* Spot gold hits $1,897.91 per ounce
* U.S. weekly jobless claims rise to 1.416 million
* Palladium prices could reach $2,500/oz by mid-2021 -UBS
* GRAPHIC-2020 asset returns: http://tmsnrt.rs/2jvdmXl
(Recasts, adds comments, updates prices)
By Shreyansi Singh and Diptendu Lahiri
July 23 Gold prices jumped more than 1%, just
shy of the $1,900 level on Thursday, boosted by an easing dollar
and hopes for more stimulus to revive virus-hit economies, while
a rise in U.S. jobless claims raised concerns of a slower
Spot gold rose 0.8% to $1,886.09 per ounce by 2:06
p.m. EDT (1806 GMT), having hit its highest since September 2011
U.S. gold futures settled up 1.3% at $1,890.
"The macro environment continues to evolve favourably for
gold with the dollar index weakening to two-year lows and
negative real yields falling further," said Standard Chartered
analyst Suki Cooper.
The dollar dipped 0.3%, having hit a near two-year
low earlier, making gold less expensive for holders of other
"Expectations of further stimulus and heightening
geopolitical tensions continue to bolster safe-haven demand,"
Non-yielding gold has surged 24% this year, underpinned by
lower interest rates and widespread stimulus measures from major
U.S. Senate Republicans plan to propose another round of
direct payments to Americans in the next coronavirus relief
bill, a senior aide said on Thursday.
The number of Americans filing for unemployment benefits
unexpectedly rose last week for the first time in nearly four
months, suggesting the labour market was stalling amid a
resurgence in new infections.
"It (jobless claims data) tells you that at least here in
the States, we still have a long way to go before we recover,"
said Edward Meir, analyst at ED&F Man Capital Markets.
Elsewhere, silver was 2.2% lower at $22.52 per ounce,
having hit a nearly seven-year high earlier in the session.
Palladium edged down 0.2% to $2,142.79 per ounce, and
platinum fell 1.1% to $911.53.
Market tightness in the second half of 2020, supported by
monetary and fiscal stimulus measures, should support palladium
prices over the next 12 months, UBS said in a note. It added
that it expected the auto catalyst metal to reach $2,500/oz by
(Reporting by Shreyansi Singh and Diptendu Lahiri in Bengaluru;
Editing by Lisa Shumaker and Dan Grebler)
* Gold up 1.4% so far this week
* Palladium set for biggest weekly fall in two months
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3aIRuz7 in an external browser
(Recasts, adds comments, details; updates prices)
By Diptendu Lahiri
June 26 Gold erased earlier losses on Friday as
the relentless coronavirus spread globally with a record jump in
COVID-19 infections in the United States marring risk appetite
and setting the metal on track for its third straight weekly
Spot gold rose 0.3% to $1,767.28 per ounce by 1:50
p.m. EDT (1750 GMT). U.S. gold futures settled 0.5% up
"Investors are getting nervous due to the current rise in
coronavirus cases and quitting their positions in riskier assets
like stocks, while parking their investments in gold and bonds,"
said Bob Haberkorn, senior market strategist at RJO Futures.
Wall Street's major indexes dropped and benchmark 10-year
yield slipped to its lowest since early June as the
United States set a new record for a one-day increase in
Gold has gained 1.4% so far this week, but retreated
slightly from its highest level since October 2012 hit on
Wednesday as the rival safe-haven U.S. dollar took some shine
off the precious metal amid rising coronavirus cases.
More than 9.62 million people have been reported to be
infected by the novel coronavirus globally.
"We might see gold breaking the $1,800 level ...
fundamentals for gold are quite strong with rising coronavirus
cases, no vaccines yet and stimulus from major central banks
globally leading to concerns of inflation," said Edward Moya,
senior market analyst at broker OANDA.
Easy monetary policies and a string of stimulus measures by
major central banks to stem the virus impact have sparked
concerns of inflation, driving bullion prices about 16.5% higher
In other metals, palladium rose 1.5% to $1,869.24
per ounce, but was on track for its biggest weekly decline since
the week ending May 1.
Platinum fell 1.4% to $792.60 an ounce and silver
dropped 0.3% to $17.82.
