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Brijesh Patel

PRECIOUS-Gold hits one-week peak as U.S. stimulus hopes dent dollar

21 Oct 2020

* Dollar slips to one-week low * Stimulus hopes lift risk sentiment * Interactive graphic tracking global spread of coronavirus: open * https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Brijesh Patel Oct 21 Gold prices rose to a one-week high on Wednesday as the dollar weakened on renewed hopes for a new U.S. stimulus package ahead of the Nov. 3 election. Spot gold was up 0.6% at $1,917.57 per ounce by 1212 GMT, after touching its highest since Oct. 13. U.S. gold futures rose 0.3% to $1,920.90 per ounce. "There seems to be increasing hope that a stimulus deal can get through Congress before election day...This is broadly keeping risk appetite supported in the U.S., dragging on the dollar and lifting gold prices," OANDA analyst Craig Erlam said. The dollar index fell to a one-month low against its rivals, making gold less expensive for holders of other currencies. The White House and Democrats in the U.S. Congress moved closer to agreement on Tuesday as President Donald Trump said he was willing to accept a large aid bill despite opposition from his Republican Party. The comments from Trump also lifted equities. Gold, considered a hedge against inflation, currency debasement and uncertainty, has gained more than 26% this year, driven mainly by unprecedented levels of global stimulus to cushion economies from the coronavirus-induced slump. "There however appears no definite clarity on the continued shifting of positions on the stimulus relief bill which shorter-term traders can price into the precious metals market," Phillip Futures analysts said in a note. "Long term investors have shifted focus on what the November election outcome means for stimulus later, with a Democrat victory seen boosting gold's sentiment with a very large stimulus package." Elsewhere, silver rose 1.3% to $24.97 per ounce, platinum gained 0.9% to $878.93 and palladium eased 0.2% to $2,395.22. (Reporting by Brijesh Patel in Bengaluru; Editing by Louise Heavens/Mark Heinrich)

Gold to march higher but record-breaking rally will slow: Reuters poll

21 Oct 2020

BENGALURU Gold will average less than $2,000 dollars an ounce next year, a Reuters poll showed, as a record-breaking rally slows, although prices are still expected to touch new highs.

Recovering auto production revs up platinum, palladium prices, Reuters poll shows

21 Oct 2020

BENGALURU/LONDON Rising auto production as vehicle makers tentatively recover from the coronavirus shock will lift prices of platinum and palladium, but both metals used in vehicle exhausts will struggle to score significant gains, a Reuters poll showed.

PRECIOUS-Gold holds steady as focus turns to U.S. stimulus, election

20 Oct 2020

* Gold investors awaiting new market drivers -analyst * Gold has risen nearly 26% this year * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Brijesh Patel Oct 20 Gold prices were stable on Tuesday, hovering above $1,900, as investors awaited indications whether a new U.S. coronavirus stimulus package will be forthcoming before next month's presidential election. Spot gold was steady at $1,904.26 an ounce at 1154 GMT. U.S. gold futures eased 0.3% to $1,906.80. The dollar index slipped 0.2% against its rivals, lending support to gold by making the metal less expensive for holders of other currencies. "Investors' focus is on the new aid package for the U.S. economy, whether it will be successfully placed before the election," said Commerzbank analyst Eugen Weinberg. "The U.S. election is itself very important. The market is also (evaluating the) chances of each candidate and its impact on monetary policy going forward." U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin "continued to narrow their differences" on the stimulas package, Pelosi's spokesman Drew Hammill said. Gold, which has risen nearly 26% this year, tends to benefit from widespread stimulus from central banks because the metal is viewed as a hedge against inflation and currency debasement. "In the last few days there hasn't been much volatility on bullion as investors are awaiting new market drivers," ActivTrades' chief analyst, Carlo Alberto De Casa, said in a note. "Only a clear climb above $1,930 would give new strength to the price," he said, adding that, while the bull trend seems to have paused, "it is definitely not yet dead". Meanwhile, France reported a massive jump in the number of people hospitalised with COVID-19 and Ireland announced some of Europe's toughest restrictions to combat the virus. Among other precious metals, silver edged 0.1% higher to $24.51 an ounce, platinum rose 0.3% to $859.10 and palladium was up 0.1% at $2,345.94. (Reporting by Brijesh Patel in Bengaluru Editing by Susan Fenton and David Goodman )

PRECIOUS-Gold gains on weaker dollar, U.S. stimulus bets

19 Oct 2020

* Silver could rally to $40/oz over next 12 months- Citi * Pelosi optimistic of U.S. fiscal aid before elections * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Brijesh Patel Oct 19 Gold climbed on Monday as a softer dollar and optimism over a new U.S. stimulus agreement before next month's presidential election lifted demand for bullion as an inflation hedge. Spot gold was up 0.7% at $1,912.22 per ounce by 1147 GMT. U.S. gold futures rose 0.5% to $1,916. The dollar slipped 0.2% versus rivals, making gold less expensive for holders of other currencies. "The continued focus on the potential for a stimulus package being agreed to and introduced before the Nov. 3 election is continuing to impact gold," said Saxo Bank analyst Ole Hansen. "It seems like both parties are still, at least on paper, in discussion and keeping the door open for a deal to be reached... That's probably the key source of inspiration to a market that I would say in general has gone a bit stale." U.S. House Speaker Nancy Pelosi said on Sunday that differences remained with the Trump administration on a wide-ranging relief package but that she was optimistic legislation could be pushed through before Election Day. Gold, which has gained over 26% so far this year, tends to benefit from stimulus spending because it's considered a hedge against inflation risks and currency debasement. "We expect gold to trade cautiously around $1,900 level for now, the game changer being whether we can get (U.S) fiscal stimulus in the next 48 hours," said Howie Lee, economist at OCBC Bank. Concerns around fresh coronavirus-led restrictions in Europe and elsewhere also bolstered gold's safe-haven appeal. Elsewhere, silver climbed 2.7% to $24.82, having hit a near one-week peak. Citi said in a note it expects silver to rally to $40 over the next 12 months, on sustained investor demand and a recovery in industrial consumption in 2021. Platinum gained 1.7% to $874.50 per ounce and palladium rose 0.8% to $2,349.17. (Reporting by Brijesh Patel in Bengaluru; editing by Emelia Sithole-Matarise and Andrew Heavens)

