Asha Sistla

PRECIOUS-Gold gains on fresh virus wave fears, gloomy Fed outlook

12 Jun 2020

* Gold up about 2.7% so far this week * SPDR Gold Trust Holdings hit over 7-year high * U.S. stock indexes rebound * Platinum set for biggest weekly fall since end-March (Updates prices) By Asha Sistla June 12 Gold prices gained on Friday as investors bought the safe-haven metal as fears of a fresh wave of coronavirus cases added to the gloomy economic outlook from the U.S. Federal Reserve. Spot gold rose 0.2% to $1,730.57 per ounce by 2:10 p.m. ET (1810 GMT) and has jumped about 2.7% so far this week, heading for its biggest gain since the week of April 10. U.S. gold futures settled down 0.1% at $1,737.30. "Despite the tentative stock market rebound this morning, we're seeing gold prices climb because there's still steady safe-haven demand by institutional traders," said Edward Moya, senior market analyst at broker OANDA. A recent spike in COVID-19 cases in about a dozen U.S. states partially reflects increased testing, but many of those states are also seeing rising hospitalizations. "This is not a second wave. This is just the virus working its way throughout the country and you're going to see that derail a lot of the reopening plans across the country, which means slower economic activity - that should support gold prices," Moya added. Major U.S. stock indexes bounced back from the previous session's rout on Thursday arising from Fed expectations of a long road to economic recovery that cast a shadow over investor bets on a quick economic rebound. Reflecting investor appetite, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust , rose 0.5% to 1,135.05 tonnes on Thursday, its highest in over seven years. Elsewhere, palladium rose 0.4% to $1,929.12 per ounce, while silver declined 1.5% to $17.43. Platinum eased 0.4% to $808.18 an ounce and was set for its biggest weekly fall since end-March. (Reporting by Asha Sistla in Bengaluru; Editing by Steve Orlofsky and Richard Chang)

REFILE-PRECIOUS-Gold eases on firmer dollar, but holds near one-week high

12 Jun 2020

(Refiling to fix time element regarding bullion in 1st paragraph) * Wall Street slides on fears of fresh coronavirus wave * Fed vows to keep monetary policy easy * New infection cases fuels risk-off sentiment - analyst By Asha Sistla June 11 Gold eased on Thursday as the dollar firmed but fears over a fresh wave of coronavirus infections and the U.S. Federal Reserve's pledge to keep interest rates low kept bullion close to its highest in over a week. Spot gold was down 0.33% at $1,730.58 per ounce at 2:04 p.m. EDT (1804 GMT), having earlier hit its highest since June 2 at $1,744.36. U.S. gold futures settled up 1.1% at $1,739.80. "You had a lot of fresh infections, which seemed to spook investors a bit so that pretty much put everybody into a risk-off and basically they're selling everything except for the dollar and natural gas," said Michael Matousek, head trader at U.S. Global Investors. The dollar rose versus major currencies, benefiting from safe-haven flows as Wall Street slumped on reports of a rise in virus cases as most U.S. states reopen. Traders did not read too much into the slight pullback in gold, saying the safe-haven metal's longer term trajectory was still positive. Tai Wong, head of base and precious metals derivatives trading at BMO, attributed it to "some adjustment from longs who have had quite a windfall over the last 24 hours." "Many market participants remain convicted that 'this time it will be different' as gold rallies once again to the top of range despite having failed break higher in four previous attempts over 10 weeks." On Wednesday, spot gold notched up its biggest daily percentage rise in more than a month, as the Fed flagged the need to keep the key interest rate near zero through at least 2022. Gold has rallied about 20% since touching an over three-month low of $1,450.98 on March 16. Low interest rates tend to support gold, considered a hedge against inflation and currency debasement. Elsewhere, silver declined 3.1% to $17.69 per ounce, after rising 3.8% on Wednesday. Palladium fell 1% to $1,928.03 per ounce, and platinum dipped 2.2% to $814.30. (Reporting by Eileen Soreng and Asha Sistla in Bengaluru; editing by Jonathan Oatis and Tom Brown)

