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551073abb73a1535e452a29d6b43caeb | https://www.reuters.com/article/global-precious-idINKBN27T05E?edition-redirect=in | Gold gains on mounting pandemic, vaccine worries | Gold gains on mounting pandemic, vaccine worries
By Sumita Layek2 Min Read
(Reuters) - Gold rose on Friday as increasing coronavirus infections globally re-ignited concerns about the economic toll from the pandemic, while scepticism over the reach of a potential COVID-19 vaccine further boosted the safe-haven metal.
FILE PHOTO: Gold bullion is displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su
Spot gold XAU= rose 0.5% to $1,884.76 per ounce by 1:57 p.m. EST (1857 GMT). But bullion was still bound for its worst weekly loss since late September, down 3.4% so far, mainly hurt by initial euphoria over an effective vaccine from Pfizer PFE.N earlier in the week.
U.S. gold futures GCv1 settled up 0.7% at $1,886.20.
“We have got COVID-19 raging in the U.S. and the uncertainty surrounding that and the potential for some more economic damage in the coming months; all that is working in favour of gold market bulls,” Kitco Metals senior analyst Jim Wyckoff said.
Pfizer and BioNTech SE 22UAy.DE on Monday said their COVID-19 vaccine was more than 90% effective based on initial trial results.
“Everybody was excited about the vaccine, but then the grim realization sets in that it will probably not be available for general public consumption until late winter or spring and until then ... we’ve got to get through some very rough waters,” Wyckoff said.
Also supporting bullion, the dollar .DXY eased.
“There is fear of a second wave with lockdowns and restrictions and the market has to work through (some) stimulus whether we’re in a lame duck situation or with a new president-elect,” said Eli Tesfaye, senior market strategist at RJO Futures.
“So, the market at some point has to anticipate that cash and price in the potential inflation.”
Gold is considered a hedge against inflation and currency debasement likely to result from large stimulus.
Silver XAG= climbed 1.5% to $24.59 an ounce, platinum XPT= rose 1% to $888.76 and palladium XPD= fell 0.1% to $2,328.98.
Reporting by Sumita Layek in Bengaluru; Editing by Kirsten Donovan and Steve OrlofskyOur Standards: The Thomson Reuters Trust Principles.
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9f3c5606f03bbef7e3b7c829aa603d6b | https://www.reuters.com/article/global-precious-idINKBN2800FT?edition-redirect=in | Gold firms as Mnuchin rekindles U.S. stimulus hopes | Gold firms as Mnuchin rekindles U.S. stimulus hopes
By Sumita Layek2 Min Read
(Reuters) - Gold edged higher on Friday after U.S. Treasury Secretary Steven Mnuchin signalled that negotiations on stimulus measures will continue, boosting the metal’s appeal as a hedge against likely inflation.
FILE PHOTO: Gold bars are displayed during a photo opportunity at the Ginza Tanaka store in Tokyo September 7, 2009. REUTERS/Yuriko Nakao
Spot gold rose 0.3% to $1,871.99 per ounce by 11:50 a.m. EST (1650 GMT), but was down 0.8% for the week. U.S. gold futures rose 0.6% to $1,871.80.
Mnuchin said he and White House Chief of Staff Mark Meadows would be speaking on Friday with Republican congressional leaders on negotiations with Congress on more economic support.
“The thought of stimulus talks moving forward once again has supported gold as we realise central bank liquidity and fiscal stimulus measures continue to be a driving force behind this market,” said David Meger, director of metals trading at High Ridge Futures.
Bullion has dipped about 5% since positive reports on COVID-19 vaccines from Pfizer and Moderna in the past 12 days. Gold has mainly benefited this year on the back of damage to economies from the pandemic and the resultant global stimulus.
But gold will remain supported as “vaccines will take months and months to become well distributed enough to be effective and the U.S. government is going to continue to be stalemated,” said Jeffrey Christian, managing partner of CPM Group.
Investors pulled $4 billion from gold, the biggest outflow ever, amid a rush for riskier assets last week, BofA said on Friday.
“While the macro backdrop remains supportive, the key downside risk stems from physical demand and ETP (exchange-traded products) holdings,” said Standard Chartered analyst Suki Cooper in a note.
“Buyers still appear to view price dips below $1,860/oz as attractive entry levels, and prices have held up well given the size of ETP outflows.”
Silver rose 0.7% to $24.26 per ounce. Platinum eased 0.7% at $944.99, while palladium shed 0.2% to $2,321.49.
Reporting by Sumita Layek in Bengaluru; Editing by Frances Kerry and Marguerita ChoyOur Standards: The Thomson Reuters Trust Principles.
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450492d2be38dc833792b7932e26158b | https://www.reuters.com/article/global-precious-idINKCN12B04V?edition-redirect=in | Gold slips on higher dollar as prospect of Dec U.S. rate hike increases | Gold slips on higher dollar as prospect of Dec U.S. rate hike increases
By Marcy Nicholson, Clara Denina3 Min Read
NEW YORK/LONDON (Reuters) - Gold prices fell on Tuesday as the dollar strengthened on increasing bets that the Federal Reserve will raise U.S. interest rates in December.
A saleswoman shows a gold earring to customers at a jewellery showroom in Mumbai, India, July 21, 2015. REUTERS/Shailesh Andrade
Chicago Fed President Charles Evans said in Sydney he “could be fine” with raising rates in December, but would first like to see how the economy and inflation progressed.
Traders have priced in a 70 percent chance that the Fed will raise rates at a Dec. 13-14 meeting, up from 66 percent early on Friday, according to CME Group’s FedWatch tool.
Spot gold had dropped 0.3 percent at $1,255.7 an ounce by 1:47 p.m. EDT (1747 GMT), while U.S. gold futures settled down 0.4 percent at $1,255.9 per ounce.
“A stronger dollar is weighing on most commodities and there is the outlook for the Fed potentially raising rates in December, which is damaging for gold,” ING commodity strategist Warren Patterson said.
On Friday, bullion touched a four-month low of $1,241.20 an ounce after forecast-beating U.S. data and comments from Fed officials saying there was a strong case for raising rates.
The dollar hit an 11-week high against a basket of six major currencies, making dollar-denominated gold more expensive for holders of other currencies. [FRX/]
“The market’s starting to get some belief that the Fed’s going to follow through,” said Rob Haworth, senior investment strategist for U.S. Bank Wealth management in Seattle, referring to expectations for a rate hike in December.
“Everything still seems to be pointing to slow growth. I think the gold market is coming to grips with that.”
Since gold pays no interest, the precious metal is highly sensitive to increases in U.S. interest rates.
Investors awaited Wednesday’s release of minutes of the latest Federal Reserve Open Market Committee meeting to see how close the central bank came last month to hiking rates.
Among other precious metals, spot platinum was down 1.5 percent at $946.25 an ounce after falling to a six-month low at $941.90.
Palladium was down 2.7 percent at $646.75 after falling to the lowest in nearly three months at $644.97 an ounce.
UBS Wealth Management Research said in a note that it introduced a new overweight palladium versus underweight U.S. natural gas position in its relative commodity preference.
“The white metal is likely to benefit from strong car sales, while milder temperatures are likely to weigh on US natural gas prices,” UBS said.
Silver was down 0.9 percent at $17.47.
Addional reporting by Swati Verma in Bengaluru; editing by Adrian Croft and David GregorioOur Standards: The Thomson Reuters Trust Principles.
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a47dd7bd168bbf3c758be9c786834f5f | https://www.reuters.com/article/global-precious-idINKCN1B10CB?edition-redirect=in | North Korea tensions push gold higher | North Korea tensions push gold higher
By Peter Hobson3 Min Read
LONDON (Reuters) - Gold rose on Monday as tensions over North Korea fuelled safe haven demand, while doubts over U.S. President Donald Trump’s ability to enact pro-business policies pushed U.S. bond yields to near two-month lows and world stocks fell. [MKTS/GLOB] [US/]
Gold bullions are displayed at Degussa shop in Singapore June 16, 2017. REUTERS/Edgar Su/Files
Investors were braced for North Korea’s response to computer-simulated military exercises begun by South Korean and U.S. forces on Monday that will continue until Aug. 31.
“Gold is being supported by the war games and the uncertainty in Washington,” said Saxo Bank analyst Ole Hansen.
Spot gold was up 0.3 percent at $1,287.31 an ounce at 1013 GMT, while U.S. gold futures for December delivery were 0.1 percent higher at $1,293 an ounce.
Gold on Friday surged above $1,300 an ounce for the first time since November following attacks in Spain and rising fears over Trump’s ability to push through tax reform and investment.
But prices fell after Trump fired his nationalist and anti-globalisation chief strategist Steve Bannon.
Hansen said gold could fall further due to a large build-up of speculative long positions, which last week rose in COMEX gold for a fifth consecutive week to a two month high.
“We’ve seen in gold’s previous attempts to break higher that once it becomes clear that it is not going to break, selling accelerates from longs being reduced,” said Hansen.
Sam Laughlin, a trader at MKS PAMP, said gold could attempt to rise above $1,300, but that “any corrective moves through $1,280-$1,285 has the potential to extend toward $1,265.”
Investors were looking ahead to an annual meeting of central bankers in Jackson Hole this week, with European Central Bank President Mario Draghi and U.S. Federal Reserve Chair Janet Yellen to speak on Friday.
Fed officials have indicated they intend to raise interest rates again this year, while sources told Reuters that Draghi would not deliver any fresh policy messages.
Gold is sensitive to rising interest rates because they increase bond yields, raising the opportunity cost of holding non-yielding bullion, and tend to boost the dollar, in which gold is priced.
In other precious metals, silver was up 0.5 percent at $17.01 an ounce.
Platinum was 0.4 percent higher at $978.95.
Autocatalyst metal palladium was 0.9 percent higher at $931.60 an ounce after reaching $934, its highest in 16 years, on Friday, helped by a rally in industrial metals.
Additional reporting by Apeksha Nair in Bengaluru; Editing by Mark PotterOur Standards: The Thomson Reuters Trust Principles.
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db521989b64621ab72a9f08bb3e4e09e | https://www.reuters.com/article/global-precious-idINKCN1B403D?edition-redirect=in | Gold eases on firmer U.S. dollar before Jackson Hole meeting | Gold eases on firmer U.S. dollar before Jackson Hole meeting
By Devika Krishna Kumar, Eric Onstad3 Min Read
NEW YORK/LONDON (Reuters) - Gold prices drifted lower on Thursday, pressured by a firmer dollar as investors awaited cues on further interest rate hikes from central bankers meeting in Jackson Hole this week.
Gold bars are seen at the Kazakhstan's National Bank vault in Almaty, Kazakhstan, September 30, 2016. REUTERS/Mariya Gordeyeva/File Photo
Losses were limited, however, after a threat by U.S. President Donald Trump to shut down the government unless he got funding for a border wall with Mexico. Geopolitical risk tends to drive buying of safe-haven investments like bullion.
Key to the direction of the market were funds holding huge long positions in Comex gold futures, said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
“We’ve had two failed attempts at the upside this year which resulted in a flush out of longs, and the longer we stay here without breaking higher, the bigger the risk that these guys will start to get impatient,” he said.
Gold failed in April and June to break through the top of its broad $1,200-$1,300 range this year.
“But at the same time, there’s this threat to close down the U.S. government by Trump if he doesn’t get his wall so that’s providing some underlying support.”
Spot gold XAU= was down 0.25 percent at $1,286.5 per ounce by 2:45 p.m. ET (1845 GMT), giving back some of the previous session's gains.
The most-active U.S. gold GCcv1 futures for December delivery settled down $2.70 at $1,292 an ounce.
Traders were focussed on an annual meeting of central bankers in Jackson Hole, Wyoming, starting on Thursday, where Federal Reserve Chair Janet Yellen and European Central Bank chief Mario Draghi are set to deliver speeches on Friday on the outlook for monetary policy and interest rates.
“Gold traders were ambivalent today keeping the metal in a tight range with market hoping that the dashing duo of Draghi and Yellen can dazzle tomorrow at Jackson Hole and provide fresh inspiration,” said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York.
Bullion is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
The U.S. dollar recovered on Thursday, as investors await what message Fed policymakers will send from Jackson Hole and holding gains after U.S. jobless claims were better than expected.[USD/]
Silver XAG= was down 0.56 percent at $16.92 an ounce, while platinum XPT= fell 0.18 percent to $974.25 an ounce.
Palladium XPD= eased 0.16 pct to $931.50 per ounce.
Reporting by Eric Onstad in London and Devika Krishna Kumar and Chris Prentice in New York; Additional reporting by Apeksha Nair in Bengaluru; Editing by Dale Hudson and Phil BerlowitzOur Standards: The Thomson Reuters Trust Principles.
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72ad1daaa61fde7f0facba4284e847b7 | https://www.reuters.com/article/global-precious-idINKCN24G0BY?edition-redirect=in | Gold steady as U.S.-China tensions mount, stronger equities cap gains | Gold steady as U.S.-China tensions mount, stronger equities cap gains
By Shreyansi Singh3 Min Read
(Reuters) - Gold prices were little changed on Wednesday, holding above the key $1,800 level, as rising tensions between United States and China firmed demand for the safe-haven metal, but a strong equities market capped its advance.
FILE PHOTO: An employee weighs a 1kg gold bar at AGR (African Gold Refinery) in Entebbe, Uganda, October 4, 2018. REUTERS/Baz Ratner/File photo
Spot gold was little changed at $1,808.39 per ounce by 11:33 am EDT (1533 GMT), having earlier hit its highest since July 9 at $1,814.40. U.S. gold futures fell 0.3% to $1,808.60 per ounce.
“We have even more (coronavirus case) numbers, we have a lot of U.S. political headlines... All these are somewhat supportive for gold, which is why we’ve been holding over the $1,800 area very well,” said George Gero, managing director at RBC Wealth Management.
President Donald Trump on Tuesday ordered an end to Hong Kong’s special status under U.S. law, prompting Beijing to warn of retaliatory sanctions.
Trump also shut the door on “Phase 2” trade negotiations with Beijing.
Meanwhile, U.S. stocks gained on the back of Goldman Sachs’ strong quarterly results, and promising early data for a potential COVID-19 vaccine, keeping gold’s advance subdued.
Also keeping the floor under the bullion’s prices, the dollar fell 0.2% versus a basket of currencies.
“Most gold followers are interested in interest rates remaining down... The pullback because of the benign interest rates in the U.S. dollar is very supportive of gold,” Gero added.
Gold has risen over 19% so far this year, mainly benefiting from lower interest rates and widespread stimulus measures from major central banks as it is widely viewed as a hedge against inflation and currency debasement.
“As long as prices remain above the $1,800 level, gold has the potential to test $1,815 and a fresh multi-year high at $1,825, respectively,” FXTM analyst Lukman Otunuga said in a note.
“Should $1,800 prove to be unreliable support, the precious metal may experience a technical correction back towards the $1,765-$1,780 region before bulls gather fresh momentum.”
Reflecting appeal for gold, holdings of the SPDR Gold Trust exchange-traded fund were near their highest since April 2013.
Elsewhere, palladium rose 0.4% to $1,966.05 an ounce, platinum was 0.1% lower at $825.64 and silver gained 0.4% to $19.27.
Reporting by Eileen Soreng and Diptendu Lahiri in Bengaluru; Editing by Bernadette BaumOur Standards: The Thomson Reuters Trust Principles.
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51910de72d846dda4ff112fe97122cbb | https://www.reuters.com/article/global-precious-idINL1N2HK03X?edition-redirect=in | PRECIOUS-Gold firms as dollar stalls, uncertainties loom ahead of U.S. polls | PRECIOUS-Gold firms as dollar stalls, uncertainties loom ahead of U.S. polls
By Eileen Soreng0 Min Read
* ECB policy decision at 1245 GMT * Interactive graphic tracking global spread of coronavirus: tmsnrt.rs/3mvcUoa (Recasts, adds comments, updates prices) By Eileen Soreng Oct 29 (Reuters) - Gold inched up on Thursday after a sharp slide in the previous session as a halt in the dollar's rally supported some safe- haven buying driven by surging coronavirus cases and the approaching U.S. elections. Spot gold rose 0.1% to $1,879.71 per ounce by 0805 GMT, with some investors also taking advantage of Wednesday's slide to a one-month low to buy gold. U.S. gold futures were up 0.1% at $1,880.10. The U.S. elections and expectation of a pause in the dollar index are propping up gold, said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade. Also, "in giant economies like France and Germany, COVID-19 cases are increasing and again they are going for lockdowns. So in that situation, there should be some safe-haven buying for gold." Ahead of the Nov. 3 election, Democratic challenger Joe Biden leads U.S. President Donald Trump nationally, but the competition is tighter in swing states. "The broad supportive band (for gold) through $1,870-$1,880 remains intact for the time-being... Key near-term drivers remain U.S. equity flows and dollar direction," MKS PAMP said in a note. Concerns over the pace of the global economic recovery have also gripped markets in recent days, as European countries impose new lockdowns to contain a new coronavirus wave. The dollar index rally took a breather as it steadied off a one-week peak scaled on Wednesday. Investors are now focussing on central bank meetings, with the European Central Bank expected to hold off on new measures later in the day and hinting at action in December. Gold, considered an inflation-hedge, has gained 24% this year, helped by near-zero interest rates globally and unprecedented stimulus measures to ease the economic blow from the pandemic. Silver fell 0.6% to $23.28 per ounce, while platinum rose 0.3% to $870.02. Palladium was up 0.5% at $2,247.76. (Reporting by Eileen Soreng and Asha Sistla in Bengaluru; editing by Uttaresh.V, Aditya Soni and Rashmi Aich)
Our Standards: The Thomson Reuters Trust Principles.
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70e33fe240de0a03be74ad4284ecfb51 | https://www.reuters.com/article/global-precious-idINL1N2HV024?edition-redirect=in | PRECIOUS-Gold gains as Biden victory dents dollar, boosts stimulus hopes | PRECIOUS-Gold gains as Biden victory dents dollar, boosts stimulus hopes
By Eileen Soreng0 Min Read
* Spot gold may rise to $1,975/oz - technicals * Dollar hovers near a more than two-month low * Interactive graphic tracking global spread of coronavirus: tmsnrt.rs/3mvcUoa (Adds comments, updates prices) By Eileen Soreng Nov 9 (Reuters) - Gold rose on Monday as Joe Biden's win in the U.S. presidential race weighed on the dollar and ignited hopes of more monetary stimulus measures to revive an economy battered by COVID-19. Spot gold rose 0.4% to $1,960.11 per ounce by 0817 GMT. Earlier in the session, it hit its highest since Sept. 16 at $1,965.33. U.S. gold futures gained 0.4% to $1,958.80. "Gold prices are moving up anticipating another stimulus (package) by the U.S. and once that comes, you could see another leg of this rally," said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai, India. "Considering the way currency debasement is taking place, further upside should not be ruled out... Prices on COMEX can test the $1,980-$1,985 level in a month's time." The dollar index languished near a 10-week low. Democrat Biden clinched the presidency on Saturday clearing the threshold of 270 Electoral College votes. Republicans appear to have retained control of the Senate, although the final makeup may not be clear until runoff votes in Georgia in January. A potentially divided U.S. congress may mean a smaller fiscal stimulus package, but that could put the spotlight on the Federal Reserve to prop up the economy. Gold tends to benefit from widespread stimulus as it is considered a hedge against inflation and currency debasement. As the pandemic is shaping the economic backdrop, investors will continue to see low interest rates and a weaker U.S. dollar and that should help gold perform relatively well, said ANZ analyst Daniel Hynes. Global coronavirus infections surpassed 50 million on Sunday, a Reuters tally showed. Technically, gold may rise to $1,975, having cleared resistance at $1,951, Reuters technical analyst Wang Tao said. Silver rose 0.8% to $25.79 per ounce. Platinum climbed 1.4% to $901, while palladium fell 1.3% to $2,458.48. (Reporting by Eileen Soreng in Bengaluru; editing by Uttaresh.V, Subhranshu Sahu and Barbara Lewis)
Our Standards: The Thomson Reuters Trust Principles.
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00d4912de4a66cf2d4fe97c033e8b11f | https://www.reuters.com/article/global-precious-idINL1N2I403S?edition-redirect=in | PRECIOUS-Gold range-bound, caught between vaccine hopes and rising virus cases | PRECIOUS-Gold range-bound, caught between vaccine hopes and rising virus cases
By Eileen Soreng0 Min Read
* Fed's Powell says "long way to go" for economy to recover * Platinum market in deficit this year and next- WPIC * Interactive graphic tracking global spread of coronavirus: tmsnrt.rs/3mvcUoa (Adds comments, updates prices) By Eileen Soreng Nov 18 (Reuters) - Gold inched up and moved in a narrow range on Wednesday, as investors weighed the prospects of a COVID-19 vaccine against concerns over rising cases and the possibility of further economic support from the U.S. Federal Reserve. Spot gold rose 0.1% to $1,880.81 per ounce by 0707 GMT, while U.S. gold futures were down 0.4% at $1,878.30. Gold shed as much as 1.3% on Monday after Moderna said its vaccine was 94.5% effective in a late-stage trial. "There's a lack of catalyst for gold to rally ... Weighing on prices is a slight depression in inflation expectations because it's quite clear now that the U.S. fiscal stimulus will probably not be as sizeable as previously imagined," said IG Markets analyst Kyle Rodda. The emphasis is now on the Fed to support the U.S. economy through the surge in coronavirus cases, he added. Fed chair Jerome Powell said on Tuesday there's "a long way to go" for the economy to recover and that the central bank is committed to using all its tools to support the recovery. Meanwhile, data showed U.S. retail sales rose less than expected in October. "Gold has clearly run out of upward momentum, with the short-term market clearly long," said Jeffrey Halley, senior market analyst at OANDA, adding, a daily close below key support around the $1,867 level could signal a deeper correction. "I expect monetary policy globally, and especially from the Fed to be ultra-easy right through 2021." Gold, considered a hedge against inflation and currency debasement, has gained over 24% this year, mainly benefiting from massive global stimulus. Silver rose 0.1% to $24.48 per ounce and palladium was up 0.3% to $2,323.74. Platinum gained 0.6% to $930.40. The World Platinum Investment Council projected a market deficit of 1.2 million ounces and 224,000 ounces in 2020 and 2021, respectively. (Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi Aich)
Our Standards: The Thomson Reuters Trust Principles.
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638c8295464410733961f7a9e4d2e506 | https://www.reuters.com/article/global-precious-idINL3N26E0IL?edition-redirect=in | PRECIOUS-Gold prices slip amid Gulf tensions, trade talk uncertainties | PRECIOUS-Gold prices slip amid Gulf tensions, trade talk uncertainties
By Diptendu Lahiri3 Min Read
* COMEX gold speculators raise net long position
* Holdings at SPDR Gold Trust rose 1.19% on Friday
* Palladium hits fresh high at $1,659.27/oz (Updates prices)
Sept 23 (Reuters) - Gold prices inched lower on Monday as investors sought more clarity on U.S.-China trade talks, while escalating tensions in the Middle East provided some support.
Spot gold fell 0.2% to $1,514.44 per ounce at 0546 GMT, but lingered near the over one-week high of $1,516.81 hit on Friday.
U.S. gold futures were up 0.5% to $1,521.90 per ounce.
“Gold is currently in a mixed zone.” said Howie Lee, economist at OCBC Bank.
“The pickup in geopolitical risk from Saudi Arabia and President Trump rejecting the possibility of a partial trade deal with China certainly adds that little more shine to gold.”
A U.S.-China trade breakthrough seemed unlikely after President Donald Trump told reporters on Friday he was “not looking” for a partial deal, and Chinese officials cancelled goodwill visits to U.S. farmers.
But both sides later published positive statements, with the U.S. Trade Representative’s office describing the last week’s talks as “productive” and China’s Commerce Ministry calling them “constructive.” October’s high-level talks remain on track.
Meanwhile in the Middle East, tensions remained elevated with the Pentagon ordering additional troops to be deployed in the Gulf region to strengthen Saudi Arabia’s air and missile defences, following an attack on the kingdom’s oil facilities. U.S. has slapped more sanctions on Iran, penalising the Iranian Central Bank.
Saudi Arabia will also seek to make a case at a global gathering in New York this week for concerted action to punish and deter Iran after the strikes.
“The safe heaven status is still supporting gold. But the prices are stuck between $1,480 and $1,580,” said OANDA analyst Jeffrey Halley.
The dollar was nearly flat against a basket of currencies , while most Asian share markets slipped on Monday.
Indicative of investor interest in gold, holdings at SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 1.19% to 894.15 tonnes on Friday.
Meanwhile, COMEX gold speculators raise net long position by 14,150 contracts to 261,878 in week to Sept. 17, according to the U.S. Commodity Futures Trading Commission data.
Spot palladium rose about 1% to $1,656.77 per ounce, after hitting a record high at $1,659.27 earlier in the session.
Silver rose 1.6 % to $18.26 per ounce and platinum rose nearly 1% to $953.70 per ounce. (Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi Aich)
Our Standards: The Thomson Reuters Trust Principles.
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a23311b16fbaafed16668384c0f9a009 | https://www.reuters.com/article/global-precious-idINL3N26L0CU?edition-redirect=in | PRECIOUS-Gold prices dip as fears of widening trade war ease | PRECIOUS-Gold prices dip as fears of widening trade war ease
By Reuters Staff3 Min Read
Sept 30 (Reuters) - Gold prices inched down in early trade on Monday as concerns over an escalation in the U.S.-China trade war eased, boosting the dollar.
FUNDAMENTALS
* Spot gold was down 0.2% at $1,494.30 per ounce, as of 0104 GMT. In the previous session, prices fell to their lowest since Sept. 18 at $1,486.60.
* U.S. gold futures were 0.2% lower at $1,503.3 per ounce.
* China hopes Beijing and Washington will resolve their trade dispute “with a calm and rational attitude”, Vice Commerce Minister Wang Shouwen said on Sunday, ahead of talks in two weeks between the two sides.
* President Donald Trump’s administration is considering delisting Chinese companies from U.S. stock exchanges, three sources briefed on the matter said on Friday, in what would be a radical escalation of U.S.-China trade tensions.
* The United States does not currently plan to stop Chinese companies from listing on U.S. exchanges, Bloomberg reported on Saturday, citing a U.S. Treasury official.
* U.S. consumer spending barely rose in August and business investment remained subdued amid lingering trade tensions, prompting economists to slash their economic growth estimates for the third quarter.
* Philadelphia Federal Reserve Bank President Patrick Harker said in New York on Friday he opposed the central bank’s September rate cut and thinks the Fed should “hold firm” on interest rates.
* Boris Johnson said on Sunday he would not quit as Britain’s prime minister even if he fails to secure a deal to leave the European Union, insisting only his Conservative government can deliver Brexit on Oct. 31.
* Saudi Arabia’s crown prince warned in an interview broadcast on Sunday that oil prices could spike to “unimaginably high numbers” if the world does not come together to deter Iran, but said he would prefer a political solution to a military one.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.22% to 922.88 tonnes on Friday.
* Hedge funds and money managers raised their bullish positions in COMEX gold and reduced bullish bets on silver contracts in the week to Sept. 24, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
DATA AHEAD 0755 Germany Unemployment Chg, rate SA Sept 0830 UK GDP QQ, YY Q2 0900 EU Unemployment Rate Aug 1200 Germany CPI Prelim YY Sept 1200 Germany HICP Prelim YY Sept (Reporting by Eileen Soreng in Bengaluru; Editing by Aditya Soni)
Our Standards: The Thomson Reuters Trust Principles.
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9d75b6613aa72d47bbe1e123da0a1c90 | https://www.reuters.com/article/global-precious-idINL3N2EM0J5?edition-redirect=in | PRECIOUS-Gold steadies above $1,800 on rising virus fears, U.S.-China tensions | PRECIOUS-Gold steadies above $1,800 on rising virus fears, U.S.-China tensions
By Brijesh Patel3 Min Read
* SPDR Gold Trust holdings rise to over 7-year highs
* U.S. economy faces longer recovery from pandemic - Fed
* Interactive graphic tracking global spread of coronavirus: open tmsnrt.rs/3aIRuz7 in an external browser (Updates prices)
July 15 (Reuters) - Gold prices steadied on Wednesday to hold firm above the psychological level of $1,800, as worries over surging coronavirus cases and simmering U.S.-China tensions cemented demand for the safe-haven metal.
Spot gold was little changed at $1,808.85 per ounce by 0658 GMT. U.S. gold futures eased 0.2% to $1,808.40.
“Demand appears firm for gold on any dips to the $1,800 regions for now, with investors hedging COVID-19 risks, especially after the renewed lockdown in California,” said Jeffrey Halley, a senior market analyst at OANDA.
Although the mood on Wall Street turned upbeat, the record amounts of loan loss provisions from banks overnight and comments from the Federal Reserve are a cause of concern for bullish investors, Halley added.
Federal Reserve officials warned that the U.S. economy faces a longer recovery from the pandemic, and economic pain could still worsen as cases surge across the country, leading many states to temporarily halt the reopening of their economies.
Adding to worries over economic recovery, U.S. President Donald Trump signed an executive order ending preferential treatment for Hong Kong and also shut the door on “Phase 2” trade negotiations with China.
The resultant boost to safe-haven demand helped gold maintain its positive trajectory despite a strong rally in U.S. stocks overnight.
Reflecting increased investor interest in gold, holdings of SPDR Gold Trust rose 0.2% to 1,206.89 tonnes on Tuesday, their highest since April 2013.
The Bank of Japan kept monetary policy steady on Wednesday.
On the technical side, a bullish target of $1,831 per ounce has been resumed for spot gold, as it seems to have continued its uptrend, said Reuters technical analyst Wang Tao.
Elsewhere, palladium rose 0.4% to $1,967.38 per ounce, platinum fell 0.2% to $824.44 and silver edged 0.1% higher to $19.21.
Reporting by Brijesh Patel in Bengaluru; Editing by Shailesh Kuber and Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.
