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)
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)
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)
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)
Jan 12 2021
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa
(Adds graphic, updates prices)
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)
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)
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.
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
)
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.