gain of 24%, its biggest in nine years. Silver's remarkable rise has been driven in part by hopes that the global economy will reopen after the COVID lockdown. With more industrial uses than gold, silver benefits when consumers start spending again on manufactured goods and other recovery-related items.

The imposition of new security laws on Hong Kong by Beijing stoked risk-off trade early in the session as investors feared that deepening acrimony between the two economic superpowers will further batter a global economy already reeling from the Coronavirus pandemic.

President Trump held an afternoon press conference on the topic, and he was widely expected to announce harsh measures against Beijing. While he condemned the new security actions and vowed sanctions against China, he stopped short of tearing up the so-called Phase One trade agreement that ended last year's bitter trade war.

US stock indexes bounced back into mild gains as the markets breathed a sigh of relief. Gold held most of its daily rise although it slipped back under $1,750 after hours in electronic trade.

The gold price was supported by another sharp rally in oil after OPEC oil output fell in May to the lowest level in two decades. WTI added 3.8% to close near $35 per barrel. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were higher for the day but mixed for the month. Platinum picked up 0.8% for a monthly rise of 7.7% while palladium rose 1.4% today but slipped 0.5% in May.

At the Comex close: August gold gained $23.40 to to $1,751.70; July silver rose 53 cents to $18.50; July platinum added $6.50, to $874.60; and September palladium rose $26.40 to $1,972.90 an ounce.


5/28/2020: Gold edges up on data, China rift

Source: Bill Musgrave, American Gold Exchange

Austin — Gold added 0.1% to close above $1,728 after weak data and escalating tensions between the US and China overcame rising risk appetite to stoke safe-haven demand.

A raft of weak economic reports underscored the depths from which the US economy must rise to overcome the coronavirus recession. Orders for durable goods plunged more than 17% last month as Americans stopped buying bug-ticket items. First-time filings for jobless benefits held above 2 million last week for the 10th straight week. And GDP contracted by more than previous estimated in the first quarter at -5%.

Adding to underlying market anxiety, China's ceremonial legislature passed new national security laws requiring Hong Kong to submit to the policies of mainland China's leadership, effectively ending autonomy. In retaliation, the US has threatened to end the special status enjoyed by Hong Kong regarding trade and tariffs.

Meanwhile, Congress voted to impose sanctions on China for its treatment of Uighurs and other ethnic groups, fueling yet more acrimony between the world's two largest economies.

After rising sharply early in the day on exuberance about the lifting of many commercial restriction at home and abroad, all three major US stock indexes fell into the red after the escalation of US-China conflict. The Dow lost 0.6% while the S&P 500 and Nasdaq slid 0.2% and 0.4%, respectively.

The dollar fell 0.6% as the euro jumped to an 8-week high behind the EU's plan to prop up eurozone economies with 750 billion euros in stimulus. 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 mixed, with silver rising 1.2% while platinum and palladium dropped 1.1% and 1.6%, respectively.

At the Comex close: August gold picked up $1.50 to $1,728.30; July silver climbed 21 cents to $17.97; July platinum slid $10 to $868.10; and September palladium fell $31.90 to $1.946.50 an ounce.


5/27/2020: Gold ends near-flat in choppy trade

Source: Bill Musgrave, American Gold Exchange

Austin — Gold futures edged down less than 0.1% to close under $1,727 in choppy trade as investors were torn between optimism over the relaxation of lockdowns and pessimism about the growing rift with China over Hong Kong.

With much of the US and the world beginning to emerge from months of sheltering in place, risk appetite surged again on hopes that economies could begin to rebound. The Dow rose another 2.2% while the S&P 500 and Global Dow added 1.5%.

After dropping under $1,702 in intraday trading, gold rebounded to near-flat after Secretary of State Mike Pompeo declared that Hong Kong is no longer autonomous from mainland China. The statement comes in retaliation for China's security crackdown on pro-democracy movements.