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f50a1771f6b5a97a67ec902f2f27737f | https://www.reuters.com/article/global-precious-idINL3N2ET07T?edition-redirect=in | PRECIOUS-Gold climbs to nine-year high on weaker dollar, stimulus bets | PRECIOUS-Gold climbs to nine-year high on weaker dollar, stimulus bets
By Reuters Staff0 Min Read
July 22 (Reuters) - Gold rose to its highest since September 2011 on Wednesday, propelled by a softer U.S. dollar and expectation of more stimulus measures to resuscitate pandemic-hit economies which could stoke inflation. FUNDAMENTALS * Spot gold was up 0.1% at $1,843.09 per ounce by 0034 GMT, after hitting its highest in nearly nine years at $1,847.30 in early Asian trade. * U.S. gold futures rose 0.1% to $1,845.90. * The dollar index held near a more than four-month low, making gold less expensive for holders of other currencies. * Coronavirus cases continue to surge in the United States. President Donald Trump told reporters at the White House that the virus would probably get worse before it gets better. * U.S. Secretary of State Mike Pompeo said the United States wants to build a global coalition to counter China as he accused Beijing of exploiting the pandemic to further its own interests. * White House officials and top congressional Democrats discussed a next round of coronavirus relief that would include extended unemployment insurance and more money for schools. * Japan's factory activity contracted for a 15th straight month in July, indicating the economic pain from the coronavirus crisis extended into the third quarter of the year as hopes for a quick global recovery fade. * Gold is used as a safe investment during times of political and financial uncertainty. * SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.7% to 1,219.75 tonnes on Tuesday. * Asia shares were set to open lower on Wednesday after Trump's comments regarding the country's surge in novel coronavirus cases outweighed a slight rally on Wall Street. * Silver jumped 5.4% to $22.48 per ounce, palladium climbed 0.4% to $2,166.62 and platinum rose 0.1% to $882.74. DATA/EVENTS (GMT) 1400 US Existing Home Sales June (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)
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82bbf847f9caa54a0c53cf0ea80ca2f2 | https://www.reuters.com/article/global-precious-idINL4N1JY0YM?edition-redirect=in | PRECIOUS-Gold prices dip ahead of U.S. non-farm payrolls data | PRECIOUS-Gold prices dip ahead of U.S. non-farm payrolls data
By Reuters Staff0 Min Read
BENGALURU, July 7 (Reuters) - Gold prices inched down early on Friday to hover around their lowest in nearly two months, with investors waiting for key U.S. non-farm payrolls data later in the day. FUNDAMENTALS * Spot gold had fallen 0.2 percent to $1,222.65 per ounce by 0104 GMT. It has dropped 1.5 percent this week and could be heading for its biggest weekly decline since early May. * U.S. gold futures for August delivery declined 0.1 percent to $1,222.40 per ounce. * The dollar was steady in early Asian trade on Friday, on track for weekly gains but likely to tread water throughout the day as investors braced for the monthly U.S. employment numbers. * U.S. private employers hired fewer workers than expected in June and applications for unemployment benefits last week increased for a third straight week, pointing to some loss of momentum in job growth as the labour market nears full employment. * U.S. Treasury yields rose on Thursday, with benchmark yields touching nearly eight-week highs, on the prospect of hawkish global central bank policy and concern that rising oil prices could spur inflationary pressures. * U.S. President Donald Trump vowed on Thursday to confront North Korea "very strongly" following its latest missile test and urged nations to show Pyongyang there would be consequences for its weapons programme. * Trump and Russian President Vladimir Putin are set to size each other up in person for the first time on Friday in what promises to be the most highly anticipated meeting on the sidelines of the G20 summit. * European Central Bank policymakers are open to a further step towards reducing their monetary stimulus but are likely to move slowly out of fear of causing market turmoil, minutes of their last meeting showed on Thursday. * China's central bank said on Thursday that it would strengthen the ability to adjust interest rates and improve efficiency of its medium-term lending facility (MLF), standing lending facility (SLF) and reverse repos operations. * An increase in taxes on gold sales in India could curb short-term demand from the world's No. 2 consumer of the metal, the World Gold Council (WGC) said. * Gold demand in India lost steam this week as consumers held off after stepping up purchases ahead of a new tax policy effective this month, while fresh buying in China also remained sluggish despite a slide in global spot prices. DATA AHEAD (GMT) 0600 Germany Industrial output May 0645 France Industrial output May 0645 France Trade balance May 0830 Britain Industrial output May 1230 U.S. Nonfarm payrolls June 1230 U.S. Unemployment rate June (Reporting by Nithin Prasad in Bengaluru; Editing by Joseph Radford)
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c19f8c8387812f70b4978de3dae56535 | https://www.reuters.com/article/global-precious-idINL4N29B348?edition-redirect=in | PRECIOUS-Gold soars as Middle East tensions brew 'perfect storm' | PRECIOUS-Gold soars as Middle East tensions brew 'perfect storm'
By Karthika Suresh Namboothiri0 Min Read
(Updates prices, analyst comments) * Palladium hits all-time high of $2,031/oz * Gold eyes $1,600/oz- analyst * World stocks slump, erase new year's gains By Karthika Suresh Namboothiri Jan 6 (Reuters) - Gold prices surged on Monday as the U.S. killing of a top Iranian military commander triggered fears of a wider conflict in the Middle East, prompting a rush to the metal's safety, while palladium soared past $2,000 an ounce for the first time. Spot gold was up 1.1% at $1,567.80 per ounce as of 10:29 a.m. ET (1529 GMT), after rising to $1,579.72 earlier in the session, its highest since April 2013. U.S. gold futures gained 1% to $1,568.40 per ounce. "The markets are nervous about what comes next between the United States and Iran; there are political risks and there is safe haven buying in gold," said Bob Haberkorn, senior market strategist at RJO Futures. "The equities are lower, and this is a perfect storm for higher gold between now and until we get some clarity on the situation." Iraq's parliament called on Sunday for U.S. and other foreign troops to leave, while Iran lambasted U.S. President Donald Trump after he threatened to hit 52 Iranian sites, including targets important to Iranian culture, if Tehran were to retaliate. The conflict took a hit at risk appetite, sending world stocks down 0.3%, erasing all its new year's gains in its biggest two-day fall since early December. The dollar index was 0.2% lower against six other major currencies, making gold cheaper to buy. . "Gold flew through last year's highs in early trade and ... safe havens are back in vogue and the yellow metal is leading the way," said OANDA analyst Craig Erlam in a note. Elsewhere, U.S. Federal Reserve policymakers agreed that interest rates were likely to stay on hold for "a time," minutes of the Fed's Dec. 10-11 policy meeting, released on Friday, showed. Gold is highly sensitive to interest rates, as higher rates lift the opportunity cost of holding non-yielding bullion. Palladium was up nearly 2% to $2,025.22 an ounce, after hitting an all-time high of $2,031. The industrial metal added 53.93% in 2019, and is expected to remain in high demand this year. "It (palladium) seems to be unstoppable. Many market players are of the opinion that the market will remain severely tight, and that's the main driving force for prices," Commerzbank analyst Daniel Briesemann said. Silver gained 0.7% to $18.16, having earlier hit its highest in more than three months at $18.50. Platinum eased 0.9% to $971.82. (Reporting by Karthika Suresh Namboothiri in Bengaluru; Editing by Steve Orlofsky)
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24c55c49452669cf0b119dee0e31a03f | https://www.reuters.com/article/global-precious-idINL4N2HE2AZ?edition-redirect=in | PRECIOUS-Gold ticks up on U.S. stimulus hopes; strong dollar caps gains | PRECIOUS-Gold ticks up on U.S. stimulus hopes; strong dollar caps gains
By Nakul Iyer0 Min Read
(Adds comments, updates prices) * Gold up 0.5% this week, silver 2.2% * Interactive graphic tracking global spread of coronavirus: here By Nakul Iyer Oct 23 (Reuters) - Gold prices gained on Friday, holding above the key $1,900 level, as investors pinned hopes on a U.S. coronavirus relief package eventually getting passed, although a firmer dollar limited gains. Spot gold rose 0.2% to $1,907.96 per ounce by 0747 GMT and is up 0.5% for the week. U.S. gold futures gained 0.3% to $1,909.40 per ounce. Gold is viewed as a hedge against inflation and currency debasement spurred by stimulus measures. "Gold is just waiting for U.S stimulus to get through and before the U.S. presidential election there is uncertainty about who is going to win, though it won't change the trajectory for the market," said ANZ commodity strategist Soni Kumari. Regardless of who wins the election, stimulus measures are likely to be passed and that will weaken the dollar, which along with accommodative central bank policies, will be supportive to gold, Kumari added. House Speaker Nancy Pelosi on Thursday said negotiators were making progress in talks with the White House over the coronavirus fiscal aid package and a deal could be reached "pretty soon". "If we get the inflation spark, gold can go to $2,000... without that, I don't think we can get up there," said Stephen Innes, chief global market strategist at Axi. Meanwhile, the dollar index rose 0.1% against a basket of major currencies, making gold more expensive for other currency holders. Market focus now shifts to the Nov. 3 U.S. presidential election after President Donald Trump and Democratic challenger Joe Biden offered sharply contrasting views on the pandemic at the final presidential debate. "Gold will find plenty of willing buyers on dips to $1,900 as investors rotate into haven positioning as the U.S. election draws nearer," said Jeffrey Halley, senior market analyst at OANDA. Silver fell 0.3% to $24.69 per ounce, but was set for a weekly rise. Platinum rose 0.2% to $886.01 and palladium gained 0.5% to $2,384.32. (Reporting by Nakul Iyer in Bengaluru; Editing by Amy Caren Daniel)
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6eefe5b9bffb5fddc6fd62fda0299748 | https://www.reuters.com/article/global-precious-idINL4N2HJ0D8?edition-redirect=in | PRECIOUS-Gold slips on firmer dollar, ebbing hopes of U.S. stimulus | PRECIOUS-Gold slips on firmer dollar, ebbing hopes of U.S. stimulus
By Reuters Staff0 Min Read
Oct 28 (Reuters) - Gold prices were subdued on Wednesday, as the dollar strengthened, after hopes of U.S. stimulus faded following President Donald Trump's comment that a deal would likely come after the November election. FUNDAMENTALS * Spot gold fell 0.1% to $1,905.51 per ounce by 0103 GMT. * U.S. gold futures were down 0.2% at $1,908.70. * The dollar index was up 0.2% against rivals, making bullion expensive for those holding other currencies. * Trump on Tuesday said a coronavirus economic relief deal would likely come after the Nov. 3 election, with the White House unable to bridge differences with fellow Republicans in the U.S. Senate as well as congressional Democrats. * Data showed new orders for key U.S.-made capital goods increased to six-year high in September, while the Conference Board said its consumer confidence index fell to a reading of 100.9 this month from 101.3 in September amid concerns about the future. * French President Emmanuel Macron is expected to give a televised address on Wednesday evening, as authorities explore fresh restrictions to curb the spread of the coronavirus. * Britain must spell out how far it wants to diverge from European Union rules if it wants access to the bloc's financial market from January, a top European Commission official said on Tuesday. * China's net gold imports via Hong Kong surged to a six-month high in September, helped by a recovery in demand as economic activity picked up in the world's top consumer of the metal. * Holdings in SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, rose 0.23% to 1,266.72 tonnes on Tuesday. * Silver fell 1% to $24.30 per ounce, platinum was down 0.1% at $878.15, while palladium rose 0.2% to $2,336.31. DATA/EVENTS (GMT) 1045 Germany Economy Minister Peter Altmaier presents the government's biannual economic projection in Berlin Bank of Japan holds Monetary Policy Meeting (to Oct. 29) (Reporting by Eileen Soreng in Bengaluru; Editing by Amy Caren Daniel)
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af7519d6f769272cdd842e89723cc6e6 | https://www.reuters.com/article/global-precious-idINL4N2HO06P?edition-redirect=in | PRECIOUS-Gold falls as dollar firms ahead of U.S. election | PRECIOUS-Gold falls as dollar firms ahead of U.S. election
By Reuters Staff0 Min Read
Nov 2 (Reuters) - Gold edged lower on Monday weighed down by a stronger dollar, while investors awaited the outcome of Tuesday's hotly contested U.S presidential election. FUNDAMENTALS * Spot gold fell 0.2% to $1,873.87 per ounce by 0047 GMT. * U.S. gold futures were down 0.3% at $1,875.00 per ounce. * The dollar index was 0.1% higher against a basket of currencies, lowering gold's appeal to other currency holders. * With two days to go, Democrat Joe Biden holds a commanding national lead over President Donald Trump, but Trump has stayed competitive in the swing states that could decide the White House race. * U.S. Senate Majority Leader Mitch McConnell on Friday said that any new coronavirus aid package should be considered in early 2021, possibly closing the door to such legislation shortly following Tuesday's election. * Europe's new COVID-19 cases have doubled in five weeks, propelling the region on Sunday to cross the milestone of 10 million total infections, prompting countries such as Britain and Portugal to enact fresh lockdowns. * Speculators cut their net long position by 3,702 contracts to 131,609 in COMEX gold in the week to October 27, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. * Holdings in the SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.1% to 1,257.67 tonnes on Friday. ] * Silver fell 0.9% to $23.41 an ounce. Platinum dropped 1.5% to $836.37 and palladium gained 0.2% to $2,216.05. DATA/EVENTS (GMT) 0145 China Caixin Mfg PMI Final Oct 0500 India HIS Markit Mfg PMI Oct 0850 France Markit Mfg PMI Oct 0855 Germany Markit/BME Mfg PMI Oct 0900 EU Markit Mfg Final PMI Oct 0930 UK Markit/CIPS Mfg PMI Final Oct 1500 US ISM Manufacturing PMI Oct (Reporting by Nakul Iyer in Bengaluru; Editing by Krishna Chandra Eluri)
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dc126a8abe0e906db762e0a2de5bf447 | https://www.reuters.com/article/global-precious-idINL4N2HP1S3?edition-redirect=in | PRECIOUS-Gold steady as investors eye race for Oval Office | PRECIOUS-Gold steady as investors eye race for Oval Office
By Asha Sistla0 Min Read
* Dollar slips 0.4%, equities rally * A Democrat sweep may provide gold a handsome tailwind -analyst * Markets await U.S. Fed's two-day policy meeting * Interactive graphic tracking global spread of coronavirus: open * tmsnrt.rs/3aIRuz7 in an external browser (Adds analyst comments, details and updates prices) By Asha Sistla Nov 3 (Reuters) - Gold prices held steady on Tuesday, as a jump in riskier assets offset the impact of strict lockdowns across Europe and with wary markets awaiting results of the U.S. presidential election. Spot gold was up 0.1% to $1,896.64 per ounce by 0915 GMT, while U.S. gold futures rose 0.3% at $1,897.50 per ounce. Quantitative Commodity Research analyst Peter Fertig said stock market gains were indicative of improved risk appetite and a weaker U.S. dollar index. "Not to forget we have election day today, so nobody is really willing to take stronger positions now and are just waiting for the results." President Donald Trump and Democratic rival Joe Biden made a last-ditch push for votes in battleground states on Monday as their campaigns prepared for post-election disputes that could prolong the election process. Analysts say a Biden win, with his plans for potentially large stimulus, could help gold - seen as hedge against inflation and currency debasement - rally. "A Democrat sweep is likely to provide gold a handsome tailwind in the form of a weaker dollar," said Lukman Otunuga, Senior Research Analyst at FXTM in a note. "Although the metal may also derive some strength from a Trump win, the upside is likely to be limited by other forces in the short to medium term." He said that if the dollar were to appreciate on a contested election outcome, gold's upside could be limited despite risk aversion. The dollar, often seen as a rival safe-haven to gold, fell 0.4% against a basket of currencies on Tuesday. The Federal Open Market Committee (FOMC) will begin its two-day meeting on Wednesday. Silver was up 0.4% to $24.14 per ounce. Platinum rose 0.7% to $864.32 and palladium gained 1.7% to $2,248.96. (Reporting by Asha Sistla in Bengaluru; Editing by Kirsten Donovan)
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1d3f3750d87ab856bf1911e2d282b43a | https://www.reuters.com/article/global-precious-idINL4N2HS2QD?edition-redirect=in | PRECIOUS-Gold gains on dollar slide as U.S. election drags on | PRECIOUS-Gold gains on dollar slide as U.S. election drags on
By Asha Sistla0 Min Read
* Dollar set for worst week since March * Silver set for best week since early Aug * U.S. non-farm payrolls data due at 1330 GMT * FACTBOX-Who is winning the U.S. election? (Updates prices, adds analyst comment) By Asha Sistla Nov 6 (Reuters) - Gold rose on Friday en route to its best week in more than three months as the dollar slid on uncertainty surrounding the U.S. election outcome, with bets for continued pandemic-led stimulus and accommodative monetary policy bolstering bullion's appeal. Spot gold rose 0.2% to $1,953.21 per ounce by 1213 GMT. Prices jumped by 2.4% on Thursday, setting them up for a 3.9% weekly gain, which would be gold's best since late July. U.S. gold futures rose 0.4% to $1,954.20. "The outlook for gold is positive," said Michael Hewson, chief market analyst at CMC Markets UK, citing the political uncertainty weighing on the dollar. "It could get messy ... The U.S. Federal Reserve is likely to be much more interventionist as a result, because politicians will be too busy squabbling, and the dollar will continue to fall." The dollar held near a two-month trough, making gold more attractive to buyers using other currencies. Democrat Joe Biden edged closer to the White House, while President Donald Trump claimed the election was being "stolen" from him, even as votes were still being counted in key states. Analysts see the prospects of a prompt stimulus package fading because of a divided Congress, driving expectations that the U.S. Federal Reserve might need to fill the gap. "The macro environment is supportive for gold because no matter what the (election) outcome, monetary policy is likely to stay supportive and accommodative because economic activity remains fragile due to the rising COVID-19 numbers," said Bank of China International analyst Xiao Fu. Near-zero interest rates amid massive stimulus globally have helped non-yielding gold to gain more than 28% this year. Investors awaited U.S. non-farm payrolls data later on Friday, which is forecast to show a slight dip in job creation. In other precious metals, silver gained 1.5% to $25.71 an ounce. Platinum rose 1.1% to $902.43 and palladium was up 0.6% at $2,390.18. (Reporting by Asha Sistla in Bengaluru Editing by Mark Potter and David Goodman )
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b615cd6c5a79721dc076e8fb708bb8b2 | https://www.reuters.com/article/global-precious-idINL4N2HX2M7?edition-redirect=in | PRECIOUS-Gold eases as dollar firms, risk appetite gains | PRECIOUS-Gold eases as dollar firms, risk appetite gains
By Asha Sistla0 Min Read
* Dollar rises to near one-week high * Traders eye U.S. initial jobless claims on Nov. 12 * Fed policymakers suggest more specific fiscal support * Interactive graphic tracking global spread of coronavirus: tmsnrt.rs/3mvcUoa (Adds analyst comments and updates prices) By Asha Sistla Nov 11 (Reuters) - Gold eased on Wednesday on a firmer dollar and market optimism over a potential COVID-19 vaccine, but bets for continued monetary support to revive a pandemic hit economy capped bullion's declines. Spot gold fell 0.3% to $1,870.20 per ounce by 1307 GMT, while U.S. gold futures slipped 0.4% to $1,868.70. The dollar, considered a rival safe-haven, rose 0.3% to a near one-week high, against a basket of currencies. "The (gold) market is very, very cautious. That's why, the moment there's news out or the dollar strengthens, the market goes with it," said Afshin Nabavi, senior vice president at precious metals trader MKS SA, adding that moves were also limited by the Veteran's Day holiday in the United States. "The central banks will need to continue to make money to throw in the streets so that the system doesn't fall apart... So until we don't break (below) $1,820, it again feels like gold may want to test $1,900." Gold fell as much as 5.2% on Monday after drugmaker Pfizer said its COVID-19 vaccine was more than 90% effective based on initial trial results, with the resultant optimism continuing to fuel a strong run in equities. But the breakthrough highlighted the logistical challenges of distributing hundreds of millions of doses once it becomes available. The news has slightly reduced the need for stimulus but the vaccine is not yet available, said Quantitative Commodity Research analyst Peter Fertig. Non-yielding gold has risen about 23% so far this year, supported mainly by near-zero interest rates and unprecedented global stimulus, since it's considered a hedge against likely inflation and currency debasement. Federal Reserve policymakers on Tuesday highlighted the need for more targeted fiscal support from the government. Investors now await U.S. weekly jobless claims on Thursday. Silver was down 0.3% at $24.14 per ounce. Platinum fell 0.5% to $878.84, while palladium rose 0.2% to $2,459.61. (Reporting by Asha Sistla and Nakul Iyer in Bengaluru, Editing by Alexandra Hudson and Louise Heavens)
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4703f5c37da5aefc49f75668984ddcb5 | https://www.reuters.com/article/global-precious-idINL4N2HZ08X?edition-redirect=in | PRECIOUS-Gold holds steady as virus wave offsets vaccine hopes | PRECIOUS-Gold holds steady as virus wave offsets vaccine hopes
By Reuters Staff0 Min Read
Nov 13 (Reuters) - Gold prices were little changed on Friday, as fears of an economic impact due to a surge in global cases of COVID-19 countered optimism from the developments in a potential vaccine. FUNDAMENTALS * Spot gold was steady at $1,876.92 per ounce by 0044 GMT. It was headed for its worst weekly performance since late-September, declining 3.8% so far. * U.S. gold futures were up 0.1% at $1,874.50. * The dollar index held steady but was on track for a 0.7% weekly gain. * The heads of the Federal Reserve and the European Central Bank welcomed the encouraging results in trials of a vaccine candidate for COVID-19 but stressed that the economic outlook will remain uncertain. * The number of Americans filing new claims for unemployment benefits fell to a seven-month low last week, but the pace of decline has slowed and further improvement could be limited by higher infections and lack of additional fiscal stimulus. * Top Democrats in U.S. Congress urged renewed negotiations over a multitrillion-dollar coronavirus aid proposal, but a top Republican immediately rejected their approach as too expensive. * European officials warned against COVID-19 complacency and said measures to control a surge in infections must continue. * More than a dozen U.S. states have doubled their COVID-19 case loads in the last 14 days, compared with the previous two-week period, while the global tally has crossed 52.45 million. * The London Bullion Market Association is threatening to stop bullion from countries including the United Arab Emirates entering the mainstream market if they fail to meet regulatory standards, a letter seen by Reuters showed. * Silver rose 0.1% to $24.26 per ounce. Platinum was steady at $879.26, while palladium was 0.2% higher at $2,334.99. DATA/EVENTS (GMT) 1000 EU GDP Flash Estimate QQ, YY Q3 1500 US U Mich Sentiment Prelim Nov (Reporting by Eileen Soreng in Bengaluru; editing by Uttaresh.V)
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6131c40725a767e83fb460215c4dafd3 | https://www.reuters.com/article/global-precious-idINL4N2I203N?edition-redirect=in | PRECIOUS-Gold ticks higher on softer dollar, mounting virus woes | PRECIOUS-Gold ticks higher on softer dollar, mounting virus woes
By Reuters Staff0 Min Read
Nov 16 (Reuters) - Gold prices inched up on Monday helped by a softer dollar and mounting coronavirus cases in the United States that escalated concerns of the pandemic's impact on the pace of economic recovery. FUNDAMENTALS * Spot gold was up 0.1% to $1,888.91 per ounce by 0042 GMT. * U.S. gold futures were up 0.1% at $1,888.30. * The dollar index was down 0.1%, while Asia's stock markets opened higher on vaccine optimism. * U.S. President-elect Joe Biden's top advisers called for urgent action to address the nation's "deeply alarming" COVID-19 crisis on Sunday, while the number of infection cases in the United States crossed the 11-million mark. * U.S. consumer sentiment fell unexpectedly in early November as households worried about their finances, the resurgent pandemic and the depleted fiscal stimulus, dimming the economy's outlook. * President Donald Trump on Sunday briefly acknowledged losing the U.S. election in a morning Twitter post but then backtracked, saying he concedes "nothing," and vowing to keep up a court fight that election-law experts say is unlikely to succeed. * Japan's economy grew an annualised 21.4% in the third quarter, data showed on Monday, rebounding sharply from a record postwar slump. * Holdings in SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.42% to 1,234.32 tonnes on Friday. * Consumers flocked to jewellery shops again in India last week to snap up Diwali and Dhanteras festival deals, with a retreat in prices also adding to the sparkle in the world's second biggest bullion consumer. * Silver rose 0.2% to $24.68 per ounce. Platinum was up 0.3% at $891.46, while palladium gained 0.4% to $2,333.01. DATA/EVENTS (GMT) 0200 China Urban Investment (YTD) YY Oct 0200 China Industrial Output YY Oct 0200 China Retail Sales YY Oct 1100 EU Reserve Assets Total Oct Key banking/govt official to speak at the 23rd Euro Finance Week conference in Frankfurt (Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi Aich)
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b8a9fde8b2370835ea83f54e3cb53800 | https://www.reuters.com/article/global-precious-idINL4N2I23G5?edition-redirect=in | PRECIOUS-Gold steadies as virus surge overshadows vaccine optimism | PRECIOUS-Gold steadies as virus surge overshadows vaccine optimism
By Sumita Layek0 Min Read
* Moderna says vaccine 94.5% effective in preventing COVID-19 * Vaccine is good news, but deployment to take a while -strategist * U.S. Fed Vice Chair Clarida to speak at 1900 GMT * Interactive graphic tracking global spread of coronavirus: tmsnrt.rs/3mvcUoa (Updates prices) By Sumita Layek Nov 16 (Reuters) - Gold recovered from a more than 1% dip on Monday as investors weighed immediate concerns over rising coronavirus cases and bets on further economic support even as Moderna became the second drugmaker to declare effective vaccine test results. Spot gold was steady at $1,887.10 per ounce at 01:49 p.m. ET (1849 GMT). U.S. gold futures settled 0.1% higher at $1,887.80. Bullion dropped as much as 1.3% after Moderna said its experimental vaccine was 94.5% effective, but this was less than the more than 5% slump after Pfizer last Monday announced its vaccine was over 90% effective. "Vaccine is very very good news, but the problem is it's going to take quite a while to deploy it even in the developed countries," said Bart Melek, head of commodity strategies at TD Securities, adding the market had already adjusted positioning last week on the Pfizer news. "Vaccine or no vaccine we're going to continue to have a hard time economically well into the third quarter of next year, we're going to need massive amounts of monetary stimulus and we're very likely to get fiscal stimulus, which ultimately should help move inflation closer to target." Gold, considered a hedge against inflation and currency debasement, has gained over 24% this year, mainly benefiting from global stimulus measures to cushion the effect of the pandemic. Coronavirus cases crossed the 11-million mark in the United States on Sunday. While markets anticipate a return to normal in the second half of 2021, that "still leaves a massive gap in some of the economies globally that needs to be filled by governments and central banks", said Saxo Bank analyst Ole Hansen. Investors are now awaiting U.S. Federal Reserve Vice Chair Richard Clarida's speech at 1900 GMT. Silver gained 0.1% to $24.65 per ounce. Platinum rose 3.5% to $919.90, while palladium eased 0.1% to $2,321.24. (Reporting by Sumita Layek and Asha Sistla in Bengaluru; editing by Emelia Sithole-Matarise, Chris Reese and Giles Elgood)
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88f9919291005a770cb3c359ffba6170 | https://www.reuters.com/article/global-precious-idINL4N2I62BS?edition-redirect=in | PRECIOUS-Gold set for second weekly dip on end of Fed stimulus, vaccine optimism | PRECIOUS-Gold set for second weekly dip on end of Fed stimulus, vaccine optimism
By Asha Sistla0 Min Read
* Gold's move above $2,000 in 2021 still likely - Citi * Outflows of about 40 tonnes so far in November from SPDR ETF * Interactive graphic tracking global spread of coronavirus: tmsnrt.rs/3mvcUoa (Updates prices) By Asha Sistla Nov 20 (Reuters) - Gold was headed for a second weekly decline on Friday on growing optimism about COVID-19 vaccines, with the U.S. Treasury's call to end emergency loan programmes also limiting bullion's safe-haven appeal. Spot gold eased 0.1% at $1,866.38 per ounce by 1227 GMT and was down 1.2% for the week. U.S. gold futures were up 0.1% at $1,864. U.S. Treasury Secretary Steven Mnuchin said key lending programs at the Federal Reserve would expire on Dec. 31, casting doubts over the future of fiscal support. While the news weighed on risk sentiment, it did not stop world stocks from gaining on the back of brightening prospects for a faster economic recovery thanks to positive developments on the vaccine front. "The underlying momentum behind gold has dissipated," said independent analyst Ross Norman, adding gold was pressured by year-end profit-taking and investors liquidating long positions. Investors pulled $4 billion from gold, the biggest outflow ever, amid a rush for riskier assets last week, BofA said on Friday. Also, holdings in the SPDR Gold Trust exchange-traded fund have seen net outflows of about 40 tonnes so far in November. "But it's important to remember that the gold bull run was never predicated on COVID-19," and factors including a weak economy and the likelihood of interest rates remaining subdued for an extended period will continue to support it, Norman added. Lower interest rates make gold an attractive bet by reducing the opportunity cost of holding the non-yielding metal, with near-zero interest rates globally contributing to its about 23% gain for the year. "Positive COVID-19 vaccine developments should slow but not end the secular gold bull cycle without a hawkish pivot in U.S. monetary policy," Citi Research said in a note. Silver rose 0.2% to $24.13 per ounce. Platinum climbed 0.3% at $954.21, while palladium rose 0.5% to $2,337.40. (Reporting by Asha Sistla in Bengaluru; editing by David Evans)
Our Standards: The Thomson Reuters Trust Principles.
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98cbd4b330ec735c40b9001ab73c5b71 | https://www.reuters.com/article/global-precious-idUKL1N2I203T?edition-redirect=uk | PRECIOUS-Gold steadies on softer dollar, rising coronavirus cases | PRECIOUS-Gold steadies on softer dollar, rising coronavirus cases
By Eileen Soreng0 Min Read
* U.S. Fed Vice Chair Clarida to speak at 1900 GMT * Dollar touches one-week low, equities rally * Interactive graphic tracking global spread of coronavirus: tmsnrt.rs/3mvcUoa (Recasts, adds comment, updates prices) By Eileen Soreng Nov 16 (Reuters) - Gold steadied near a one-week high on Monday as the dollar weakened, with concerns over mounting coronavirus cases offsetting a risk rally driven by optimism over a vaccine. Spot gold was little changed at $1,889.01 per ounce by 0743 GMT, having earlier hit its highest level since Nov. 9 at $1,898.81. U.S. gold futures were flat at $1,886.70. The dollar index hit a one-week trough, while Asian equities hit a record high. Coronavirus cases crossed the 11-million mark in the United States on Sunday, prompting new restrictions in Michigan and Washington, while President-elect Joe Biden's top advisers called for urgent action to address the crisis. "There still are underlying problems in structural economies, with job creation being the biggest problem," said Stephen Innes, chief global market strategist at financial services firm Axi, adding that action from governments and central banks was needed to stimulate economies. New York Federal Reserve Bank President John Williams said on Friday the U.S. economy is still in a "deep hole" and rising infections could slow growth. Several Fed policymakers are scheduled to give speeches this week, beginning with Vice Chair Richard Clarida at 1900 GMT at a virtual talk hosted by the Brookings Institution. "Comments from bankers may not be sufficient to rally gold markets to the heights experienced earlier in the year, a dose of fiscal or monetary stimulus may however be effective," Avtar Sandu, senior commodities manager at Phillip Futures, said in a note. Gold, which tends to benefit from stimulus measures from central banks as it is considered a hedge against inflation and currency debasement, has gained over 24% this year. Prices fell 3.3% last week after Pfizer said its experimental COVID-19 vaccine was over 90% effective based on initial trial results. Silver rose 1.1% to $24.89 per ounce. Platinum gained 1.2% to $899.37, while palladium was 0.9% higher at $2,343.90. (Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi Aich and Devika Syamnath)
BreakingviewsReuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.
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2ff4f37410844c937e68ac13ba4e3517 | https://www.reuters.com/article/global-precious-idUKL3N16B0MO?edition-redirect=uk | PRECIOUS-Gold still in vogue as fund flows counter risk appetite revival | PRECIOUS-Gold still in vogue as fund flows counter risk appetite revival
By Manolo Serapio Jr3 Min Read
* Gold has risen 17 pct this year, not far below 1-year peak
* Market eyeing Friday’s U.S. nonfarm payrolls
* Coming up: U.S. weekly jobless claims at 1330 GMT (Adds BMI lifting gold price forecast, updates prices)
MANILA, March 3 (Reuters) - Gold edged higher on Thursday as strong inflows into gold-backed funds increased optimism the metal could extend this year’s rally despite a revival in risk appetite that lifted Asian equities to a two-month high.
Gold, which has gained nearly 17 percent this year to be among the top performing commodities, was trading not far below a one-year peak.
Spot gold was up 0.1 percent at $1,241.40 an ounce by 0655 GMT, after rising 0.7 percent on Wednesday. The metal hit a one-year high of $1,260.60 on Feb. 11 as uncertainty in the global economy sharpened investor demand for safe havens.
Michael McCarthy, chief market strategist at CMC Markets, said he was a bit surprised that gold had risen overnight given the shift back to risky assets, adding that the continued flows into gold-backed exchange-traded funds (ETFs) provided support.
Holdings of SPDR Gold Trust, the world’s largest gold-backed ETF, rose to 25.35 million ounces on Wednesday, the most since September 2014.
But McCarthy warned gold could come under pressure as global risk appetite increases.
“It’s clear from the selling of bonds that the safe haven aspect of the investment market is less desirable than it was a few days ago,” he said.
U.S. gold for April delivery was unchanged at $1,242.30 an ounce.
BMI Research, part of Fitch Ratings, said it raised its 2016 gold price forecast to $1,150 from $1,000 in early February.
“A recalibration of expectations for the global monetary policy trajectory by investors and additional equity market weakness will combine to create a more positive environment for gold prices than we previously anticipated,” BMI said in a report.
Still, Asian shares and oil prices climbed on Thursday after a report showed U.S. private-sector jobs rose 214,000 in February, beating market forecasts and lifting expectations for the more comprehensive U.S. non-farm payrolls due out on Friday.
U.S. non-farm payrolls, which include both public and private-sector employment, are estimated to have risen by 190,000 last month after increasing by 151,000 in January, according to a Reuters poll of economists.
“There is likelihood of positive surprise on Friday and that will also add to the weight on gold,” said McCarthy.
Spot palladium was flat at $514.75 an ounce while platinum gained 0.5 percent to $936 and silver rose 0.3 percent to $14.97.
Reporting by Manolo Serapio Jr.; Editing by Eric Meijer and Christian SchmollingerOur Standards: The Thomson Reuters Trust Principles.
