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K. Sathya Narayanan

PRECIOUS-Gold up, heads for second weekly rise as dollar eases off session high

Mar 19 2021

* Palladium heads for best week since early November * Gold up more than 0.9% this week (New throughout, updates prices, market activity and comments) By Brijesh Patel and K. Sathya Narayanan March 19 Gold rose on Friday, on track for a second weekly gain as U.S. Treasury yields dipped and dollar eased off session highs. Spot gold rose 0.3% to $1,742.14 per ounce at 3:11 p.m. EDT (1911 GMT), and was up 0.9% this week. U.S. gold futures settled up 0.5% at $1,741.70. "The 10-year rates have dropped a little bit and the dollar which was higher has also come off. We could see gold do a little bit better if the rates situation start to stabilize," said ED&F Man Capital Markets analyst Edward Meir. The U.S. 10-year yields eased after hovering near a more than one-year peak scaled in the last session. The dollar retreated from the session peak, which was its highest in more than a week. "The expected growth prospects, continuation of the relatively low interest rate environment does bring about some fears of inflation," which is gold supportive, said David Meger, director of metals trading at High Ridge Futures. Gold is often seen as a hedge against inflation, but higher yields have threatened that status. On the technical front, "in the near term gold faces resistance around the $1,765/oz level," said Standard Chartered analyst Suki Cooper. Meanwhile, the first high-level U.S.-China meeting of the Biden administration got off to a fiery start on Thursday, with both sides leveling sharp rebukes of the others' policies. "The fact that the talks did not go well could be a little bit supportive... (but) right now it is mainly a war of words," Meir said, pointing to the tit-for-tat tariffs the two sides had exchanged in the past. Gold is seen as a safe haven during times of political uncertainties. Elsewhere, palladium fell 1.9% to $2,630.59 per ounce, but was up 11% for the week - its biggest since early November. Platinum dropped 0.9% to $1,196.51 an ounce, while silver rose 0.5% to $26.17. (Reporting by Brijesh Patel, Eileen Soreng and K. Sathya Narayanan in Bengaluru. Editing by Barbara Lewis, Mark Potter and David Gregorio)

Gold jumps over 2% on retreating U.S. yields, dollar

Mar 09 2021

Gold surged more than 2% on Tuesday on the back of a retreat in U.S. Treasury yields and a weaker dollar, staging a strong recovery from the nine-month low it hit in the previous session.

PRECIOUS-Gold jumps over 2% on retreating U.S. yields, dollar

Mar 09 2021

* SPDR Gold holdings hit lowest since April 2020 (Updates prices)

PRECIOUS-Gold rises as easing bond yields offset firm dollar

Mar 04 2021

* Powell's comments at virtual Jobs Summit awaited * U.S. Senate delays debate on $1.9 trillion stimulus bill (Updates prices) By K. Sathya Narayanan March 4 Gold rose on Thursday, buoyed by lower U.S. Treasury yields, but a firm dollar limited bullion's advance and kept it near a nine-month low. Spot gold was up 0.5% at $1,719.67 per ounce at 1228 GMT, having dropped on Wednesday to its lowest since June 9 at $1,701.40. U.S. gold futures rose 0.1% to $1,717.70. The U.S. dollar climbed 0.2% against key rivals, making gold more expensive for investors holding other currencies. U.S. Treasury yields inched down, but were still at elevated levels, while Germany's 10-year yield also eased. "You have two conflicting forces," Quantitative Commodity Research analyst Peter Fertig said. "However, it is still not an environment, currently, which would argue to be overweight in the precious metals," and rather than overall (yield) levels, it's more the change in bond yields that would impact gold prices, Fertig added. Gold is considered a hedge against inflation which could result from massive economic stimulus measures, but that status has been threatened by higher bond yields, which increase the opportunity cost of holding non-yielding bullion. Investors awaited any remarks from U.S. Federal Reserve Chair Jerome Powell on the rapid rise in yields and clues on policy outlook when he speaks at a virtual Wall Street Journal Jobs Summit at 1705 GMT. The market will need more than "jawboning" if the Fed is serious about keeping interest rates low and the yield curve would continue to steepen in the absence of that, which is negative for gold, said Howie Lee, an economist at OCBC Bank. Meanwhile, the U.S. Senate delayed a debate on a $1.9 trillion COVID-19 relief bill until at least Thursday. Silver was steady at $26.09 per ounce, while palladium slipped 0.1% to $2,350.68. Platinum fell 0.5% to $1,160.98 per ounce. (Reporting by K. Sathya Narayanan and Sumita Layek in Bengaluru. Editing by Susan Fenton and Mark Potter)