(Reporting by Diptendu Lahiri in Bengaluru; editing by Emelia
Sithole-Matarise and Jonathan Oatis)
* Gold losing out safe-haven appeal to dollar
* Falls in gold being viewed as buying opportunities
* Platinum drops to more than one-week low
* For an interactive graphic tracking the global coronavirus
spread, open https://tmsnrt.rs/3aIRuz7 in an external browser
By Diptendu Lahiri
June 25 Gold prices drifted sideways on Thursday
as a surge in coronavirus cases and mounting economic tolls kept
investors on edge, though the metal stepped back from last
session's more than 7-1/2-year high.
Spot gold was little changed at $1,762.11 per ounce
as of 2 p.m. ET (1800 GMT), after hitting its highest level
since October 2012 at $1,779.06 on Wednesday. U.S. gold futures
settled 0.3% lower at $1,770.60.
"The market is taking into account what kind of
ramifications the second wave of the virus could have on the
economy," said David Meger, director of metals trading at High
"The (gold) market seems well supported due to the second
wave of coronavirus in the United States and around the world,
and the economic concerns related to that is elevating
safe-haven demand," Meger added.
The weekly jobless claims report on Thursday showed millions
continue to collect unemployment checks more than a month after
many businesses resumed operating following virus-led lockdowns.
Other data underscored expectations that the economy would
contract in the second quarter at its fastest pace since the
Gains in bullion, however, were cut by safe-haven flows into
the greenback. The dollar index was up 0.2%.
Australia and some U.S. states reported a spike in cases as
well as Latin America and India, the world's second biggest
"Falls in the gold price are still being viewed by investors
as buying opportunities," Commerzbank said in a note, adding,
"We therefore regard the latest weakness in the gold price as
temporary and envisage new highs in the near future."
In other precious metals, platinum was down 0.5% at
$796.28. The metal fell to its lowest since June 15 earlier in
the session, having posted its biggest one-day decline since
March 19 on Wednesday.
Palladium fell 1.1% to $1,844.30 per ounce and silver
rose 1.2% to $17.73.
(Reporting by Diptendu Lahiri in Bengaluru; editing by Jonathan
Gold prices edged lower in volatile trade on Thursday, as a spike in coronavirus cases and mounting economic tolls drove investors to the safety of the U.S. dollar and pressured risky assets.
* Gold hit $1,768.96/oz earlier in the session
* Dollar index falls 0.5%
* SPDR Gold Trust holdings at over 7-year high
By Diptendu Lahiri
June 23 Gold prices surged to their highest
since October 2012 on Tuesday, driven by weakness in the U.S.
dollar and widespread monetary stimulus packages by central
banks as a jump in coronavirus cases dented the economic
Spot gold climbed 0.7% to $1,765.99 per ounce by
01:54 p.m. ET (1754 GMT), after hitting $1,768.96, its highest
since October 2012. U.S. gold futures settled up 0.9% at
$1,782 per ounce.
"The tsunami of stimulus coming in from everywhere is not
only inflationary but also painting a weaker picture for the
economy and making gold look attractive," said Edward Meir,
analyst at ED&F Man Capital Markets.
Gold has gained nearly 16% this year, supported by global
stimulus measures since the non-yielding metal is considered a
hedge against inflation and currency debasement.
The dollar was down 0.5% at 96.60 against a basket of
currencies, making gold cheaper for non-U.S. currency holders.
More than 9.14 million people have been reported infected by
the coronavirus globally and 473,031 have died, a Reuters tally
showed on Tuesday.
Gold's gains came despite a rise in equities driven by
encouraging economic data and after U.S. President Donald Trump
tweeted that the U.S.-China trade pact was "fully intact".
"Gold's biggest enemy right now is if other markets grab
attention and capital," said Tai Wong, head of base and precious
metals derivatives trading at BMO.
"Barring a poor close under $1,750 in the coming days, the
October 2012 high of about $1,800 should only be a matter of
time, a week, perhaps less."
Holdings in SPDR Gold Trust , the world's largest
gold-backed exchange-traded fund, rose 0.58% to 1,166.04 tonnes
on Monday, a level last seen in April 2013.
Palladium was little changed at $1,938.46 per ounce,
platinum was up 0.8% at $828.73 per ounce and silver
rose 0.6% to $17.93 per ounce.