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6a9c82296350f34193f9b73fae56a02b | https://www.reuters.com/article/global-precious-idUKL3N1JN34X?edition-redirect=uk | PRECIOUS-Huge sell order pushes gold to six-week low | PRECIOUS-Huge sell order pushes gold to six-week low
By 0 Min Read
* Spot gold hits lowest since May 17 * COMEX gold drops $18 within 1 minute in early trade * GRAPHIC-2017 asset returns: tmsnrt.rs/2jvdmXl (Updates prices; adds comment, byline, NEW YORK dateline) By Marcy Nicholson and Zandi Shabalala NEW YORK/LONDON, June 26 (Reuters) - Gold tumbled to its lowest price in nearly six weeks as a large sell order hit sentiment on Monday, though losses were limited by political uncertainty around the world. Spot gold was down 0.9 percent at $1,244.82 an ounce by 2:22 p.m. EDT (1822 GMT), having dropped as far as $1,236.46, its lowest since May 17 and just above the 200-day moving average. U.S. gold futures for August delivery settled down 0.8 percent at $1,246.40, after making an $18 drop in heavy volume to $1,236.50 and then rebounding by $10, all within 60 seconds around 4 a.m. EDT (0800 GMT). The sale of 18,500 lots of gold, totaling 1.85 million ounces, and 5,000 ounces of silver in 5,500 lots on COMEX in a short space of time was behind falling prices, said Afshin Nabavi, head of trading at MKS in Switzerland. "Clearly somebody sold it by mistake and bought it back quickly, triggering stops below $1,250," said MKS trader Bernard Sin. UBS trader Joni Teves said the sudden drop in price was amplified by a lack of liquidity as some Asian markets were closed for a holiday while London was just opening. "Somebody's made a mistake there. Stops get hit as we go lower and the algorithmic programs that jump on the back of momentum moves exacerbate the move," said David Govett, manager of precious metals and foreign exchange for Marex Spectron. "If it was a human error, they bought it back slowly over the day." Looking more broadly, traders said gold was supported by geopolitical uncertainty related a bailout of Italian banks, the policies of U.S. President Donald Trump and Britain's negotiations to quit the European Union. "The world is in geopolitical chaos and gold is still good insurance," said MKS's Sin. Allegations of ties to Russia have cast a shadow over Trump's first five months in office while the British government's looming Brexit talks are also fueling concern about global stability. In Italy, meanwhile, the banking industry remains saddled with 300 billion euros ($335 billion) of soured debts. Investors' lack of interest in gold can be seen at SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, where holdings dipped on Friday. Elsewhere, silver fell 0.5 percent to $16.60 an ounce and platinum slipped by 1.1 percent to $915.95. Palladium edged up 1.8 percent to $867.05 after registering its biggest intraday percentage decline since Jan. 25 on Friday. ($1 = 0.8943 euros) (Additional reporting by Nithin Prasad, Vijaykumar Vedala and Apeksha Nair in Bengaluru, Jan Harvey in London; Editing by David Goodman and Marguerita Choy)
BreakingviewsReuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.
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956f84be02f2a33d50ee6f9d7cc4132e | https://www.reuters.com/article/global-precious-idUKL3N26W0SL?edition-redirect=uk | PRECIOUS-Gold climbs as investors await concrete signals on trade, Brexit | PRECIOUS-Gold climbs as investors await concrete signals on trade, Brexit
By Arpan Varghese3 Min Read
(Adds details and comments; updates prices)
* Palladium holds near all-time peak; set for fourth straight gain
* Gold eyes small weekly decline
Oct 11 (Reuters) - Gold prices climbed on Friday, settling into a narrow range, as investors awaited more clarity on global uncertainties including trade and Brexit, helping the metal shake off initial declines driven by hopes for a breakthrough in the U.S.-China talks.
Palladium, meanwhile, gained 0.2% to $1,703.44 an ounce as of 0638 GMT and held close to Thursday’s all-time peak of $1,704.59, putting it on track for an about 2% weekly gain.
The autocatalyst metal was also set to climb for a fourth straight session.
Spot gold inched 0.3% higher to $1,499.15 per ounce, but slipped about 0.3% in the week. U.S. gold futures rose 0.1% to $1,502.30.
“We have news that is positive in terms of trade talks, but no actual resolution yet. The market is still a little sceptical,” said Brian Lan, managing director at dealer GoldSilver Central in Singapore.
“A few things are still hanging, including a no-deal Brexit. Time is ticking but not much progress is happening. The (situation in) Hong Kong is also not resolved.”
Equity markets gained after U.S. President Donald Trump said he would meet with China’s top trade negotiator, while a White House official said the first day of talks had gone “probably better than expected.”
While the two sides could reach some sort of agreements on aspects such as currencies and copyright protections, they were not expected to address the most contentious issues.
The dollar, which has emerged as an alternative safe-haven during the trade war, was a shade weaker versus its rivals , helping drive gold prices higher.
With just three weeks to go before the UK is due to leave the European Union, lack of clarity on the terms or indeed whether it will leave at all also kept investors on the edge.
Adding to the global uncertainty was the attack on an Iranian-owned oil tanker on Friday. The vessel was struck by two missiles off the Saudi port of Jeddah, Iranian state television reported.
Investors will also keep a close eye on any cues from the U.S. Federal Reserve, with data on Thursday showing U.S. consumer prices were unchanged in September while underlying inflation retreated, supporting expectations the central bank will cut interest rates in October.
“Prices are on the downside, going away from core fundamentals and reacting to sentiments. When markets move sentimentally, you can expect a wild swing in prices,” said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade.
Gold will be find support around $1,480 in the short term and face resistance at $1,540, she added.
In other metals, platinum rose 0.4% to $903.24 an ounce, while silver rose 1% to $17.66. (Reporting by Karthika Suresh Namboothiri and Arpan Varghese in Bengaluru; Editing by Aditya Soni and Sherry Jacob-Phillips)
Our Standards: The Thomson Reuters Trust Principles.
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1559a17775301db7d841428485bd8611 | https://www.reuters.com/article/global-precious-idUKL3N27F4CA?edition-redirect=uk | PRECIOUS-Gold gains ahead of Fed; palladium hits record high | PRECIOUS-Gold gains ahead of Fed; palladium hits record high
By Asha Sistla3 Min Read
* U.S. Fed policy statement due at 1800 GMT
* Palladium hits record high of $1,824.50 an ounce
* Gold trend positive if prices hold above $1,460-$1,470- analyst
* GRAPHIC-Plat/palladium ratio: tmsnrt.rs/1QjSZAC (Updates prices)
Oct 30 (Reuters) - Gold rose on Wednesday on expectations of an interest rate cut by the U.S. Federal Reserve, but bullion held a tight range as caution set in with investors awaiting clarity on the central bank’s future monetary policy.
Palladium hit an all-time high driven by short supplies of the auto-catalyst metal.
Spot gold was up 0.5% to $1,494.16 per ounce at 01:36 p.m. EDT (1736 GMT). U.S. gold futures settled 0.4% higher at $1,496.70 an ounce.
The U.S. central bank is set to release a statement following its two-day policy meeting, at 2 p.m. EDT (1800 GMT). Investors expect the Fed to lower rates by a quarter of a percentage point for a third time this year.
“A 25-basis point cut is well expected. The main driver will be the tone of (Fed Chair) Jerome Powell. He could signal a more patient tone after cutting rates, a hawkish cut you’d say. That could open some weakness in gold in the near term,” said Ryan McKay, a commodity strategist at TD Securities.
On the trade front, the first phase of a U.S.-China trade agreement may not be ready to be signed in Chile next month, although that does not indicate that the accord is falling apart, a U.S. official said on Tuesday.
“There are still some landmines out there that could trigger additional safe-haven into gold and it’s not dead just yet, although a bit weaker in the near term,” McKay said.
Gold is considered a safe store of value during economic or political uncertainty.
On the technical front, “we would have a first bearish signal only below $1,480, while a rebound above $1,500 could open space for another recovery to $1,520,” ActivTrades’ chief analyst Carlo Alberto De Casa said in a note.
“As long as prices can remain above $1,460-$1,470, the main trend remains positive, despite the recent weakness.”
Palladium jumped nearly 2% to $1,815.78 per ounce, after hitting a record high of $1,824.50 in the session.
“We’ve already hit peak bearishness on the auto sales and palladium and the market was tight; if you’re expecting it to recover, it’s only going to get tighter. On the margin, if the industry as a whole is more optimistic, palladium and platinum will get an additional bid,” TD Securities’ McKay said.
Chiefly used in vehicle exhausts to reduce harmful emissions, platinum is favoured for diesel engines and palladium is preferred for petroleum.
Tightening emissions regulations are putting more palladium in each vehicle, supporting consumption even as weakening global economic growth hits vehicle sales.
Silver edged 0.3% higher to $17.85 an ounce, while platinum gained 0.3% to $922.93. (Reporting by Asha Sistla in Bengaluru; Editing by Lisa Shumaker and Richard Chang)
Our Standards: The Thomson Reuters Trust Principles.
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a8a9f298416c501f94930754a730d6b3 | https://www.reuters.com/article/global-precious-idUKL3N27L42Z?edition-redirect=uk | PRECIOUS-Gold faces biggest fall in over a month as trade hopes revive | PRECIOUS-Gold faces biggest fall in over a month as trade hopes revive
By Swati Verma3 Min Read
* U.S. Oct ISM non-manufacturing data beats expectations
* Silver, palladium drop to near two-week low
* Graphic on 2019 asset returns: tmsnrt.rs/2jvdmXl (Updates prices)
Nov 5 (Reuters) - Gold fell 2% on Tuesday, en route to its biggest one-day dip in over a month, as expectations the United States may drop tariffs on Chinese imports assuaged some fears of a global recession.
Spot gold slid 1.8% to $1,481.81 per ounce as of 2:03 p.m. EST (1903 GMT). U.S. gold futures settled down 1.8% at $1,483.70.
The metal, which tends to gain during times of economic and political crisis, fell as much as 2% to its lowest level in nearly three weeks at $1,479.25 an ounce earlier in the session and was on track for its biggest one-day percentage drop since late-September.
“The main factor (for gold’s slide) is the rollback in some of Chinese import tariffs and part of the ‘phase one’ trade deal going through,” said Bob Haberkorn, senior market strategist at RJO Futures.
“Also, global equities have been trading significantly higher in the last few sessions, coupled with a little bit of a break in the U.S.-China tariffs, putting pressure on anything where there is safety right now.”
China hopes for the removal of more tariffs imposed by the United States in September as part of a “phase one” U.S.-China trade deal, which may be signed this month by U.S. President Donald Trump and Chinese President Xi Jinping.
Trade truce hopes and upbeat economic data rekindled optimism about the global economic outlook and pushed the dollar index and bond yields higher.
The greenback also got a boost after the release of better-than-expected U.S. ISM non-manufacturing data for October, further pressuring the bullion.
“Rallying world stock markets that saw the U.S. indexes score more record highs overnight are keeping demand for the safe-haven metals squelched,” Kitco Metals senior analyst Jim Wyckoff said in a note.
“Risk sentiment worldwide remains upbeat amid ideas the U.S. and China are very close to a partial trade deal.”
Meanwhile, a slew of investment in gold-backed exchange traded funds (ETFs) offset a decline in purchases of jewellery, bars and coins to push global gold demand slightly higher in the third quarter, the World Gold Council (WGC) said on Tuesday.
Among other metals, silver dipped 2.4% to $17.61 per ounce after falling to its lowest since Oct. 24, while platinum fell 0.8% to $927.75 per ounce.
Palladium edged 0.1% lower to $1,777.66 an ounce, having touched its lowest in nearly two weeks. The metal hit an all-time high of $1,824.50 on Oct. 30, driven by a sustained supply crunch for the autocatalyst metal.
“With palladium expected to stay in deficit and new mine-supply additions lacking next year, prices are likely to remain propped up to incentivize more scrap supply and curb demand growth,” UBS commodity analyst Giovanni Staunovo said in a note. (Reporting by Swati Verma and Asha Sistla in Bengaluru Editing by Marguerita Choy)
Our Standards: The Thomson Reuters Trust Principles.
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cff6d032a9adaf7dc44c97b33e9db329 | https://www.reuters.com/article/global-precious-idUKL3N2EY085?edition-redirect=uk | PRECIOUS-Gold eyes record high as safe-haven demand thrives | PRECIOUS-Gold eyes record high as safe-haven demand thrives
By Reuters Staff0 Min Read
July 27 (Reuters) - Gold prices extended gains on Monday, just $3 shy of an all-time high, driven by U.S.-China tensions and a weaker dollar, while expectations of more stimulus to revive pandemic-hit economies lifted the metal's appeal as an inflation hedge. FUNDAMENTALS * Spot gold was up 0.8% at $1,916.91 per ounce by 0030 GMT, was just $3.39 shy of record high hit in September 2011 at $1,920.30. U.S. gold futures rose 0.8% to $1,913.50. * U.S. Secretary of State Mike Pompeo took fresh aim at China last week, saying Washington and its allies must use "more creative and assertive ways" to press the Chinese Communist Party to change its ways. * The White House and Senate Republicans have reached "an agreement in principle" on the next coronavirus relief bill, a White House official said on Sunday. * Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement. * The dollar index fell 0.1% to a near two-year low against its rivals, making gold less expensive for holder of other currencies. * U.S. stock futures slipped and Asian stocks were on the defensive in early Monday trade as tit-for-tat consulate closures fanned worries about further tensions between the world's two largest economies. * More than 16.13 million people have been reported to be infected by the novel coronavirus globally and 644,836 have died, according to a Reuters tally. * Speculators increased their bullish positions in COMEX gold and silver contracts in the week to July 21, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. * Physical gold rates flipped to a discount in India last week as local prices surged while China's discounts slipped further on weak retail demand. * Silver jumped 1.3% to $23.04 per ounce, platinum rose 0.9% to $922.50 and palladium climbed 0.8% to $2,237.39. DATA/EVENTS (GMT) 1230 US Durable Goods June 1400 US Consumer Confidence July (Reporting by Brijesh Patel in Bengaluru, Editing by Sherry Jacob-Phillips)
Our Standards: The Thomson Reuters Trust Principles.
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81973ee869d63b1a55063474819ae85a | https://www.reuters.com/article/global-precious-idUKL3N2GI2MK?edition-redirect=uk | Gold slides 3% on strong dollar, stimulus concerns; silver tumbles | Gold slides 3% on strong dollar, stimulus concerns; silver tumbles
By Arundhati Sarkar3 Min Read
(Reuters) - Gold slumped over 3% on Monday, sliding to its lowest level in more than a month, as a broader market sell-off driven by uncertainty over more U.S. fiscal stimulus pressured the precious complex along with a stronger dollar.
FILE PHOTO: Gold bars are seen in the vault of the branch office of precious metal trader Degussa in Zurich April 19, 2013. REUTERS/Arnd Wiegmann/
Silver plunged 8.3% to $24.53 as of 1:49 p.m. EDT (1749 GMT), its lowest level in over a month.
Spot gold dropped 2.1% to $1,909.05 per ounce, after falling as much as 3.4% earlier in the session, its lowest since Aug. 12. U.S. gold futures settled down 2.6% at 1,910.60.
“Gold should be trading higher on safe-haven demand but it’s kind of a repeat back like in the spring when the market sell-off comes, market participants have been selling off assets across the board,” said Bob Haberkorn, senior market strategist at RJO Futures.
“There’s just a lack of safe-haven buying and it’s following the sell-off in equities and dollar strength is an additional weakness.”
Wall Street’s main indexes hit their lowest levels in nearly seven weeks on Monday, while the dollar index rose 0.8% against its rivals, its highest daily percentage gain since March 19.
“The chances of Congress agreeing on any stimulus package before January is asymptotically close to zero,” said Tai Wong, head of base and precious metals derivatives trading at BMO.
“A move back and close above $1,900 is needed to grant a short-term reprieve but looks like we may have to test the lows of the correction, $1,863 at some stage soon.”
Gold prices are down nearly 10% from an all-time high hit in early August as hopes of further stimulus dwindled.
The U.S. Congress has for weeks remained deadlocked over the size and shape of a fifth coronavirus-response bill, on top of the approximately $3 trillion already enacted into law.
Gold has been feeding off progressive rounds of more stimulus and the fact that this has stopped in the United States – at least for now – seems to have halted the gold rally in its tracks, ED&F Man Capital Markets analyst Edward Meir said in a note.
Investors now await speeches by Fed committee members, including Chairman Jerome Powell, who will appear before Congressional committees later this week.
In other metals, platinum declined 5.2% to $879.48 after falling as much as 8% earlier in the session and palladium dropped 3.9% to $2,265.10.
Reporting by Asha Sistla and Swati Verma in Bengaluru; Editing by Matthew Lewis and Tom BrownOur Standards: The Thomson Reuters Trust Principles.
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3bfda03bff040b46504d28da7ddbdacf | https://www.reuters.com/article/global-precious-idUKL4N1G5193?edition-redirect=uk | PRECIOUS-Gold prices steady, focus shifts to timing of US rate hikes | PRECIOUS-Gold prices steady, focus shifts to timing of US rate hikes
By 0 Min Read
* Markets looking to speeches by at least 5 Fed officials this wk * Spot gold may break support at $1,233/oz -technicals * Holdings in SPDR Gold Trust fall 0.3 pct on Friday (Adds comment, updates prices) By Arpan Varghese Feb 20 (Reuters) - Gold prices held steady on Monday, with investors looking ahead to a clutch of speeches from U.S. Federal Reserve officials later in the week for clues on the timing of possible interest rate hikes. Spot gold had inched down 0.1 percent to $1,233.61 per ounce by 0538 GMT, while U.S. gold futures fell 0.4 percent to $1,234.8. "We expect muted trading to start the week in Asia with a U.S. holiday today, although a break in gold of $1,231 may flush away some nervous long positions," said Jeffrey Halley, senior market analyst at OANDA. Bullion may break support at $1,233 per ounce, according to Reuters technical analyst Wang Tao. U.S. markets are closed on Monday for the Presidents Day holiday. At least five Fed officials are due to speak this week, while Fed Board Governor Jerome Powell appears on Wednesday. Cleveland Fed chief Loretta Mester said on Monday she would be comfortable raising interest rates at this point if the economy kept performing the way it did. Speculation the central bank could hike as soon as March has generally underpinned the greenback. The dollar was mostly unchanged against a basket of currencies at 100.92 . Bullion is highly-sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced. "On the fundamental side, although a stronger dollar and buoyant U.S. equities could potentially act as a drag on gold, other variables will likely prevent a more significant selloff," said INTL FCStone analyst Edward Meir. Concern over U.S. President Donald Trump's policies, as well as elections in Europe, fueled gold's rise to a peak of $1,244.67 on Feb. 8, the strongest in nearly three months. The metal has risen nearly 8 percent in 2017. "In the short term, bullion prices could be underpinned by political issues ... However, the end of the year story will likely be a bearish one simply because of the interest rate hikes that may be injected into the economy and also a stronger dollar," said OCBC analyst Barnabas Gan. Meanwhile, data showed on Friday that speculators cut their net long position in COMEX gold for the first time in three weeks in the week to Feb. 14. In other metals, silver fell 0.2 percent to $17.96 per ounce, while platinum shed 0.4 percent to $997.24. Palladium slipped 0.3 percent to $773.10 per ounce, after touching its highest since Jan. 24 at $795.1 in the previous session. (Reporting by Arpan Varghese in Bengaluru; Editing by Richard Pullin and Joseph Radford)
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f1d9faacf7761eb0d5d442936af58346 | https://www.reuters.com/article/global-precious-idUKL4N1WK368?edition-redirect=uk | PRECIOUS-Gold steady as robust U.S. economy outlook stems safe-haven buying | PRECIOUS-Gold steady as robust U.S. economy outlook stems safe-haven buying
By Swati Verma3 Min Read
* SPDR Gold holdings down 4.5 million ounces since April
* U.S. 10-year Treasury yields highest since 2011
* Dollar near 11-month highs against Japanese yen (Recasts with prices paring gains, adds comments)
BENGALURU, Oct 4 (Reuters) - Gold steadied on Thursday as positive U.S. economic data and prospects of tighter monetary policy offset limited gains from safe haven buying.
Spot gold was up 0.1 percent at $1,197.87 an ounce by 2:14 p.m. EDT (1814 GMT). U.S. gold futures settled down $1.30, or 0.11 percent, at $1,201.60.
Earlier in the session, prices broke above the key $1,200 level as a slide in stock markets on the back of rising U.S. Treasury yields prompted some investors to seek refuge in the precious metal.
“The U.S. economy is still in a very good place. The expectations of a rate hike next year is tilting toward four from three,” said Nicholas Cawley, an analyst at DailyFX.com.
“The higher the rates, the more attractive for investors looking for safe haven to move into U.S. Treasuries than gold.”
About half of the Fed’s policymakers, including Chairman Jerome Powell, used public appearances on Wednesday to show an increasingly unified view that the U.S. economy was not headed for any obvious potholes.
Higher U.S. interest rates draw investors to the dollar, boosting its value and in turn making assets priced in the U.S. unit more expensive for holders of other currencies.
The U.S. dollar held near recent highs against the euro and yen, as investors evaluated the impact of a global government bond rout that has lifted benchmark U.S. Treasury yields to seven-year peaks.
Kitco Metals senior analyst Jim Wyckoff said some investors had turned to gold as a hedge against inflation risk.
Gold has fallen about 12 percent since hitting a peak in April, under pressure from a strong dollar, which has been boosted by a vibrant U.S. economy, rising interest rates and fears of a global trade war.
The retreat in the stock markets have made investors a little cautious about overall economic growth in the United States, said Jeffrey Christian, managing partner of CPM Group.
“There is a little bit of shift (of money to gold).”
Investors are awaiting U.S. non-farm payrolls numbers due on Friday, with a Reuters survey showing economists on average expect a rise of 185,000 in September after a jump of 201,000 in August.
“Expectations are that it (non-farm payrolls figure) is going to be a bumper. It should underpin the dollar strength. I can’t see any fundamental reason to buy gold above other haven assets,” Cawley said.
Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, dropped 0.8 percent on Wednesday, having declined more than 4.5 million ounces since late April.
Meanwhile, spot silver slipped 0.1 percent to $14.56. Palladium was 0.1 percent lower at $1,054.22, while platinum was up 0.2 percent at $823.30. (Reporting Nallur Sethuraman, Arpan Varghese and Swati Verma in Bengaluru; Editing by Lisa Shumaker)
Our Standards: The Thomson Reuters Trust Principles.
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85d37ddeee54e620c48245839077eddd | https://www.reuters.com/article/global-precious-idUKL4N23B0D4?edition-redirect=uk | PRECIOUS-Gold holds near 3-month peak as trade fears boost safe-haven demand | PRECIOUS-Gold holds near 3-month peak as trade fears boost safe-haven demand
By Reuters Staff3 Min Read
June 4 (Reuters) - Gold prices rose on Tuesday, holding near a more than three-month high hit in the previous session, as worries over a global recession due to trade conflicts drove investors to find refuge in safe-haven assets.
FUNDAMENTALS
* Spot gold was up 0.1% at $1,326.49 per ounce by 0136 GMT, after touching its highest since Feb. 27 at $1,327.90 on Monday.
* U.S. gold futures rose 0.3% to $1,332.20 an ounce.
* The Nasdaq confirmed it was in a correction on Monday as stocks extended their recent sell-off amid the mounting trade worries. Global stock markets shed over $2 trillion in value in May.
* U.S. Secretary of State Mike Pompeo said on Monday that the United States is seeking to “level the playing field” with China after decades of unfair trade practices, but his Dutch counterpart said tariffs would hurt international trade.
* Meanwhile, U.S. President Donald Trump said the tariffs that his administration has imposed on Chinese imports were not pushing up U.S. inflation and were prompting manufacturers in the Asian powerhouse to move elsewhere.
* U.S. manufacturing growth slowed further in May to its weakest pace of activity in more than two-and-a-half years, defying expectations for a modest rebound, a national purchasing managers’ survey showed on Monday.
* Mexican officials said that Mexico can reach an agreement with the United States to resolve a dispute over migration that prompted U.S. President Donald Trump to threaten punitive tariffs, as high-level talks were set to begin in Washington.
* U.S. Treasury yields slip to their lowest levels since September 2017 following remarks from St. Louis Federal Reserve President James Bullard who said a U.S. rate cut may be “warranted soon” because of global trade tensions and weak U.S. inflation.
* A gloomy economic outlook is prompting traders to increase bets that the U.S. Federal Reserve will cut interest rates sooner rather than later.
* In late U.S. trading, federal funds futures implied traders saw about a 67% chance the U.S. central bank would reduce key short-term borrowing costs by a quarter point at its July 30-31 policy meeting.
* Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 2.21% to 759.65 tonnes on Monday from Friday, its best one-day percentage gain in nearly three years.
DATA AHEAD (GMT)
* 0130 Australia Current Account Balance Q1
* 0130 Australia Net Exports Contribution Q1
* 0130 Australia Retail Sales MM April
* 0430 Australia RBA Cash Rate June
* 0900 EU HICP Flash YY May
* 0900 EU HICP-X F&E Flash YY May
* 0900 EU Unemployment Rate April
* 1200 Brazil Industrial Output MM YY April
* 1400 US Factory Orders MM April
Reporting by Brijesh Patel in Bengaluru; editing by Richard PullinOur Standards: The Thomson Reuters Trust Principles.
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cf572c637ff5660fae85eba81ae3ada3 | https://www.reuters.com/article/global-precious-idUKL4N23L0RO | PRECIOUS-Gold breaks above $1,350 level as growth woes lift safe-haven demand | PRECIOUS-Gold breaks above $1,350 level as growth woes lift safe-haven demand
By Brijesh Patel4 Min Read
* Gold up 1.1% so far this week, set for 4th weekly gain
* Palladium on track for best week in nearly 9 months
* Silver hits one-week high
* China May industrial output growth weakest in 17 years (Updates prices, adds comments and details)
June 14 (Reuters) - Gold jumped more than 1% on Friday, surpassing the key $1,350 level for the first time since April last year, as a spur of weak economic data from both China and the United States, and political concerns in the Middle East raised safe-haven demand.
Spot gold climbed 1.01% to $1,355.49 per ounce as of 0749 GMT, after hitting its highest level since April 11, 2018 at $1,358.04 earlier in the session.
Bullion has risen 1.1% so far this week, keeping the yellow metal on track for its fourth consecutive weekly gain.
U.S. gold futures jumped 1.2% to $1,359.50 an ounce.
“With geopolitical risk premium ratcheting higher on the back of Middle East tensions and autonomy protest in Hong Kong, gold represents dependable insurance against those mounting geopolitical risks,” said Stephen Innes, managing partner at SPI Asset Management.
On Thursday, Washington blamed Iran for attacks on two oil tankers in the Gulf of Oman, raising concerns about a new U.S.-Iranian confrontation.
Scuffles broke out between demonstrators and police in Hong Kong on Thursday as hundreds of people kept up a protest against a planned extradition law with mainland China.
Meanwhile, China’s industrial output growth slowed to a more than 17-year low of 5% in May, the latest sign of weakening demand in the world’s second-largest economy as the United States ramps up trade pressure.
“When the markets start waxing bearish economic data, it’s the global recession they are concerned about, triggered by escalation of trade war,” Innes said.
“If we have world’s second-largest economy struggling, arguably we also have the U.S. struggling, this is bad and we know we are one step away from recession.”
Impact of the long-drawn trade war was also evident on the U.S. labor market, which saw an unexpected rise in the number of Americans filing applications for unemployment over the last week.
Recent economic readings out of U.S. have also boosted expectations of a rate cut by the U.S. Federal Reserve, pulling short-dated U.S. Treasury yields lower on Thursday ahead of the central bank’s meeting next week.
“Gold traded higher as its appeal as an alternative investment in times of uncertainty. The yellow metal has risen as the probabilities of a summer interest rate cut by the Fed have increased,” Alfonso Esparza, a senior market analyst at OANDA, said in a note.
Among other precious metals, silver gained 1% to $15.04, its highest in a week. Platinum rose 0.7% to $813.08.
Palladium climbed 0.4% to $1,450.85 after hitting its highest since April 29 at $1,453.30 earlier in the session.
The auto-catalyst metal has gained 7% so far this week and is set to post its best week since week ended Sept. 21, 2018. (Reporting by Brijesh Patel in Bengaluru; Editing by Gopakumar Warrier and Rashmi Aich)
Our Standards: The Thomson Reuters Trust Principles.
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5be07296690f703a7abbe0f67950ae72 | https://www.reuters.com/article/global-precious-idUKL4N28D08E?edition-redirect=uk | PRECIOUS-Gold inches up as Trump's Latin American tariffs curb risk appetite | PRECIOUS-Gold inches up as Trump's Latin American tariffs curb risk appetite
By Reuters Staff0 Min Read
Dec 3 (Reuters) - Gold prices edged up on Tuesday, hovering near the one-week high hit in the previous session, after U.S. President Donald Trump's move to slap tariffs on Brazil and Argentina stoked fresh concerns around global trade and hit risk appetite. FUNDAMENTALS * Spot gold rose 0.1% to $1,463.42 per ounce by 0134 GMT. U.S. gold futures were unchanged at $1,469.20. * Trump ambushed Brazil and Argentina, announcing tariffs on U.S. steel and aluminium imports from the two countries in a measure that shocked South American officials. * The dollar traded near a one-week low against the yen, while Asian shares slumped. * U.S. factory activity contracted for a fourth straight month in November as new orders slumped back to around their lowest level since 2012, while construction spending fell in October. * A senior adviser to U.S. President Donald Trump said a U.S.-China trade deal was still possible before the end of the year, adding that the first phase of the agreement was being put to paper. * Trump on Monday said U.S. legislation backing protesters in Hong Kong did not make trade negotiations with China easier, but added he believes Beijing still wants a deal. * China on Monday banned U.S. military ships and aircraft from visiting Hong Kong and slapped sanctions on several U.S. non-government organisations for allegedly encouraging anti-government protesters in the city to commit violent acts. * Speculators cut their bullish positions in COMEX gold and raised them in silver contracts in the week to Nov. 26, data showed. * Canadian gold miner Semafo Inc said it does not expect to restart operations at its Boungou Mine in Burkina Faso this year after a deadly attack on a convoy of buses carrying its employees last month forced it to suspend operations. * Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust , fell 0.72% to 889.16 tonnes on Monday from Friday. * Palladium fell 0.1% to $1,850.66 per ounce, after scaling an all-time peak in the previous session at $1,861.71. Silver rose 0.1% to $16.92 per ounce, while platinum was down 0.1% to $896.91. DATA/EVENTS (GMT) 0330 Australia RBA Cash Rate Dec 1100 Brazil GDP YY, QQ Q3 (Reporting by Sumita Layek in Bengaluru; editing by Uttaresh.V)
Our Standards: The Thomson Reuters Trust Principles.
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8a79303f6105cfedddef584b852ec15c | https://www.reuters.com/article/global-precious-idUKL4N28U0AH?edition-redirect=uk | PRECIOUS-Gold inches lower on trade optimism; all eyes on U.S. GDP data | PRECIOUS-Gold inches lower on trade optimism; all eyes on U.S. GDP data
By Reuters Staff0 Min Read
Dec 20 (Reuters) - Gold prices inched lower on Friday due to increased risk appetite on hopes of an interim Sino-U.S. deal being signed soon and as investors awaited the release of U.S. gross domestic product data. FUNDAMENTALS * Spot gold edged 0.1% lower to $1,478.00 per ounce by 0135 GMT. U.S. gold futures fell 0.2% to $1,482.00 per ounce. * U.S. Treasury Secretary Steven Mnuchin said on Thursday the United States and China would sign their so-called Phase one trade pact at the beginning of January, adding that it would not be subject to any renegotiation. * China's Finance Ministry unveiled a new list of import tariff exemptions for a duration of one year starting Dec. 26 for six chemical and oil products from the United States. * Asian shares firmed, close to the 18-month peak, as trade thinned in the run-up to Christmas and the market absorbed the positive trade update. * The dollar index , all set to gain for the first week in four, held steady against a basket of currencies, making gold cheaper for holders of other currencies. * In United States, economic data showed mixed signals as the initial jobless claims report was strong with applications for unemployment benefits slipping from a more than two-year high, while factory activity data for the Mid-Atlantic region was almost flat in December. * Prime Minister Boris Johnson unveiled what he called a radical government agenda on Thursday, setting his sights on a quick Brexit, future trade deals and on transforming Britain to repay the trust of voters who handed him a landslide election victory. * Elsewhere, palladium rose 0.4% to $1,943.74 per ounce. The metal prices had hit an all-time peak of $1,998.43 on Tuesday. * Silver slid 0.1% to $17.03 per ounce, while platinum edged up 0.1% to $934.60. DATA/EVENTS (GMT) 0930 UK GDP QQ, YY Q3 1200 Brazil IPCA-15 Mid-Month CPI Dec 1330 US GDP Final Q3 1500 US Consumption, Adjusted MM Nov 1500 US U Mich Sentiment Final Dec 1500 EU Consumer Confidence Flash Dec (Reporting by Asha Sistla in Bengaluru; Editing by Rashmi Aich)
Our Standards: The Thomson Reuters Trust Principles.
