Gold Neared Eight-Year High June 24, 2020 Gold neared eight-year high overnight as investors sought a safe haven against a possible second wave of the coronavirus pandemic, but the yellow metal has now backed off a tad on profit-taking. Gold rose for a fourth day and neared $1,800 an ounce as the dollar hovered near a one-week low. A weaker dollar typically bolsters gold. Cases of the virus surged in the U.S. South and Southwest, threatening to derail the emergence from lockdowns and the reopening of the economy. Texas hit 5,000 cases in a single day for the first time on Tuesday, and the governor urged residents to stay home unless they had to be out. And the European Union is considering banning Americans from traveling to the bloc from July 1 because of its apparent failure to control the virus. The virus is also on the upswing in Latin America and other parts of the globe, and investors are widely expecting central banks to continue to be aggressive about economic stimulus measures, which would be bullish for precious metals. August gold futures rose 0.9% Tuesday to $1,782.00 an ounce on Comex and is up 1.7% so far this week. Currently, the August contract is at $1,778.10, while the DG spot price is $1,770.50. If gold futures break through the $1,800 psychological threshold, they may take aim at a new record, Bloomberg reported. Futures previously topped off at $1,923.70 in September 2011. The International Monetary Fund will issue its world economic update for 2020 later Wednesday, offering further insight on how the coronavirus has affected the global economy. The virus known as COVID-19 has killed almost 478,000 people worldwide and sickened 9.26 million. About 25% of the cases — and the deaths — are in the U.S. The country has 2.3 million cases — more than any other nation. Meanwhile, Chicago Federal Reserve President Charles Evans and St. Louis Fed President James Bullard are also scheduled to speak in the afternoon. On Thursday, the Labor Department will release its latest initial jobless claims data, a key indicator of how the pandemic has affected the U.S. The figure has been above 1 million for each of the previous 13 weeks. Thursday also brings a revision to first-quarter U.S. GDP and May reports on durable goods. Personal income, consumer spending and core inflation data come out Friday. Silver futures gained 0.9% Tuesday to settle at $18.24 an ounce on Comex. The most-active September contract added 1.2% in the first two days of the week. The September contract is currently at $17.745, while the DG spot price is $17.60. Spot palladium increased 0.3% Tuesday to $1,974.00 an ounce and advanced 2.2% in the first two days of the week. Spot platinum also rose 0.3% Tuesday, to $838.40 an ounce, and is up 2.2% so far for the week. Currently, the DG spot price for platinum is $814.00, while the palladium price is $1942.80. Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.