(Reporting by Diptendu Lahiri and Swati Verma in Bengaluru;
Editing by Sandra Maler, Tom Brown and Dan Grebler)
* SPDR Gold Trust holdings rose 2% on Friday
* Silver hits more than one-week high of $18.01/oz
By Diptendu Lahiri
June 22 Gold prices climbed 1% on Monday to hit
the highest level in more than a month, as investors took refuge
in the safe-haven metal after an uptick in coronavirus cases
dampened hopes for a quick economic recovery.
Spot gold was up 0.7% to $1,755.58 per ounce at 02:41
p.m. ET (1841 GMT). The session high was 1,762.84, the highest
since May 18.
Prices were $8.97 shy of a 7-1/2 year high of $1,764.55, hit
U.S. gold futures settled 0.8% higher at $1,766.40.
"There is some flight to safety in gold," said Bob
Haberkorn, senior market strategist at RJO Futures.
The rise in coronavirus cases globally has led gold to
break the $1,750 level, he said. "If we close above $1,765
today, the $1,800 level is not very far."
Gold, a safe haven during times of economic uncertainty, got
a boost after the World Health Organization on Sunday reported a
record jump in global infections, with the biggest increases in
North and South America.
Two U.S. Federal Reserve officials on Friday warned the
unemployment rate could rise again if the pandemic is not
brought under control.
Central banks across the globe have taken aggressive
stimulus measures and kept interest rates low during the crisis.
"There seems to be some increase in inflation expectations
which is pushing real rates lower and giving some support to the
gold price," said UBS analyst Giovanni Staunovo.
Lower interest rates reduce the opportunity cost of holding
The dollar index was down 0.5% at 97.15, making gold
cheaper for holders of other currencies.
Meanwhile, SPDR Gold Trust holdings on Friday rose 2% to
1,159.31 tonnes, the highest level since April 2013.
Silver rose nearly 1% to $17.77 per ounce, after
hitting a more than one-week high at $18.01. Palladium
was up 1.1% at $1,932.28 , while platinum gained rose
2.3% to $823.65, hitting more than a week high at $833.67.
(Reporting by Diptendu Lahiri and Eileen Soreng in Bengaluru;
Editing by David Gregorio, Andrea Ricci and Sonya Hepinstall)
* Palladium heads for second straight weekly decline
* Silver on track for second weekly gain
By Diptendu Lahiri
June 19 Gold gained on Friday as a rise in
coronavirus cases raised concerns of a second wave of the
pandemic that could compel governments to implement new
Spot gold was up 1.1% to $1,740.79 per ounce by 2:03
p.m. ET (1803 GMT), while U.S. gold futures settled 1.3%
up at $1,753 per ounce.
Spot prices reached their highest level since 2012 last
month at $1,764.55.
"There are continued upturns in COVID-19 throughout the
South and Southwest of U.S. with uptick in the hospitalization
rate. ... That has caused a little bit of concern of another
shutdown, which is benefiting gold," said Jeffrey Sica, founder
of Circle Squared Alternative Investments.
More than 8.38 million people worldwide have been infected
with the novel coronavirus. Earlier this week some 400 workers
at an abattoir in northern Germany tested for the virus, and
China on Friday reported 32 new cases of the virus.
"No matter what the long-term consequences, like inflation,
there will be continued stimulus throughout the world and that
will keep gold prices supported in the long term," Sica said.
So far this year, gold prices have risen about 15%,
supported by safe-haven demand in the midst of concerns of an
economic slowdown and unprecedented amounts of government and
central bank fiscal and monetary support, which has reduced bond
yields and has also raised fears about inflation.
"Spot gold has yet to close above $1,750, and if and when
that happens, we suspect renewed momentum and fresh buying from
underinvested hedge funds will propel the price higher towards
$1,800," Saxo Bank analyst Ole Hansen wrote in a note.
Against a basket of currencies, the dollar index was
Palladium fell 0.6% to $1,913.17 an ounce and was on
track for a second consecutive weekly decline. Platinum
gained 1.2% to $813.56 per ounce and was up 0.9% so far for the
Silver was up 0.6% at $17.62 and was on track for a
second week of gains.