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d44f06157aab945226311eaf6059d5a2 | https://www.reuters.com/article/global-precious-idUKL4N2HH08J?edition-redirect=uk | PRECIOUS-Gold inches lower as dollar gains ground | PRECIOUS-Gold inches lower as dollar gains ground
By Reuters Staff0 Min Read
Oct 26 (Reuters) - Gold prices eased to an over one-week low on Monday in early Asia trade as the dollar firmed and talks over the new U.S. coronavirus aid package showed no signs of progress. FUNDAMENTALS * Spot gold fell 0.1% to $1,899.41 per ounce by 0053 GMT, after hitting $1,890.19, its lowest since Oct. 15. * U.S. gold futures were down 0.2% at $1,900. * The dollar index was up 0.1% against a basket of currencies. * U.S. House Speaker Nancy Pelosi said on Sunday the Trump administration was reviewing the latest plan for more COVID-19 relief over the weekend and that she expected a response on Monday, adding that she was still optimistic a deal could be reached. * U.S. reported 79,852 new infections on Saturday, close to the previous day's record of 84,244 new cases. Hospitalizations are also rising and have hit a two-month high and deaths are trending upwards, according to a Reuters tally. * France registered record increase in infections over the weekend, while Spain announced a state of emergency as a second wave of cases surges through Europe. * Gold premiums in India jumped to their highest in nearly three months last week, as jewellers continued to stock up on hopes of more customers visiting stores as the festive season gathers pace. * Speculators increased their net long position by 15,488 contracts to 135,311 in week to Oct. 20 in COMEX gold, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. * Holdings in SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.14% to 1,263.80 tonnes on Friday. * Silver fell 0.5% to $24.45 per ounce, while platinum dipped 0.7% to $895 and palladium eased 0.5% to $2,382.12. DATA/EVENTS (GMT) 0900 Germany Ifo Business Climate New Oct 0900 Germany Ifo Current Conditions New Oct 0900 Germany Ifo Expectations New Oct 1400 US New Home Sales-Units Sept (Reporting by Eileen Soreng in Bengaluru; Editing by Richard Chang)
Our Standards: The Thomson Reuters Trust Principles.
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f716222bf1883eb57b8b9668a17f05fa | https://www.reuters.com/article/global-precious-idUKL4N2HJ2GD?edition-redirect=uk | PRECIOUS-Gold retreats more than 1% to three-week low as dollar rallies | PRECIOUS-Gold retreats more than 1% to three-week low as dollar rallies
By Brijesh Patel0 Min Read
* European stocks hit late-May lows * Dollar climbs to highest in over a week * Silver, palladium down more than 3% * Interactive graphic tracking global spread of coronavirus: tmsnrt.rs/3mvcUoa (Recasts, adds comments, updates prices) By Brijesh Patel Oct 28 (Reuters) - Gold slid more than 1% to a three-week low on Wednesday as investors opted for the dollar as a preferred refuge from concerns about rising coronavirus cases in Europe and uncertainty going into next week's U.S. presidential election. Spot gold slipped 1.3% to $1,882.41 per ounce by 1225 GMT, after hitting its lowest since Oct. 7 at $1,880.99. U.S. gold futures fell 1.6% to $1,882.20. "We have increased uncertainty related to the pandemic and the prospect of renewed lockdowns in Europe, so we have stock markets down and the dollar in response is receiving the bids," said Saxo Bank analyst Ole Hansen. That is hurting gold, he said. "Gold's break below $1,885 could trigger additional long liquidation and send the market further (down)." The rival safe-haven dollar jumped 0.7% to a more than one-week high , with the prospect of fresh lockdowns weighing heavily on the euro and European stock markets. The United States, Russia, France and other countries have registered record numbers of coronavirus infections in recent days. "With gold investors not banking on pre-election stimulus - and it may even get delayed if the U.S. elections results are contested - EURUSD levels might be a crucial bellwether for gold," said Stephen Innes, chief global market strategist at Axi, in a note. President Donald Trump on Tuesday said that an economic relief deal would likely come after the Nov. 3 election despite a rise in infections and a stalling labour market recovery. Gold, considered a hedge against inflation and currency debasement amid unprecedented global levels of stimulus, is still up about 25% so far this year. Focus was on the U.S. elections, with Democratic challenger Joe Biden leading Trump in nationwide polls. Elsewhere, silver slipped 3.4 % to $23.72 per ounce, platinum fell 1.9% to $861.74 and palladium dropped 3.2% to $2,257.84. (Reporting by Brijesh Patel in Bengaluru; Editing by Mike Harrison and Jan Harvey)
Our Standards: The Thomson Reuters Trust Principles.
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d5ace2a1142083428a9b77f683144aa5 | https://www.reuters.com/article/global-precious-idUKL4N2HR41R?edition-redirect=uk | PRECIOUS-Gold rallies to 1-1/2 month peak as dollar wilts on Biden victory bets | PRECIOUS-Gold rallies to 1-1/2 month peak as dollar wilts on Biden victory bets
By Sumita Layek3 Min Read
* FACTBOX-Who is winning the U.S. election?
* Broader macro backdrop remains supportive for gold- analyst
* Dollar slips to two-week low
* U.S. Fed policy announcement at 1900 GMT (Updates prices)
Nov 5 (Reuters) - Gold bounced to a one-and-a-half month peak on Thursday as growing prospects of a Joe Biden victory in a close U.S. election boosted hopes for larger stimulus and dented the dollar, ahead of a Federal Reserve policy statement.
Spot gold surged 2.3% to $1,947.17 per ounce by 1:42 p.m. EST (1842 GMT), after hitting its highest since Sept. 21 at $1,952.41. U.S. gold futures settled up 2.7% at $1,946.80.
“It looks like it’s getting more and more clearer that we’re going to have a Democratic president next year,” said Michael Matousek, head trader at U.S. Global Investors, adding that it will assure in bigger stimulus plans and weigh on the dollar.
Global stocks jumped, while the dollar fell to a two-week low as Biden inched towards taking the White House following victories in Michigan and Wisconsin.
Biden is expected to enact larger stimulus measures than U.S. President Donald Trump, although investors remained wary that a divided Congress could stymie Biden’s fiscal policy.
Gold is considered a hedge against inflation and currency debasement, which are likely to result from a large stimulus.
Market participants were now awaiting a Fed policy decision due at 1900 GMT.
“We’re going to hear verbiage out of the Fed that screams for additional stimulus package,” said David Meger, director of metals trading at High Ridge Futures. Traders also took stock of lawsuits filed by the Trump’s campaign in Michigan and Pennsylvania to stop vote counting.
“Beyond the U.S. election, the broader macro backdrop remains supportive of elevated gold prices given our expectations of further dollar weakness, real rates remaining negative and further stimulus,” said Standard Chartered analyst Suki Cooper.
Other precious metals also posted sharp gains, with silver gaining 4.9% to $25.09 an ounce. Platinum rose 2.2% to $888.33, while palladium jumped 3.4% to $2,365.76.
Reporting by Sumita Layek in Bengaluru; editing by Barbara Lewis, Steve Orlofsky and Alexandra HudsonOur Standards: The Thomson Reuters Trust Principles.
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81531c60ee95a17ffb5027ebf9299b9f | https://www.reuters.com/article/global-precious-idUKL4N2HS3U0?edition-redirect=uk | PRECIOUS-Gold eyes best week since July on easing dollar, U.S. elections | PRECIOUS-Gold eyes best week since July on easing dollar, U.S. elections
By Sumita Layek0 Min Read
* Dollar holds near a two-month low * Gold up 3.9% so far this week * FACTBOX-Who is winning the U.S. election? (Updates prices) By Sumita Layek Nov 6 (Reuters) - Gold rose on Friday and was set to post its best week since July as the dollar weakened and increasing chances of a Joe Biden victory in the U.S. presidential election boosted hopes for a larger coronavirus relief bill. Spot gold rose 0.2% to $1,951.51 per ounce by 1:41 p.m. EST (1841 GMT), on track for a 3.9% weekly gain, the most since late July. U.S. gold futures settled up 0.3% at $1,951.70. "A devaluation of the U.S. dollar has driven gold prices to six-week highs, also some safe-haven demand amid the uncertainty of the presidential elections and rising COVID cases," Kitco Metals senior analyst Jim Wyckoff said. "The market is factoring in a Biden victory, (which) will lead to more government stimulus programmes and that could introduce some problematic price inflation down the road and also deflate the value of (the) dollar." Gold, considered a hedge against inflation and currency debasement, has risen 28% this year on the back of massive global stimulus to help coronavirus-hit economies. Making gold cheaper for holders of other currencies, the dollar held near a two-month low. Democrat Joe Biden edged closer to the White House, while Republican President Donald Trump falsely claimed the election was being "stolen" from him, even as votes were still being counted in key states. "Although the continued U.S. election uncertainty is taking away the prospect of an immediate stimulus package, markets believe that one would eventually be coming, and so that may be why gold is moving up," ED&F Man Capital Markets analyst Edward Meir said. "We have a decent shot of getting to $2,000 an ounce by month-end if not earlier." Data earlier showed U.S. nonfarm payrolls increased by 638,000 jobs last month, while the unemployment rate fell to 6.9% from 7.9% in September. Silver gained 0.8% to $25.51 an ounce. Platinum was unchanged at $893.06 and palladium jumped 4.5% at $2,484.06. (Reporting by Sumita Layek in Bengaluru; editing by Jonathan Oatis and Andrew Heavens)
Our Standards: The Thomson Reuters Trust Principles.
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5ea4803a4709e4e205b9b72d0e6cdd87 | https://www.reuters.com/article/global-precious-idUKL4N2HZ2F0?edition-redirect=uk | PRECIOUS-Gold steady as rising virus cases offset vaccine optimism | PRECIOUS-Gold steady as rising virus cases offset vaccine optimism
By Asha Sistla0 Min Read
* Spot gold down 3.7% for the week * Silver down 5.4% for the week * Interactive graphic tracking global spread of coronavirus: tmsnrt.rs/3mvcUoa (Updates prices) By Asha Sistla Nov 13 (Reuters) - Gold held steady in a narrow range on Friday, with optimism over a COVID-19 vaccine countered by market concerns about its rollout as global infections continue to mount. Spot gold were little changed at $1,877.30 per ounce by 1132 GMT but was down 3.7% for the week, heading for its worst weekly loss since September after the initial vaccine euphoria dented safe-haven investor demand. U.S. gold futures were up 0.2% at $1,877.60. "Gold has rebounded because the pandemic and the COVID-19 numbers globally are still rising. The market optimism towards the vaccine and risk-on sentiment has faded," said Bank of China International analyst Xiao Fu. "There's only going to be a limited number of vaccines produced in the next three months, even in 2021, but there could be other companies coming up with vaccines as well. There could be other factors like mutation of the virus, the need to develop a new vaccine." Gold slumped 4.6% on Monday, its biggest daily fall since Aug. 11, after drugmaker Pfizer and BioNTech SE said their COVID-19 vaccine was more than 90% effective based on initial trial results. U.S. Federal Reserve chairman Jay Powell and ECB President Christine Lagarde said the economy was still in for a tough time even if development of a potential vaccine was reason for some optimism further ahead. European officials warned against COVID-19 complacency and said that measures to control a surge in infections must continue. The dollar index held steady but was on track for a 0.7% weekly gain. In other precious metals, silver was flat at $24.22 an ounce, platinum rose 0.5% to $884.28 and palladium was up 0.5% at $2,343.11. (Reporting by Asha Sistla in Bengaluru Editing by David Goodman and David Evans)
BreakingviewsReuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.
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58b760daea47acaaf0f81f8300efe065 | https://www.reuters.com/article/global-precious-idUKL4N2I50AV?edition-redirect=uk | PRECIOUS-Gold dips on firmer dollar, COVID-19 vaccine hopes | PRECIOUS-Gold dips on firmer dollar, COVID-19 vaccine hopes
By Reuters Staff0 Min Read
Nov 19 (Reuters) - Gold fell on Thursday in early Asian trade as the dollar gained some ground and progress in COVID-19 vaccine development dented the precious metal's appeal. FUNDAMENTALS * Spot gold fell 0.1% to $1,869.86 per ounce by 0103 GMT, while U.S. gold futures were down 0.3% at $1,868.70. * After falling for five straight sessions, the dollar index was up 0.2%, making gold expensive for holders of other currencies. * Pfizer announced on Wednesday that the final results from the late-stage trial of its COVID-19 vaccine showed it was 95% effective. * President-elect Joe Biden expressed hope on Wednesday that Republicans in the U.S. Congress would be more inclined to move forward on COVID-19 relief legislation after President Donald Trump leaves office in January. * Forty-one U.S. states have reported daily record increases in COVID-19 cases in November, 20 have registered new all-time highs in coronavirus-related deaths from day to day, and 26 have reported new peaks in hospitalizations, according to the Reuters tally. * The U.S. economy is now affected more by swings in COVID-19 infections than it is by restrictions on certain activities, and a surge in cases could slow growth, New York Federal Reserve Bank President John Williams said on Wednesday. * Britain and the European Union are in the last moments to reach a trade deal that would regulate their relationship after Britain's transition period ends on Jan 1, 2021, the EU's Trade Commissioner Valdis Dombrovskis said on Wednesday. * Holdings in SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.60% to 1,219.00 tonnes on Wednesday. * Silver fell 0.3 % to $24.24 per ounce. Platinum eased 0.5% to $937.30, while palladium was down 0.7% at $2,311.91. DATA/EVENTS (GMT) 1330 US Initial Jobless Clm Weekly 1330 US Philly Fed Business Indx Nov 1500 US Existing Home Sales Oct (Reporting by Eileen Soreng in Bengaluru; Editing by Ramakrishnan M.)
BreakingviewsReuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.
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4780c48921ebfb38a5065951a6ff5ece | https://www.reuters.com/article/global-precious-idUKL4N2J32W5?edition-redirect=uk | PRECIOUS-Gold prices jump 1% as dollar edges lower | PRECIOUS-Gold prices jump 1% as dollar edges lower
By Shreyansi Singh0 Min Read
(Updates prices) * Trump threatens to not sign U.S. stimulus deal * Interactive graphic tracking global spread of coronavirus: tmsnrt.rs/3mvcUoa By Shreyansi Singh Dec 23 (Reuters) - Gold prices jumped as much as 1% on Wednesday, bolstered by a weaker dollar, while investors kept hopes pinned on a U.S. stimulus package even after U.S. President Donald Trump threatened to not sign the relief bill. Spot gold rose 0.8% to $1,873.92 per ounce by 13:46 p.m. EST (1846 GMT), paring gains of 1%, while U.S. gold futures settled up 0.4% at $1,878.10. "The economic data just cements the belief that the economy is slowing down and that should help the negotiations with stimulus. ... It's going to be extremely likely that some type of stimulus deal will still get done," said Edward Moya, senior market analyst at OANDA. "The slightly weaker dollar has provided a move higher for gold," Moya said, adding the stimulus deal and positive developments on the Brexit front are needed to further cement gold's bullish case. Raising gold's allure for holders of other currencies, the dollar eased 0.3%, while investors expected further declines in 2021. Trump threatened on Tuesday to not sign an $892 billion coronavirus relief bill, seen as a lifeline for the nation's pandemic-battered economy, saying the amount in the stimulus checks should be increased. "Even if Donald Trump declines to sign the bill, it is widely expected that Biden will make it pass and therefore we do not see any downside to gold at the moment," Natixis analyst Bernard Dahdah said. The number of Americans filing first-time claims for unemployment benefits remained elevated but posted an unexpected fall last week. Bullion, considered a hedge against inflation and currency debasement, has risen over 23% this year, benefiting from massive stimulus unleashed globally. Alarm about a highly infectious coronavirus variant prompted a wave of travel bans, highlighting concerns over an economic recovery after the pandemic. Silver rose 2.5% to $25.74 an ounce. Platinum gained 1.5% at $1,016.55 and palladium rose 0.5% to $2,326.45. (Reporting by Shreyansi Singh in Bengaluru; editing by Diane Craft and Richard Chang)
Our Standards: The Thomson Reuters Trust Principles.
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db3396cb1592ca0cbd484bcef11aac62 | https://www.reuters.com/article/global-precious-idUSL1N1G21D8 | PRECIOUS-Gold steadies as global equities lose momentum | PRECIOUS-Gold steadies as global equities lose momentum
By 0 Min Read
* Political uncertainty supports demand for bullion * SPDR Gold holdings have risen 5.6 percent this month * Palladium off over 3-week highs hit Thursday (Updates prices, dollar rates) By Devika Krishna Kumar and Eric Onstad NEW YORK/LONDON, Feb 17 (Reuters) - Gold prices eased on Friday but notched a weekly gain as investors opted for the safe-haven qualities of bullion due to uncertainty about U.S. and European politics as well as the direction of stock markets. Global equity markets lost momentum after setting record highs in the previous two sessions, partly due to disquiet about the policies of U.S. President Donald Trump. "Gold is close to its recent multimonth high despite the strong dollar, due to an increase in volatility on the equity markets and more uneasiness on the political front, which is supporting the search for safe-haven assets," said Eugen Weinberg, head of commodity research at Commerzbank. Spot gold was 0.14 percent lower at $1,237 per ounce by 2:44 p.m. EST (1944 GMT), while U.S. gold futures ended the session down 0.2 percent at $1,239.10. Concern over Trump's policies, as well as elections in the Netherlands, France and Germany this year, fueled gold's rise to a peak of $1,244.67 on Feb. 8, the strongest in nearly three months. Gold, on track for a third week of gains, has risen nearly 8 percent in 2017. Early in the week, gold prices fell after Fed Chair Janet Yellen said U.S. interest rates may need to be raised in March. "On balance, we still don't think that the Fed will raise interest rates at the March FOMC meeting, but the 0.6 percent month-on-month surge in consumer prices in January could prompt the Fed to move sooner than we anticipate," Capital Economics analysts said in a note. Gold prices recovered by Wednesday after strong U.S. data showed U.S. inflation was picking up. Bullion is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced. The dollar index rose 0.5 percent to 100.93 on Friday, recovering from a one-week low of 100.41 the day before. Holdings of SPDR Gold, the world's largest gold-backed exchange-traded fund (ETF), have risen 5.6 percent so far this month, the most since June 2016. "The market seems to be quite supported by investment inflows into the ETFs and I think this will be the most important factor through the year as we expect investors to keep pouring money into gold ETFs," Weinberg added. Commerzbank expects gold to hit $1,300 by year end. Spot silver fell 0.3 percent to $18.03 an ounce. The metal hit its strongest since Nov. 11 at $18.13 in the previous session. Platinum dropped 0.7 percent to $1,004.60. Palladium declined 1.8 percent to $778.22. The metal, used in emission-controlling catalytic converters for the automotive industry, touched its best since Jan. 24 at $795.10 during the prior session. It has gained about 15 percent so far this year. (Additional reporting by Nallur Sethuraman in Bengaluru; Editing by David Evans and Lisa Shumaker)
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a846970801a2219c63988b8f0ce07512 | https://www.reuters.com/article/global-precious-idUSL3N15V392 | PRECIOUS-Gold extends losses as global stocks, dollar firm | PRECIOUS-Gold extends losses as global stocks, dollar firm
By 3 Min Read
* Global stocks higher after U.S. Presidents Day holiday
* European stocks off earlier highs
* Goldman Sachs recommends shorting gold
* GRAPHIC-2016 asset returns: reut.rs/1WAiOSC
* Coming up: January FOMC meeting minutes Wednesday (Recasts; adds comment, byline, NEW YORK dateline; updates prices)
By Marcy Nicholson and Jan Harvey
NEW YORK/LONDON, Feb 16 (Reuters) - Gold fell for the third straight session on Tuesday, as global equity markets and the U.S. dollar rose, depressing interest in gold as a safe-haven asset and taking it further below last week’s one-year high.
Spot gold was down 0.5 percent at $1,203.26 an ounce at 3:05 p.m. EST (2005 GMT). This follows a steep drop of 2.3 percent on Monday, its biggest one-day loss since mid-July.
“Equity markets are continuing to run and that obviously has taken a bit of the safe-haven demand component behind metals,” said David Meger, director of metals trading for High Ridge Futures in Chicago.
“On top of that, renewed dollar strength has continued to pressure the metals complex overall.”
Wall Street stocks gained on Tuesday, extending a rally from Friday, as investors snapped up beaten-down consumer discretionary, industrial and financial stocks. U.S. stocks opened higher after being closed on Monday for the Presidents Day holiday.
U.S. gold futures for April delivery settled down 2.5 percent from where they stood late on Friday at $1,208.20. Most U.S. gold trading was closed on Monday.
“All the major financial drivers have been in concert to help this rise happen - the fed futures curve, the dollar weakening a bit, and equity markets being much weaker than our expectations,” Deutsche Bank analyst Michael Hsueh said.
“In order for us to think that this is going to change into a more meaningful bull market, you would have to believe that the Fed is going to come out with an explicit reversal of their indicated direction, and to go into some kind of easing measures.”
On Tuesday, U.S. Federal Reserve’s Neel Kashkari said he sees a gradual increase in interest rates, while Philadelphia Fed President Patrick Harker said the Fed may be wise to await more evidence of higher U.S. inflation before raising rates again.
Minutes from the Fed’s Jan. 26-27 meeting will be released on Wednesday.
Goldman Sachs’ recommendation to short gold, prompted by the investment bank’s belief that the recent fear-induced rally has been overdone, also stoked a more cautious sentiment for the metal.
Silver was down 0.7 percent at $15.22 an ounce.
UBS Chief Investment Office Wealth Management Research said in a research note it raised its three-month silver price forecast to $13.50-$17.50 per ounce, from $12-$16, and the 12-month forecast to $15.50, from $14.50.
“The lack of catalysts is the key reason for our sideways view, because weak industrial demand persistently hinders recovery,” UBS said.
Platinum was down 0.4 percent at $928.75 and palladium was down 0.9 percent at $507.
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1f5e06174429eb87279e8fa34d8a72f9 | https://www.reuters.com/article/global-precious-idUSL3N16915Y | PRECIOUS-Gold extends gains on safe-haven bids, fund inflows | PRECIOUS-Gold extends gains on safe-haven bids, fund inflows
By A. Ananthalakshmi4 Min Read
* Gold rises for 5th session in 6, edging to 1-year peak
* China Feb factory activity shrinks more sharply than expected
* SPDR fund assets at highest since Sept 2014 (Adds report on India gold imports, updates prices)
SINGAPORE, March 1 (Reuters) - Gold jumped for a fifth session in six on Tuesday, bolstered by safe-haven demand after weak Chinese data stoked concerns over the global economy, with the volume of assets in the top bullion fund climbing to the highest since 2014.
Spot gold had gained 0.6 percent to $1,244.90 an ounce by 0647 GMT. U.S. gold futures rose nearly 1 percent to $1,246.
Activity in China’s manufacturing sector shrank more sharply than expected in February, surveys showed on Tuesday, prompting smaller companies to shed workers at the fastest pace in seven years and suggesting Beijing will have to ramp up stimulus to avoid a deeper economic slowdown.
The surveys followed a move overnight by the Chinese central bank to cut the reserve requirement ratio and resume its easing cycle.
“Weak data globally is adding to concerns over a slowdown and that is helping gold,” said a bullion trader in Hong Kong, adding that more inflows into gold-backed exchange traded funds (ETFs) were also helping.
Gold is biased to edge up to a key resistance at $1,260, the metal’s one-year peak hit last month, said Reuters technical analyst Wang Tao.
Gold, which logged its best month in four years in February with a 10.8-percent gain, has been one of the best performing assets this year amid turmoil in the wider markets.
Downbeat U.S. data on Monday revived concerns about the strength of the economy. Contracts to buy previously owned U.S. homes fell to their lowest level in a year in January, while the Chicago Purchasing Managers Index - a leading indicator of the U.S. economy - contracted to 47.6 in February.
Global economic concerns have prompted investors to channel money into gold.
Assets of SPDR Gold Trust, the world’s top gold ETF, rose 1.95 percent to 777.27 tonnes on Monday, the highest since September 2014.
The asset increase in the fund so far this year is the highest since 2010.
Physical buying however remained muted. Gold’s rally on Monday prompted the Chinese, the top consumers of gold, to sell the metal on Tuesday, said the Hong Kong-based trader.
“They were buyers when prices were around $1,230 but the rally has put an end to that,” he said.
India, the No.2 gold consumer, has reintroduced a local sales tax on gold jewellery after a gap of four years, on top of record import duty, in a move officials hope will dampen demand. Indian jewellers will go on indefinite strike from Tuesday in protest.
Despite the taxes, India’s gold imports surged 62 percent in January from a year ago to 93.3 tonnes, news agency NewsRise Financial reported on Tuesday.
Palladium outperformed gold and other precious metals, with the spot price climbing 2 percent to $500.05 an ounce. (Reporting by A. Ananthalakshmi; Additional reporting by Manolo Serapio Jr in MANILA; Editing by Joseph Radford and Biju Dwarakanath)
Our Standards: The Thomson Reuters Trust Principles.
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b4cf5e18d95d0f57f41ab4e927b55962 | https://www.reuters.com/article/global-precious-idUSL3N1893CE | PRECIOUS-Gold slips after best day since April as dollar strengthens | PRECIOUS-Gold slips after best day since April as dollar strengthens
By 0 Min Read
* Prices consolidate below 15-month peak of $1,303.60/oz * Gold up 20 pct this year as expectations of Fed rate hike fade * Global gold demand posts strongest Q1 on record - WGC (Updates prices; adds comment, second byline, NEW YORK dateline) By Marcy Nicholson and Jan Harvey NEW YORK/LONDON, May 12 (Reuters) - Gold fell on Thursday as a strengthening dollar prompted some buyers to cash in gains after its biggest daily rise this month, briefly paring losses after downbeat U.S. jobs data. Spot gold was down 0.6 percent at $1,269.76 an ounce at 2:44 p.m. EDT (1844 GMT). The metal had touched a 15-month high last week at $1,303.60, before slipping back below $1,300. "The weakness in gold which we're experiencing today is mainly due to the strength in the dollar, and also we're approaching close to a very important level of $1,300," Naeem Aslam, chief market analyst at Think Forex, said. The yen fell to a two-week low against the dollar on speculation that the Bank of Japan could expand its monetary stimulus as soon as next month, helping to lift the dollar index 0.3 percent. Gold is up nearly 20 percent in 2016 as a run of soft economic data in the United States and around the world allayed expectations that the Federal Reserve would press ahead with interest rate hikes in the near term. Rising rates increase the opportunity cost of holding non-yielding gold, while boosting the dollar, in which it is priced. Underlining optimism towards the metal, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Shares, rose to the highest since December 2013 on Wednesday. "Money flows are strong, the ETF demand is strong and this is all helping to keep prices in a range," said Bill O'Neill, co-founder of commodities investment firm Logic Advisors in New Jersey. "We need to close above $1,300 to get the market moving from a technical perspective. That's a little bit of a stumbling block at the moment." Surging inflows into gold-backed ETFs drove global gold demand to its highest first-quarter total on record this year at 1,290 tonnes, the World Gold Council (WGC) said, despite a near 20 percent drop in jewelry demand. "It was pleasing to see the strong uptick in physical demand for gold in the first quarter of 2016 ... especially in Western financial centers that have effectively been absent for three years," Old Mutual Gold & Silver Fund manager Ned Naylor-Leyland said. U.S. gold futures for June delivery settled down 0.3 percent at $1,271.20. Spot silver was down 1.8 percent at $17.08 an ounce, platinum was down 1.2 percent at $1,049.86, and palladium was down 1.6 percent at $594.80. GFMS analysts at Thomson Reuters said that platinum was likely to have already posted its lows for the year. (Additional reporting by Manolo Serapio Jr. in Manila; Editing by Mark Heinrich and Meredith Mazzilli)
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02edce559ee1ee8e85e3fe9576568253 | https://www.reuters.com/article/global-precious-idUSL3N1KC075 | PRECIOUS-Gold steady, on track for second straight weekly gain | PRECIOUS-Gold steady, on track for second straight weekly gain
By Reuters Staff0 Min Read
BENGALURU, July 21 (Reuters) - Gold held steady early on Friday and was on track for a second consecutive weekly gain after easing from a three-week high hit in the previous session. FUNDAMENTALS * Spot gold edged down 0.04 percent to $1,243.80 per ounce at 0049 GMT after touching a three-week high on $1,247.48 an ounce in the previous session. It has risen about 1.3 percent for the week so far. * U.S. gold futures for August delivery fell 0.15 percent to $1,243.60 per ounce. * The dollar headed for weekly losses on Friday, wallowing at its lowest levels against the euro in nearly two years after European Central Bank chief Mario Draghi said policymakers would discuss changing its bond-buying programme in the autumn. * The ECB left its ultra easy monetary policy unchanged on Thursday and did not even discuss clawing back stimulus, suggesting it may delay an inevitable decision on tapering bond buys until the latest possible moment. * The number of Americans filing for unemployment benefits fell more than expected last week, touching its lowest level in nearly five months, suggesting strong job gains that should continue to underpin economic growth. * The European Union and Britain offered few compromises at their first full round of Brexit talks which ended on Thursday, and the pound fell on worries that British ministers were prepared to walk away without a deal. * The Bank of Japan kept monetary policy steady on Thursday but once again pushed back the timing for achieving its ambitious inflation target, reinforcing views it will lag well behind other major central banks in scaling back its massive stimulus programme. * Expectations are firming for major central banks to turn further away from ultra-easy monetary policy despite scant evidence of a pickup in inflation, Reuters polls of more than 500 economists showed on Thursday. * India's Paytm plans to sell 5 tonnes of gold valued around $200 million this year, the digital payments firm said on Friday, as it strives to develop a viable business from its e-wallet platform. * U.S. Senate Republicans, scolded by President Donald Trump for failing to overturn Obamacare, tried to salvage their seven-year effort for a new healthcare law on Thursday, but leading senators indicated frustration over shifting goal posts. DATA AHEAD 1430 U.S. ECRI weekly index (Reporting by Nithin Prasad in Bengaluru; Editing by Richard Pullin)
Our Standards: The Thomson Reuters Trust Principles.
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b7265cde14e1b0d500eddb865c87c943 | https://www.reuters.com/article/global-precious-idUSL3N1RB3WB | PRECIOUS-Gold slips on steady dollar, but political tensions support | PRECIOUS-Gold slips on steady dollar, but political tensions support
By 0 Min Read
* Gold heads toward third straight quarterly rise * Silver set to post 3.7 pct quarterly loss * Platinum hits more than five-month low * Palladium on track for biggest quarterly loss since end-2015 (Updates prices, adds analyst comment, adds NEW YORK to dateline) By Renita D. Young and Eric Onstad NEW YORK/LONDON, March 29 (Reuters) - Gold prices slipped on Thursday as the U.S. dollar held its strong gains from the previous session, but simmering tensions over Russia and a potential trade war offered underlying support. Gold posted its biggest one-day percentage fall in nearly nine months on Wednesday after robust U.S. data lifted the dollar, which steadied at those strong levels on Thursday. Spot gold dipped 0.1 percent to $1,323.19 per ounce by 1:38 p.m. EDT (1738 GMT), after hitting $1,321.21 its lowest level since March 21. U.S. gold futures for June delivery settled down $2.70, or 0.2 percent, at $1,327.30 per ounce. "There was an easing of tensions in the Far East regarding North Korea, but there's still tension between the West and Russia ... this can boil over again and support gold," said Carsten Fritsch, commodity analyst at Commerzbank in Frankfurt. North Korea and South Korea will hold their first summit in more than a decade on April 27, South Korean officials said. Moscow threatened to retaliate after the United States and other Western countries expelled more than 100 Russian diplomats over the poisoning of Russian former double agent Sergei Skripal and his daughter in England with a military-grade nerve toxin. Concerns about a global trade war have eased but that does not mean it is over, said Brian Lan, managing director at dealer GoldSilver Central in Singapore. Often seen as an alternative investment at times of political and financial uncertainty, gold was on track for a third straight quarter of gains, up 1.6 percent so far. United States precious metals markets will be closed on Friday for the Good Friday holiday. Meanwhile, spot silver was up 0.25 percent at $16.30 per ounce after falling to $16.20, a one-week low. Silver was on track to post a quarterly loss of 3.7 percent after two quarters of modest gains. Platinum dropped 0.3 percent to $928.50 per ounce, after hitting $922.50, the weakest level since late December. The metal was down about 5.4 percent so far this month, on course to post its worst month since September. Palladium lost 2.1 percent to $945.75 per ounce, earlier hitting $938.22, its lowest level since Oct. 11, and was set to fall more than 9 percent this month, the steepest drop since December 2016. "Speculators had been quite bullish in palladium for a while, now paring back bets since palladium came down from recent highs," said Daniel Ghali, commodities strategist at TD Securities. For the quarter, palladium dropped 10.6 percent, its biggest quarterly loss since the end of December 2015. (Reporting by Renita D. Young in New York and Eric Onstad in London, additional reporting by Swati Verma and Eileen Soreng in Bengaluru Editing by Adrian Croft and Matthew Lewis)
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b3edf851d6e93589e139e0ca3652b307 | https://www.reuters.com/article/global-precious-idUSL3N21Q0X3 | CORRECTED-PRECIOUS-Gold prices hit one-week high as dollar turns lower | CORRECTED-PRECIOUS-Gold prices hit one-week high as dollar turns lower
By K. Sathya Narayanan4 Min Read
(Corrects analyst’s second name and firm’s name in paragraph 10, fixes garbled Reuters Instrument Codes in text)
* Gold specs cut net long positions in week to April 2
* SPDR gold holdings fell 3 percent last week
* Platinum hits its highest since May 31 at $912.90/oz
* FOMC’s March policy meeting minutes due on Wednesday
April 8 (Reuters) - Gold prices rose to a more-than-one-week peak on Monday as the dollar slipped after data showed U.S. wage growth slowed last month, while investors awaited minutes of the U.S. Federal Reserve’s March meeting later this week.
