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Diptendu Lahiri

PRECIOUS-Gold slips as ECB gives no stimulus cue

Sep 11 2020

* U.S. Aug unadjusted CPI index comes above expectation * Gold up 0.6% this week * Platinum on track for best week since early Aug * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Diptendu Lahiri Sept 11 Gold prices dipped on Friday after the European Central Bank stopped short of offering any concrete signals on further stimulus, but lingering economic uncertainties kept the metal on track for a weekly rise. Spot gold was down 0.4% at $1,945.79 per ounce by 1243 GMT, after hitting its highest level since Sept. 2 at $1,965.94 on Thursday. Gold has gained 0.6% this week. U.S. gold futures fell 0.7% to $1,950.20. "The ECB did not address the stronger euro, neither did it come up with any stimulus plans, which will keep inflation in check in the euro zone. That's negative for gold," said Quantitative Commodity Research analyst Peter Fertig. ECB President Christine Lagarde played down concerns about the euro's strength and disappointed hopes for more stimulus. The U.S. Senate blocked a Republican bill that would have provided around $300 billion in new coronavirus aid. Gold is perceived as a hedge against inflation and currency debasement. Economic indicators suggest a long and difficult recovery from the pandemic, especially in the labour market. Latest data showed U.S. consumer prices increased more than expected in August. "While COVID-19 vaccine developments and improving economic data present near-term headwinds to gold, low and negative interest rates, a weaker USD, and expectations for further stimulus keep the balance of risks to the upside," Standard Chartered said in a note. Recent data showed Britain's economy grew for a third month in a row in July as some sectors reopened after the coronavirus lockdown, but it remained around 12% smaller than its pre-pandemic level. Elsewhere, silver dropped 0.4% to $26.81 per ounce, while palladium rose 0.3% to $2,299.95. Platinum was up 0.5% to $931.15 and was heading for its best week since the week ending Aug. 7, up 4%. (Reporting by Diptendu Lahiri in Bengaluru; editing by David Evans and Emelia Sithole-Matarise)

PRECIOUS-Gold jumps as dollar retreats post U.S. jobs data, ECB decision

Sep 10 2020

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PRECIOUS-Gold edges up on economic woes, firm dollar caps gains

Sep 09 2020

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PRECIOUS-Gold falls on firm dollar, vaccine delay limits losses

Sep 09 2020

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Recasts, adds comments; updates prices)

PRECIOUS-Gold falls 1% on strong dollar; eyes on ECB policy decision

Sep 08 2020

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PRECIOUS-Gold dips on dollar gains, with central banks in focus

Sep 07 2020

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PRECIOUS-Gold retreats as positive U.S. jobs data boosts dollar

Sep 04 2020

* Gold down 1.8% this week, silver 3% * Nonfarm payrolls rises in August; unemployment rate dips * Platinum on track for biggest weekly decline since June * Dollar heads for its strongest week since mid May * Interactive graphic tracking global spread of the coronavirus: https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Diptendu Lahiri Sept 4 Gold fell on Friday, reversing course as better-than-expected U.S. employment data bolstered the dollar, putting bullion on course for a weekly decline of 1.8%. Platinum was on track for its biggest weekly decline since June, dragged down by bullion. Spot gold erased early gains to fall 0.2% to $1,927.04 per ounce by 1:51 p.m. EDT (1751 GMT). U.S. gold futures settled down 0.2% to $1,934.30 per ounce. "Gold's correlation with the dollar has been elevated, especially over the past couple of weeks and bullion is being weighed down by the bounce in the greenback following the solid report, especially the unemployment rate," said Tai Wong, head of base and precious metals derivatives trading at BMO. The dollar index was up 0.1%, putting it on track for its best week since mid May and making the metal expensive for holders of other currencies. Data showed nonfarm payrolls increased by 1.371 million jobs in August. The unemployment rate fell to 8.4% from 10.2% in July. "However, this data does not change the U.S. Federal Reserve's stand on more stimulus to be pumped into the economy and its take on tolerating a higher inflation rate, keeping gold supported in the long run," said Michael Matousek, head trader at U.S. Global Investors. The metal has gained 27% so far, helped by near-zero interest rates globally and easy monetary policy, especially from the Fed, and safe-haven demand driven by a clouded economic picture due to the coronavirus pandemic. "This restive $1,900-$2,000 range should resolve ultimately higher especially with the Fed now officially elevating employment over inflation in the medium term. The practically permanent highly accommodative policy and intense election uncertainty will severely limit the attractiveness of USD," BMO's Wong said. Platinum rose 0.9% to $897.61 an ounce but was on track for its biggest weekly decline since mid-June, down 3.4%. Gold's failure to break above $2,000 and subsequent decline this week triggered a sharp retreat in platinum, sometimes dubbed "poor man's gold," Wong said. Silver fell 0.2% to $26.57 an ounce and has shed 3% over the week, while palladium rose 1.7% to $2,324.77. (Reporting by Arpan Varghese and Diptendu Lahiri in Bengaluru; Editing by David Gregorio and Marguerita Choy)

PRECIOUS-Gold gains as dollar stalls, with focus on U.S. data

Sep 04 2020

* Gold down 1.4% this week, silver 2.6% * Platinum on track for biggest weekly decline since June * Dollar heads for its strongest week since May * Interactive graphic tracking global spread of the coronavirus: https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Diptendu Lahiri and Nakul Iyer Sept 4 Gold rose on Friday as the dollar's rally stalled, with investor focus turning to U.S. jobs data later in the day, though bullion was still down over the week. Spot gold was up 0.4 % at $1,937.96 an ounce by 1137 GMT. But the metal was still on course for a 1.4% decline over the week, driven by earlier gains in the dollar coupled with some upbeat data including robust manufacturing figures from the United States and elsewhere, which kindled hopes for a fast revival from the COVID-19 pandemic-induced economic slump. U.S. gold futures rose 0.4% to $1,945.70 an ounce. "The job report will set the stage for all asset classes," said Saxo Bank analyst Ole Hansen. "If the equity markets close on a weaker note after the report, and given the U.S. is heading into a long weekend, we might see some strength in gold." The dollar index steadied, taking a breather from a rally that set the greenback on track for its best week since mid-May. "Since the recovery, movement in USD has stopped for the moment. That is a positive element for gold," said ActivTrades chief analyst Carlo Alberto De Casa. A weaker dollar makes gold cheaper for holders of other currencies. Global equities edged lower as attention turned to the U.S. non-payroll figures due at 1230 GMT, with markets expecting payrolls to have grown by 1.4 million in August, compared with 1.763 million jobs created the previous month. Gold, which has gained 27% this year, is still strong but "in need of a deeper correction", Saxo bank's Hansen said. Elsewhere, silver gained 0.6% to $26.78 an ounce but has shed 2.6% over the week, while palladium dipped by 0.1% to $2,282.67. Platinum rose 1.6% to $903.38 an ounce but was on track for its worst week since mid-June, down more than 2.8%. (Reporting by Nakul Iyer and Diptendu Lahiri in Bengaluru Editing by Mark Potter and David Goodman)

PRECIOUS-Gold slips as U.S. data bolsters economic recovery hopes

Sep 03 2020

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PRECIOUS-Gold eases as recovery hopes gain traction

Sep 02 2020

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