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Asha Sistla

PRECIOUS-Gold edges higher off 1-1/2 month low despite buoyant dollar

Jan 18 2021

* Dollar index hits four-week high * Janet Yellen nominated for U.S. Treasury secretary * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices) By Asha Sistla Jan 18 Gold prices edged higher on Monday on the prospect of extended U.S. fiscal stimulus and accommodative monetary policies, although bullion held close to the 1-1/2 month low hit earlier as the dollar extended gains. Spot gold was up 0.3% to $1,831.49 per ounce by 1236 GMT, after falling to $1,809.90, its lowest since Dec. 2. U.S. gold futures were flat at $1,829.80. "This new (U.S.) government will provide more economic stimulus and also the policy of the U.S. Federal Reserve is unlikely to become more hawkish going forward," said Commerzbank analyst Eugen Weinberg. "Therefore we are likely to see continued support for gold prices." U.S. President-elect Joe Biden outlined a $1.9 trillion stimulus package proposal last week to jump-start the economy and accelerate the distribution of COVID-19 vaccines. Fed Chair Jerome Powell also said there was no reason to alter the central bank's highly accommodative stance with the U.S. economy still far from its inflation and employment goals. Gold is considered a hedge against inflation and currency debasement, likely to arise from large stimulus measures. However, Commerzbank's Weinberg said a stronger dollar, economic optimism and concerns about Janet Yellen as the U.S. Treasury secretary nominee, who might be restrictive on the fiscal stimulus side, were weighing on gold prices. The U.S. dollar hit a four-week peak against rival currencies, making gold expensive for holders of other currencies. Although U.S. inflation expectations have risen in anticipation of more U.S. fiscal stimulus, gold has not been the sole beneficiary - bond yields have risen and weighed on gold, Phillip Futures said in a note. U.S. Treasury yields scaled a 10-month high last week. Among other precious metals, silver gained 0.5% to $24.85 an ounce, while platinum was down 0.1% to $1,072.82 and palladium shed 0.1% to $2,380.71. (Reporting by Asha Sistla and Sumita Layek in Bengaluru. Editing by Mark Potter and David Evans)

PRECIOUS-Gold steadies as firm dollar offsets tighter lockdown impact

Jan 15 2021

(Adds analyst comments, updates prices) * Powell sees no reason to alter Fed's accommodative stance * Platinum gains more than 3% for the week * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa By Asha Sistla Jan 15 Gold prices held steady on Friday, trapped between pressure from a firm dollar and high Treasury yields and support from coronavirus lockdowns in Europe and dovish policy noises from the U.S. Federal Reserve. Spot gold was little changed at $1,846.50 per ounce by 1313 GMT, while U.S. gold futures fell 0.2% to $1,847. "We are just hovering above this crucial (200-day average) level and there is no upward momentum as the dollar is not weakening at this point and we're also seeing no big moves in yields so it's a bit of a range trade (for gold) currently," said ABN Amro analyst Georgette Boele. A resilient dollar remained a headwind for bullion, with Benchmark 10-year Treasury yields holding close to near 10-month highs touched earlier in the week. However, underpinning bullion, stricter lockdowns in Germany and France as well as new COVID-19 restrictions in China dampened optimism about a global economic recovery. "We just reached the 2 million death mark, which is a horrible statistic. But it clearly highlights the prolonged effort to get us to the other side of this pandemic," said Saxo Bank analyst Ole Hansen. He added, however, that vaccine rollouts could offset some of these concerns in the short term. The gold market also found support from comments from the U.S. Federal Reserve chairman, suggesting no change in interest rates, Hansen added. While gold is considered a hedge against the inflation and currency debasement that can result from widespread stimulus, a recent jump in bond yields has challenged that status as it increases the opportunity cost of holding non-yielding bullion. Silver fell 1% to $25.27 an ounce. Platinum dipped 1.8% to $1,098, but was up more than 3% so far this week, while palladium shed 0.4% to $2,399.72. (Reporting by Asha Sistla in Bengaluru Editing by Mark Heinrich and Alexander Smith)