Spot gold gained 0.4 percent to $1,296.87 per ounce by 0746 GMT, after touching its highest since March 29 at $1,297.86 earlier in the session.
U.S. gold futures were also up 0.4 percent at $1,301 an ounce.
“The dollar index is pulling back from multi-week highs and gold prices are riding this tailwind of softer dollar,” said Margaret Yang, a market analyst with CMC Markets, Singapore.
“Though the non-farm payrolls data was better than expected, the manufacturing jobs fell which is a bad signal for the sector and doesn’t show a very bright picture of the economic outlook.”
The dollar was down 0.1 percent against key rivals as U.S. Treasury yields extended their decline after the U.S. jobs report signalled a slowdown in wage growth even as employment accelerated from a 17-month low in March.
The data on Friday also showed job cuts in the manufacturing sector, the first decline in factory payrolls since July 2017.
A softer dollar makes gold cheaper for investors holding other currencies.
The moderation in wage growth supported the Federal Open Market Committee’s (FOMC) decision to abandon any interest rate hikes this year.
“But ultimately the wild card remains the U.S.-China trade negotiations,” said Stephen Innes, head of trading and market strategy at SPI Asset Management, adding that the equity markets will spike on news of an agreement, denting the near-term appeal of gold.
U.S. and Chinese negotiators are scheduled to resume discussions this week to try to secure a pact to end the year-long tit-for-tat tariff battle.
Asian shares were trading near a seven-month peak briefly touched earlier in the session, limiting bullion’s gains.
A rally in equity markets has led investors to cut their exposure to gold recently, analysts said.
Speculators slashed their bullish wagers in COMEX gold in the week to April 2, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Holding’s in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, also fell as much as 3 percent in the previous week, its biggest weekly percentage decline since end-November 2016.
Among other precious metals, spot platinum was last up 1.6 percent at $908.95 an ounce, after touching its more-than-ten-month high of $912.90 earlier in the session.
Palladium slipped 0.2 percent to $1,366.76, while silver gained 0.4 percent to $15.14. (Reporting by K. Sathya Narayanan and Swati Verma in Bengaluru; Editing by Shreejay Sinha)
Our Standards: The Thomson Reuters Trust Principles.
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6c165d954a3f82bff9bbb46b601c49d9 | https://www.reuters.com/article/global-precious-idUSL4N1DX31P | PRECIOUS-Gold rises despite U.S. jobs data but remains set for weekly loss | PRECIOUS-Gold rises despite U.S. jobs data but remains set for weekly loss
By 0 Min Read
* SPDR gold holdings down 1.5 pct on Thursday * Gold bounced up from Thursday's 10-month low * Gold on track for fourth straight weekly loss * Palladium off 1-1/2-year high, down on the week (Updates prices; adds comment, second byline, NEW YORK dateline) By Marcy Nicholson and Zandi Shabalala NEW YORK/LONDON, Dec 2 (Reuters) - Gold edged higher on Friday, climbing for the first time in four sessions as it shrugged off data showing rising U.S. job numbers, with analysts saying that an expected rise in interest rates had already been priced in. U.S. employers boosted hiring in November, pushing down the unemployment rate to a more than nine-year low of 4.6 percent and increasing the likelihood that the Federal Reserve will raise interest rates this month. Bullion is highly sensitive to rising interest rates, which make the non-yielding asset less attractive while boosting the dollar, in which it is priced. "The market is still thinking a December hike is very likely, which has already factored in, and that's why gold is not really moving today," said Natixis' precious metals analyst, Bernard Dahdah. Spot gold was up 0.3 percent at $1,174.03 an ounce by 2:33 p.m. EST (1933 GMT), bouncing up from Thursday's lowest level since Feb. 5 at $1,160.38. It was on track to record a fourth straight week of losses. U.S. gold futures settled up 0.7 percent at $1,177.80 per ounce. Capital Economics commodities economist Simona Gambarini said that U.S. president-elect Donald Trump is uppermost in investors' minds. "Most investors are now looking at 2017 to see what's going to happen with Trump, what policies he will implement and the inflationary impact of those policies," Gambarini said. The dollar index, which measures the greenback against a basket of major currencies, slipped by about 0.3 percent, helping to support gold prices. "With a rate rise in a couple of weeks almost certain, the dollar will remain firm and gold will remain pressured, although we could see a bit of book-squaring in the run-up," said Marex Spectron's head of precious metals, David Govett. Commerzbank said that it expects the upward trend of the first half of the year to resume in 2017. "The headwind from U.S. dollar appreciation and the rise of bond yields should abate and investment demand should pick up again also given the numerous risk factors," Commerzbank said. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 1.5 percent on Thursday after dropping more than 6 percent last month. Silver rose 1 percent to $16.66 an ounce while platinum was up 1.8 percent at $927.80. Palladium shed 1.5 percent at $739, and was on track to close the week down for the first time in five weeks after tumbling from Thursday's 1-1/2-year high. (Additional reporting by Apeksha Nair in Bengaluru; Editing by Susan Thomas and Lisa Shumaker)
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251cc19f6ff730668e29ba41c0a329a3 | https://www.reuters.com/article/global-precious-idUSL4N1F107J | PRECIOUS-Gold near 6-week peak ahead of Trump news conference | PRECIOUS-Gold near 6-week peak ahead of Trump news conference
By Reuters Staff0 Min Read
Jan 11 (Reuters) - Gold held steady early Wednesday after touching six-week highs in the session before, with investors awaiting more policy cues from U.S. President-elect Donald Trump's first news conference since the elections, due later in the day. FUNDAMENTALS * Spot gold was little changed at $1,187.76 an ounce by 0043 GMT. Bullion reached its highest level since Nov. 30 on Tuesday at $1,190.46. * U.S. gold futures gained 0.2 percent to $1,187.80 per ounce. * The market is looking for more clues on Trump's spending plans in the first news conference since his shock election win in November. * A gauge of U.S. small business confidence rose to a 12-year high in December as optimism about the economy intensified among business owners following the November election, the National Federation of Independent Business said on Tuesday. * The World Bank on Tuesday said global growth would accelerate slightly as recovering oil and commodity prices ease pressures on emerging-market commodity exporters and painful recessions in Brazil and Russia come to an end. * Richmond Federal Reserve President Jeffrey Lacker, one of the U.S. central bank's most reliable proponents of interest rate increases, will retire from his post in October, the Richmond Fed said in a statement on Tuesday. * Operations at Canadian miner Yamana Gold Inc's El Peñón mine in Chile have been suspended for five days after one of its two unions representing underground workers went on strike and blockaded access to the mine, a union leader said on Tuesday. * The Indian Commodity Exchange (ICEX) is planning to launch three futures contracts for diamonds in March to provide exporters with a hedging tool, the exchange said on Tuesday. * There will be "trouble for equity markets" if the yield on the benchmark 10-year U.S. Treasury note moves beyond 3 percent, Jeffrey Gundlach, chief executive of DoubleLine Capital, warned on Tuesday. * For the top stories on metals and other news, click or MARKET NEWS * The dollar trod water early on Wednesday, showing little inclination to move against major peers such as the euro and yen before U.S. President-elect Donald Trump fronts a news conference that could set the market's near-term direction. DATA AHEAD (GMT) 0500 Japan Leading indicator November 0500 Japan Coincident indicator November 0930 Britain Industrial output November 0930 Britain Trade data November (Reporting by Swati Verma in Bengaluru; Editing by Richard Pullin)
Our Standards: The Thomson Reuters Trust Principles.
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150d5f0a760cec48eac2cd0eccc36288 | https://www.reuters.com/article/global-precious-idUSL4N1F119Y | PRECIOUS-Gold holds near six-week peak on safe-haven demand | PRECIOUS-Gold holds near six-week peak on safe-haven demand
By 0 Min Read
* Investors wait for Trump news conference * Fed's Yellen to host webcast meeting on Thursday * Spot gold to rise to $1,210 - Technicals * Silver off highs set on Tuesday (Adds comment, updates prices) By Swati Verma BENGALURU, Jan 11 (Reuters) - Gold on Wednesday held near a six-week high hit in the previous session, with economic and political uncertainty boosting its safe-haven appeal. Markets were waiting for indications on policy from U.S. President-elect Donald Trump's first news conference since the U.S. elections, due later in the day. "The markets are myopic. There are immediate concerns over the global economy, at least in the first half of the year," said Barnabas Gan, an analyst at OCBC Bank in Singapore. He added that focus was on events such as Britain's exit from the European Union, French elections in April and the impact of Trump's trade policies when he takes up his post in the White House later this month. Spot gold was up 0.1 percent at $1,188.86 an ounce by 0630 GMT. Bullion, often seen as an alternative investment during times of political and financial uncertainty, on Tuesday reached its highest level since Nov. 30 at $1,190.46. U.S. gold futures gained 0.3 percent to $1,188.70 per ounce. "Greater than usual market sensitivity to Trump's comments and actions may persist until the market becomes used to him in office. This could take several months. Thus gold prices may be more volatile than usual," said James Steel, chief metals analyst for HSBC Securities in New York. "In addition to U.S. dollar weakness, the gold rally has depended on a pullback in U.S. bond yields and some moderation in equity gains." The greenback has lost some of its momentum against other currencies, while U.S. bond yields have fallen considerably from two-year highs touched in mid-December. Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding the non-yielding asset while boosting the dollar, in which it is priced. The outlook for U.S. rates may become a little clearer when Federal Reserve Chair Janet Yellen appears at a webcast town hall meeting with educators on Thursday. "With the impending inauguration of President-elect Donald Trump and possible safe-haven flows related to that, seasonal Chinese demand and a stalling equity rally and bond sell-off, January so far is poised to be another good month for the yellow metal," said Alex Thorndike, senior precious metals dealer at MKS PAMP Group. Reuters technical analyst Wang Tao expects spot gold to rise to $1,210 per ounce as it has broken above resistance at $1,172. Among other precious metals, silver was down 0.2 percent at $16.76 an ounce, after gaining more than 1 percent in the previous session, when it hit its highest in nearly four weeks. Platinum declined up to 0.4 percent to $974.10, and palladium dropped as much as 0.3 percent to $762.22 an ounce. (Additional reporting by Nallur Sethuraman in Bengaluru; Editing by Joseph Radford and Sherry Jacob-Phillips)
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87ce4876b2f36d1423ea9d0d5be3897a | https://www.reuters.com/article/global-precious-idUSL4N1F23KV | PRECIOUS-Gold brushes 7-week high on weak dollar after Trump briefing | PRECIOUS-Gold brushes 7-week high on weak dollar after Trump briefing
By 0 Min Read
* Platinum hits over two-month highs * Dollar index slides to 5-week low * Fed's Yellen to host webcast meeting on Thursday (Updates prices; adds comment, second byline, NEW YORK dateline) By Marcy Nicholson and Eric Onstad NEW YORK/LONDON, Jan 12 (Reuters) - Gold surged above $1,200 an ounce to its highest in seven weeks on Thursday as the dollar fell after U.S. President-elect Donald Trump's long-awaited news conference gave few details on economic policy. But analysts warned that gold's revival since mid-December may be running out of steam as the dollar was likely to rebound once Trump moves ahead with his economic plans. Spot gold was up 0.5 percent at $1,197.64 an ounce by 2:35 p.m. EST (1935 GMT), after touching $1,206.98, its loftiest since Nov. 23. U.S. gold futures settled up 0.3 percent at $1,199.80 per ounce. Trump delivered a wide-ranging briefing on Wednesday that lasted longer than expected but contained no details on tax cuts and infrastructure spending, analysts said. That sent the dollar index sliding to the lowest in nearly five weeks. "It's a mess frankly, which is a reflection of the fact that there's no clarity on U.S. economic policy," said Tom Kendall, head of precious metals strategy at ICBC Standard Bank. "For the time being, I'm sticking to my thesis that this move can go a bit further, but we're running out of steam." Gold is up around 7 percent since hitting a 10-1/2-month low on Dec. 15. "Despite moving back to $1,200 per ounce, we see no lasting recovery for gold," said Carsten Menke, commodities research analyst at Julius Baer in Switzerland. "The market lacked support from physical buying ... which we believe is a precondition for a lasting recovery." The outlook for U.S. rates may become a little clearer when Federal Reserve Chair Janet Yellen appears at a webcast town hall meeting with educators on Thursday. "Trump's election has introduced a proliferation of unknowns, which the market will have to work through as they surface," RBC Capital Markets said in a note. "Overall, while we are cautiously optimistic on gold for the year, we still think the real reason to buy gold is as a risk overlay - a hedge against moves like these." Spot silver was up 0.4 percent at $16.79 an ounce after hitting a four-week high of $16.98. Platinum climbed 0.6 percent to $978.30, after touching a high of $990.10, its strongest since Nov. 10. Palladium added 0.5 percent at $758. Commerzbank said Chinese car sales were not likely to match their 2016 record-high gain of 15 percent. "The sales dynamism is expected to decline significantly in 2017 ... platinum group metals, and particularly palladium, are therefore likely to be not quite as well supported this year," a note said. (Additional reporting by Nallur Sethuraman in Bengaluru; Editing by Dale Hudson and Andrew Hay)
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1286547166f48f49c7919547434ef74c | https://www.reuters.com/article/global-precious-idUSL4N1FV38O | PRECIOUS-Gold steadies as dollar, U.S. Treasury yields pare gains | PRECIOUS-Gold steadies as dollar, U.S. Treasury yields pare gains
By 0 Min Read
* Gold heads for second week of gains, but margin narrows * Silver at 3-mth high, palladium at 2-week top * GRAPHIC-2017 asset returns: tmsnrt.rs/2jvdmXl (Rewrites throughout, updates prices; adds comment, second byline, NEW YORK dateline) By Marcy Nicholson and Jan Harvey NEW YORK/LONDON, Feb 10 (Reuters) - Gold steadied on Friday, but remained below this week's three-month top as the U.S. dollar and Treasury yields came off their highs after the currency initially jumped on U.S. President Donald Trump's promise of a major tax announcement. Spot gold was up 0.02 percent at $1,230.78 an ounce by 2:24 p.m. EST (1924 GMT), while U.S. gold futures for April delivery settled down 0.07 percent at $1,235.90. On Wednesday, spot gold reached its highest since mid-November at $1,244.67. Gold prices were on track for a second weekly gain, up 1 percent from late last Friday. The dollar pared gains against a currency basket on Friday after earlier strength from U.S. President Donald Trump's pledge to announce a major tax plan within weeks cooled some market nerves, reinvigorating dollar bulls. Wall Street hit record highs for a second day on hopes of the business-friendly tax cuts. "The dollar puts a little pressure on gold however the strength in the equity markets and the strength in the other precious metals is lifting gold up," said Eli Tesfaye, senior market strategist for brokerage RJO Futures in Chicago, as gold prices moved into positive territory. "It's really the intermarket relationship that's stabilizing gold right now." Silver was up 1.5 percent at $17.91 an ounce, after tapping $17.99, the highest since Nov. 11. Palladium rose 1.6 percent to $782, after rising to $786.40, the highest since Jan. 25. "Both silver and palladium are up on the day as an improving China signals a better global economy and gives support to the more industrial metals of the group," said aid Miguel Perez-Santalla, vice president of Heraeus Metal Management in New York. Earlier in the session, however, gold prices were lower. "The Trumpflation trade is back on the agenda, which is negative for gold," Commerzbank analyst Carsten Fritsch said. U.S. economic data has also stoked talk that the Federal Reserve would press ahead with U.S. interest rate hikes sooner rather than later. U.S. import prices rose more than expected in January, while initial jobless claims dropped unexpectedly last week to the lowest in nearly 43 years. Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced. The major physical markets in Asia were mixed this week as Indian jewelers stocked up for wedding season, while rising prices sidelined buyers elsewhere. Platinum was down 0.6 percent at $1,006.10. (Additional reporting by Nallur Sethuraman in Bengaluru; Editing by Mark Potter and Cynthia Osterman)
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c43140a33a51f7e667490cf79d1e7aef | https://www.reuters.com/article/global-precious-idUSL4N1L100A | PRECIOUS-Gold inches lower as N.Korea tensions ease | PRECIOUS-Gold inches lower as N.Korea tensions ease
By Reuters Staff0 Min Read
BENGALURU, Aug 15 (Reuters) - Gold edged lower early on Tuesday, weighed down by a steady U.S. dollar and firmer Asian stocks as geopolitical tensions between the United States and North Korea appeared to ease. FUNDAMENTALS * Spot gold had fallen 0.2 percent to $1,279.01 per ounce by 0013 GMT. * U.S. gold futures for December delivery fell 0.4 percent to $1,285.00 per ounce. * North Korea's leader received a report from his army on its plans to fire missiles towards Guam and said he will watch the actions of the United States for a while longer before making a decision, the North's official news agency said on Tuesday. * Defense Secretary Jim Mattis warned on Monday that the U.S. military would be prepared to intercept a missile fired by North Korea if it was headed to Guam. * Stocks around the world rose along with U.S. Treasury bond yields and the U.S. dollar on Monday as investors regained some appetite for riskier assets as the United States and North Korea appeared to take a break from their war of words. * Venezuelan President Nicolas Maduro on Monday called for military exercises after U.S. President Donald Trump's threat of a possible armed intervention in the country, but Maduro insisted he still wanted to hold talks with the U.S. leader. * One of the Federal Reserve's most influential members expects to raise interest rates once more this year, and to soon begin shedding some of the Fed's bond holdings, according to comments on Monday that pushed back on doubts in financial markets. * Gold's rally in recent weeks may be its first boosted by Twitter, but for the gains to sustain it will likely take more than just the ramping up of global geopolitical tensions amid bellicose tweets from President Trump. * Indian traders are likely to import 25 tonnes of gold from South Korea in July and August, taking advantage of a recent tax change that allows importers to ship in gold without paying a 10 percent customs duty, industry officials told Reuters. * Holdings at the SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, rose 0.53 percent to 791.01 tonnes on Monday from 786.87 tonnes on Friday. DATA AHEAD (GMT) 0600 Germany GDP Flash Q2 0830 Britain Consumer prices July 0830 Britain Producer prices July 1230 U.S. New York Fed manufacturing July 1230 U.S. Import prices July 1230 U.S. Export prices July 1230 U.S. Retail sales July 1400 U.S. Business inventories June 1400 U.S. NAHB housing market index Aug (Reporting by Nithin Prasad in Bengaluru; Editing by Joseph Radford)
Our Standards: The Thomson Reuters Trust Principles.
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0878c73e9a86db774cc8daf2abbdecb9 | https://www.reuters.com/article/global-precious-idUSL4N1QA27U | PRECIOUS-Gold falls for third session ahead of big U.S. debt auction | PRECIOUS-Gold falls for third session ahead of big U.S. debt auction
By 0 Min Read
* U.S. launches auctions for $258 billion of debt * Gold expected to fall to $1,326/oz -analyst (Recasts throughout, updates prices, adds comment, adds NEW YORK to dateline) By Renita D. Young and Eric Onstad NEW YORK/LONDON, Feb 20 (Reuters) - Gold prices were pressured by a stronger U.S. dollar and rising interest rates on Tuesday, dropping for a third session, but were underpinned by political worries and uncertainty about this week's huge U.S. bond auctions. The dollar continued its rebound from three-year lows as investors shrugged off worries about the U.S. budget deficit and focused on large U.S. government debt auctions this week. "Gold is under pressure form the dollar index rallying significantly and interest rates continuing to rise," said Phillip Streible, senior commodities strategist at RJO Futures. "I wouldn't be surprised to see gold hold the 50-day moving average at $1,316." Spot gold shed 1.3 percent at $1,328.71 an ounce by 1:35 p.m. EST (1835 GMT), dropping to $1,328.26, its lowest since Feb. 14. U.S. gold futures futures for April delivery settled down $25, or 1.8 percent, at $1,331.20 per ounce. The U.S. Treasury Department Tuesday sold record amounts of three-month and six-month bills at the highest interest rates for these maturities at auctions in more than nine years, Treasury data showed. The U.S. Treasury will sell more than $250 billion worth of new debt this week, which analysts said would be a key gauge of international investors' appetite for U.S. assets. The dollar has sold off in recent months on worries that the Trump administration's recently passed tax cuts and plans for large government spending would widen the deficit. Spot gold is expected to fall to the next support level at $1,326, according to Reuters technical analyst Wang Tao. Geopolitical uncertainty, ranging from disunity at the recent Munich security conference to threatened U.S. trade sanctions, may increase safe-haven demand for gold, said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen. Gold investors are also anticipating the release on Wednesday of the U.S. Federal Reserve's January policy meeting minutes and the Thursday release of the European Central Bank's latest policy meeting minutes. Meanwhile, silver slipped 1.2 percent to $16.46 an ounce, hitting $16.44, its lowest since Feb. 14. Palladium added 0.1 percent at $1,033.99 an ounce, after rising to the highest since Feb. 2 at $1,050 in the previous session. A major low was achieved earlier this month when palladium hit $957.75, Stéphanie Aymes, head of technical analysis at Societe Generale, said in a note. "A break past $1,055 will prompt accrued positive signals towards $1,071/78...and more importantly towards the channel upper band at $1,145/55." Platinum dropped 0.2 percent to $1,000.20 an ounce after rising to a three-week high of $1,013.60 on Monday. (Reporting by Renita D. Young; Editing by Bernadette Baum)
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eb2eba6f8033e9771240b74b45ff5ea8 | https://www.reuters.com/article/global-precious-idUSL4N23H0J1 | PRECIOUS-Gold retreats sharply as U.S.-Mexico deal curbs safe-haven demand | PRECIOUS-Gold retreats sharply as U.S.-Mexico deal curbs safe-haven demand
By Arijit Bose3 Min Read
* Speculators raised net longs in gold in week to June 4-CFTC
* China’s trade surplus with U.S. rose to $26.89 bln in May
* U.S. Fed futures price in 2 rate cuts in 2019 (Updates prices)
June 10 (Reuters) - Gold prices skidded 1% on Monday, retreating from a 14-month peak hit in the previous session after an agreement between the United States and Mexico to avert a tariff war crimped safe-haven demand for the metal.
Spot gold was down 1% at $1,327.32 per ounce, as of 0725 GMT. In the previous session, the bullion hit its highest since April 19, 2018 at $1,348.08 an ounce.
U.S. gold futures also fell 1%, to $1,332.10 an ounce.
“Talks between the U.S. and Mexico seem to have smoothened out already and the (gold) market seems to have lost its safe-haven appeal a little bit,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
“However, hopes that the U.S. Federal Reserve will reduce the interest rate are still looking a little positive for gold.”
The United States and Mexico struck a deal on Friday to avert a tariff war, with the latter agreeing to rapidly expand a controversial asylum programme and deploy security forces to stem the flow of illegal Central American migrants.
U.S. President Donald Trump also defended the deal against criticism that there were no major new commitments to stem a flow of Central American migrants crossing into the United States, and said on Sunday more details would soon be released.
Global equities also took heart from Washington’s plans to shelf the imposition of tariffs on Mexico, and as Friday’s weak U.S. jobs data raised hopes for U.S. interest rate cuts.
Expectations that the U.S. Federal Reserve might deliver a rate cut, however, provide a glimmer of hope for gold bulls since lower interest rates increase the opportunity cost for holding bullion.
Fed fund futures now price in more than two 25-basis point rate cuts by the end of this year, with one almost fully priced in by July, especially as weak data from the United States and an unending Sino-U.S. trade spat cloud global economic outlook.
China’s trade surplus with the United States, which has been a major sticking point with Washington, rose to $26.89 billion in May, from $21.01 billion in April, customs data showed.
On Saturday, the chief editor of China’s Global Times newspaper said China was preparing to curb some technology exports to their trade adversaries, thawing hopes of a Mexico-like settlement to the Sino-U.S. trade war.
Speculators also raised net long position in COMEX gold in the week ended June 4, data from the U.S. Commodity Futures Trading Commission (CFTC) showed on Friday.
Elsewhere, silver shed 1.5% to $14.77 per ounce.
Platinum fell 0.4% to $802.91 an ounce, while palladium eased 0.1% to $1,356.25 an ounce. (Reporting by Arijit Bose in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)
Our Standards: The Thomson Reuters Trust Principles.
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ffae0b104ac2adf6caff5e259a1f0167 | https://www.reuters.com/article/global-precious-idUSL4N2462SJ | PRECIOUS-Gold slides 2% as solid U.S. jobs data trims Fed rate cut bets | PRECIOUS-Gold slides 2% as solid U.S. jobs data trims Fed rate cut bets
By Swati Verma3 Min Read
* Gold on track for worst week since mid-April
* Robust U.S. jobs data knocks gold below $1,400 an ounce
* Nonfarm payrolls increased 224,000 in June vs 160,000 expected
* Palladium set to post fifth weekly rise (Updates prices)
July 5 (Reuters) - Gold slid as much as 2% on Friday and was set for its first weekly fall in seven weeks after data showed U.S. jobs growth rebounded strongly in June, which lowered the likelihood of an interest rate cut by the Federal Reserve this month.
Spot gold dropped 1.2% to $1,398.71 per ounce by 1:43 p.m. EDT (1749 GMT) having hit a low of $1,386.52 earlier. The metal is set for a weekly decline of about 1%, which could be its biggest since mid-April.
U.S. gold futures settled 1.5% down at $1,400.10.
Nonfarm payrolls increased by 224,000 jobs last month, the most in five months, data showed. Economists polled by Reuters had forecast payrolls rising by 160,000 jobs.
“The U.S. jobs data is driving all the pressure on gold right now. The payroll numbers crushed all expectations. That may decrease the urgency for a Fed cut in July,” said Chris Gaffney, president of world markets at TIAA Bank.
Adding pressure on gold, the dollar surged to an over two-week peak against a basket of six major currencies.
Gold is highly sensitive to interest rates and a lower chance of a cut would increase the opportunity cost of holding the non-interest-bearing bullion.
Federal funds futures implied traders now see only a 9.0% chance the U.S. central bank will decrease key money market rates by half a point, down from 29% on Wednesday, according to CME Group’s FedWatch program.
“Most of the markets though, still see some kind of cut but it pulls away that expectation of a 50-basis-points cut and most of what can be expected is a quarter-basis-point cut,” Gaffney said.
The outlook for gold still remains positive, however, analysts said. Gold hit a six-year high of $1,438.63 an ounce last week and is still holding above key technical levels.
“The yellow metal will likely find buyers as the global growth slowdown should keep demand strong for gold,” Edward Moya, senior market analyst at OANDA, said in a note.
Gold is often seen as an alternative investment during times of political and financial uncertainty.
Meanwhile, in India, the world’s second largest gold consumer, local rates surged to record highs following a surprise hike in the gold import duty on Friday.
The announcement is likely to increase the price paid by consumers, Capital Economics said in a note.
“While we had already been anticipating a slowdown in India’s gold imports this year, soaring prices and higher tariffs present an additional headwind to demand.”
Silver slid 1.9% to $14.99 per ounce, while platinum dipped 3.4% to $804.
Palladium gained 0.58% to $1,571.01 an ounce and was heading for a fifth straight weekly gain. (Reporting by Swati Verma and Diptendu Lahiri in Bengaluru; editing by Chris Reese and Chizu Nomiyama)
Our Standards: The Thomson Reuters Trust Principles.
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29ba1725e533718717a3d804c29b2d4a | https://www.reuters.com/article/global-precious/corrected-precious-gold-eases-from-one-week-peak-as-equities-gain-despite-virus-fears-idUSL4N2AE0VD | PRECIOUS-Gold eases as equities shrug off virus fears | PRECIOUS-Gold eases as equities shrug off virus fears
By K. Sathya Narayanan3 Min Read
(Updates prices)
* Gold on track for 0.3% weekly gain
* Dollar rises to more than four-month high
* Investors await U.S. retail sales, consumer confidence numbers
Feb 14 (Reuters) - Gold dropped off a more than one-week high on Friday as hopes for global measures to counter the coronavirus outbreak increased appetite for equities, though the metal remained on track for a weekly gain.
Spot gold was down 0.1% at $1,575.31 an ounce at 0846 GMT, having touched its highest since Feb. 4 at $1,577.89.
U.S. gold futures were flat at $1,579.
“Equities markets have shrugged off the bearish sentiment and started to move higher as investors reassess the potential (economic) impact of the virus,” said CMC Markets analyst Margaret Yang Yan, adding that bullion is also being pressured by a strong dollar.
Asian shares were poised for a second straight week of gains and the dollar rose to a more than four-month high against a basket of major currencies.
However, analysts said that interest in gold remains undimmed as the death toll in China’s Hubei province continues to rise.
Bullion has gained about 0.3% this week.
Investors will also be watching for U.S. retail sales and consumer confidence numbers due later in the day.
“The U.S. consumer is really the biggest piece of global growth at this point,” said DailyFx currency strategist Ilya Spivak, pointing to a sluggish Europe as well as China’s health crisis and trade war with the United States.
U.S. prosecutors on Thursday accused Chinese company Huawei of stealing trade secrets. Washington had placed the telecoms equipment maker on a trade blacklist last year.
The latest accusations come as the two countries pursue a Phase 2 trade agreement after signing a Phase 1 deal in an apparent thaw in relations after a prolonged trade dispute.
“Given it is an election year in the U.S., the consensus in the gold market is that the Chinese would do anything to make sure they don’t cause any further disruption to their economy, at a time when it is pretty vulnerable,” said IG Markets analyst Kyle Rodda.
In other precious metals, palladium rose 0.6% to $2,438.71 an ounce, set for its strongest week in a month.
Silver gained 0.3% to $17.69, while platinum was up 0.3% at $970.60. (Reporting by K. Sathya Narayanan in Bengaluru; Editing by Bernard Orr and David Goodman)
Our Standards: The Thomson Reuters Trust Principles.
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941ba0d9d9bf896ec2a30e652b38714e | https://www.reuters.com/article/global-precious/corrected-precious-gold-rises-above-1500-level-as-investors-await-trade-deal-signing-idINL4N2900HW?edition-redirect=in | CORRECTED-PRECIOUS-Gold rises above $1,500 level as investors await trade deal signing | CORRECTED-PRECIOUS-Gold rises above $1,500 level as investors await trade deal signing
By Asha Sistla0 Min Read
(Corrects to read in nearly two months, paragraph 1) * Gold prices flipping from bearish to bullish trend - analyst * Silver hits highest since Nov. 5 * Platinum climbs to over 1-1/2-month high * GRAPHIC-2019 asset returns: tmsnrt.rs/2jvdmXl By Asha Sistla Dec 26 (Reuters) - Gold prices rose above the key $1,500 per ounce level on Thursday to hit their highest in nearly two months, as uncertainty around the signing of a trade deal between the United States and China boosted safe-haven flows into the metal. Spot gold rose 0.3% to $1,503.16 per ounce by 0709 GMT. Prices hit their highest since Nov. 5 earlier in the session at $1,505.32. U.S. gold futures were up 0.2% to $1,508.00 per ounce. "The data was weak before Christmas from the U.S. and we haven't seen anything signed or concrete yet in terms of the phase one trade deal ... so the market is unsure whether that will come true," said Brian Lan, managing director at dealer GoldSilver Central in Singapore. China's Commerce Ministry said on Thursday that Beijing and Washington were still in the process of completing necessary procedures while maintaining close communication to sign the deal. U.S. President Donald Trump said on Tuesday there would be a signing ceremony with the Chinese President Xi Jinping for the first phase of the agreement. Lingering concerns over growth remained as data on Monday showed that new orders for key U.S.-made capital goods hardly rose in November and shipments fell, suggesting business investment will probably remain a drag on the economy in the fourth quarter. Economic data from the United States is keenly watched for cues on the central bank's future monetary trajectory. Gold is sensitive to rising interest rates, which lift its opportunity cost. The metal has gained about 17% so far this year and is on track for its best year since 2010, due mainly to the protracted tariff dispute and its impact on the global economy. "The catalyst for next year is the U.S.-China trade friction with many unsolved issues, then there's Brexit by January end and the U.S. election in November - all these uncertainties could lead to a temporary spike in gold prices," said Margaret Yang Yan, a market analyst at CMC Markets. "Technically, gold prices have broken out above and trending upwards. It's flipping from a bearish to a bullish trend." Among other precious metals, silver firmed 1% to $17.95 per ounce, after having hit its highest since Nov. 5 earlier in the session at $18.01. Platinum advanced 1% to $947.85, after having touched its highest since Nov. 4 earlier in the session at $954.03 per ounce, while palladium rose 0.6% to $1,894.08 per ounce. (Reporting by Asha Sistla in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)
Our Standards: The Thomson Reuters Trust Principles.
