Edition:
United States

Swati Verma

PRECIOUS-Gold slides over 1% after Trump pauses U.S. stimulus talks

Oct 06 2020

* U.S. economic recovery remains far from complete- Fed's Powell * Gold slides from 2-week high of $1,920.71/oz * Platinum, silver shed more than 4% * Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Recasts, updates prices, adds comments) By Arundhati Sarkar and Swati Verma Oct 6 Gold declined over 1% on Tuesday, retreating from a two-week high hit earlier, after U.S. President Donald Trump called off negotiations for a coronavirus relief stimulus package until after the election. Spot gold dropped 1.4% to $1,886.01 per ounce by 4:06 p.m. EDT (2006 GMT). U.S. gold futures fell 1.6% to $1,890.20 in post-settlement trade after closing 0.6% lower at $1,908.80. "Gold prices have come under further pressure as President Trump has paused negotiations over the fiscal stimulus package, the dollar has strengthened and weighed on gold prices," said Standard Chartered analyst Suki Cooper. Trump's surprise move came after U.S. House of Representatives Speaker Nancy Pelosi said on Sunday that progress was being made in her negotiations with the Trump administration on a relief bill. Gold tends to benefit from widespread stimulus measures from central banks as it is widely viewed as a hedge against inflation and currency debasement. Bullion hit its highest level since Sept. 21 at $1,920.71 earlier on Tuesday. "Gold needs to hold $1,880 or we could revisit $1,850, but I do feel strongly that this move is temporary, it's not like a deal was imminent," said Tai Wong, head of base and precious metals derivatives trading at BMO. Earlier in the day, Federal Reserve Chair Jerome Powell warned the U.S. economic recovery remains far from complete and could still slip into a downward spiral if the coronavirus is not effectively controlled and growth sustained. "The reason that the market is hoping for a fiscal deal is because in our view, gold has actually conditioned from a safe haven asset into an inflation hedge asset," said Daniel Ghali, commodity strategist at TD Securities. "As an inflation hedge asset, the bottleneck here is actually inflation expectation. The market would need to see them rise further to pull real rates lower and gold higher." Elsewhere, silver shed 4% to $23.37 per ounce, platinum declined 4.6% to $856.15, while palladium eased 0.9% to $2,341.77. (Reporting by Arundhati Sarkar and Swati Verma in Bengaluru Editing by Sonya Hepinstall)

PRECIOUS-Gold rises, erasing losses as dollar retreats from highs

Sep 28 2020

* Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Updates prices)

PRECIOUS-Gold drops as dollar extends gains; focus on Fed commentary

Sep 22 2020

(Updates prices) * Fed's Powell says economy's path 'highly uncertain' * Fed's Evans sees 'recessionary dynamics' without fiscal aid * Dollar jumps to highest in nearly 2 months * Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ By Swati Verma Sept 22 Gold fell for a second straight session on Tuesday as the dollar climbed to a near two-month peak, with investors keeping a close eye on remarks from U.S. Federal Reserve officials on the state of the economy. The path ahead for the economy remains uncertain and the U.S. central bank will do more if needed, Federal Reserve Chair Jerome Powell told a congressional panel on Tuesday. Separately, Chicago Federal Reserve President Charles Evans said the U.S. economy risks recession, if the U.S. Congress fails to pass a fiscal package. Spot gold had fallen 0.4% to $1,904.34 per ounce by 1:53 p.m. EDT (1753 GMT), reversing earlier gains. U.S. gold futures settled down 0.2% at 1,907.60 per ounce. A steep sell-off across asset classes on Monday dragged gold down to its lowest level since Aug. 12, at $1,882.70. "When we see gold and equities down both at the same time, investors need cash. Precious metals are always a good source of raising cash. It was a factor yesterday but today we think it's mostly dollar and technical," said Chris Gaffney, president of world markets at TIAA Bank. "The dollar is maintaining its strength and fundamentally that is weighing on gold prices." The dollar notched a high since late-July, which along with Washington's lack of progress on reaching a fiscal stimulus agreement weighed on bullion. Gold has pared gains since hitting a record peak in August as the U.S. Congress for weeks has remained deadlocked over the size and shape of its next coronavirus response bill. Expectations are that the death of Justice Ruth Bader Ginsburg will create additional division between the Democrats and the Republicans, which would mean a smaller chance of a stimulus plan coming soon, said David Meger, director of metals trading at High Ridge Futures. In other metals, silver fell 1.1% to $24.45, platinum dropped 1.6% to $867.67 and palladium was down 2.2% to $2,223.36. (Reporting by Arundhati Sarkar and Diptendu Lahiri in Bengaluru Editing by Marguerita Choy and Nick Macfie)