(Reporting by Diptendu Lahiri and Shreyansi Singh in Bengaluru;
editing by Diane Craft and Leslie Adler)
Gold gained on Friday as a rise in coronavirus cases raised concerns over a second wave which could compel governments to implement another lockdown.
* U.S. jobless claims drop for 11th straight week
* Gold likely to hold $1,700-$1,750 over near term -analyst
By Diptendu Lahiri
June 18 Gold eased on Thursday after data showed
lower jobless claims in the United States and on reports Beijing
was bringing its latest coronavirus outbreak under control, but
mounting infections globally limited losses for the safe-haven
Spot gold fell nearly 0.1% to $1,724.99 per ounce by
2:57 p.m. (1857 GMT). U.S. gold futures settled down
0.3% at $1,731.10.
"Gold is giving up earlier gains due to some positive
reports from Beijing that they have contained the outbreak,"
said Edward Moya, senior market analyst at broker OANDA.
"The jobless claims data is getting better. The economic
situation might be getting better at last."
Initial claims for state unemployment benefits in the United
States dropped for the 11th straight week, pushing claims
further away from a record 6.867 million in late March.
However, the pace of U.S. labor market recovery appeared to
In China, fears over a 'second wave' of the pandemic eased
somewhat, as a medical expert said Beijing has brought its
latest outbreak under control.
Still, mounting infections worldwide continued to inspire
safe-haven buying of gold, driving the precious metal close to a
one-week high early in the session. Safe-haven appeal also
limited gold's decline despite competition from other safe
havens such as the U.S. dollar.
"Ongoing risks to the global economic recovery, especially
with regards to recent spikes in virus cases in both the U.S.
and China continue to underpin (gold's) price action. However, a
lack of physical demand is likely to see gold hold $1,700-$1,750
over the near term," MKS PAMP said in a note.
Elsewhere, palladium 0.2% to $1,917.03 per ounce,
while platinum slid 1.5% to $806.56 .
Silver was down nearly 1% at $17.41.
(Reporting by Diptendu Lahiri and Eileen Soreng in Bengaluru;
editing by David Gregorio and Chizu Nomiyama)
* Wall Street indexes inch higher in choppy trading
* Confirmation of 'second wave' could push gold to $1,740
* Beijing cancels scores of domestic flights
By Diptendu Lahiri
June 17 Gold prices were little changed on
Wednesday, buoyed by concerns over a second coronavirus wave and
expectations that the U.S. Federal Reserve would maintain low
interest rates in the near term, while a firm dollar put a lid
Spot gold was little changed at $1,726.24 per ounce
by 2:24 p.m. ET (1824 GMT).
U.S. gold futures settled slightly down at
While the strength in the dollar and, initially, U.S. stock
markets have weighed on gold, the fact that Fed Chair Jerome
Powell does not foresee any interest rate hikes in the near
future makes it "better to be a long-term investor in gold,
buying the metal at every small pullback," said Michael
Matousek, head trader at U.S. Global Investors.
Denting any advance in gold, the dollar also benefited from
With a full U.S. economic recovery out of reach until the
coronavirus pandemic is brought to heel, the Federal Reserve
will use its "full range of tools" to cushion households and
businesses, Powell told lawmakers.
Lower interest rates reduce opportunity cost for holding
The S&P 500 and the Dow edged higher in choppy
trading on Wednesday as hopes of a swift recovery from a
coronavirus-driven downturn were dented by fears of a record
rise in coronavirus cases in six U.S. states.
Meanwhile in China, Beijing cancelled scores of domestic
flights on Wednesday, ramping up attempts to contain a renewed
outbreak of the coronavirus.
The gold market is more long than short overall, so
investors are taking advantage of any rallies, trading in a
range of $1,730-$1,735 on the upside and $1,710-$1,715 on the
downside, said Afshin Nabavi, senior vice president at precious
metals trader MKS SA.
Elsewhere, palladium fell 0.5% to $1,922.78 an ounce
and platinum was down 0.3% at $818.10, while silver
gained 0.8% to $17.53.
(Reporting by Diptendu Lahiri and Eileen Soreng in Bengaluru
Editing by Jonathan Oatis and Steve Orlofsky)