Gold set for weekly decline as U.S. stimulus hopes ebb

17 Oct 2020

Gold fell and was on the way to its first weekly decline in three weeks on Friday, as fading chances of a U.S. stimulus agreement before the Nov. 3 presidential election dented the metal's appeal as an inflation hedge.

PRECIOUS-Gold faces weekly decline as stimulus hopes fade

16 Oct 2020

* Spot gold down 1% this week; silver down 3% * Dollar heads for first weekly rise in three * Time to prepare for no trade deal Brexit- UK PM * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Brijesh Patel Oct 16 Gold steadied as the dollar eased on Friday but was still set for its first weekly loss in three as doubts grew over a U.S. stimulus agreement before next month's presidential election. Spot gold was up 0.1% at $1,908.72 per ounce by 1204 GMT but down more than 1% so far this week. U.S. gold futures gained 0.2% to $1,913.30. "The lack of any physical stimulus now until post the U.S. election perhaps saw some liquidation of gold this week," said Robin Bhar, an independent analyst. "Gold is pretty much watching what other markets are doing, it doesn't really have too much of a catalyst itself to move significantly higher, and equally not much of a catalyst to move significantly lower." The dollar index was 0.2% lower on the day but still set for a weekly gain, making it more expensive for holders of other currencies to buy gold. U.S. President Donald Trump said on Thursday he was willing to raise his offer of $1.8 trillion for a relief deal with Democrats in Congress, but the idea was shot down by Senate Majority Leader Mitch McConnell. "The indecisiveness of the administration in Washington on the stimulus is putting a lot of volatility into our markets," said Afshin Nabavi, senior vice president at precious metals trader MKS SA. "Gold is stuck in a range and we need to break above $1,950 or below $1,850 to be able to have a new direction." Meanwhile, British Prime Minister Boris Johnson said on Friday it was time to prepare for a no-trade deal Brexit in 10 weeks as the European Union had refused to negotiate seriously. Silver rose 0.3% to $24.47 per ounce, but was down 3% for the week. Platinum fell 0.5% to $859.73 and palladium slipped 0.8% to $2,334.29. (Reporting by Brijesh Patel in Bengaluru; Editing by Louise Heavens and Elaine Hardcastle)

PRECIOUS-Gold gains on U.S. election uncertainty, economic worries

14 Oct 2020

* Dollar hits near one-week high * Equities hit by halted vaccine trials, stimulus talks impasse * Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Updates prices) By Brijesh Patel Oct 14 Gold prices rose on Wednesday after the last session's sharp drop spurred demand for the safe-haven metal from investors worried about global economic recovery and uncertainty surrounding next month's U.S. presidential election. Spot gold was up 0.4% to $1,899.11 per ounce by 1150 GMT, after shedding as much as 1.9% on Tuesday in reaction to the dollar's jump. U.S. gold futures rose 0.5% to $1,903.60. "We're seeing some price recovery as lower prices generated buying interest by investors since the general backdrop of gold is still positive," said Commerzbank analyst Carsten Fritsch. "Low interest rates, expansion of monetary policy, ballooning public debt, uncertainty regarding U.S. elections; all these factors are supportive for gold prices," he added. Gold is considered a hedge against inflation and currency debasement amid the unprecedented levels of global stimulus to ease the economic blow from the pandemic. But investors who trim risk assets also tend to shift into the dollar and fading hopes for a new coronavirus relief package in the United States and a pause in key COVID-19 vaccine trials boosted the U.S. currency's appeal, limiting gold's advance. The dollar hit a near one-week high against major currencies. "In the near term, the dollar could continue to rise both because of risk aversion because stimulus seems to be stuck and also because of (company) earnings forward guidance," said DailyFx currency strategist Ilya Spivak. Investors also kept an eye on the U.S. presidential campaign, with polls showing Democrat rival Joe Biden leading the race. On the technical side, "bullion will need to break through $1,920 to have the chance to once again challenge the psychological threshold of $2,000," ActivTrades chief analyst Carlo Alberto De Casa said in a note. Elsewhere, silver rose 0.1% to $24.20 per ounce, platinum gained 0.4% to $868.35 and palladium climbed 1.5% to $2,349.43. (Reporting by Brijesh Patel in Bengaluru Editing by Tomasz Janowski and Bernadette Baum)

Gold steady as stimulus hopes offset stronger dollar

13 Oct 2020

Gold steadied on Tuesday, buoyed by optimism a U.S. stimulus package would eventually be passed, bolstering the metal's appeal as an inflation hedge although gains were capped by a firmer dollar.

Gold slips from three-week high as dollar ticks up

12 Oct 2020

Gold slipped from a three-week peak on Monday as the dollar recovered some ground, but the prospect of more U.S. coronavirus relief spending and uncertainty surrounding next month's presidential election put a floor under prices.

World News

In final Trump-Biden showdown, less chaos but plenty of clashes

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