PRECIOUS-Gold extends gains on dovish Fed statement

11 Jun 2020

* FOMC statement sees U.S. GDP decline 6.5% in 2020 * Dollar falls to three-month low * GRAPHIC-Reuters poll forecasts vs Fed's December forecasts https://tmsnrt.rs/3cP4tig * Gold could reach $1,800/oz on a 12-month basis - Goldman Sachs (Adds analyst comment, details; updates prices) By Asha Sistla June 10 Gold rose nearly 1% to a one-week high on Wednesday after the U.S. Federal Reserve held onto its pledge to ease the economic pain from the coronavirus pandemic, boosting bullion's safe-haven appeal. Spot gold rose 0.8% to $1,728.76 per ounce by 3:07 p.m. ET (1907 GMT). U.S. gold futures settled slightly lower by 0.1% at $1,720.70. "(Gold) hit daily high following the FOMC statement, which painted a pretty dour picture for the U.S. economy, although not unexpected," said Kitco Metals senior analyst Jim Wyckoff. "We didn't see any good news coming out of that FOMC statement and we did see that the interest rates are going to remain at the same levels, which are very low, through 2022 - and that's probably a little friendly for the gold market too." The Fed repeated its promise of continued extraordinary support for the economy as policymakers projected a 6.5% decline in gross domestic product this year and a 9.3% unemployment rate at year's end. On Wall Street, major indices such as the S&P 500 and Dow Jones Industrial Average were negative, while the dollar slumped to fresh three-month lows against other major currencies as investors. Large stimulus measures tend to support gold, which is often considered a hedge against inflation and currency debasement. "People are using gold as a safe-haven asset and also many believe that inflation will pick up in the coming quarters," said Phil Streible, chief market strategist at Blue Line Futures in Chicago. Goldman Sachs expects gold to reach $1,800 per ounce on a 12-month basis and the tail risk of above-target inflation as a potential driver for prices to climb beyond $2,000. Elsewhere, silver rose 2.3% to $17.99 an ounce, palladium fell 0.6% to $1,929.26, while platinum fell 0.9% to $829.83. (Reporting by Asha Sistla in Bengaluru Editing by Marguerita Choy and Jonathan Oatis)

PRECIOUS-Gold rises over 1% as caution sets in ahead of Fed meeting

09 Jun 2020

* Fed statement due at 1800 GMT on Wednesday * Wall Street's S&P 500 and Dow Jones indexes fall * Palladium down 30% from February's record peak (Updates prices) By Asha Sistla June 9 Gold jumped more than 1% on Tuesday as risk appetite took a back seat with cautious investors awaiting clarity on the state of the economy and further stimulus from the U.S. Federal Reserve's policy meeting. Spot gold gained 1.2% to $1,714.78 per ounce by 2:00 p.m. ET (1800 GMT). U.S. gold futures settled up 1% to $1,721.90. "The expectations of further Fed stimulus are in the forefront of what's been supporting gold over the last couple of days. In addition, we're also seeing global equities tick lower slightly across the board," said David Meger, director of metals trading at High Ridge Futures. "We're seeing an unprecedented amount of global liquidity and that underlying fundamental environment is extremely supportive for gold." Massive global stimulus to limit the economic damage from the coronavirus pandemic has supported gold, considered a hedge against inflation and currency debasement. Major Wall Street indexes fell, while tech-heavy Nasdaq hit a record high for the third straight session ahead of the Fed meeting, which could offer views on recent signs of economic recovery. Last week's stronger-than-expected U.S. employment report will most likely be discussed at the meeting ending Wednesday, while traders have stopped pricing in the possibility of negative interest rates. In April, Fed Chair Jerome Powell said the U.S. economy could feel the weight of the economic shutdown for over a year. Elsewhere, silver dropped 1.2% to $17.64 an ounce while platinum rose 0.5% to $836.52. Palladium dipped 4.1% to $1,939.50, with prices of the autocatalyst metal now down over 30% from a record peak in late February. "The corona crisis has led to a collapse in palladium demand, while supply disruptions for platinum outweighed this. Platinum should rise in line with gold, whilst palladium should benefit from a recovery in demand from automobile production," a Commerzbank analyst said in a note. (Reporting by Asha Sistla in Bengaluru Editing by Alistair Bell and Steve Orlofsky)

PRECIOUS-Gold falls over 2% as strong U.S. jobs data boosts recovery bets

05 Jun 2020

* U.S. unemployment rate falls to 13.3% in May from 14.7% in April

PRECIOUS-Gold gains 1% as Wall Street rally fizzles, dollar dips

05 Jun 2020

* SPDR Gold Trust holdings at highest since April 2013 (Updates prices)

PRECIOUS-Gold slips 1% as Wall Street bets on economic restart

03 Jun 2020

* China seeks to halt large U.S. soybean, pork purchases -sources

Asia gold: Top hubs struggle as customers continue to keep away

29 May 2020

BENGALURU/MUMBAI Asian physical gold hubs struggled to regain footing this week as most retail customers stayed away even as some coronavirus restrictions were eased.

Oil analysts see prices edging up but still capped below $40/bbl: Reuters poll

29 May 2020

Oil prices will gradually gain this year with demand improving and supply falling, although tensions between the United States and China are hanging over the coronavirus-hit market, a Reuters poll showed on Friday.

Asia gold: Demand slowly returns as top hubs reopen

22 May 2020

BENGALURU/MUMBAI Physical gold demand picked up in top Asian hubs this week as economies gradually come out of coronavirus lockdowns and as investors continued to buy bullion as a hedge against a worsening economic backdrop.

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