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62156a0c164b09f28771e9653c30f42b | https://www.reuters.com/article/global-precious/gold-climbs-as-investors-await-concrete-signals-on-trade-brexit-idINKBN1WQ035?edition-redirect=in | Gold climbs as investors await concrete signals on trade, Brexit | Gold climbs as investors await concrete signals on trade, Brexit
By Arpan Varghese3 Min Read
(Reuters) - Gold prices climbed on Friday, settling into a narrow range, as investors awaited more clarity on global uncertainties including trade and Brexit, helping the metal shake off initial declines driven by hopes for a breakthrough in the U.S.-China talks.
FILE PHOTO: Gold bars of one kilogram are placed on a table at a plant of gold refiner and bar manufacturer Argor-Heraeus SA in the southern Swiss town of Mendrisio, March 1, 2012. REUTERS/Pascal Lauener/File Photo
Palladium, meanwhile, gained 0.2% to $1,703.44 an ounce as of 0638 GMT and held close to Thursday’s all-time peak of $1,704.59, putting it on track for an about 2% weekly gain.
The autocatalyst metal was also set to climb for a fourth straight session.
Spot gold inched 0.3% higher to $1,499.15 per ounce, but slipped about 0.3% in the week. U.S. gold futures GCcv1 rose 0.1% to $1,502.30.
“We have news that is positive in terms of trade talks, but no actual resolution yet. The market is still a little sceptical,” said Brian Lan, managing director at dealer GoldSilver Central in Singapore.
“A few things are still hanging, including a no-deal Brexit. Time is ticking but not much progress is happening. The (situation in) Hong Kong is also not resolved.”
Equity markets gained after U.S. President Donald Trump said he would meet with China’s top trade negotiator, while a White House official said the first day of talks had gone “probably better than expected.”
While the two sides could reach some sort of agreements on aspects such as currencies and copyright protections, they were not expected to address the most contentious issues.
The dollar, which has emerged as an alternative safe-haven during the trade war, was a shade weaker versus its rivals, helping drive gold prices higher.
With just three weeks to go before the UK is due to leave the European Union, lack of clarity on the terms or indeed whether it will leave at all also kept investors on the edge.
Adding to the global uncertainty was the attack on an Iranian-owned oil tanker on Friday. The vessel was struck by two missiles off the Saudi port of Jeddah, Iranian state television reported.
Investors will also keep a close eye on any cues from the U.S. Federal Reserve, with data on Thursday showing U.S. consumer prices were unchanged in September while underlying inflation retreated, supporting expectations the central bank will cut interest rates in October. “Prices are on the downside, going away from core fundamentals and reacting to sentiments. When markets move sentimentally, you can expect a wild swing in prices,” said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade.
Gold will be find support around $1,480 in the short term and face resistance at $1,540, she added.
In other metals, platinum rose 0.4% to $903.24 an ounce, while silver rose 1% to $17.66.
Reporting by Karthika Suresh Namboothiri and Arpan Varghese in Bengaluru; Editing by Aditya Soni and Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.
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ac21cb6acfd6711f51eb9258597a892e | https://www.reuters.com/article/global-precious/gold-dips-ahead-of-u-s-china-deal-palladium-hits-record-high-idINKBN1ZD0G1?edition-redirect=in | Gold dips ahead of U.S.-China deal, palladium hits record high | Gold dips ahead of U.S.-China deal, palladium hits record high
By K. Sathya Narayanan3 Min Read
(Reuters) - Gold slipped to more than one-week low on Tuesday as strength in equities markets and hopes for a smooth signing of the U.S.-China Phase 1 trade deal tarnished bullion’s safe-haven appeal, while palladium hit a record high.
FILE PHOTO: Gold U.S. dollar bullion coins are seen in this photo illustration taken in Moscow, Russia, August 4, 2017. REUTERS/Maxim Shemetov/Illustration/File Photo
Spot gold dipped 0.4% to $1,542.50 an ounce by 1300 GMT after touching their lowest since Jan. 3 at $1,535.63. U.S. gold futures dropped 0.5% to $1,543.10.
“As long as stocks continue to make these record highs, there is no real need for the insurance policies you’ll find in gold,” Saxo Bank analyst Ole Hansen said.
“We have the signing of the trade deal ... we are probably not going to see anyone rocking the boat at this stage, but nevertheless it will give the market an opportunity to read the text and see what’s in the deal.”
Only a day before the Phase 1 trade deal signing, the U.S. Treasury on Monday dropped China’s designation as a currency manipulator, fuelling market optimism.
Global equities are at record highs but the tide turned at the opening of European markets as traders took profits ahead of the trade deal.
“In the current market environment, characterised as it is by high risk appetite among market participants, gold is not in demand,” Commerzbank analysts wrote in a note.
“The news backdrop at present is not conducive to rising gold prices and is more likely to cause the correction to continue.”
Bullion rose to its highest in nearly seven years last week on worries over potential military conflict between the United States and Iran, but the rally faded in the absence of any further escalation in tensions.
Analysts said investors are still taking some profits after the massive spike in prices.
“That has also been noted in the exchange-traded funds market, where there have been some quite sizeable reductions since we reached that high,” Saxo Bank’s Hansen said.
Also on investors’ radar was the Fed’s Beige Book, a summary of commentary on economic conditions, due on Wednesday.
Palladium hit a record high of $2,155.01 an ounce and was on track for a ninth straight session of gains, supported by a sustained supply deficit.
The metal widely used in catalytic converters in automobile exhaust systems was up 0.9% at $2,151.71.
Elsewhere, silver was down 1.2% at $17.74 after hitting its lowest since Dec. 24 at $17.64 and platinum slipped by 0.6% to $967.86.
Reporting by K. Sathya Narayanan in Bengaluru; Editing by David Evans and David GoodmanOur Standards: The Thomson Reuters Trust Principles.
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87dc1ba7549a0ecfd99d6c5e2cf98687 | https://www.reuters.com/article/global-precious/gold-dips-as-vaccine-hopes-offset-soft-dollar-virus-woes-idINKBN27X037 | Gold dips as vaccine hopes offset soft dollar, virus woes | Gold dips as vaccine hopes offset soft dollar, virus woes
By Eileen Soreng2 Min Read
(Reuters) - Gold prices eased on Tuesday as market optimism over a second possible COVID-19 vaccine countered a subdued dollar and concerns over rising coronavirus cases globally.
FILE PHOTO: Gold bullions are displayed at Degussa shop in Singapore June 16, 2017. REUTERS/Edgar Su
Spot gold eased 0.1% to $1,886.17 per ounce by 0623 GMT, while U.S. gold futures were down 0.2% at $1,884.50.
“The optimism over a COVID-19 vaccine is dampening demand for the precious metal,” said FXTM market analyst Han Tan.
While a Democrat-driven agenda in the U.S. Senate may result in larger fiscal stimulus and thereby boost gold, a vaccine-fuelled U.S. economic recovery may re-energize the dollar and push gold to sub-$1,850 levels, Tan added.
Propping up bullion, the dollar index .DXY was down 0.1%.
Gold dropped as much as 1.3% on Monday after Moderna MRNA.O said its vaccine was 94.5% effective in preventing COVID-19 based on interim data from a late-stage trial, becoming the second U.S. drugmaker after Pfizer PFE.N to report results exceeding expectations.
Meanwhile, Asian shares pushed into record territory on vaccine optimism.
However, the monetary environment is still very accommodative and may stay at current levels into spring 2021, providing near-term support for gold, said Margaret Yang, strategist at DailyFX.
Gold, considered a hedge against inflation and currency debasement, has gained over 24% this year, mainly benefiting from global stimulus to cushion the effect of the pandemic.
President-elect Joe Biden called on Congress to pass a new coronavirus relief package, while new restrictions were placed in several U.S. states to curb surging cases.
Federal Reserve Vice Chair Richard Clarida on Monday acknowledged the new vaccine as a positive for economic recovery and said that the central bank would apply an expansive view of the labor market before deciding on any rate hikes.
Silver fell 0.7% to $24.58 per ounce. Platinum eased 0.4% to $921.49, while palladium slipped 1.1% to $2,308.11.
Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi Aich and Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.
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1e2625c1c2cd4ebef10f9653fd8abe36 | https://www.reuters.com/article/global-precious/gold-eases-after-powell-shuns-chances-of-negative-u-s-rates-idINKBN22Q0G5?edition-redirect=in | Gold scales one-month peak as U.S.-China friction fuels economic woes | Gold scales one-month peak as U.S.-China friction fuels economic woes
By Eileen Soreng3 Min Read
(Reuters) - Gold scaled a one-month peak on Friday en route to its biggest weekly gain in three weeks as renewed U.S.-China trade tensions added to concerns about a deep economic slump during the novel coronavirus pandemic.
FILE PHOTO: Newly casted ingots of 99.99% pure gold are stored after weighing at the Krastsvetmet non-ferrous metals plant, one of the world's largest producers in the precious metals industry, in the Siberian city of Krasnoyarsk, Russia November 22, 2018. REUTERS/Ilya Naymushin
Spot gold climbed 0.8% to $1,743.16 per ounce by 11:30 a.m. EDT (1530 GMT). During the session it hit its highest since April 14 at $1,746.29. Bullion has risen over 2% so far this week.
U.S. gold futures were 0.8% higher at $1,754.
“While subdued physical demand and central bank buying may have slowed its ascent, there’s very little reason to sell gold in a time of unprecedented public largesse and deteriorating relations between the world’s economic superpowers,” said Tai Wong, head of base and precious metals derivatives trading at BMO.
Underpinning the damage inflicted by the outbreak was the latest U.S. retail sales data that showed a second straight month of record declines in April.
Adding to the bleak economic scenario was renewed friction between the United Sates and China over the outbreak, with President Donald Trump suggesting he could even cut ties with Beijing.
The novel coronavirus, which has infected over 4.46 million people and killed 301,445, has hammered global economic activity, prompting central banks and governments to unleash massive stimulus measures.
Gold tends to benefit from economic stimulus because it is widely viewed as a hedge against inflation and currency debasement.
“The massively monetary and fiscal stimulus which now includes buying bond ETFs and helicopter money, likely to be expanded, with debt monetization and negative rates on the horizon, has turbocharged positive sentiment on gold,” BMO’s Wong said.
Though many governments have started easing restrictions, the move has rekindled concerns of a second wave of infection.
“Given all of this chaos and confusion, it is hardly surprising that gold ETFs are seeing an unchanged high level of buying interest,” analysts at Commerzbank said in a note.
“If speculators were now to jump on the bandwagon too, gold would rise quickly towards the $1,800 mark.”
SPDR Gold Trust GLD holdings, the world’s largest gold-backed exchange-traded fund, jumped 1.2% to 1,104.72 tonnes on Thursday - its highest in more than seven years.
Elsewhere, palladium climbed 1.5% to $1,862.55 per ounce, but was on track to post its seventh straight weekly drop.
Platinum rose 1.4% to $778.42 per ounce. Silver jumped 4% to $16.50, having hit a more than two-month peak of $16.59 earlier.
Reporting by Eileen Soreng in Bengaluru; Editing by David GregorioOur Standards: The Thomson Reuters Trust Principles.
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c3c403f8a09876ef07eb05e9f799bc62 | https://www.reuters.com/article/global-precious/gold-edges-up-as-markets-eye-feds-decision-on-rates-idINKBN1X709Q?edition-redirect=in | Gold edges up as markets eye Fed's decision on rates | Gold edges up as markets eye Fed's decision on rates
By Diptendu Lahiri3 Min Read
(Reuters) - Gold inched up on Monday, after a near 1% jump in the previous session, as investors awaited a U.S. Federal Reserve rate decision later in the week, while progress in U.S.-China trade talks curbed appetite for safe haven assets.
FILE PHOTO: An employee takes granules of 99.99% pure gold at the Krastsvetmet non-ferrous metals plant, one of the world's largest producers in the precious metals industry, in the Siberian city of Krasnoyarsk, Russia November 22, 2018. REUTERS/Ilya Naymushin/File Photo
Spot gold XAU= rose 0.2% to $1,506.95 per ounce as of 0700 GMT. U.S. gold futures GCcv1 were up 0.3% at $1,509.60 per ounce.
“All eyes are on the Fed meeting now, but what investors are really looking forward to is some clarity on whether the central bank will continue to remain dovish for the rest of this year,” said John Sharma, an economist with National Australia Bank, adding that the current take on gold is “wait and see”.
The Fed is scheduled to meet on Oct. 29 and Oct. 30, with traders seeing a 90.4% chance for a 25 basis point rate cut, according to CME Group’s FedWatch tool. The U.S. central bank has already lowered interest rates twice this year.
“Gains (if the Fed cut rates this week) may be limited as trade tensions are not as tense as they were over the summer,” AxiTrader market strategist Stephen Innes said in a note.
U.S. President Donald Trump last week said the U.S. was doing very well in its trade negotiations with China and that China wants to make a deal “very badly.”
The remarks boosted investors’ appetite for riskier assets, sending Asian shares to a three-month high on Monday.
Both U.S. and China have imposed a series of tit-for-tat tariffs over the past 15 months, stirring global recessionary fears and driving gold prices more than 17% higher this year, but the recent development has put a lid on gains.
However, NAB’s Sharma said “any development on the trade war front will just have an interim effect on gold.”
“The situation is far more complicated to be solved in a hurry.”
Gold prices were also being weighed by a strong dollar, which makes the metal expensive for buyers holding other currencies.
The dollar index .DXY, which measures the greenback against a basket of other currencies, was slightly up on Monday morning after rising nearly 0.6% last week.
Meanwhile, the European Union agreed on Friday to London’s request for a Brexit deadline extension but set no new departure date, giving Britain’s divided parliament time to decide on Prime Minister Boris Johnson’s call for a snap election.
Elsewhere, silver XAG= rose 0.4% to $18.09 per ounce. Platinum XPT= was up 0.2% at $927.73 per ounce, while palladium XPD= rose 0.8% to $1,777.08 per ounce.
Reporting by Diptendu Lahiri in Bengaluru; editing by Uttaresh.V and Aditya Soni, editing by Louise HeavensOur Standards: The Thomson Reuters Trust Principles.
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b61b76170b62e598d790d8ee70697aff | https://www.reuters.com/article/global-precious/gold-edges-up-but-trades-below-seven-year-peak-as-middle-east-worries-ebb-idINKBN1Z605P?edition-redirect=in | Gold edges up, but trades below seven-year peak as Middle East worries ebb | Gold edges up, but trades below seven-year peak as Middle East worries ebb
By Karthika Suresh Namboothiri3 Min Read
(Reuters) - Gold prices inched higher on Tuesday, having earlier retreated from the previous session’s almost seven-year high as fears of a larger Middle East conflict following the U.S. killing of a top Iranian general eased.
An employee takes granules of 99.99 percent pure gold at the Krastsvetmet non-ferrous metals plant, one of the world's largest producers in the precious metals industry, in the Siberian city of Krasnoyarsk, Russia November 22, 2018. REUTERS/Ilya Naymushin/Files
Palladium raced to a fresh all-time high earlier in the session, boosted by fears of a scarcity of supply.
Spot gold XAU= was up 0.4% at $1,571.77 per ounce as of 01:42 p.m. ET (1842 GMT).
U.S. gold futures GCcv1 settled 0.3% higher at $1,574.30 per ounce.
“Unless there is a continuous acceleration in the aggressive rhetoric ... The risk perceived to oil is going to diminish and probably less reason to buy gold. The market thinks that at this point the conflict may not escalate too much,” said Bart Melek, head of commodity strategies at TD Securities.
Gold prices soared to $1,582.59 an ounce on Monday, their highest since April 2013.
The killing of General Qassem Soleimani last week by the United States spurred a rush in to safety assets and dented risk appetite. Gold benefits during times of political and economic uncertainty.
“There is a concern there might be new instability in the Middle East ... There is a contingent of people diversifying their positions and gold has benefited from it,” Melek said.
A senior Iranian official on Tuesday said Tehran was considering 13 scenarios to avenge the killing, while the U.S. defense secretary denied reports the U.S. military was preparing to withdraw from Iraq.
World shares .MIAPJ0000PUS steadied and oil pulled back from multi-month highs as investors looked past the news. [MKTS/GLOB] [.N]
Meanwhile, the U.S. dollar .DXY rose against six other major currencies, helped by better-than-expected data in the U.S. non-manufacturing sector. [USD/]
“Monday’s price action does suggest the gold and silver bulls are a bit tired and need a pause,” Kitco Metals senior analyst Jim Wyckoff said in a note.
“It appears risk aversion in the global marketplace has at least temporarily subsided following last week’s geopolitical shockwave.”
Elsewhere, in a boost to market sentiment, the United States and China are expected to sign a preliminary deal on Jan. 15 to de-escalate a prolonged trade war that has roiled markets since its conception.
Among other precious metals, palladium XPD= extended gains, climbing 0.8% to $2,046.37 an ounce, close to its record high of $2,048.55 notched earlier in the session.
Silver XAG= rose 0.9% to $18.31 an ounce, while platinum XPT= gained 0.4% to $966.51.
Reporting by Karthika Suresh Namboothiri in Bengaluru; Editing by Sandra Maler and Steve OrlofskyOur Standards: The Thomson Reuters Trust Principles.
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f14562efac3177f55403cf7711ad7669 | https://www.reuters.com/article/global-precious/gold-falls-as-investors-turn-to-dollar-for-safety-amid-trade-worries-idINKCN1LY0DU?edition-redirect=in | Gold falls over one percent as dollar firms | Gold falls over one percent as dollar firms
By Renita D. Young, Zandi Shabalala3 Min Read
NEW YORK/LONDON (Reuters) - Gold prices fell more than 1 percent on Friday as the dollar firmed against the British sterling and the euro after British Prime Minister Theresa May said the European Union must supply an alternative Brexit proposal.
An employee sorts gold bars in the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, December 15, 2017. REUTERS/Leonhard Foeger/File Photo
China’s moves to boost domestic consumption also helped bolster the dollar rally driven by investor bets that the latest U.S.-China trade salvoes were unlikely to dent global growth. The dollar’s status as the chief reserve currency makes it the prime beneficiary of U.S.-China trade conflict, with the United States seen as having less to lose.
“A big selloff in the pound and euro sent the dollar sharply higher. And gold, being dollar-denominated, fell as a result of that,” said FOREX.com analyst Fawad Razaqzada.
A stronger greenback makes dollar-denominated gold more expensive for holders of other currencies.
Spot gold lost 0.8 percent at $1,196.86 per ounce by 1:35 p.m. EDT (1735 GMT). During the session it touched its lowest since Sept 11 at $1,191.51. However, gold headed for a 0.4 percent weekly increase.
U.S. gold futures for December delivery settled down $10, or 0.8 percent, at $1,201.30 per ounce.
The euro and the pound fell after British Prime Minister Theresa May said the European Union must come up with an alternative to her Brexit proposals, saying talks had reached an impasse after the bloc’s leaders rejected her plans without explaining why.
Investors await next week’s Federal Reserve meeting, where the U.S. central bank is widely expected to raise benchmark interest rates. Higher U.S. interest rates tend to make gold less attractive since it does not pay interest and costs money to store and insure.
In other precious metals, spot silver rose 0.1 percent at $14.29 an ounce, after rising to two-week highs of $14.43.
“The factors driving silver are much more industrial-related,” said Maxwell Gold, director of investment strategy at Aberdeen Standard Investments’ ETF Securities.
Silver is closing the week up about 2 percent.
Palladium touched its highest since April 19 at $1,056.72 per ounce before retracing gains to trade about flat on the day but with a weekly rise of more than 7 percent, the biggest weekly percentage gain since April.
Platinum fell 0.4 percent at $828.70 after hitting its highest since Aug. 9 at $838.40. The metal is closing the week more than 4 percent higher, the strongest weekly gain since January.
Additional reporting by Nallur Sethuraman in Bengaluru; editing by Kirsten Donovan and David GregorioOur Standards: The Thomson Reuters Trust Principles.
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2a1655b6b9c57983283a5e3dda8bb794 | https://www.reuters.com/article/global-precious/gold-firm-as-dollar-sinks-further-idINKBN1FB1FV?edition-redirect=in | Gold hits 1-1/2 year peak after U.S. welcomes weaker dollar | Gold hits 1-1/2 year peak after U.S. welcomes weaker dollar
By Renita D. Young, Eric Onstad3 Min Read
NEW YORK/LONDON (Reuters) - Gold prices rose on Wednesday, hitting their highest since August, 2016, as investors sought insurance against possible inflation after U.S. Treasury Secretary Steven Mnuchin welcomed a weaker dollar.
An employee places ingots of 99.99 percent pure gold on a cart at the Krastsvetmet non-ferrous metals plant, one of the world's largest producers in the precious metals industry, in the Siberian city of Krasnoyarsk, Russia September 22, 2017. REUTERS/Ilya Naymushin/Files
Spot silver prices hit a four-month high, following the precious metals complex, traders said.
The dollar index .DXY touched three-year lows after Mnuchin said a softer dollar was good for the United States.
A decline in the dollar makes commodities priced in the greenback cheaper for buyers using other currencies.
Spot gold XAU= was up 1.4 percent $1,360.23 an ounce at 2:05 p.m. EST (1905 GMT). U.S. gold futures GCcv1 for February delivery settled up $19.60, 1.5 percent, at $1,356.30 per ounce.
Silver XAG= was up 3 percent at $17.57 an ounce, the highest since mid-September.
“It all comes down to if the dollar continues to stay weak and inflation trends upwards, that would be confirmation that we have inflationary pressures building, which would move gold up further,” said Rob Lutts, chief investment officer of Cabot Wealth Management in Salem, Massachusetts, adding the next support level would be around $1,360 per ounce.
“If we can clearly get above the 50 to 60 range, as high as 75 or 80, that will get gold to break out of that range we’ve been trading in.”
U.S. President Donald Trump was due to speak on Friday at the World Economic Forum in Davos, Switzerland. Investors are concerned he will use the speech to signal a more protectionist policy stance.
“Global investors are also concerned about potential trade wars ... which is stirring up some risk-aversion trade. That, in turn, is supporting gold,” said Richard Xu, a fund manager at HuaAn Gold, China’s biggest gold exchange-traded fund.
“I think gold prices will continue to trend higher along with other commodities, so $1,400 (an ounce) is our near-term target,” Xu said.
Markets expect an increase to U.S. interest rates in March, which would increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which gold is priced.
In other precious metals, silver touched a 3-1/2-week low of $16.73 in the previous session.
“Silver has been following gold,” said George Gero, managing director of RBC Wealth Management in New York. “Option expiration is not expected to affect silver much because silver options are not as big as gold options.”
Platinum XPT= added 0.8 percent to $1,014.50 an ounce after touching $1,021.20, the highest since Sept. 8, while palladium XPD= rose 1.8 percent to $1,111.10.
Additional reporting by Nithin Prasad in Bengaluru, Editing by David Gregorio, David Goodman and Louise HeavensOur Standards: The Thomson Reuters Trust Principles.
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d8f94c4f0d0228ccbb5bf764c274add2 | https://www.reuters.com/article/global-precious/gold-flat-as-new-virus-cases-fall-but-concerns-remain-idINKBN2060EW?edition-redirect=in | Gold at one-week low as abating virus fears whet risk appetite | Gold at one-week low as abating virus fears whet risk appetite
By Brijesh Patel3 Min Read
(Reuters) - Gold prices edged lower to a near one-week low on Wednesday, hurt by an improvement in risk sentiment as a drop in the number of new coronavirus cases comforted markets that the epidemic’s effects could be contained.
FILE PHOTO: Gold coins are displayed at the Ginza Tanaka store in Tokyo September 18, 2008. REUTERS/Yuriko Nakao
Spot gold was down 0.2% to $1,564.66 per ounce by 10:09 a.m. EST (1509 GMT), having touched its lowest since Feb. 6 at $1,561.16 earlier.
U.S. gold futures edged 0.2% lower to $1,567.70.
“It’s basically just risk-on (sentiment) here. Some of the coronavirus fears seem to be fading a little bit and safe-haven buyers who where buying gold are starting to unwind some positions,” said Ryan McKay, a commodity strategist at TD Securities.
“Gold is going to continue to trade range-bound... but the underlying factor that’s supporting gold is the Federal Reserve and the central banks globally, especially when the interest rates have been kept really low.”
Investors appetite for riskier assets grew as a drop in the number of new coronavirus cases and the Federal Reserve chairman’s optimistic view of the economy lifted world stocks for a third day. [MKTS/GLOB]
China reported its lowest number of new virus cases since late January, lending weight to a prediction from its senior medical adviser that the outbreak might be over by April.
Also limiting gold’s appeal, the dollar held near a four-month high against a basket of rivals, making the metal expensive for investors holding other currencies. [USD/]
Fed Chair Jerome Powell on Tuesday told Congress the U.S. economy was in a good place, but cited the potential threat from the virus epidemic and concerns about the economy’s long-term health.
However, it was still unclear as to what extent economic growth would take a hit from the fast-spreading virus that has killed more than 1,100 people, shuttered businesses in China and roiled financial markets since late January.
“With a plethora of global risk simmering on the backburner – supply chains and demand contraction notwithstanding, I still think it’s too early to downgrade Covid-19 to a nasty case of the sniffles and gold will remain bid on a dip,” Stephen Innes, chief market strategist at AxiCorp, said in a note.
Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.67% to 922.23 tonnes on Tuesday, the highest in over three months.
In other precious metals, palladium was steady at $2,340.07 an ounce, silver fell 0.8% to $17.49 to a one-week low and platinum slipped 1.4% to $955.45.
Reporting by Brijesh Patel in Bengaluru; Editing by Marguerita ChoyOur Standards: The Thomson Reuters Trust Principles.
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29fae664473fc7be60524841b2645f0d | https://www.reuters.com/article/global-precious/gold-gains-as-dollar-sags-on-cautious-fed-remarks-idINKCN1NY0DB?edition-redirect=in | Gold pares gains after Fed minutes affirm December rate hike | Gold pares gains after Fed minutes affirm December rate hike
By Sethuraman N R, Swati Verma3 Min Read
(Reuters) - Gold held steady but pared some gains made early on Thursday as the dollar recovered and minutes from the U.S. Federal Reserve’s recent meeting showed an interest rate hike was imminent in December.
Newly casted ingots of 99.99 percent pure gold are stored after weighing at the Krastsvetmet non-ferrous metals plant, one of the world's largest producers in the precious metals industry, in the Siberian city of Krasnoyarsk, Russia November 22, 2018. REUTERS/Ilya Naymushin/File Photo
Spot gold XAU= rose 0.2 percent to $1,223.75 per ounce at 15:12 p.m. EST (2012 GMT), having earlier hit its highest since Nov. 22 at $1,228.96.
U.S. gold futures GCv1 settled up barely changed at $1,224.10.
Minutes from the Fed’s Nov. 7-8 meeting showed that almost all Fed officials at their last meeting agreed another interest rate increase was “likely to be warranted fairly soon,” but also opened debate on when to pause further hikes and how to relay those plans to the public.
“The rate hike is still ahead of us and that is a temporary headwind for gold,” said George Gero, managing director at RBC Wealth Management.
“The stock market firming is supporting the dollar, which is not good for gold.”
The Fed has raised rates three times this year. Higher rates also increase the opportunity cost of holding gold, which does not pay interest.
Gold jumped on Wednesday after Powell said the central bank’s policy rate is “just below” estimates of a level that neither brakes nor boosts a healthy U.S. economy.
Many investors read the remarks as an indication that the Fed could tone down its aggressive monetary policy.
“Geopolitical risk between Russia and Ukraine is going to cause investors to move into the gold market as well. We could see another conflict arise, a much more aggressive one than what we saw previously with Crimea,” said Phil Streible, senior commodities strategist at RJO Futures in Chicago.
Days after Russia seized Ukrainian vessels and their crews near Crimea, the Ukrainian region which Moscow annexed in 2014, German Chancellor Angela Merkel said the West was imposing sanctions on Russia to stand up for international law.
Gold is traditionally viewed as a safe investment during economic and political uncertainty.
However, bullion has largely lost out to the dollar this year as investors sought refuge in the greenback as the U.S.-China trade war unfolded against a backdrop of rising interest rates. [USD/]
Investors are now closely watching the upcoming meeting of Chinese and U.S. leaders at the G20 summit in Argentina.
Among other precious metals, Palladium fell 0.5 percent to $1,178 per ounce, moving away from a record peak of $1,186.50 scaled earlier in the session.
Spot silver XAG= was steady at $14.31 an ounce. Platinum XPT= dipped 0.2 percent to $819, having slipped to a seven-week intraday low of $809.50 on Wednesday.
Reporting by Swati Verma, Nallur Sethuraman and K. Sathya Narayanan in Bengaluru; Editing by Dan Grebler and Tom BrownOur Standards: The Thomson Reuters Trust Principles.
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3a2e1da1f07ab76804bed173fa90abf5 | https://www.reuters.com/article/global-precious/gold-gains-as-souring-u-s-china-relations-hit-risk-appetite-idINKBN1XU103?edition-redirect=in | Gold gains as souring U.S.-China relations hit risk appetite | Gold gains as souring U.S.-China relations hit risk appetite
By Asha Sistla3 Min Read
(Reuters) - Gold prices rose to their highest levels in nearly two weeks on Wednesday as U.S. Senate action on Hong Kong created a potential obstacle to a trade deal between the United States and China, denting appeal for riskier assets.
FILE PHOTO: A one kilo gold bar is displayed in a shop in Dubai's gold souk, April 11, 2006. REUTERS/Tamara Abdul Hadi/File Photo
Spot gold was rose 0.2% to $1,475.83 per ounce at 1139 GMT and U.S. gold futures was up 0.1% at $1,476.20.
“The U.S. senate passing the Hong Kong democracy bill is raising further risk of a trade deal running into problems and it’s causing some renewed risk-off in the markets,” said Saxo Bank commodity strategist Ole Hansen.
“We see stocks trading weaker, bond yields moving lower and gold is ticking higher.”
The U.S. Senate passed two bills backing human rights in Hong Kong and banning export of certain munitions to the region’s police forces. China condemned the move and called for Washington to stop meddling in its internal affairs.
European stocks edged away from their recent peak. U.S. 10-year bond yields slipped to their lowest in nearly three weeks, also pressured by U.S. President Donald Trump’s threat to raise tariffs on Chinese imports if a trade deal cannot be reached with Beijing.
Investors are also waiting for the minutes from the U.S. Federal Reserve’s October policy meeting, due at 1900 GMT, for additional cues on the monetary policy outlook.
The U.S. central bank cut interest rates three times this year to help sustain U.S. growth but last month signalled that there would be no further cuts unless the economy takes a turn for the worse.
“The market is pricing in one cut over the next 12 months and that will change very quickly on failure to reach a (trade) deal,” Saxo Bank’s Hansen added.
Lower interest rates reduce the opportunity cost for holding non-yielding bullion.
Spot gold could rise into a range of $1,480-$1,485 an ounce, according to Reuters technical analyst Wang Tao.
Silver was flat at $17.15, platinum edged 0.1% higher to $911.16 and palladium rose 0.2% to $1,766.37.
Palladium prices could continue to firm on supply issues, and $2,000 an ounce is a likely scenario for the autocatalyst metal next year, said Ross Norman, a London-based independent analyst.
The metal hit a record high of $1,824.50 on Oct. 30, buoyed by a sustained supply deficit.
Reporting by Asha Sistla in Bengaluru; Editing by David Goodman and Jane MerrimanOur Standards: The Thomson Reuters Trust Principles.
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406c0568acf00ebff02094a6958de713 | https://www.reuters.com/article/global-precious/gold-gains-as-virus-fuels-economic-worry-idINKBN1ZT0B1?edition-redirect=in | Gold gains as virus fuels economic worry | Gold gains as virus fuels economic worry
By Sumita Layek3 Min Read
(Reuters) - Gold prices rose on Thursday as worries about the economic impact from a fast-spreading coronavirus in China improved the metal’s safe-haven appeal.
FILE PHOTO: Gold bars and coins are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, August 14, 2019. REUTERS/Michael Dalder/File Photo
Spot gold rose 0.3% to $1,581.75 per ounce by 0744 GMT and U.S. gold futures gained 0.7% to $1,580.90.
“The uncertainties surrounding the spread of the virus and its economic impact are supporting gold,” said Hareesh V, head of commodity research at Geojit Financial Services.
“Chinese (New Year) holidays have been extended, many companies have shut down ... factory output etc. will be impacted, so people trust gold as a safe haven.”
Gold gained 0.7% on Wednesday after the U.S. Federal Reserve held interest rates steady and Chair Jerome Powell said the central bank was not satisfied with inflation running below 2%.
“The Fed acknowledged the new risk (coronavirus) that has come to the market scenario, and said it didn’t see 2% as a ceiling for inflation. In other words, it could continue cutting rates even if inflation remained higher,” said Michael McCarthy, chief market strategist at CMC Markets.
Powell acknowledged the risks of any short-term slowdown in China due to the virus, which has claimed 170 lives so far. The World Health Organisation (WHO) will reconvene on Thursday to decide whether the epidemic constitutes a global emergency.