Hong Kong has enjoyed special treatment by the US that exempts it from tariffs levied against China, among other commercial advantages. Another escalation in the US-China trade rift, the moves jeopardize some $38 billion in annual trade between the US and Hong Kong.

Also supporting gold's late-session recovery, the Fed's Beige Book for May showed widespread pessimism among businesses over the likely speed of the economic recovery.

The other precious metals were mixed, with silver and platinum adding 0.9% and 0.6%, respectively, while palladium fell 0.4%.

At the Comex close: August gold dipped $1.40 to $1,726.80; July silver rose 16 cents to $17.76; July platinum added $4.80 to $878.10; and September palladium dropped $8.40 to $1,978.40 an ounce.


5/26/2020: Gold falls on post-COVID hopes

Source: Bill Musgrave, American Gold Exchange

Austin — Gold fell 1.7% to close under $1,706 as optimism over the reopening of global economies and a possible coronavirus vaccine boosted stock markets and eroded demand for safe havens.

As COVID-19 closures are gradually lifted in large parts of the US and overseas, risk appetite is also rising as investors contemplate a post-pandemic world. Air travel in the US and Germany is beginning the rebound, and travel restrictions are being eased in Spain and other Eurozone nations.

Americans felt comfortable to gather in larger grouped over the Memorial Day weekend, with beaches, restaurants, and stores reopening in limited ways in various parts of the country.

Meanwhile, more drug companies are reporting progress toward a possible vaccine. Noravax and Merck have started human trials, raising the number of contenders in clinical evaluation to 10, according to Fundstrat.

Equities rallied sharply on the upbeat sentiment, with the Dow and Global Dow surging 2.8%. Meanwhile Treasury prices and dollar fell alongside gold and as traders shifted out of safe-haven assets.

The other precious metals were mixed, with silver and platinum dropping 0.6% and 1.5%, respectively, while palladium rose 0.6%.

At the Comex close: June gold fell $29.90 to $1,705.60; July silver slid a dime to $17.60; July platinum lost $14.10 to $873.30; and June palladium added $12, to $1,989.10 an ounce.


5/22/2020: Gold gains with rising China tensions

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.8% to close above $1,735 despite a stronger dollar as rising tensions between the US and China pressured the Dow and lifted safe-haven assets. The metal still ended the week 1.2% lower as plans for the reopening of much of the US lifted risk appetite.

Beijing moved today to impose new national security laws on Hong Kong in response to recent pro-democracy unrest. The changes would essentially end autonomy for the country, which has been largely self-governing since 1997, when Britain transferred authority back to China after 150 years of colonial rule.

The aggressive decision provoked a sharp rebuke from Washington, re-escalating friction that never fully subsided after last year's bitter trade war. President Trump has vowed "strong action" and the Senate is weighing sanctions against Chinese officials, entities that enforce the laws, and banks that do business with those entities.

The Dow and Global Dow fell 0.2% and 0.6%, respectively on fears that the rising tensions will further undermine trade relations between the world's two largest economies. Treasurys rose alongside gold on flights to safety, depressing yields.

The other precious metals were mixed for the day and higher for the week. Silver added 1.9% for a weekly rose of 3.7%. Platinum jumped 2.3% today and 8.5% this week. Palladium fell 4.1% but still gained 6.4% this week.

At the Comex close: June gold gained $13.60 to$1,735.50; July silver picked up 33 cents to $17.69; July platinum rose $19.80 to $886.30; and June palladium shed $85.20 to $1,977.10 an ounce.


5/21/2020: Gold falls on profit-taking, China

Source: Bill Musgrave, American Gold Exchange

Austin — Gold fell 1.7% to close at a one-week low under $1,722 on profit-taking as rising tensions with China and weak economic data pushed investors into cash. The metal rallied 3.2% over the previous five sessions to reach a new 7.5-year high near $1,765 earlier in the week.

