Edition:
India

Asha Sistla

Gold gains as souring U.S.-China relations hit risk appetite

6:04pm IST

Gold prices rose to their highest levels in nearly two weeks on Wednesday as U.S. Senate action on Hong Kong created a potential obstacle to a trade deal between the United States and China, denting appeal for riskier assets.

PRECIOUS-Gold slips as fresh hopes for U.S.-China deal boost stocks

19 Nov 2019

* European share markets hit four-year high * U.S. Fed minutes due on Wednesday * Support for gold around $1,450 - analyst * SPDR gold holdings fall 0.6% on Monday (Updates prices) By Asha Sistla Nov 19 Gold fell on Tuesday, erasing gains from earlier in the session, as a temporary reprieve from Washington for China's Huawei rekindled optimism for a trade deal between the countries and boosted risk sentiment. Spot gold was down 0.2% to $1,467.78 per ounce at 1228 GMT, reversing course from Asian trading hours, when prices rose to their highest since Nov. 7 at $1,475.40. U.S. gold futures fell 0.3% to $1,468.10 per ounce. "Stock markets are up, investors are less risk averse and prefer more risky assets against safe havens and that is also a factor (affecting gold)," Quantitative Commodity Research analyst Peter Fertig said. "Gold is following closely the statements from the U.S. administration concerning negotiations with China and whether U.S. President Donald Trump is going to sign a trade deal or not." European share markets reached a four-year high as a new extension granted by Washington to let U.S. companies keep doing business with Chinese telecoms giant Huawei boosted bets that the world's largest economies could reach a trade truce. However, some uncertainty prevailed, after a report on Monday suggested that the mood in Beijing was pessimistic about the prospects of sealing an agreement. Gold is also being pressured by a drop in oil prices, QCR's Fertig said. Oil prices extended declines, pressured by an expected rise in U.S. crude inventories. The precious metal is often seen as a hedge against oil-led inflation. Investors also awaited minutes from the U.S. Federal Reserve's October policy meeting due on Wednesday. The Fed cut rates three times this year - in part to offset what it views as damage done by the tariff war. But after their meeting in October, policymakers decided not to opt for rate cuts unless the economy took a turn for the worse. Holdings of the SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.6% to 891.79 tonnes on Monday from Friday. On the technical front, support for gold was around $1,450 while resistance lay around $1,470-$1,474, said Carlo Alberto De Casa, chief analyst at ActivTrades. "In the short term, the trend (for gold) is still bearish and for today we have a good chance of seeing gold closer to $1,470." Elsewhere, silver rose 0.5% to $17.10 per ounce, while palladium fell 0.2% to $1,735.00 per ounce. Platinum advanced 0.5% to $898.07 per ounce. (Reporting by Asha Sistla in Bengaluru Editing by Alexandra Hudson and Saumyadeb Chakrabarty)

Gold slips as U.S.-China trade deal optimism boosts equities

18 Nov 2019

Gold fell on Monday as growing optimism for a U.S.-China trade deal following a report of "constructive talks" over the weekend boosted sentiment for riskier assets.

PRECIOUS-Gold slips as trade optimism derails safe-haven demand

16 Nov 2019

(Updates prices) * Gold, silver eye weekly gain * Market awaits U.S. Fed minutes next week By Asha Sistla Nov 15 Gold prices slipped on Friday, on track to break a three-session winning streak as stock markets hit record highs following comments from U.S. officials that progress was being made on the "phase one" trade agreement with China. Spot gold was down 0.3% at $1,466.78 per ounce at 2:08 p.m. EST (1908 GMT). U.S. gold futures settled down 0.3% at $1,468.50 per ounce. "Overall trading gold has been impacted by the trade war and there is tremendous optimism with the final stages of getting stage one deal ratified," said Edward Moya, a senior market analyst at OANDA. "This has been the biggest headwind for the global economy and a major de-escalation is derailing the safe-haven demand (for gold)." Gold prices have gained more than 14% so far this year as the trade dispute between the world's biggest economies roiled financial markets, stoking fears of a global economic slowdown and prompting major central banks to reduce interest rates. Wall Street's main indexes hit record highs at the open on upbeat comments related to U.S.-China trade talks and strong earnings. U.S. Commerce Secretary Wilbur Ross said U.S.-China trade talks were set to continue with a telephone call on Friday as both sides seek to hammer out a phase one trade pact. Gold prices retreated from a near one-week peak hit on Thursday, but were still set for a weekly gain of about 0.6%. "This week's been a story of gold really trying to claw back some of the losses from the previous week, and it has done that to a degree, we are up from the lows from $1,450 and gold is attempting to get back above the 100-day moving average," said Mitsubishi analyst Jonathan Butler. "Next week we've got some interesting data - the manufacturing PMIs and FOMC meeting minutes coming out which will show whether there were any dissenting voices in U.S. Federal Reserve arguing for stronger set of rate cuts or whether the consensus was really for keeping the rates on hold." U.S. Federal Reserve Chair Jerome Powell on Wednesday signalled no further cuts will occur unless there is a "material" change in the economic outlook. Among other precious metals, silver fell 0.4% to $16.95 per ounce, but was on track for a gain of about 0.9% for the week. Platinum rose 1.2% to $891.19 per ounce and was set to register a rise of about 0.5% this week. Palladium was down 1.4% at $1,713.11 per ounce, on course to fall for the second straight week at about 1.7%. (Reporting by Asha Sistla and Harshith Aranya in Bengaluru Editing by Matthew Lewis and Tom Brown)