Among equities, Asian stocks slipped on worries about the fast-spreading virus.
Limiting gold’s advance, the dollar held close to a near two-month high hit on Wednesday, against a basket of currencies.
“At a minimum, gold will remain bid until the Wuhan flu becomes a transitory event. Still, with an array of risks simmering on the back burner, gold should remain in demand for the foreseeable future,” Stephen Innes, chief market strategist at AxiCorp, said in a note.
Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.5% to 903.50 tonnes on Wednesday.
Palladium lost 1.4% to $2,257.14 an ounce. The autocatalyst metal has gained 16% so far this month, having hit a record high of $2,582.18 on Jan. 20, on supply worries.
Russia’s Norilsk Nickel said on Wednesday its Global Palladium Fund would deliver three tonnes of palladium ingots to the market from its current stock to provide a short-term relief to tight supplies.
Silver gained 0.9% to $17.69, while platinum fell 1.2% to $962.46.
Reporting by Sumita Layek in Bengaluru; editing by Uttaresh.V and Subhranshu SahuOur Standards: The Thomson Reuters Trust Principles.
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b6c7110142d5808090a2011eb8415663 | https://www.reuters.com/article/global-precious/gold-gains-but-set-for-weekly-drop-amid-flight-for-cash-idINKBN21705R?edition-redirect=in | Gold jumps 3%, platinum 8% as stimulus stalls cash hunt | Gold jumps 3%, platinum 8% as stimulus stalls cash hunt
By Harshith Aranya3 Min Read
(Reuters) - Gold prices jumped over 3% while platinum surged over 8% on Friday, as precious metals rebounded sharply on a lull in the rush for cash after global action to reduce the economic impact of the coronavirus lifted market sentiment.
FILE PHOTO: Gold coins are displayed at the Ginza Tanaka store in Tokyo September 18, 2008. REUTERS/Yuriko Nakao/File Photo
Spot gold was up 2.2% at $1,501.83 per ounce at 1217 GMT, having risen as much as 3.1% earlier. It fell 1% on Thursday, and is en route to a 2% weekly decline. U.S. gold futures climbed 1.8% to $1,505.70.
Platinum rose 4.4% to $612.03, having risen as much as 8.5% earlier. But the metal is still set to post its biggest ever weekly fall.
“This (rising precious metals prices) could be a dead cat bounce,” said Samson Li, a Hong Kong-based precious metals analyst at Refinitiv GFMS.
“There is speculative interest in gold and other risky assets, as the market is betting on a technical rebound, but it may not hold for very long, assuming the U.S. situation is getting worse due to the virus.”
European shares jumped for a second straight day as fiscal and monetary stimulus lured investors back into equities.
The U.S. Federal Reserve opened the taps for central banks in nine new countries to access dollars in hopes of preventing the outbreak from causing a global economic rout.
Several countries rolled out measures to stem the economic damage, with the U.S. Senate unveiling a $1 trillion stimulus plan, while the Bank of England promised 200 billion pounds ($236 billion) of bond purchases and cut its key interest rate.
“We have strong gains over various asset classes, markets are recovering on monetary and fiscal policy measures to weather the economic impact of the virus,” said Quantitative Commodity Research analyst Peter Fertig.
“If risk appetite increases, you don’t stay in safe havens... but with rising stock and bond prices, the pressure on gold is easing.”
However, pointing to the growing economic risks, the number of Americans filing for unemployment benefits surged by the most since 2012 last week.
Elsewhere, palladium fell 1.1% to $1,634.57 per ounce.
Platinum and palladium will remain turbulent in coming months, analysts said.
Palladium could fall below $1,000 if global GDP continues to be hampered by the virus, and silver below $10, GFMS’ Li said.
Silver gained 4% to $12.60 an ounce, but was set to be down for the second straight week.
($1 = 0.8480 pounds)
Reporting by Harshith Aranya, Sumita Layek and Arpan Varghese in Bengaluru; Editing by Emelia Sithole-Matarise and Elaine HardcastleOur Standards: The Thomson Reuters Trust Principles.
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0e07597ff177c150aefeec32884892b3 | https://www.reuters.com/article/global-precious/gold-gains-on-subdued-dollar-set-for-best-year-since-2010-idINKBN1YZ01V?edition-redirect=in | Gold gains on subdued dollar, set for best year since 2010 | Gold gains on subdued dollar, set for best year since 2010
By Karthika Suresh Namboothiri3 Min Read
(Reuters) - Gold prices rose on Tuesday to a three-month high as the dollar weakened, and were set to mark their best year in nearly a decade on the back of U.S.-China trade uncertainties, which pressured markets and triggered fears of a possible recession.
A gold bar is pictured in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, August 14, 2019. REUTERS/Michael Dalder/File Photo
The metal was also on track for its best performing month since August, up 4% in December alone.
Spot gold rose 0.5% to $1,523.29 per ounce as of 10:34 a.m. ET (1534 GMT), having earlier hit a three-month high of $1,525.20.
U.S. gold futures were up 0.5% at $1,526.30 an ounce.
“With gold starting to break out, you have a lot of traders coming in. They think this is the next leg up,” said Michael Matousek, head trader at U.S. Global Investors.
“This rally in gold and gold-related equities is just starting to ramp up ... It consolidated for six years and it’s just starting to break out again.”
Gold prices have risen about 18% in 2019, and are set for their best year since 2010. The long-drawn U.S.-China trade dispute caused fears of a global economic slowdown, prompting major central banks to resort to quantitative easing, an environment supportive of gold.
U.S. President Donald Trump said on Tuesday that Phase 1 of the trade deal would be signed on Jan. 15, though investors are cautious and await concrete details of the agreement.
“The explosive (gold) rally witnessed in recent weeks will most likely extend into 2020 despite easing trade tensions between the world’s two largest economies,” said FXTM analyst Lukman Otunuga
“A lingering sense of caution over trade developments and lack of details on the Phase 1 deal may also stimulate appetite for gold during Q1 of 2020.”
Supporting gold in the session was a weaker U.S. dollar, which dipped for a fourth session.
Elsewhere, palladium has soared more than 52% in 2019, marking it one of the top performers in commodity assets for the year.
The metal has inched 0.1% higher in the session to $1,924.31 an ounce and has gained nearly 5% in December.
Palladium’s rally was triggered by concerns that its supply is limited as demand mounts, lifting it to nearly $2,000 an ounce.
Platinum was up over 2% at $978.18, having added almost 9% in the month, and set for its best performing month since January 2017. Silver gained 0.3% to $17.97 an ounce, and added 16% in 2019.
Both metals were en route to their best years since 2009 and 2010, respectively.
Reporting by Karthika Suresh Namboothiri in Bengaluru; Editing by Steve OrlofskyOur Standards: The Thomson Reuters Trust Principles.
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3756fcb5379d1b33ce6d26d554c7c8a7 | https://www.reuters.com/article/global-precious/gold-holds-ground-as-investors-await-clarity-on-brexit-idINKBN1X303O?edition-redirect=in | Gold holds ground as investors await clarity on Brexit | Gold holds ground as investors await clarity on Brexit
By Diptendu Lahiri3 Min Read
(Reuters) - Gold prices barely moved on Thursday as investors waited for clarity on Brexit after the European Union delayed a decision on granting an extension to Britain, and the U.S. central bank policy meeting for clues on its interest rate trajectory.
FILE PHOTO: An employee takes granules of 99.99% pure gold at the Krastsvetmet non-ferrous metals plant, one of the world's largest producers in the precious metals industry, in the Siberian city of Krasnoyarsk, Russia November 22, 2018. REUTERS/Ilya Naymushin/File Photo
Spot gold XAU= was unchanged at $1,493.01 per ounce as of 0332 GMT. U.S. gold futures GCcv1 were flat at $1,495.70 per ounce.
“Overall, gold is consolidating at the bottom of its medium-term range, implying that the next move is down assuming the mini trade deal goes through,” OANDA analyst Jeffrey Halley said.
Halley pointed to a lot of stale long positions and said a breakdown through $1,460.00 is likely to see more long-term holders unwind their positions to lock in profit.
EU member states on Wednesday delayed a decision on whether to grant Britain a three-month Brexit extension, while Prime Minister Boris Johnson said if the deadline is deferred to the end of January he would call an election by Christmas.
Market participants await European and U.S. manufacturing numbers due later on Thursday, to gauge the health of the global economy, and a European Central Bank meeting, with no change to policy expected at President Mario Draghi’s last meeting.
Investors also await the U.S. Federal Reserve’s meeting on Oct. 29 and 30, where it is expected to reduce its benchmark interest rate for a third consecutive time this year.
Federal fund futures imply that traders see a 91.4% chance for a 25 basis point rate cut. [FEDWATCH]
Meanwhile, Asian shares pulled ahead on Thursday with corporate earnings buffeting trading as investors remained anxious about the business impact of the Sino-U.S. trade war while Brexit uncertainties kept overall sentiment in check.
The U.S.-China trade war has hit financial markets and forced most major central banks to cut interest rates this year.
The non-yielding bullion is often seen as a safer investment during times of political and financial uncertainty.
SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.13% to 918.48 tonnes on Wednesday from 919.66 tonnes on Tuesday.
Elsewhere, silver XAG= was flat at $17.57 an ounce. Platinum XPT= was up 0.3% at $917.70 per, after scaling a more than three-week high earlier, while palladium XPD= edged up 0.6% to $1,752.09 per ounce.
Reporting by Diptendu Lahiri in Bengaluru; Editing by Subhranshu SahuOur Standards: The Thomson Reuters Trust Principles.
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54efdf408887b0f182488ba97fd8496c | https://www.reuters.com/article/global-precious/gold-inches-up-on-growth-concerns-as-dollar-dips-idINKBN1YY037?edition-redirect=in | Gold inches up on growth concerns as dollar dips | Gold inches up on growth concerns as dollar dips
By Karthika Suresh Namboothiri3 Min Read
(Reuters) - Gold prices gained on Monday as global economic growth concerns kept prices propped above $1,500 an ounce and expectations of a U.S.-China trade deal reduced safe-haven buying of the weakening dollar.
FILE PHOTO: A one kilo gold bar is displayed in a shop in Dubai's gold souk, April 11, 2006. REUTERS/Tamara Abdul Hadi/File Photo
Spot gold rose 0.3% to $1,515.42 per ounce as of 10:25 a.m. ET (1526 GMT). Prices added 2.2% in the previous week, marking their best week since early August.
U.S. gold futures were unchanged at $1,518.40 per ounce.
“The major driver behind gold’s appreciation is the dollar weakness,” said FXTM analyst Lukman Otunuga, adding that bullion could extend gains into 2020 if trade developments between the two nations turned south.
“We haven’t heard the details (of the deal) yet and at the same time it has not been signed on paper.”
Thin end-of-year volumes exacerbated the broad weakness in the dollar .DXY, which dipped for three straight sessions, and on Friday suffered its biggest one-day fall since March.
Although the finer details of the agreement have not yet been disclosed, the South China Morning Post reported on Monday that Chinese Vice Premier Liu He will visit Washington this week to sign the pact.
Gold has gained about 18% in 2019 alone on the back of global recessionary fears triggered by the long-drawn out trade spat between the world’s two largest economies, and quantitative easing by major central banks.
“As long as gold is able to keep above this psychological level of $1,500, we will see gold challenging $1,535 and $1,550 during the first quarter of 2020,” FXTM’s Otunuga said.
Indicative of investor sentiment, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.1% to 893.25 tonnes on Friday, their highest since Nov. 29.
“Gold has punched through the $1,500 level over the past week and is approaching a two-month high following a technical breakout, supplemented by a weakening dollar...” said INTL FCStone analyst Rhona O’Connell in a note.
Amongst other precious metals, silver added 1% to $17.93 an ounce and platinum jumped 1.4% to $958.13. Palladium was slightly muted at $1,903.41, struggling to hold ground above $1,900.
Reporting by Karthika Suresh Namboothiri in Bengaluru; editing by Nick MacfieOur Standards: The Thomson Reuters Trust Principles.
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1f499b267bf0268a730f823fc048eba5 | https://www.reuters.com/article/global-precious/gold-inches-up-on-weaker-dollar-idINKCN1J3057?edition-redirect=in | Gold steadies as investors keep wary eye on Fed | Gold steadies as investors keep wary eye on Fed
By Peter Hobson3 Min Read
LONDON (Reuters) - A weaker dollar helped gold prices to edge higher on Thursday, but gains were limited as the market waited for clues on the pace of U.S. interest rate rises from a meeting of the Federal Reserve next week.
FILE PHOTO: A salesperson arranges 24K gold bracelets for Chinese weddings at Chow Tai Fook Jewellery store in Hong Kong, China December 14, 2017. REUTERS/Tyrone Siu/File Photo
Spot gold was up 0.1 percent at $1,297.24 an ounce by 1407 GMT, while U.S. gold futures for August delivery were flat at $1,301.30.
“The rise in prices is due to the dollar,” said Capital Economics analyst Simona Gambarini. [USD/]
A weaker dollar is good for gold because it makes the metal cheaper for buyers using other currencies and can fuel demand.
However, Gambarini said investors were in wait-and-see mode ahead of the Fed meeting on June 12-13, when they expect both a rate rise and signals on the outlook for U.S. monetary policy.
Interest rates are important for gold because higher rates tend to boost the dollar and also push up bond yields, reducing the appeal of non-yielding bullion.
Expectations that the Fed will push ahead with several rate hikes this year were fuelled on Thursday by U.S. data showing an unexpected fall in applications for unemployment benefits.
Gold fell from near 1-1/2 year highs around $1,350 an ounce in mid-April to below $1,300 last month as the dollar strengthened to 2018 highs, but prices steadied after the rally faltered.
As well as the Fed meeting, investors were looking ahead to a summit between the leaders of the United States and North Korea on June 12 and a European Central Bank (ECB) meeting on June 14.
Both events could affect gold.
Tensions over Korea have supported gold, increasing demand for an asset viewed as a safe place to invest in times of geopolitical uncertainty.
Markets are meanwhile betting the ECB will signal a winding down of its vast bond-buying programme, boosting the euro.
From a technical viewpoint, Commerzbank analysts said gold prices were more likely to fall than to rise if it was unable to move above its 200-day moving average around $1,308.
Fibonacci technical support was at $1,286, said analysts at ScotiaMocatta.
In other precious metals, silver was up 1 percent at $16.81 an ounce after rising to its highest since April 24.
Silver broke above its 100-day moving average on Wednesday and its 200-day moving average on Thursday, improving its technical outlook and triggering buying.
Commerzbank said the moves higher suggest a recovery towards $17.50-$17.74.
Platinum was down 0.5 percent at $898.25 an ounce, while palladium gained 0.4 percent to $1,020.50 after breaking above its 100-day and 200-day moving averages on Wednesday.
Additional reporting by Karen Rodrigues in Bengaluru; Editing by David Goodman/David EvansOur Standards: The Thomson Reuters Trust Principles.
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f883c98ac29d744812fcd9fcaa04301b | https://www.reuters.com/article/global-precious/gold-little-changed-on-sparse-trade-trade-uncertainties-linger-idINKBN1YV04K?edition-redirect=in | Gold little changed on sparse trade, trade uncertainties linger | Gold little changed on sparse trade, trade uncertainties linger
By Karthika Suresh Namboothiri, Diptendu Lahiri3 Min Read
(Reuters) - Gold held firm above $1,500 an ounce on Friday and was set for its best week in nearly four months, as volumes remained thin in cautious holiday trade, with global economic growth concerns and U.S.-China trade uncertainties providing support.
A sales assistant displays a 1000 gram gold bar as an investment for a customer at Caibai Jewelry store, in Beijing, China, August 6, 2019. REUTERS/Jason Lee/Files
Spot gold was unchanged at $1,511.41 per ounce as of 10:31 a.m. ET (1531 GMT), having risen to a near two-month high of $1.513.88 earlier in the session. It has gained over 2% so far this week, the most since the week of Aug. 9.
U.S. gold futures inched 0.1% higher to $1,516.20 per ounce.
“The U.S.-China trade deal, although has a lot of positive news flowing in, has nothing yet on paper under a seal. That is keeping investors a little cautious,” said Chris Gaffney, president of world markets at TIAA Bank.
Beijing said on Wednesday it was in close touch with Washington on a trade deal signing ceremony, a day after U.S. President Donald Trump said he and Chinese President Xi Jinping would have a ceremony to sign a deal.
However, with expectations that the Phase 1 deal would have been stamped much before the end of the year, investors are wary with every passing headline.
The 17-month long trade spat between the world’s two largest economies has compelled numerous central banks to resort to monetary easing.
Gold benefits from an environment of lower interest rates as it yields no interest.
“On the other hand a positive note on the global economic environment is boosting equities and weighing on gold prices. The volumes are also pretty low,” Gaffney added.
Wall Street opened at a record high on Friday, and world stocks hovered near an all-time peak.
Profits at industrial companies in China in November grew at the fastest pace in eight months, breaking a three-month declining streak, as production and sales quickened.
Investors are optimistic that gold prices will go up in the near future, and are buying when prices go down, said Michael Matousek, head trader at U.S. Global Investors.
Economic and geopolitical uncertainties and a debt environment are also providing support to gold prices, he added.
Elsewhere, silver rose 0.1% to $17.91 an ounce. It was up 4% in the week, extending gains into a third week.
Platinum eased 0.1% to $946.53 an ounce, while palladium dropped 0.2% to $1,897.94 an ounce.
The autocatalyst metal was up about 2.2% in the week.
Reporting by Karthika Suresh Namboothiri and Diptendu Lahiri in BengaluruOur Standards: The Thomson Reuters Trust Principles.
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167b0d3544a11d58ce040e2ab4f5774c | https://www.reuters.com/article/global-precious/gold-muted-as-equities-soar-on-ebbing-trade-worries-idINKBN1YO0DD?edition-redirect=in | Gold muted as equities soar on ebbing trade worries | Gold muted as equities soar on ebbing trade worries
By Karthika Suresh Namboothiri3 Min Read
(Reuters) - Gold clung to a narrow $5 range on Friday as investors remained on the sidelines ahead of the holiday season and as equities markets hit record highs on easing U.S.-China trade worries.
FILE PHOTO: A one kilo gold bar is displayed in a shop in Dubai's gold souk, April 11, 2006. REUTERS/Tamara Abdul Hadi
Spot gold was unchanged at $1,478.90 per ounce as of 11:06 a.m. ET(1605 GMT), but extended gains for a second straight week. U.S. gold futures eased 0.1% to $1,482.60 per ounce.
“There are concerns that the stocks are so hot right now. And there are investors who are buying gold as a backstop if that thing is to turn,” said Bob Haberkorn, senior market strategist at RJO Futures.
World stock markets touched record highs on Friday while the U.S. dollar was set for its best week in six against a basket of currencies .DXY.
Gains in bullion were limited after data showed U.S. economic growth edged up in the third quarter amid signs the economy more or less maintained the moderate pace of expansion as the year ended.
“The dollar is strong because the U.S. is seen as being strong right now. The U.S. GDP data came out a good number, which shows the U.S. humming along,” Haberkorn added.
Recent positive economic data and optimism around the U.S.-China trade war has fueled expectations that the U.S. Federal Reserve is unlikely to cut interest rates again in the near future.
U.S. Treasury Secretary Steven Mnuchin said the United States and China would sign their so-called Phase 1 trade pact in early January.
Safe-haven gold has so far gained more than 15% in the year on global recessionary fears, owing to the 17-month trade war between the two largest economies. The likelihood that negotiations are proceeding smoothly has drawn some attention away from gold.
“Traders and investors are turning their attention to the upcoming holidays, including squaring their books, so trading interest and volumes are likely to wane the next couple weeks,” Kitco Metals senior analyst Jim Wyckoff said in a note.
Amongst other precious metals, palladium shed 2.7% to $1,884.30 an ounce, on track for its first weekly decline in five.
After notching an all-time high of $1,998.43 on Tuesday, the metal has receded by almost $116 to dip 2.6% in the week.
Platinum eased 1.5% to $919.77, while silver rose 1% to $17.22 an ounce. Silver extended gains into a second week, up 1.6%.
Reporting by Karthika Suresh Namboothiri in Bengaluru; Editing by Dan GreblerOur Standards: The Thomson Reuters Trust Principles.
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5fbbf7666659ac3b044dfcb9bdee830a | https://www.reuters.com/article/global-precious/gold-prices-dip-as-dollar-regains-footing-idINKBN1IA06K?edition-redirect=in | Gold prices dip as dollar rises on higher U.S. Treasury yields | Gold prices dip as dollar rises on higher U.S. Treasury yields
By Apeksha Nair2 Min Read
BENGALURU (Reuters) - Gold prices fell in Asian trading on Wednesday, as the dollar regained ground after U.S. President Donald Trump’s decision to pull the United states out of the Iran nuclear deal boosted oil prices and pushed Treasury yields higher.
Gold bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich March 3, 2014. REUTERS/Michael Dalder
Raising the risk of conflict in the Middle East, upsetting European allies and casting uncertainty over global oil supplies, Trump said he would reimpose U.S. economic sanctions on Iran that had been lifted under the 2015 agreement.
The dollar rose against the yen as oil prices climbed to a 3-1/2-year high, pushing yields on the benchmark 10-year Treasury note closer to 3 percent.
Spot gold had fallen 0.2 percent to $1,311.44 per ounce by 0346 GMT.
U.S. gold futures for June delivery were about 0.2-percent lower at $1,311.70 per ounce.
“(Gold is) stuck between rising geopolitical risks and the stronger U.S. dollar. The safe-haven buying certainly hasn’t been as strong as we thought it might have been following Trump’s announcement,” said ANZ analyst Daniel Hynes.
During times of political or economic uncertainty, gold prices often receive a boost as the metal is widely considered a safe-haven asset alongside the Japanese yen.
Meanwhile, Trump and Chinese President Xi Jinping discussed ongoing trade issues on Tuesday, as both sides continue to position themselves amid a heated feud over tariffs between the world’s two largest economies.
Spot gold may revisit its May 1 low of $1,301.51 per ounce as it failed three times to break resistance at $1,317, said Reuters technical analyst Wang Tao.
In other precious metals, silver slipped 0.1 percent to $16.42 an ounce.
Platinum rose 0.1 percent at $912.50 per ounce, while palladium gained 0.3 percent at $972.40 an ounce.
Reporting by Apeksha Nair in Bengaluru; Editing by Biju Dwarakanath and Joseph RadfordOur Standards: The Thomson Reuters Trust Principles.
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cdde5248d65abba0e1c6b8e2b10cfbf9 | https://www.reuters.com/article/global-precious/gold-prices-hold-steady-ahead-of-u-s-elections-idINKCN1NA0CI?edition-redirect=in | Gold holds tight range as investors await U.S. elections | Gold holds tight range as investors await U.S. elections
By Swati Verma3 Min Read
BENGALURU (Reuters) - Gold inched lower on Monday as investors took some profits following a recent rally, but the metal traded within a narrow range as caution set in ahead of the U.S. congressional elections.
FILE PHOTO: A man holds necklaces in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
Spot gold XAU= was down 0.1 percent at $1,230.76 per ounce by 1:30 p.m. EST (1830 GMT), trading in an $8 range. U.S. gold futures GCcv1 settled down $1, or 0.1 percent, at $1,232.30.
“The market is just quiet ahead of the (U.S.) mid-term elections and people are waiting to see how it is going to play out after tomorrow,” said Bob Haberkorn, senior market strategist at RJO Futures.
Analysts said some profit taking was also putting slight pressure on gold.
“Gold had quite a move over the past few weeks... we have seen a reduction in net-short positions because of uncertainties, but over the last week, we’ve seen a spurt again. So I think we’re seeing some profit taking,” ING analyst Warren Patterson said.
Investors will keep a close eye on the U.S. midterm elections which may fuel interest in bullion as a hedge against risk if the result sparks volatility in the wider financial markets.
Opinion polls show strong chances that the Democratic Party may win control of the House of Representatives in the Nov. 6 midterm elections.
“Should the Democrats surprise, we would expect pressure on the dollar and a move higher in the metals complex. Republican control of the both the House and Senate should create selling pressure,” Peter Hug, global trading director at Kitco Metals, said in a note.
Bullion traders also awaited this week’s Federal Reserve meeting to gauge the outlook for U.S. monetary policy.
“No one expects the Fed to raise interest rates this week. It is most likely going to happen next month. Gold is going to have a hard time rallying into the next Fed meeting in December,” Haberkorn said. “If the Fed speech (this week) is as hawkish as it has been then why be long and fight it.”
Speculators raised their net short position in gold to a three-week high in the week ended Oct. 30, according to U.S. Commodity Futures Trading Commission data. [CFTC/]
Also, highlighting investors' bearish sentiment toward bullion were holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD, which fell 0.23 percent to 759.06 tonnes on Friday. [GOL/ETF]
Elsewhere, silver XAG= fell 0.6 percent to $14.63 per ounce, while palladium XPD= jumped 1.6 percent to $1,134.
Platinum XPT= was down 0.1 percent at $866 per ounce, after hitting its highest level since June 25 at $873.
The gains in platinum could chiefly be attributed to short covering, considering the CFTC data, which showed “net short positions have been almost entirely reduced,” Commerzbank analysts said in a note.
Reporting by Swati Verma and Sumita Layek in Bengaluru; Editing by Richard Chang and Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.
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5f6a1f46a6253faf41cc628b341995aa | https://www.reuters.com/article/global-precious/gold-prices-jump-as-dollar-edges-lower-idINKBN28X0GT?edition-redirect=in | Gold prices jump as dollar edges lower | Gold prices jump as dollar edges lower
By Shreyansi Singh2 Min Read
(Reuters) - Gold prices jumped as much as 1% on Wednesday, bolstered by a weaker dollar, while investors kept hopes pinned on a U.S. stimulus package even after President Donald Trump threatened to not sign the relief bill.
FILE PHOTO: Gold bars are pictured on display at Korea Gold Exchange in Seoul, South Korea, August 6, 2020. REUTERS/Kim Hong-Ji/File photo
Spot gold was up 0.7% at $1,872.03 per ounce by 10:19 a.m. EST (1519 GMT), having risen as much as 1% earlier, while U.S. gold futures rose 0.5% to $1,879.00 per ounce.
“The economic data just cements the belief that the economy is slowing down and that should help the negotiations with stimulus ... it’s going to be extremely likely that some type of stimulus deal will still get done,” said Edward Moya, senior market analyst at OANDA.
“The slightly weaker dollar has provided a move higher for gold,” Moya said, adding the stimulus deal and positive developments on the Brexit front are needed to further cement gold’s bullish case.
Raising gold’s allure for holders of other currencies, the dollar index dropped 0.5%, while investors also expected further declines in 2021.
President Donald Trump threatened to not sign an $892 billion coronavirus relief bill, seen as a lifeline for the nation’s pandemic-battered economy saying the amount in the stimulus checks should be increased.
“Even if Donald Trump declines to sign the bill, it is widely expected that Biden will make it pass and therefore we do not see any downside to gold at the moment,” Natixis analyst Bernard Dahdah said.
The number of Americans filing first-time claims for unemployment benefits remained elevated but posted an unexpected fall last week.
Bullion, considered a hedge against inflation and currency debasement, has risen more than 23% this year, benefiting from massive stimulus unleashed globally.
Alarm about a highly infectious coronavirus variant prompted a wave of travel bans, highlighting concerns over an economic recovery after the pandemic.
Silver rose 1.7% to $25.56 an ounce. Platinum gained 0.8% to $1,009.69 and palladium was up by 0.6% at$2,327.61.
Reporting by Shreyansi Singh in BengaluruOur Standards: The Thomson Reuters Trust Principles.
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f7c5df932cad426e3823961144dbae85 | https://www.reuters.com/article/global-precious/gold-prices-little-changed-as-dollar-holds-steady-on-tax-bill-hopes-idINKBN1EE04H?edition-redirect=in | Weaker dollar pushes gold higher for fourth day | Weaker dollar pushes gold higher for fourth day
By Peter Hobson3 Min Read
LONDON (Reuters) - Gold prices rose for a fourth day on Wednesday as U.S. data showing solid home sales but a fall in mortgage applications pushed the dollar to a two-week low.
Gains were limited by a rise in U.S. bond yields to nine-month highs after the Senate passed the country’s biggest tax reforms in 30 years.
A weaker dollar makes gold cheaper for holders of other currencies, which can stimulate demand, but higher bond yields reduce the appeal of non-yielding bullion.
Spot gold was up 0.3 percent at $1,265.10 an ounce at 1548 GMT while U.S. gold futures were 0.3 percent higher at $1,268.40 an ounce.
Gold has risen by around 2.5 percent from a five-month low of $1,235.92 on Dec. 12, helped by a weakening dollar.
But market players are wary of taking new positions before the holiday season and prices are on track to register their narrowest trading range in the last quarter of 2017 than any in a decade.
“Gold is coming up from a cyclical bottom. It’s going to get quieter due to the upcoming holiday long-weekends,” said Mun Chun Loh, director, Private Wealth at GoldSilver Central Pte Ltd in Singapore.
Holdings of the world’s largest gold-backed exchange-traded fund, New York-based SPDR Gold Shares, fell 1 percent over Monday and Tuesday to the lowest level since early September.
But low prices have spurred demand for physical gold in China, with local premiums approaching $11, said MKS PAMP trader Sam Laughlin.
Goldman Sachs said in a note it expected gold prices to fall further and reach $1,200 an ounce by mid-2018.
“We see the decline in gold as evidence that “fear” effects, which had been keeping gold supported, have at least partially moderated as U.S. tax reform and the transition to a new Fed chair appear to be going smoothly,” it said.
On the technical side, resistance was at the 200-day moving average at $1,269.15 an ounce and momentum indicators suggested gold would continue to rise if it remained above a fibonacci level of $1,260.50, said analysts at ScotiaMocatta.
Amongst other precious metal prices, silver was up 0.4 percent at $16.18 an ounce.
Platinum was 0.3 percent higher at $916.45 an ounce and palladium gained 0.7 percent to $1,029.25.
Additional reporting by Apeksha Nair in Bengaluru; Editing by Greg Mahlich and Elaine HardcastleOur Standards: The Thomson Reuters Trust Principles.
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a726e7e8c75f37abb883ab572bcb9a01 | https://www.reuters.com/article/global-precious/gold-prices-slip-on-dollar-strength-profit-taking-idINKCN1UI0CE?edition-redirect=in | Gold slips on strong dollar but weak U.S. data caps losses | Gold slips on strong dollar but weak U.S. data caps losses
By Karthika Suresh Namboothiri3 Min Read
(Reuters) - Gold inched down on Tuesday to its lowest level in a week as a robust dollar offset weak U.S. economic data, and investors awaited clearer signals on the Federal Reserve’s trajectory for interest rates.
An employee takes granules of 99.99 percent pure gold at the Krastsvetmet non-ferrous metals plant, one of the world's largest producers in the precious metals industry, in the Siberian city of Krasnoyarsk, Russia November 22, 2018. REUTERS/Ilya Naymushin/Files
Spot gold XAU= was down 0.3% at $1,420.45 per ounce as of 13:47 p.m EDT (1747 GMT), having touched its lowest since July 17 at $1,413.80 earlier in the session. U.S. gold futures GCcv1 settled 0.4% lower at $1,421.70.
Gold briefly pared losses following weaker-than-expected U.S. home sales and monthly manufacturing data from the Richmond Fed.
“The Richmond print raised a few eyebrows, though it’s really not that important of a figure, but seemed to have triggered some buying,” said Tai Wong, head of base and precious metals derivatives trading at BMO.
“Gold is likely to stay within the $1,415-35 range with the market getting all bulled up above $1,430 and hand-wringing below $1,420.”
The dollar rose to its highest in more than a month .DXY, supported by a deal to extend the U.S. government's debt limit, making greenback denominated assets such as gold costlier for investors holding other currencies. [USD/]
“You’ve seen a sharp upward move over the past weeks in gold. The momentum seems to have been lost and some short-term investors have looked to take those healthy profits ahead of the U.S. Federal Reserve decision next week,” said Capital Economics analyst Ross Strachan.
Investors are eyeing the Fed’s July 30-31 policy meeting at which it is expected to cut its overnight benchmark lending rate. The European Central Bank (ECB) is also expected to signal easier monetary policy when it meets on Thursday.
The repricing among investors in favour of a 25-basis-point Fed rate cut instead of a 50-point cut is constraining gold, said Ryan McKay, a commodity strategist at TD Securities.
Among other precious metals, silver XAG= rose 0.5% to $16.42 an ounce.
“Silver has authenticated gold’s rally. ... What this has done is put the gold-silver ratio down to a level which you might not ordinarily expect, just below 87,” said Ross Norman, chief executive of bullion dealer Sharps Pixley.
Holdings of the largest gold-backed ETF, New York's SPDR Gold Trust, rose 0.6% on Monday from Friday, while the largest silver-backed ETF, the iShares Silver Trust SLV, rose 2.6% during the same period.