India's weak fuel demand drags on as virus crisis worsens

Aug 12 2020

India's fuel demand dragged lower in July, posting its fifth consecutive year-on-year decline, government data showed on Tuesday as a spike in coronavirus cases and floods in many parts of the country restricted economic activity.

UPDATE 1-India's weak fuel demand drags on as virus crisis worsens

Aug 11 2020

* Sales of petrol in July 10.3% lower from a year ago (Adds milestones, background)

India's June crude oil imports lowest in over five years; exports dip

Jul 31 2020

India's crude oil imports fell in June to their lowest level since February 2015, while year-on-year refined product exports declined for the first time in almost a year, government data showed on Friday.

CORRECTED-PRECIOUS-Gold set to break longest winning streak since end-2017

Jul 30 2020

* Q2 U.S. GDP contracts at steepest pace since Great Depression

PRECIOUS-Gold nears record peak after Fed flags risks to economic recovery

Jul 29 2020

* Fed's Powell says continued fiscal and monetary support needed * Fed says committed to low rates, using "full range of tools * Silver eases from last session's multi-year high * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (New throughout; updates prices, comments after Fed statement) By Swati Verma July 29 Gold prices gained in volatile trade on Wednesday, nearing the last session's record peak at one point, after the U.S. Federal Reserve vowed to keep interest rates near zero as the rapid rise in coronavirus cases dampens hopes for an economic recovery. Spot gold was up 0.5% at $1,969.16 per ounce by 4:20 p.m. EDT (2020 GMT), while U.S. gold futures settled 0.5% higher at $1,953.4. During Fed Chair Jerome Powell's press conference following the close of the U.S. central bank's two-day policy meeting, gold jumped as much as 1.1% to $1,980.31 an ounce, just below the record high of $1,980.57 scaled on Tuesday, but pared gains soon after. "The gold price action around the Powell presser - up, down sharply, recovering - when the chair was careful and neutral, suggests a developing plurality of viewpoints at current levels in the market," said Tai Wong, head of base and precious metals derivatives trading at BMO. "That, after a long rally, indicates a higher probability of a short-term correction." The current economic downturn is severe and continued fiscal and monetary support will be necessary for a recovery, Powell said, following the release of the U.S. central bank's latest policy statement. Fed policymakers said they remain committed to using their "full range of tools" to support the economy and keeping interest rates near zero for as long as it takes for the economy to recover. Massive stimulus packages to aid economies around the world reeling from pandemic-driven woes and a low interest rate environment have helped drive gold prices up nearly 30% so far this year. "The fundamentals for gold have never been better," said Jeffrey Sica, founder of Circle Squared Alternative Investments. But, he said, gold is going to face resistance near the $2,000 level. "You've a lot of people trading gold short-term now, so we are going to get some pullback just on what I would consider simple profit-taking since it's had such an incredible run year-to-date," Sica said. In other metals, silver dropped 1.5% to $24.19 per ounce, platinum fell 1.6% to $932.69, and palladium slid 5.9% to $2,148.78. (Reporting by Swati Verma and Nakul Iyer in Bengaluru; Editing by Leslie Adler)

PRECIOUS-Record rally for gold stalls ahead of U.S. Fed meeting

Jul 28 2020

* Goldman Sachs raises 12-month gold price forecast to $2,300

REFILE-PRECIOUS-Gold's rally loses steam as investors drift towards dollar

Jul 10 2020

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser

World News