PRECIOUS-Gold eases as dollar ticks higher; markets eye stimulus details

Jan 13 2021

* U.S. Fed's Beige Book due at 1900 GMT * Fed officials expect U.S. economy rebound on vaccinations * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices) By Asha Sistla Jan 13 Gold prices eased on Wednesday, reversing earlier gains, as the dollar firmed and U.S. yields held close to recent highs, with investors awaiting more details on American fiscal stimulus measures. Spot gold was down 0.1% to $1,854.40 per ounce by 1247 GMT, while U.S. gold futures were up 0.6% to $1,855.10. "We've got this uncertainty about what's going to be coming on the fiscal stimulus front over the course of a few months and until we get more details on that, gold could go either way," said Michael Hewson, chief market analyst at CMC Markets UK. "The risk is to the downside for gold. Concerns about inflation expectations and a firmer dollar have acted as a little bit of an anchor on the gold price." U.S. President-elect Joe Biden said he would unveil a plan on Thursday to inject the coronavirus-hit economy with "trillions" of dollars in relief measures. Bullion is seen as a hedge against inflation and currency debasement that could result from large stimulus measures. Benchmark 10-year Treasury yields hovered close to near 10-month highs, and the dollar index was up 0.2%, making gold more expensive for holders of other currencies. U.S. Federal Reserve officials expect a quick economic recovery if COVID-19 vaccinations gather pace, but that could leave markets guessing about the outlook for the central bank's monetary policy. "If the U.S. economy is ticking along nicely, the Fed will look to act. The reality is, its balance sheets are bloated and any improvement in the outlook will at least reduce its seamless efforts," said Michael McCarthy, chief market strategist at CMC Markets. The release of the Fed's "Beige Book" survey of businesses is awaited later on Wednesday. Among other precious metals, silver dipped 1% to $25.32 an ounce, platinum fell 0.6% to $1,069.47 and palladium was up 0.3% to $2,399.46. (Reporting by Asha Sistla and Sumita Layek in Bengaluru; Editing by Pravin Char and Steve Orlofsky)

PRECIOUS-Gold eases as dollar ticks higher; markets eye stimulus details

Jan 13 2021

* U.S. Fed's Beige Book due at 1900 GMT * Fed officials expect U.S. economy rebound on vaccinations * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Adds analyst comments, updates prices) By Asha Sistla Jan 13 Gold prices eased on Wednesday, reversing earlier gains, as the dollar firmed and U.S. yields held close to recent highs, with investors awaiting for more details on American fiscal stimulus measures. Spot gold was down 0.1% at $1,853.80 per ounce by 1107 GMT, while U.S. gold futures were up 0.6% at $1,854.30. "We've got this uncertainty about what's going to be coming on the fiscal stimulus front over the course of a few months and until we get more details on that, gold could go either way," said Michael Hewson, chief market analyst at CMC Markets UK. "The risk is to the downside for gold. Concerns about inflation expectations and a firmer dollar have acted as a little bit of an anchor on the gold price." U.S. President-elect Joe Biden said he would unveil a plan on Thursday to inject the coronavirus-hit economy with "trillions" of dollars in relief measures. Bullion is seen as a hedge against inflation and currency debasement that could result from large stimulus measures. Benchmark 10-year Treasury yields hovered close to near 10-month highs, and the dollar index held firm, making gold expensive for holders of other currencies. U.S. Federal Reserve officials expect a quick economic recovery if COVID-19 vaccinations gather pace, but that could leave markets guessing about the outlook for the central bank's monetary policy. "If the U.S. economy is ticking along nicely, the Fed will look to act. The reality is, its balance sheets are bloated and any improvement in the outlook will at least reduce its seamless efforts," said Michael McCarthy, chief market strategist at CMC Markets. The release of the Fed's "Beige Book" survey of businesses is awaited later on Wednesday. Among other precious metals, silver dipped 0.7% to $25.39 an ounce, platinum fell 0.2% to $1,073.53 and palladium was up 0.1% at $2,393.72. (Reporting by Asha Sistla and Sumita Layek in Bengaluru; Editing by Pravin Char)

PRECIOUS-Gold rebounds as focus returns to inflation risks

Jan 12 2021

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Adds graphic, updates prices)

PRECIOUS-Gold slips as rallying U.S. yields dull appeal

Jan 07 2021

(Updates prices) * U.S. Treasury yields hold above 1% * Dollar is going to depreciate all through 2021- analyst * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa By Asha Sistla Jan 7 Gold prices eased on Thursday as a surge in U.S. Treasury yields and firm dollar dampened demand for bullion, although losses were limited by hopes for more fiscal stimulus after Democrats won control of the U.S. Senate. Spot gold was down 0.2% to $1,915.21 per ounce by 1223 GMT. U.S. gold futures were up 0.5% to $1,918.30. Prices slipped as much as 2.5% after scaling a high since Nov. 9 on Wednesday, as 10-year U.S. Treasury yields jumped above 1% for the first time since March. "I see this as a consolidation after a very strong start to the year. The market has caught a bit of a cold because of the (bond yields) rally and they are rallying for the reasons that we're actually seeing gold continue to be supported, so it's a bit of a catch 22 right now," said Saxo Bank analyst Ole Hansen. "The U.S. economy is nowhere near any level where we can start to talk about a full recovery and that will require additional stimulus or spending which will potentially drive yields higher, but it will also drive inflation expectations higher." A Democrat victory in the U.S. Senate runoffs fueled inflation expectations as investors hoped for more fiscal stimulus, while the U.S. Congress certified President-elect Joe Biden's win. Bullion is seen as a hedge against inflation and currency debasement that could result from large stimulus measures. The dollar index rebounded from a multi-year low as yields gained over 1%. A stronger dollar makes gold expensive for holders of other currencies. "The dollar is going to depreciate all through 2021, U.S. yields may move slightly higher from here, but they're not going to run away to the top, in that environment gold should flourish," said Jeffrey Halley, a senior market analyst at OANDA. Silver fell 0.8% to $27.09 an ounce. Platinum was down 0.6% to $1,094.85, and palladium slipped 1.1% to $2,411.36. (Reporting by Asha Sistla and Sumita Layek in Bengaluru; Editing by Mark Potter and Bernadette Baum)