PRECIOUS-Gold slips as U.S. bond yields and equities dull its appeal

Mar 03 2021

* Fed officials keep emphasis on monetary easing * U.S. Senate to debate $1.9 trillion stimulus package this week (Updates prices) By K. Sathya Narayanan March 3 Gold prices fell on Wednesday as U.S. Treasury yields resumed their advance and global equities also firmed, reducing the appeal of safe-haven bullion. Spot gold fell 0.8% to $1,725.00 per ounce by 1251 GMT, having dropped to its lowest since June 15 at $1,706.70 on Tuesday. U.S. gold futures were down 0.6% to $1,724.00. The main driver for gold remains U.S. 10 year Treasury yields, said analyst Xiao Fu at Bank of China International. "It seems like the broad equity market is stable, with a moderate risk-on sentiment, so that (also) diminishes safe-haven demand for gold," she added. Benchmark U.S. 10-year Treasury yields edged higher but remained short of a one-year peak reached last week, while global equities and U.S. dollar gained. Though gold is seen as an hedge against rising inflation, higher yields have threatened that status because they increase the opportunity cost of holding non-yielding bullion. "There's a clear trend for gold to the downside, and as long as fiscal stimulus keeps getting pumped into the U.S. economy and the U.S. Federal Reserve remains reticent about doing something to quash yields, gold prices will struggle," said IG Market analyst Kyle Rodda. Progress on the $1.9 trillion U.S. stimulus bill is being watched closely by investors, with the Senate due to debate the legislation this week. "We anticipate recent headwinds to intensify again into the second half of this year, particularly as greater U.S. stimulus raises the prospect of an earlier than planned Fed rate hike," UBS analysts wrote in a note. Fed officials, however, maintain that they will keep monetary easing in place despite a potential bout of inflation this spring. In other precious metals, silver fell 0.7% to $26.56 an ounce, while palladium shed 0.5% to $2,351.18 and platinum eased 0.2% to $1,201.74. (Reporting by K. Sathya Narayanan and Sumita Layek in Bengaluru; editing by David Goodman and Jason Neely)

PRECIOUS-Gold set for second monthly dip as high U.S. yields erode appeal

Feb 26 2021

* Gold down 4.5% for the month * Silver set for first monthly fall in three * Palladium, platinum eye best month since November (Updates prices) By K. Sathya Narayanan Feb 26 Gold fell on Friday and was headed for its second straight monthly decline, as U.S. Treasury yields held near a more than one-year high, eroding bullion's safe haven status. Spot gold fell 0.4% to $1,762.44 per ounce by 1321 GMT, having earlier touched its lowest since June 2020 at $1,754.70. U.S. gold futures dropped 0.9% to $1,760.00. "The main factor weighing on gold is the surge in bond yields, which makes gold less attractive because it doesn't pay any interest," said Commerzbank analyst Carsten Fritsch. Bullion had dropped 1.9% on Thursday and was down about 4.5% for the month. The benchmark U.S. 10-year Treasury yields on Friday were hovering near an over one-year high scaled in the previous session. While gold often benefits from expectations for more stimulus measures, given its status as an inflation hedge, government debt has turned out to be a more attractive bet for investors of late since bullion does not pay any fixed interest. "Gold fell out of favour of investors, a clear sign you can see from continued outflows in gold exchange-traded funds (ETFs)," Fritsch said. Holdings in the world's largest gold-backed ETF, SPDR Gold Trust , fell 0.6% on Thursday to its lowest since May 2020. "Bullion has failed to hold $1,800 and has now broken the support at $1,775, opening space for further declines," ActivTrades chief analyst Carlo Alberto De Casa said in a note. "A strong greenback could be detrimental for gold as investors are switching back to bonds in the search for yields." Silver slipped 2.2% to $26.80 an ounce and was poised for its first monthly decline in three, down 0.7% so far. Palladium declined 2.4% at $2,343.11, while platinum fell 2% to $1,191.60. However, both the auto-catalyst metals were set to register their best month since November. (Reporting by K. Sathya Narayanan and Sumita Layek in Bengaluru; Editing by Shinjini Ganguli and Amy Caren Daniel)

PRECIOUS-Gold holds in tight range after Powell policy comments

Feb 24 2021

* Powell says economy still needs Fed support * Powell testimony to resume at 1500 GMT * U.S. 10-year yields hover near one-year high (Updates prices) By K. Sathya Narayanan Feb 24 Gold edged higher on Wednesday on a weaker dollar but the metal held in a tight range as investors digested monetary policy cues from Federal Reserve Chair Jerome Powell. Spot gold was up 0.2% at $1,807.70 per ounce by 1235 GMT. U.S. gold futures rose 0.2% to $1,808.90. Powell told the U.S. Senate Banking Committee that monetary policy still needed to be accommodative with economic recovery "uneven and far from complete". His testimony continues later in the day. He also mentioned that the increase in bond yields was due to higher inflation and growth expectations. "Powell did say that the recent run-up in bond yields was a statement of confidence in the U.S. economy, and that ... could mean the Fed is willing to allow rates to run even higher, which will create a challenge for gold," Saxo Bank analyst Ole Hansen said. "For gold to recover again, it needs to be the inflation focus. The focus has faded and has been substituted by the current nervousness about the yields going higher." U.S. Treasury yields hovered close to a one-year high, while the dollar eased 0.1% against key rivals, holding near a six-week low it touched in the previous session. Rising yields tend to hurt bullion's appeal as an inflation hedge since they increase the opportunity cost of holding the metal. But Powell's remarks also indicated that "the stimulus trade is unlikely to go away anytime in the next six months", Michael Langford, director at corporate advisory AirGuide said, adding the potential impact of inflation as a result of stimulus measures will be a key upward driver for gold. Silver rose 0.6% to $27.78 an ounce. Platinum climbed 2.5% to $1,267.38, while palladium added 0.9% to $2,372.27. The market expects the price difference between gold and platinum to narrow, amid an outlook for higher demand for auto-catalysts due to new green technologies, Saxo Bank's Hansen said. (Reporting by K. Sathya Narayanan and Sumita Layek in Bengaluru; Editing by Nick Macfie and Jane Merriman)