PRECIOUS-Gold rises on waning trade deal hopes and dip in equities, dollar

15 Nov 2019

(Recasts, adds comments, updates prices) * China's industrial production growth slows sharply in Oct * Permanent truce in trade war unlikely over the coming year -poll * GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl By Asha Sistla and K. Sathya Narayanan Nov 14 Gold prices rose on Thursday as investors remained concerned about the imminence of a trade deal between the United States and China, while a slip in riskier assets and the U.S. currency further supported the metal. Spot gold rose 0.7% to $1,472.66 per ounce as of 02:05 p.m. EST (1905 GMT). U.S. gold futures settled up 0.7% at $1,473.40 per ounce. "There were some concerns about the 'phase one' agreement as there seemed to be some sticking points on agricultural products. As a result we did see a little new wave of buying (in gold)," said David Meger, director of metals trading at High Ridge Futures. The trade negotiations have hit a snag over farm purchases, with China not wanting a deal that looks one-sided in the favor of the United States, the Wall Street Journal reported on Wednesday. Economists polled by Reuters said the United States and China were unlikely to reach a permanent truce over the coming year, and while concerns have eased over a U.S. recession, an economic rebound is also not expected any time soon. "The dollar being a bit weaker against major currencies along with the equity markets turning off from recent highs, both of those are additional, auxiliary, factors as to why gold and silver are higher," Meger added. Equities worldwide, Treasury yields and the U.S. dollar fell because of an assortment of weak economic data from around the globe, which added to worries regarding the slowdown in the global economy. China's factory output growth slowed more than expected in October, and Japan's economy ground to a near standstill in the third quarter as a result of the trade war and softer global demand, while Germany narrowly avoided slipping into recession in the third quarter. "Gold should be in greater demand at least in the short term because the negotiations of a partial agreement in the trade dispute between the U.S and China appear to have stalled," Commerzbank analyst Daniel Briesemann said in a note. The trade war and dovish global central banks have pushed gold prices more than 14% higher so far this year. Meanwhile, Federal Reserve Chair Jerome Powell on Wednesday said that the impact of three rate cuts this year is still to be fully felt and no further cuts will occur unless there is a "material" change in the economic outlook. Investors have read that to mean interest rates, to which gold is highly sensitive to, may be on hold until late next year. Among other precious metals, palladium gained 1.6% to $1,736.69 per ounce. Silver rose 0.6% to $17.05 per ounce, while platinum was up 0.9% at $881.34 per ounce. (Reporting by Asha Sistla and K. Sathya Narayanan in Bengaluru Editing by Matthew Lewis and Steve Orlofsky)

PRECIOUS-Gold rises as trade deal doubts pressure equities

14 Nov 2019

Nov 13 Gold gained on Wednesday as U.S. President Donald Trump's speech on the trade ties with China diminished optimism for a deal and dented risk appetite.

PRECIOUS-Gold slips as trade deal hopes fuel risk appetite

05 Nov 2019

* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl (Updates prices)

PRECIOUS-Gold eases on upbeat risk sentiment

05 Nov 2019

Nov 4 Gold edged lower on Monday as investors leaned towards riskier assets, driven by optimism on U.S.-China trade talks and fading fears of a global economic slowdown.

PRECIOUS-Gold eases on stronger equities, U.S.-China trade optimism

04 Nov 2019

* Palladium holds above $1,800, platinum scales over 1-month peak (Updates prices)

PRECIOUS-Gold gains ahead of Fed; palladium hits record high

30 Oct 2019

* Gold trend positive if prices hold above $1,460-$1,470- analyst

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