President Trump warned China that the US will take strong action if it imposes new national security restrictions on Hong Kong in response to last year's pro-Democracy demonstrations. Earlier in the day, Secretary of State Mike Pompeo roundly condemned China for its handling of the coronavirus outbreak.

For its part, China vowed it would not flinch from aggression, escalating the rhetorical battle between the world's two largest economies just months after the so-called Phase One trade agreement was signed.

Wall Street fell on the renewed tensions, with the Dow dropping 0.4% while the S&P 500 and Nasdaq surrendered more than 0.7%. The dollar rose 0.2% on flights to cash while UY Treasury yields fell again.

Also weighing risk sentiment was a string of moderately improving but still historically bad economic data. HIS Markit's latest flash PMI showed US manufacturing contracted by slightly less in May, rising to 39.8 from 36.1 in April, where anything under 50 means contraction. New factory and services orders were the second lowest since the 2008 financial crisis.

Meanwhile, 3.3 million more Americans filed for first-time jobless benefits last week though the state and federal systems combined, bring the total new claims to 44 million since mid-March.

The other precious metals were also lower, with silver dropping 3.7% while platinum and palladium lost 7.3% and 4.5%, respectively.

At the Comex close: June gold fell $30.20 to $1,721.90; July silver dropped 67 cents to $17.36; July platinum dumped $68 to $866.50; and June palladium surrendered $97.10 to $2,062.30 an ounce.


5/20/2020: Gold rises again on stimulus view

Source: Bill Musgrave, American Gold Exchange

Austin — Gold rose another 0.4% to close above $1,752 as expectations for further monetary stimulus from the Fed undermined the dollar, boosting demand for alternative stores of value despite rising risk appetite.

Minutes from the Federal Reserve's last meeting showed it poised to provide yet more stimulus to lift the economy out of its deepest contraction since the 1930s. Fearing the "substantial likelihood of additional waves" of COVID outbreaks "in the near or medium term," the Fed reiterated its pledge to use all the tools at its disposal.

Unlimited quantitative easing, near-zero interest rates, and a host of novel backstops for business and banks have already been unveiled to promote lending and spending. All these measures flood the economy with cheap liquidity, raising the long-term risk of currency devaluation and inflation.

The dollar fell 0.5% against major rivals as traders reacted to the pledges of yet more easing. A weaker dollar supports gold and other commodities priced in it for global trade by making them less expensive in other currencies.

Rising oil prices also supported the gold price. WTI crude 5.2% to a 10-week high above $33.60 per barrel on a second-straight weekly decline in domestic fuel reserves. Gold often trade in sympathy with oil as a hedge against energy-related inflation.

Gold's gains came despite a strong day on Wall Street, with the Dow and S&P 500 rising 1.5% and 1.7%, respectively, on hopes that the reopening of commerce in many states this weekend will reboot the economy.

The other precious metals were also higher, with silver adding 0.7% while platinum and palladium climbed 5.1% and 4.1%, respectively.

At the Comex close: June gold gained $6.50 to $1,752.10; July silver added 13 cents, to $18.03; July platinum jumped $44.90 to $934.50; and June palladium climbed $84.70 to $2,159.40 an ounce.


5/19/2020: Gold gains on easing prospects

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.7% to close above $1,745 as Fed Chair Jerome Powell pledged yet more monetary easing to stimulate the economy, undercutting the dollar and lifting alternative stores of value.

Speaking before the Senate Banking Committee, Powell emphasized that the Federal Reserve stands ready to inject yet more money into the economy to pull it out of the deepest contraction since the Great Depression.

Separately, Boston Fed President Eric Rosengren said today the unemployment is projected to remain in double-digits through the end of the year despite the reopening of the economy.

US central bankers have already slashed interest rates to near zero and promised unlimited quantitative easing (QE) to support the economy. In addition, they have committed to backstopping $500 billion in rescue loans for business while creating other lending facilities.