PRECIOUS-Gold eases as dollar firms and investors await Powell testimony

Feb 23 2021

* Gold's trend seems to be to the downside -analyst * U.S. 10-year yields hover near one-year high (Updates prices) By K. Sathya Narayanan Feb 23 Gold eased from a one-week peak on Tuesday, pressured by a firmer dollar, but held in a tight range as investors turned cautious ahead of U.S. Federal Reserve Chairman Jerome Powell's testimony to Congress later in the day. Spot gold slipped 0.1% to $1,807.60 an ounce by 1156 GMT, trading between $1,802.80 and $1,815.63 during the session. U.S. gold futures eased 0.1% to $1,807.00. Movements in gold are indicative of a "wait and see approach", said OANDA analyst Craig Erlam. The testimony before the Senate Banking Committee on Tuesday and House of Representatives Financial Services Committee on Wednesday will be Powell's first since President Joe Biden and his fellow Democrats took control of the White House and Capitol Hill. "There are clearly going to be a number of questions around what (rising U.S. Treasury yields, stimulus and improved economic outlook) would mean for inflation, the Fed outlook and the risks associated with it," OANDA's Erlam said. Bullion earlier rose to its highest since Feb. 16 at $1,815.63 as the dollar briefly touched a more than one-month low. However, the U.S. currency has since rebounded and was last up 0.1% against key rivals. Also tarnishing appeal for non-yielding bullion, benchmark U.S. Treasury yields hovered near a one-year high scaled on Monday. "Gold's trend seems to be to the downside, and there's no indication that it's reversing for now ... until we get a real spike in inflation expectations or a Fed that talks about controlling the yield curve," said IG Market analyst Kyle Rodda. Rising yields tend to hurt bullion's appeal as an inflation hedge since they increase the opportunity cost of holding the metal. Silver was down 0.9% at $27.92 an ounce, having earlier hit a three-week peak at $28.31. Platinum fell 1.9% to $1,248.93 while palladium lost 1.3% to $2,365.27. (Reporting by K. Sathya Narayanan and Sumita Layek in Bengaluru Editing by Philippa Fletcher and David Goodman)

PRECIOUS-Gold recovers from 7-month low but on course for weekly drop

Feb 19 2021

(Updates prices) * Platinum looks set to post third weekly gain * U.S. dollar eyes second straight weekly loss By K. Sathya Narayanan and Shreyansi Singh Feb 19 Gold prices edged higher on Friday, recovering from a more than seven-month low hit earlier as the U.S. dollar eased, but rising Treasury yields kept bullion on course for its biggest weekly drop since early January. Spot gold was up 0.3% at $1,780.86 per ounce by 02:17 p.m. EST (1917 GMT), after falling to its lowest since July 2 at $1,759.29 earlier. The safe-haven metal was down about 2.4% so far this week, its biggest weekly drop since the week of Jan. 8. U.S. gold futures settled up 0.1% at $1,777.40. "The drop in the U.S. dollar has likely driven gold higher," said Bart Melek, head of commodity strategies at TD Securities, adding the move could also be technical in nature. The dollar was down 0.3% against key rivals and looked set to post its second straight weekly loss. "(However), the problem (for gold) continues to be the yields, and we continue to see rates across the curve move higher," Melek added. Benchmark U.S. Treasury yields rose to a near one-year high earlier. While gold is seen as an inflation hedge, higher inflation expectations have pushed yields up, increasing the opportunity cost of holding non-yielding bullion. Gold should still benefit from continued loose monetary policy and low real interest rates this year, analysts said. Commerzbank analysts said in a note that gold's behaviour resembled that of a tsunami, with prices receding in the first phase before coming back all the more violently. Autocatalyst metal platinum edged 0.2% higher to $1,277.18 an ounce and was set to post its third straight weekly gain, having risen to a more than six-year peak earlier in the week. Palladium rose 1.1% to $2,376.58 an ounce. Silver rose 0.8% to $27.25, but was set to register a weekly loss. (Reporting by K. Sathya Narayanan, Nakul Iyer and Shreyansi Singh in Bengaluru; Editing by Jan Harvey, Nick Macfie and Jane Merriman)

PRECIOUS-Gold holds near multi-month lows as U.S. yields advance

Feb 18 2021

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

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