Holdings in the silver ETF have risen about 10% so far this month. [GOL/ETF]
Elsewhere, palladium XPD= dipped 0.5% to $1,521.01 an ounce, while platinum XPT= rose 1.3% to $855.25 an ounce.
Editing by Richard ChangOur Standards: The Thomson Reuters Trust Principles.
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6e8cff8a712dc2bf875d68ba4a2f2cb8 | https://www.reuters.com/article/global-precious/gold-rises-as-dollar-weakens-despite-delayed-u-s-stimulus-vote-idINKBN2940ET?edition-redirect=in | Gold firms as dollar slides to multi-year low | Gold firms as dollar slides to multi-year low
By Asha Sistla2 Min Read
(Reuters) - Gold prices edged higher on Wednesday, as the prospect of increased fiscal aid pushed the dollar to its lowest in more than two years, although global COVID-19 vaccine rollouts and increased risk appetite limited bullion’s gains.
FILE PHOTO: Gold bars are pictured on display at Korea Gold Exchange in Seoul, South Korea, August 6, 2020. REUTERS/Kim Hong-Ji/File photo
Spot gold rose 0.4% to $1,885.79 per ounce by 11:57 a.m. EST (1657 GMT). U.S. gold futures were up 0.4% at $1,890.40.
“The U.S. dollar index touched a new low - that’s working in favour of the gold and silver markets,” said Kitco Metals senior analyst Jim Wyckoff.
“However, upbeat risk appetite in the market place, evident by stock indexes at or near record highs is tempering buying enthusiasm. You’ve got this tug and pull at work right now.”
The dollar index touched a low since April 2018 following U.S. Senate Majority Leader Mitch McConnell’s decision to delay a vote on increasing COVID-19 relief checks to $2,000.
U.S. stocks rose on hopes of additional fiscal stimulus and on optimism over vaccine rollouts, as Britain became the first country to approve a vaccine developed by AstraZeneca and Oxford University.
“The bigger picture is that gold is still holding up incredibly well at these price levels and the fiscal and monetary stimulus will still be there in 2021 as the pandemic is hitting hard in the U.S., Europe,” said Bank of China International analyst Xiao Fu.
Investors await the Jan. 5 Georgia runoff elections that will determine which political party will control the U.S. Senate, with expectations for more stimulus under a Democrat-controlled Senate and House.
Gold is seen as a hedge against inflation and currency debasement likely to result from large stimulus measures.
Among other precious metals, silver was up 0.7% at $26.36 an ounce, platinum gained 1.5% to $1,064.62 and palladium climbed 1.5% to $2,363.28.
Reporting by Asha Sistla in Bengaluru; editing by Barbara Lewis and Chris ReeseOur Standards: The Thomson Reuters Trust Principles.
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867df5eb3f57675e01264776285d8764 | https://www.reuters.com/article/global-precious/gold-rises-to-near-two-month-high-on-thin-holiday-trade-idINKBN1YU01S?edition-redirect=in | Gold rises to near two-month high on thin holiday trade | Gold rises to near two-month high on thin holiday trade
By Karthika Suresh Namboothiri3 Min Read
(Reuters) - Gold prices rose to a near-two month high on Thursday, holding firm above the key $1,500 level, as investors braced for a robust equity rally to run out of steam, while volumes remained low on holiday trade.
FILE PHOTO: Gold bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, August 14, 2019. REUTERS/Michael Dalder/File photo
Spot gold rose 0.8% to $1,510.74 per ounce as of 10:43 a.m. ET (1534 GMT). Prices notched $1,512.30 an ounce, their highest since Nov. 4 earlier. U.S. gold futures rose 0.6% to $1,515.70 per ounce.
“$1,500 is a strong psychological up-point. Once we saw that breakout, we are moving past that first point of resistance at $1,512. This could be the break we were looking for as we run up to $1,600,” said Alex Turro, market strategist at RJO Futures.
“Gold is going to be supported moving forward through central bank buying, enhanced demand, strong technicals and support in the market.”
The metal has gained about 18% so far this year and is on track for its best year since 2010, due mainly to the protracted U.S.-China trade dispute and its impact on the global economy.
Beijing said on Wednesday it is in close touch with Washington on a trade deal signing ceremony, a day after U.S. President Donald Trump said that he and Chinese President Xi Jinping will have a ceremony to sign the recently struck trade deal.
Hopes of a breakthrough in the trade war, combined with recent positive domestic data, have powered U.S. stock markets to record highs in the past few weeks and set the S&P 500 on course for its best year since 2013.
“As portfolio managers rebalance equity portfolios and take profits off the table, they reinvest those funds into other asset classes, and gold is a beneficiary of that,” said David Meger, director of metals trading at High Ridge Futures.
“The Fed leaving rates at an accommodative stance, along with the liquidity offered by the repo rate” has also provided support to bullion, he added.
U.S. Federal Reserve officials voted unanimously to leave interest rates unchanged earlier this month, and have signaled the central bank would require a material change to outlook to either raise or lower borrowing costs.
Gold is highly sensitive to rising interest rates, which lift the opportunity cost of holding non-yielding bullion.
Amongst other precious metals, silver rose past $18 an ounce, up 1.3%, and reached its highest since Nov. 5. Platinum rose to $958.92 in the session, its highest since Sept. 24.
Meanwhile, palladium inched 0.6% higher to $1,894.42.an ounce.
Reporting by Karthika Suresh Namboothiri in Bengaluru; Editing by Steve OrlofskyOur Standards: The Thomson Reuters Trust Principles.
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cc2bd0d2dae9b361537fa6f0886da00c | https://www.reuters.com/article/global-precious/gold-rises-to-one-year-high-amid-sluggish-dollar-idINKCN1BJ04W?edition-redirect=in | Gold steady near one-year high as rate hike expectations ebb | Gold steady near one-year high as rate hike expectations ebb
By Devika Krishna Kumar, Peter Hobson3 Min Read
NEW YORK/LONDON (Reuters) - Gold held near its highest in more than a year on Friday as the U.S. dollar dropped and weak economic data lowered expectations of a December interest rate rise in the United States.
1 kg. gold bars are seen on a production line in Ahlatci Metal Refinery in the central Anatolian city of Corum, Turkey, May 11, 2017. Picture taken May 11, 2017. REUTERS/Umit Bektas
The U.S. dollar hit a more than 2-1/2-year low against a basket of major rivals on reduced expectations for another Federal Reserve rate increase this year, while the euro hit multi-year highs after European Central Bank President Mario Draghi suggested that the ECB might begin tapering its massive stimulus program this fall. [FRX/] [US/] [MKTS/GLOB]
A weaker dollar fuels demand for gold by making it cheaper for holders of other currencies, and lower bond yields reduce the opportunity cost of owning non-yielding bullion. Interest rate rises push up bond yields and boost the dollar.
Spot gold XAU= was down 0.1 percent at $1,347.8 by 3:43 p.m. EDT (1943 GMT) after hitting $1,357.54, its highest since August 2016. It was up 1.7 percent this week, notching a third consecutive weekly gain.
U.S. gold futures GCcv1 for December delivery settled at $1,351.2.
Julius Baer analyst Carsten Menke pinned the rise to the weak dollar and hopes that interest rate rises would be delayed.
New York Federal Reserve President William Dudley in a speech on Thursday did not repeat an assertion three weeks ago that he expects to raise rates once more this year.
Demand for gold as a safe haven investment was strong as South Korea braced for a possible further missile test by North Korea when it marks its founding anniversary on Saturday.
But high prices have weakened demand for physical gold in top consumer Asia.
“By its own account, the Chinese central bank (PBoC) bought no gold in August, either,” Commerzbank said in a note.
“This was already the tenth consecutive month in which the PBoC did not further increase its gold reserves.”
Technical resistance was at $1,353, gold’s peak last September, but upward momentum could lift it to the 2016 high of $1,375, ScotiaMocatta analysts said.
In other precious metals, silver XAG= was down 0.3 percent at $18.01 an ounce after touching $18.21, its best since April. It rose about 2 percent on the week.
Palladium XPD= was 2.1 percent lower at $934.78 an ounce and fell more than 4 percent on the week, the first decline in seven weeks.
The metal used in catalytic converters that curb pollution from vehicle exhausts is trading near its highest since 2001. But car output in China and the United States is falling and shortages of metal are unlikely, said Capital Economics analyst Simona Gambarini in a note.
She said palladium looked increasingly vulnerable to profit taking and would likely fall to $850 by the end of the year.
Platinum XPT= was down 0.7 percent at $1,008.40 after touching touched $1,022.70, its highest since March.
Additional reporting by Apeksha Nair in Bengaluru; Editing by Alexander Smith and Richard ChangOur Standards: The Thomson Reuters Trust Principles.
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071c99165b2b342791af149f6be44c3c | https://www.reuters.com/article/global-precious/gold-set-for-strongest-year-since-2010-idINKBN2950WQ?edition-redirect=in | Gold set to end volatile 2020 with strong gains; silver outperforms | Gold set to end volatile 2020 with strong gains; silver outperforms
By Swati Verma, Sumita Layek3 Min Read
(Reuters) - Gold steadied as the dollar extended losses on Thursday, with the metal on track for its best year in a decade on economic uncertainty and as governments worldwide doled out massive stimulus to lessen the impact of the COVID-19 pandemic. Spot gold was trading around $1,892.97 per ounce by 1:53 p.m. EST (1853 GMT). U.S. gold futures settled up 0.1%, at $1,895.10.
FILE PHOTO: The Sicpa Oasis validator system (bullion protect) is pictured on one kilogram bar of gold at Swiss refiner Metalor in Marin near Neuchatel, Switzerland July 5, 2019. REUTERS/Denis Balibouse/File Photo
Bullion has gained 25% so far in 2020 as global central banks and governments have delivered economic stimulus, laying the ground for higher inflation and currency debasement.
The U.S. Federal Reserve will remain extraordinarily accommodative through 2022 and an increasingly progressive Democratic Party is looking to borrow and spend aggressively, said Tai Wong, head of base and precious metals derivatives trading at BMO.
“Based on that, the U.S. dollar has been slumping badly and can’t manage any rally, which is bullish gold,” he said. “However, if the vaccine really is effective and we have the pandemic beat by summer, that may limit gold gains.”
The non-yielding metal is regarded as a hedge against the inflation that is likely to result from record fiscal stimulus and ultra-dovish monetary policies.
Graphic: Silver outperforms other precious metals in 2020:
Outperforming gold this year with a nearly 48% gain, its strongest performance since 2010, spot silver was, however, down 1.2% at $26.30 an ounce on Thursday. “We forecast further silver outperformance in 2021 on the basis of additional tailwinds from the green transformation driving increased industrial demand, together with the expected economic recovery benefiting silver more than gold,” said Saxo Bank analyst Ole Hansen.
Palladium looked set to post gains for a fifth consecutive year, having risen over 25% in 2020, while platinum is on track to record a second straight yearly rise, climbing about 10%.
Palladium jumped 3% to $2,433.61 and platinum eased 0.2% to $1,063.52.
Both the metals are used by automakers in catalytic converter manufacturing to clean car exhaust fumes. With consumers opting for single-family vehicles over public transport, platinum group metals will benefit from a recovery in global auto sales, tightening emission standards, and strong Chinese imports, said Axi chief global market strategist Stephen Innes.
Graphic: Precious Metals performance in 2020:
Reporting by Asha Sistla, Sumita Layek and Swati Verma in Bengaluru; Editing by Jan Harvey, Barbara Lewis and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.
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cd97587332e9844ccfc2234255d417ee | https://www.reuters.com/article/global-precious/gold-slides-to-two-week-low-on-hopes-for-thaw-in-trade-feud-idINKBN1XZ0J3?edition-redirect=in | Gold slides to two-week low on hopes for thaw in trade feud | Gold slides to two-week low on hopes for thaw in trade feud
By K. Sathya Narayanan3 Min Read
(Reuters) - Gold fell for a fourth straight session on Monday, hitting a two-week low as investors’ appetite for riskier assets increased on renewed optimism that a resolution to the long-drawn U.S.-China trade conflict will soon be reached.
FILE PHOTO: A one kilo gold bar is displayed in a shop in Dubai's gold souk, April 11, 2006. REUTERS/Tamara Abdul Hadi/File Photo
Spot gold fell 0.3% to $1,457.48 per ounce as of 12:04 p.m. EST (1704 GMT), after touching its lowest level since Nov. 12 at $1,453.40.
U.S. gold futures slipped 0.4% to $1,457.40 per ounce.
“There is some renewed risk-on (sentiment) in the market based on the news from the trade deal front. ... we have seen the bonds trade a tad weaker, yen trading softer as well and gold drifting lower,” said Saxo Bank commodity strategist Ole Hansen.
Hansen added that the stock market “is trading on the assumption that a trade deal of some sort will be reached.”
World shares staged a cautious rally, while the safe-haven Japanese yen fell to a one-week low against the U.S. dollar.
Beijing and Washington were “very close” to an initial trade agreement, Chinese newspaper Global Times reported, citing experts close to the talks.
Adding to the positive mood was the weekend announcement that China would seek to improve protections for intellectual property rights, a sticking point in the talks.
Intellectual property rights protection “is a key element the U.S. wants China to reform in order to reach a trade deal. It could be that the U.S.’s hard-line approach on the trade deal with China is putting pressure on China to get a deal completed soon,” Kitco Metals senior analyst Jim Wyckoff said in a note.
Still, investors remained cautious, with officials, lawmakers and trade experts from both sides saying an ambitious “phase two” trade deal looked less likely.
“There is no major selling in the gold market, which might suggest that people are still sceptical about these developments,” Julius Baer analyst Carsten Menke said. “They see them as some sort of temporary relief, not a real longer-term solution.”
Speculators increased their bullish positions in COMEX gold and silver in the week to Nov. 19, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Silver fell 0.7% to $16.89 per ounce, after touching its lowest price in a week.
Palladium rose 1.7% to $1,805.50 per ounce, having earlier hit its highest level since Nov. 7. Platinum was up 0.7% at $897.35 per ounce.
Reporting by K. Sathya Narayanan and Eileen Soreng in Bengaluru; Editing by David Gregorio and Matthew LewisOur Standards: The Thomson Reuters Trust Principles.
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afd09dbef4c2aa0942d847eadb8e969f | https://www.reuters.com/article/global-precious/gold-slips-as-rallying-u-s-yields-dull-appeal-idINKBN29C1NK?edition-redirect=in | Gold slips on firmer dollar and U.S. yields | Gold slips on firmer dollar and U.S. yields
By Shreyansi Singh2 Min Read
(Reuters) - Gold eased on Thursday on a stronger dollar and higher U.S. Treasury yields, but prospects of more fiscal stimulus under a Democrat-led administration in Washington capped losses.
FILE PHOTO: Gold bullion is displayed at Hatton Garden Metals precious metal dealers in London, Britain July 21, 2015. REUTERS/Neil Hall
Spot gold was down 0.3% to $1,912.86 per ounce by 10:39 a.m. EST (1539 GMT). U.S. gold futures were up 0.3% at $1,913.90.
Prices slipped as much as 2.5% after scaling their highest since Nov. 9 on Wednesday, as 10-year U.S. Treasury yields jumped above 1% for the first time since March.
The higher treasury yields are pulling some “flight to safety money out of the gold market,” said Bob Haberkorn, senior market strategist at RJO Futures.
But while the stronger dollar is weighing on gold, the greenback’s upside is likely to be “short lived,” he added.
The dollar index rebounded from a multi-year low, making bullion less attractive for other currency holders.[USD/]
A Democrat victory in the U.S. Senate runoffs stoked inflation expectations as investors raised bets for more fiscal stimulus, while the U.S. Congress certified President-elect Joe Biden’s win.
“The double Democratic win in Georgia increases expectations of larger stimulus support and higher infrastructure spending,” Standard Chartered Analyst Suki Cooper said, adding the resultant higher inflation expectations would support upward momentum in gold.
On the technical front, gold is no longer in ‘overbought’ territory and $1,965 an ounce is a key resistance level, she said, with near term support around $1,894.
The non-yielding metal is considered a hedge against inflation and currency debasement likely to be spurred by widespread stimulus measures.
“There’s going to be more downside for the dollar, and that’s also going to be bullish for the metals,” said Kitco Metals senior analyst Jim Wyckoff.
Silver fell 0.8% to $27.08 an ounce. Platinum was down 1.1% at $1,113.50, and palladium slipped 0.8% to $2,418.68.
Reporting by Shreyansi Singh in Bengaluru; Editing by Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.
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d84c09dfdc54efab16f3438bcaf170e4 | https://www.reuters.com/article/global-precious/gold-slips-as-risk-on-sentiment-weighs-trade-deal-in-focus-idINKBN1ZC091?edition-redirect=in | Gold slips as risk-on sentiment weighs, trade deal in focus | Gold slips as risk-on sentiment weighs, trade deal in focus
By Harshith Aranya3 Min Read
(Reuters) - Gold prices fell on Monday as risk-on sentiment, bolstered by the upcoming signing of a preliminary U.S.-China deal and signs of de-escalation in the Middle East, dampened demand for safe-haven bullion.
FILE PHOTO: Gold coins are displayed at the Ginza Tanaka store in Tokyo September 18, 2008. REUTERS/Yuriko Nakao/File Photo
Spot gold fell 0.6% to $1,552.02 per ounce by 11:31 a.m. EST (1631 GMT), having fallen 1% to $1,546.27 earlier in the session.
U.S. gold futures fell 0.5% to $1,552.60.
“You remove the risk of geo-political tensions rising and you don’t quite need gold to beef up your portfolio,” said Bart Melek, head of commodity strategies at TD Securities.
Stock markets around the world lingered just below record levels, buoyed by the expected signing of the Phase 1 U.S.-China trade deal.
The trade agreement, due to be signed at the White House on Wednesday, marks the first step towards ending an 18-month long trade dispute between the world’s two largest economies.
The U.S. dollar .DXY also rose against a basket of rivals, making bullion more expensive for holders of other currencies.
Signalling a further ramp down of trade tensions, a Wall Street Journal report said on Saturday that Washington and Beijing had agreed to semi-annual talks aimed at pushing reforms and resolving disputes.
Gold, considered a safe investment during political and economic turmoil, rose to a near seven-year peak of $1,610.90 last week after a U.S. drone strike killed a top Iranian commander in Baghdad and Iran launched missiles against U.S. bases in Iraq in retaliation.
The rally, however, faded with a lack of further military escalation in the region.
However, the markets would keep an eye on tensions with Iran over the accidental shooting of a passenger plane, and the finer points of the implementation of the U.S.-China deal, analysts said.
Reflecting investor sentiment, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.9% to 874.52 tonnes on Friday, their lowest since Sept. 16.
“Gold will remain vulnerable to spikes but could trend lower in the interim, with a break of $1,540 potentially triggering a move back towards $1,520,” OANDA analyst Craig Erlam said in a note.
Elsewhere, palladium rose 0.2% to $2,122.29 an ounce. Silver was down 0.5% at $18.01, while platinum fell 0.7% to $971.65.
Reporting by Harshith Aranya and Eileen Soreng in Bengaluru; Editing by Marguerita ChoyOur Standards: The Thomson Reuters Trust Principles.
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92798ee116af7a4f13ffd5c1356c17d1 | https://www.reuters.com/article/global-precious/gold-slips-as-signing-of-trade-deal-and-us-data-prop-up-stock-markets-idINKBN1ZF0GN?edition-redirect=in | Gold slips as signing of trade deal and U.S. data prop up stock markets | Gold slips as signing of trade deal and U.S. data prop up stock markets
By Eileen Soreng3 Min Read
(Reuters) - Gold slipped on Thursday, as the safe-haven metal was hurt by upbeat U.S. economic data that signalled a healthy economy, and as stock markets climbed on optimism brought about by the signing of the U.S.-China Phase 1 trade deal.
FILE PHOTO: Gold bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, August 14, 2019. REUTERS/Michael Dalder/File photo
Spot gold fell 0.4% to $1,549.97 per ounce at 11:51 a.m. EST (1651 GMT). U.S. gold futures were down 0.2% at $1,550.8.
“Gold is softer right now on stronger equities, and as the geopolitical front is also getting a little quiet when it comes to China and Iran issues,” said Bob Haberkorn, senior market strategist at RJO Futures.
World stocks held near record highs, while the dollar index erased earlier losses after multiple data releases painted a positive U.S. economic picture.
U.S. retail sales rose for a third straight month in December and a U.S. Mid-Atlantic manufacturing activity gauge revived to its highest in eight months.
U.S. holiday sales rose 4.1% in 2019 from a year earlier, as steady wage and jobs growth encouraged shoppers to splurge on groceries, beverages and furniture, the National Retail Federation said.
The much-awaited Phase 1 trade deal was signed by U.S. President Donald Trump and Chinese Vice Premier Liu He on Wednesday, defusing an 18-month-long row that roiled global markets.
Analysts noted the deal fails to address structural economic issues, does not fully eliminate the tariffs, and sets hard-to-achieve purchase targets, leaving a number of sore spots unresolved.
Elsewhere, palladium gained 1% to $2,285.18 an ounce, after hitting a record peak of $2,395.14 earlier in the session.
“It’s such a small, tight market that when someone takes a big lump of supply out in the short term the market can become completely ruptured”, said Tai Wong, head of base and precious metals derivatives trading at BMO.
“I’d be surprised if we don’t see a correction sometime in the next week or so.”
Platinum dipped 1.6% to $1,004.02, having hit its highest since February 2017 at $1,041.05.
Both platinum and palladium are primarily used by automakers for catalytic converter manufacturing to clean car exhaust fumes.
Silver fell 0.2% to $17.95 per ounce.
Reporting by Eileen Soreng in Bengaluru, Editing by Rosalba O’BrienOur Standards: The Thomson Reuters Trust Principles.
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0dc35837e64937a444fe11b143ad9c9e | https://www.reuters.com/article/global-precious/gold-slips-as-u-s-china-trade-deal-optimism-boosts-equities-idINKBN1XS0GI?edition-redirect=in | Gold slips as U.S.-China trade deal optimism boosts equities | Gold slips as U.S.-China trade deal optimism boosts equities
By Asha Sistla3 Min Read
(Reuters) - Gold fell on Monday as growing optimism for a U.S.-China trade deal following a report of “constructive talks” over the weekend boosted sentiment for riskier assets.
FILE PHOTO: Newly casted ingots of 99.99% pure gold are stored after weighing at the Krastsvetmet non-ferrous metals plant, one of the world's largest producers in the precious metals industry, in the Siberian city of Krasnoyarsk, Russia November 22, 2018. REUTERS/Ilya Naymushin/File Photo
Spot gold fell 0.6% to $1,458.55 per ounce at 1219 GMT. U.S. gold futures were down 0.6% at $1,459.10.
“Everything looks a lot more positive - U.S. markets are at record highs, trade talks are progressing a little bit slowly, the Fed has (cut) rates three times now - it looks bearish (for gold) compared to the kind of move we’ve seen over the summer,” said Craig Erlam, OANDA senior market analyst.
“Trend for gold in the short-term is looking quite negative. From technicals, we have taken out all lows - $1,480 was the most important one, now $1,460.”
Chinese state media Xinhua reported Washington and Beijing had a high-level phone call on Saturday and that the two sides discussed each other’s core issues for the first phase of an initial trade agreement.
European shares opened higher as optimism around trade talks and a surprise move by China’s central bank in cutting a key interest rate painted an upbeat picture about global growth.[.EU]
“In all likelihood, a breakdown in trade talks remains the only scenario to breathe new life into gold prices at this time,” Jeffrey Halley, senior market analyst, Asia Pacific at OANDA said in a note.
Market participants now await minutes of the Federal Reserve’s last policy meeting, due on Wednesday, for clues about the future interest rate trajectory.
Gold is highly sensitive to interest rates, as lower interest reduces the opportunity cost of holding the non-yielding bullion.
“The scenario is now getting more complicated for bullion, as a new fall below $1,445 would mean much more pressure from bears, creating space for further declines. Only a solid recovery to $1,470 can halt bullion’s current weakness,” Carlo Alberto De Casa, chief analyst at ActivTrades said in a note.
Meanwhile, investors also kept a close eye on developments in Hong Kong, with police on Monday trapping hundreds of protesters inside a major university and demonstrators rampaging through a tourist district, after almost two straight days of standoffs.
Gold is considered a safe store of value during times of economic or political uncertainty.
Among other metals, silver was down 0.9% at $16.81 per ounce, while platinum slipped 0.9% to $881.05 per ounce.
Palladium rose 0.6% to $1,715.36 per ounce.
Reporting by Asha Sistla in Bengaluru, editing by Louise HeavensOur Standards: The Thomson Reuters Trust Principles.
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e55cc100e6a89b710bd944edb7f600a1 | https://www.reuters.com/article/global-precious/gold-steadies-after-mixed-u-s-economic-data-idINKCN1RD197?edition-redirect=in | Gold edges lower after upbeat U.S. manufacturing data | Gold edges lower after upbeat U.S. manufacturing data
By Karthika Suresh Namboothiri3 Min Read
(Reuters) - Gold inched lower on Monday as stronger-than-expected U.S. manufacturing data offset support from sluggish retail sales numbers, while palladium surged 3 percent.
Gold bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich March 3, 2014. REUTERS/Michael Dalder/Files
Spot gold dipped 0.2 percent to $1,289.20 per ounce at 1:49 p.m. EDT (1749 GMT). U.S. gold futures settled 0.3 percent lower at $1,294.20 per ounce.
“The poor retail sales print definitely did give gold a short-term tailwind, especially at levels where not too many parties are looking to aggressively sell,” said Tai Wong, head of base and precious metals derivatives trading at BMO.
“However, gold’s tentative probe higher has been blunted by a strong ISM (manufacturing) print, which has sent yields retracing higher. Gold appears to need some additional help to retake $1,300.”
U.S. retail sales unexpectedly fell in February, reinforcing the view of flagging U.S. economic growth in the first quarter.
This pressured the dollar, bolstering gold’s appeal among buyers holding other currencies.
However, bullion gave up some gains after data pointed to a rebound in U.S. manufacturing activity in March.
The data followed weaker-than-expected consumer spending numbers in January and modest income growth in the United States, fanning worries that slowing global growth was spreading to the world’s largest economy.
Euro zone headline and core inflation slowed in March, estimates showed on Monday, supporting the European Central Bank’s decision to delay a planned tightening of monetary policy.
“We still think the global economy is slowing in the 12 to 18 month horizon, especially in the U.S., which should help gold in the longer term,” Julius Baer analyst Carsten Menke said.
Bullion was supported on reports of progress in U.S.-China trade negotiations.
Immediate support for gold was around the lows of lows seen last week, with key support around the $1,277-80 range, BMO’s Wong said. On the upside, gold could face resistance between $1,300-$1,310, especially the 50-day moving average just under $1,310, he added.
Expectations the U.S. Federal Reserve will refrain from interest rate hikes and uncertainties surrounding economic growth are likely to help gold have a strong rally, analysts said.
Speculators increased their net long position in COMEX gold for the second straight week in the week to March 26, data showed on Friday. [CFTC/]
Among other precious metals, spot palladium jumped 3 percent to $1,426.25 per ounce after declining more than 11 percent last week.
“There’s more upside here than downside, especially if the Chinese economy improves”, Wong said.
Silver inched 0.1 percent lower to $15.11 per ounce, while platinum was down 0.1 percent at $844.50.
(GRAPHIC: 2019 asset returns, tmsnrt.rs/2jvdmXl)
Reporting by Karthika Suresh Namboothiri and Arpan Varghese in Bengaluru; Editing by Jeffrey BenkoeOur Standards: The Thomson Reuters Trust Principles.
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1b130ed06feefdf5eb5ab2634b3ef38a | https://www.reuters.com/article/global-precious/gold-steadies-as-risk-sentiment-sours-on-virus-threat-idINKBN1ZM08S?edition-redirect=in | Gold steadies as risk sentiment sours on virus threat | Gold steadies as risk sentiment sours on virus threat
By Diptendu Lahiri3 Min Read
(Reuters) - Gold steadied on Thursday as sentiment for riskier assets soured on jitters over a virus outbreak in China, although the safe-haven metal held a tight range as investors awaited further catalysts.
The Sicpa Oasis validator system (bullion protect) is pictured on one kilogram bar of gold at Swiss refiner Metalor in Marin near Neuchatel, Switzerland July 5, 2019. Picture taken July 5, 2019. REUTERS/Denis Balibouse/File Photo
Spot gold was down 0.1% at $1,560.78 per ounce by 10:44 a.m. EST (1544 GMT). U.S. gold futures rose 0.3% to $1,560.50 per ounce.
“Equities are slightly softer so that is stoking some interest in the metal,” said Bob Haberkorn, senior market strategist at RJO Futures. “But absence of any geopolitical risk in the short term is keeping gold prices in check. The European Central Bank meeting did not move the needle too much.”
U.S. stocks opened lower on Thursday on rising worries over the coronavirus outbreak in China that prompted a lockdown of two cities in the country, while a mixed bag of corporate results added to the dour sentiment. [.N]
Traders remained anxious about the spread of the virus as a higher death toll could hurt one of the world’s largest economies, as occurred during an epidemic in 2002-2003.
However, OANDA analyst Jeffrey Halley said the virus fears appear to have been overlooked by the gold market.
“If regional investors were seriously concerned about coronavirus, we would have expected gold to be higher and not lower today,” he said in a note.
Gold, considered a safe store of value in times of political and economic uncertainty, climbed to a near seven-year peak of $1,610.90 on Jan. 8 after an escalation in U.S.-Iran tensions. It has held above $1,550 for the most part ever since.
Lingering geopolitical uncertainties and a low interest environment across the board - reducing the opportunity cost of holding non-yielding bullion - will continue to support gold in the longer term, analysts said.
The European Central Bank kept interest rates unchanged at its latest policy meeting on Thursday and launched a “strategic review” of its inflation goal and tools.
Focus will now shift to the U.S. Federal Reserve’s first meeting of the year scheduled for Jan. 28-29.
Spot gold is biased to revisit its Jan. 21 low of $1,545.96, looking shaky around a resistance at $1,564, said Reuters technical analyst Wang Tao. [TECH/C]
Among other precious metals, palladium fell 2.9% to $2,399.58, silver dipped 0.4% to $17.75 and platinum was also down 1.1% at $1,001.09.
Reporting by Diptendu Lahiri in Bengaluru; Editing by Matthew LewisOur Standards: The Thomson Reuters Trust Principles.
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cb65eb88b72b5bec363c44eb58c501b6 | https://www.reuters.com/article/global-precious/gold-steadies-as-virus-concerns-stall-stock-markets-idINKBN2010F0?edition-redirect=in | Gold steadies as virus concerns stall stock markets | Gold steadies as virus concerns stall stock markets
By K. Sathya Narayanan3 Min Read
(Reuters) - Gold was little changed on Friday as a rally in global stock markets stalled as worries remained over the economic impact from the coronavirus while investors awaited U.S. jobs data for indications on the country’s economic health.
FILE PHOTO: Gold coins are displayed at the Ginza Tanaka store in Tokyo September 18, 2008. REUTERS/Yuriko Nakao
Spot gold was down 0.1% at $1,565.20 an ounce at 1259 GMT. Down about 1.6% this week, it was on track for the biggest weekly loss since early November.
U.S. gold futures also eased by 0.1%, dipping to $1,569.00.
“On one side, insecurities come back with jitters in European and Asian stock markets, which is supporting gold prices, but on the other side, we have a stronger dollar,” said Commerzbank analyst Eugen Weinberg.
Worries over the virus, which has claimed almost 640 lives and spread to numerous countries, pressured world markets that were on course for the best week for equities since June.
Weighing on bullion, however, the dollar rose to its strongest against major rivals since mid-October.
The safe-haven metal was on track for its biggest weekly decline in three months on the back of a series of strong U.S. economic data, including a drop in unemployment benefits.
Market participants are now awaiting the U.S. non-farm payrolls report, due later in the session, for cues on the strength of the labour market and the U.S. economy.
The payrolls data is “one of the most important indicators for the U.S. central bank” and investors want to know what the report would mean for the Federal Reserve moving forward, said UBS commodities analyst Giovanni Staunovo.
The Fed kept benchmark interest rates unchanged at its January policy meeting, citing moderate economic growth and a strong jobs market.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
If the data comes in as strong as expected, the market might not react that much, but should the data disappoint then the U.S. dollar could snap back and fall, which is supportive for bullion, Commerzbank’s Weinberg said.
A weaker dollar makes greenback-denominated assets, such as gold, cheaper for investors holding other currencies.
Elsewhere, palladium fell 1.5% to $2,312.32 an ounce but was on track for its first weekly gain in three.
Silver slipped 0.5% to $17.71, set for its worst week in two months, while platinum rose 0.6% to $966.94.
Reporting by K. Sathya Narayanan in Bengaluru; Editing by Elaine Hardcastle and David GoodmanOur Standards: The Thomson Reuters Trust Principles.
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