Tantamount to printing money, QE floods the economy with cheap cash to promote lending and spending, albeit at the risk of debasing the dollar and increasing long-term inflation. Gold rallied to its all-time high of $1,911 in 2011 after three rounds of limited QE following the financial crisis.

The dollar fell 0.3% against major rivals on the prospect of deeper easing, supporting gold and other commodities priced in it for global trade by making them less expensive in other currencies.

The other precious metals were also higher, with silver climbing 2.5% while platinum and palladium rose 2.3% and 2.4%, respectively.

At the Comex close: June gold gained $11.20 to $1,745.60; July silver picked up 43 cents to $17.90; July platinum added $20.30, to $889.60; June picked up $47.60 to $2,074.70 an ounce.


5/18/2020: Gold falls on vaccine hopes

Source: Bill Musgrave, American Gold Exchange

Austin — Gold fell 1.3% to close under $1,735 as upbeat COVID-19 news and stimulus promises from the Fed boosted risk appetite, dulling demand for safe havens. It was the metal's first down session in the past five.

Biotech firm Moderna announced positive results for a Phase 1 clinical trial of an experimental coronavirus drug today, fueling dreams of a post-COVID world. While still a long way from a working vaccine, the early-stage results are the first of their kind. A Stage 2 trial will begin shortly.

Wall Street rallied sharply on the news, with the Dow rising 3.9% while the S&P 500 added 3.2%. US Treasury yields also rose on the whetted risk appetite as investors liquidated bonds and bought stocks.

Also fueling the demand for risker assets, Fed Chair Jerome Powell offered a positive assessment of economic prospects, forecasting a gradual recovery. He pledged that the Fed will supply as much monetary stimulus as necessary for as long as it takes.

The other precious metals were higher, with silver rising 2.3% while platinum and palladium jumped .4% and 9.1%, respectively.

At the Comex close: June gold fell by $21.90 to $1,734.40; July silver jumped 40 cents to $17.47; July platinum added $52.20, to $869.30; and June palladium surged $169.20 to $2,027.10 an ounce.


5/15/2020: Gold surges to 2.5% weekly win

Source: Bill Musgrave, American Gold Exchange

Austin — Gold surged another 0.9% to close at a one-month high above $1,756 as weak U.S. economic data and rising tensions with China undercut the dollar and boosted demand for safe havens. The metal ended the week with a gain of 2.5%.

Retail sales plummeted by 16.4% in April, the most on record by a huge margin. With consumer spending comprising around 70% of the economy, real GDP is projected to contract by more than 46% in the second quarter, according to the Atlanta Fed.

U.S industrial output also collapsed last month, plunging a record 11.2% as factories around the country closed because of the coronavirus. Production of motor vehicles and parts fell 70% while non-automotive manufacturing fell 10.2%.

Adding to market worries, President Trump blocked shipments of semiconductors to Chinese tech giant Huawei Technologies, the latest salvo in a renewed trade war. China is reportedly weighing retaliatory measures.

The dollar fell 0.1% against major rivals, supporting gold and other commodities priced in it for global trade by making them less expense overseas.

Wall Street overcame deep losses to achieve modest gains on reports that the House will authorize more than $3 trillion in additional stimulus to combat the devastating effects of COVID-19 on the economy. The Dow closed 0.3% higher while the S&P 500 picked up 0.4%.

The other precious metals were also higher for the day and week. Silver soared 5.7% for a weekly rally of 8.2%. Platinum rose 5.4% to pull out a weekly rise of 3.5%. Palladium added 3.3% to gain 2% for the week.

At the Comex close: June gold jumped $15.40 to $1,756.30; July silver soared 91 cents to $17.07; July platinum climbed $42.10 to $817.10; and June palladium added $59.70, to $1,857.90 an ounce.

  

Metal Ask      Change
Gold $1,735.38           $0.00
Silver $18.05           $0.00
Platinum $844.23           $0.00
Palladium $1,994.01           $0.00
In US Dollars