PRECIOUS-Gold retreats as dollar stems slide; investors await U.S. Senate verdict

Jan 06 2021

(Recasts, adds analyst comment, updates prices) * Democrats win one Georgia runoff and lead in second * Dollar index recovers slightly from multi-year low * Minutes of U.S. Fed's latest policy meeting due at 1900 GMT By Asha Sistla Jan 6 Gold fell 1% on Wednesday, after earlier climbing to a near two-month high, as the dollar pared losses, while investors focused on the outcome of the U.S. Senate run-off election in Georgia. Spot gold was down 0.8% to $1,934.72 per ounce at 1353 GMT, having earlier hit a near two-month peak at $1,959.01. U.S. gold futures dipped 0.9% to $1,937.20. "Given gold's moves in the last couple of days and just how overextended the dollar decline looks, we could just be seeing some profit taking and a bit of a technical correction," said OANDA analyst Craig Erlam. "Gold has traded at notable resistance over the last couple of days around $1,950-1,960 and we may just be seeing a pullback." The dollar index recouped losses from a dive to 2-1/2-year lows, making gold a relatively less attractive bet for those holding other currencies. Also weighing on gold were higher U.S. Treasury yields , which increase the opportunity cost of holding non-interest bearing bullion. However, gold remains supported as an inflationary hedge, with investors anticipating additional fiscal stimulus as the Democrats take a lead in runoff votes that will determine control of the U.S. Senate. "Whether (the policies) turn into (something) productive down the line remains to be seen, but clearly they're going to be adding considerable debt onto considerable debt, and that's good for gold," said Ross Norman, an independent analyst. Meanwhile, minutes of the U.S. Federal Reserve's Dec. 15-16 policy meeting are due at 1900 GMT. The Fed might decide to unleash more stimulus once it has a clearer picture on how the U.S. Congress turns out, said Howie Lee, an economist at OCBC Bank. In other metals, silver fell 1% to $27.31 an ounce. Platinum dipped 1.5% to $1,095.10, while palladium was down 0.6% to $2,451.26. (Reporting by Asha Sistla and Sumita Layek in Bengaluru, Editing by Mark Potter)

Gold hits 2-month peak on prospect of Democratic win in Georgia

Jan 06 2021

Gold prices hit a fresh two-month high on Wednesday as the dollar slid on growing expectations of a Democratic win in the U.S. Senate run-off election in Georgia, which would likely lead to additional fiscal stimulus.

PRECIOUS-Gold hits two-month peak as investors brace for U.S. Senate runoffs

Jan 05 2021

* Dollar index holds close to 2-1/2 year low * England enters new national lockdown * Platinum, palladium demand from auto sector to improve -analyst * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices) By Asha Sistla Jan 5 Gold prices hit a two-month high on Tuesday, lifted by a lacklustre dollar as investors awaited the U.S. Senate runoffs in Georgia that will determine which party controls Congress and prospects for additional fiscal stimulus. Spot gold was up 0.3% at $1,948.80 an ounce by 1234 GMT, having touched its highest since Nov. 9 at $1,950.34. U.S. gold futures gained 0.3% to $1,952.20. "Much will depend on the outcome of the runoff elections in the state of Georgia in the U.S. and there are certainly hopes among market participants that the Democrats are to win both seats in the elections," said Commerzbank analyst Daniel Briesemann. "This would mean that the newly elected U.S. president Biden can pursue his announced expansionary fiscal policy, which would benefit gold." A Democratic victory in Georgia could tip control of the Senate away from Republicans. Underpinning gold, Britain went into a new national lockdown to contain a surge in COVID-19 cases while New York registered its first case of the more contagious coronavirus variant found in the UK. The dollar index hovered close to April 2018 lows. A weaker dollar makes bullion cheaper for buyers using other currencies. In other precious metals, silver rose 0.6% to $27.38 and palladium gained 2.1% to $2,423.78. Platinum was up 0.6% at $1,076.86, having hit a more than four-year high of $1,127.82 on Monday. Platinum and palladium are used by automakers in catalytic converter manufacturing to clean car exhaust fumes. "If you are looking at the PMIs released yesterday, they have been positive for the manufacturing sector. So we get indications that there is a strong demand from the automotive sector," said Quantitative Commodity Research analyst Peter Fertig, adding that this would increase the need for catalytic converters and platinum group metals. (Reporting by Asha Sistla in Bengaluru Editing by Ed Osmond and David Goodman )

Gold begins 2021 with 2% jump as dollar falters

Jan 04 2021

Gold began the new year by climbing 2% on Monday, closing in on its highest in nearly two months as the dollar slid to 2018 lows and prospects of tougher restrictions to combat a new variant of the coronavirus kept safe-haven bullion in demand.

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