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Eileen Soreng

Copper seen struggling to hit further highs in 2021

21 Oct 2020

LONDON/BENGALURU Copper prices will struggle to scale fresh peaks next year after a stunning recovery from coronavirus-related shocks in leading global consumer China, despite a wider deficit, a Reuters poll showed. <0#BASEMETALPOLL>

PRECIOUS-Gold gains on renewed hopes of U.S. stimulus deal, weaker dollar

21 Oct 2020

* Spot gold hits one-week peak at $1,920.27/oz * Gold may test resistance at $1,935/oz- technical analyst * Dollar hits one-month trough * Interactive graphic tracking global spread of coronavirus: open * https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Eileen Soreng Oct 21 Gold rose on Wednesday as optimism that U.S. lawmakers could reach an agreement on a pre-election coronavirus relief package weakened the dollar and bolstered bullion's appeal as a hedge against inflation. Spot gold gained 0.6% at $1,918.56 per ounce by 0742 GMT, after hitting a one-week high earlier in the session. U.S. gold futures were up 0.4% at $1,922.10 per ounce. 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 news lifted appetite for equities and sent the dollar index to a one-month low, bolstering gold's appeal to other currency holders. "The falling U.S. dollar is the main contributor to gold's rally ... Gold may eventually complete this consolidation period and trend upwards," said Margaret Yang, a strategist with DailyFx, which covers currency, commodity and index trading. "A very accommodative monetary and fiscal policy environment, low interest rates and uncertainties surrounding the virus and presidential elections" could push prices to $2,000 and above by end-2020, Yang added. Gold has been range-bound near the psychologically important $1,900 level in the past few sessions, as investors tracked developments on the U.S. stimulus. Prices have gained more than 26% this year, helped by near-zero interest rates globally and unprecedented stimulus to ease the economic blow from a worsening pandemic. The market needs more certainty on the stimulus front before taking a position, IG Markets analyst Kyle Rodda said. Gold may test a resistance at $1,935 per ounce, a break above which could open the way towards $1,967, according to Reuters technical analyst Wang Tao. Elsewhere, silver rose 1.4% to $24.99 per ounce, platinum was up 0.7% at $877.25 and palladium gained 0.4% at $2,409.00. (Reporting by Eileen Soreng and Nakul Iyer in Bengaluru; Editing by Aditya Soni, Rashmi Aich and Amy Caren Daniel)

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

21 Oct 2020

* Spot gold hits one-week peak at $1,920.27/oz * Dollar hits one-month trough * Interactive graphic tracking global spread of coronavirus: open * https://tmsnrt.rs/3aIRuz7 in an external browser (Adds comments, updates prices) By Eileen Soreng Oct 21 Gold prices rose on Wednesday as optimism that U.S. lawmakers could reach agreement on a pre-election coronavirus relief package pressured the dollar and bolstered the precious metal's appeal as an inflation hedge. Spot gold gained 0.6% to $1,917.76 per ounce by 0323 GMT, having earlier hit a one-week high. U.S. gold futures were up 0.4% at $1,922.80. The White House and Democrats in the U.S. Congress moved closer to agreement on a fresh stimulus package on Tuesday as President Donald Trump said he was willing to accept a large aid bill despite opposition from his Republican Party. Talks will continue on Wednesday, an aide to top U.S. Democrat Nancy Pelosi said. The news lifted risk appetite and sent the dollar index to a one-month low against a basket of major currencies. "The falling U.S. dollar is the main contributor to gold's rise," said Margaret Yang, a strategist with DailyFx, which covers currency, commodity and index trading. The pandemic has prompted unprecedented money printing and low-interest rates globally, putting gold on track for its best year in a decade given its appeal as a hedge against inflation and currency debasement. But the precious metal has been rangebound in the past few sessions, hovering near the psychologically important level of $1,900, as investors await developments on the U.S. stimulus deal. The market needs more certainty on the U.S. stimulus front before taking a position, IG Markets analyst Kyle Rodda said. On the physical front, customs data showed Switzerland's gold exports to China and India dwindled in September, with the country instead importing record volumes of bullion from Hong Kong and sending the metal to Britain. Elsewhere, silver rose 1.4% to $24.98 per ounce, platinum was up 0.8% at $877.91. Palladium was 0.4% higher at $2,407.95. (Reporting by Eileen Soreng in Bengaluru; Editing by Uttaresh.V, Aditya Soni)

PRECIOUS-Gold holds tight range on caution over U.S. aid

20 Oct 2020

* Gold could test $1,932/oz if stimulus is passed- analyst * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Eileen Soreng Oct 20 Gold traded on Tuesday in a narrow range above $1,900 an ounce as caution spread ahead of a deadline for agreement on a new U.S. coronavirus stimulus package and next month's presidential election. Spot gold fell 0.2% to $1,900.71 per ounce by 0757 GMT. U.S. gold futures were down 0.4% to $1,903.30. "Sentiment surrounding bullion remains tentative, keeping spot gold around the $1,900-mark, as some...continue to hold out hope that Democrats and the White House can arrive at a deal over the immediate term," said FXTM market analyst Han Tan. "Bullion may continue moderating as such hopes wane, when realisation sinks in that a fresh round of U.S. fiscal stimulus is likelier to be a post-election event." U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin "continued to narrow their differences" about the package, her spokesman Drew Hammill said. Pelosi hopes that by the end of Tuesday there will be "clarity" on whether a stimulus bill can be passed before the Nov. 3 election, he wrote on Twitter. 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. "A lot of investors are on the sidelines and also in particular because the (U.S.) elections are coming up," said Brian Lan, managing director at GoldSilver Central, adding that a stimulus would make bullion prices test the higher end of the $1,882-$1,932 range. Investors are now waiting for the final debate between U.S. President Donald Trump and his Democratic challenger Joe Biden on Thursday. The dollar index was flat versus rivals, while Asian stocks slipped as investors adjusted risk exposure heading into the election. Elsewhere, silver fell 0.5% to $24.37 per ounce and platinum dipped 0.4% to $852.81, while palladium rose 0.2% to $2,348.83. (Reporting by Eileen Soreng in Bengaluru; editing by Uttaresh.V and Subhranshu Sahu)

PRECIOUS-Gold firms on coronavirus woes, U.S. stimulus hopes

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 (Recasts, adds comments, updates prices) By Eileen Soreng Oct 19 Gold prices rose on Monday underpinned by concerns of a worsening COVID-19 pandemic, while hopes for a new U.S. stimulus package before the November presidential election also supported prices of the precious metal. Spot gold gained 0.6% to $1,909.90 per ounce by 0725 GMT, while U.S. gold futures were up 0.3% at $1,912.40. "The resurgence of COVID-19 in Europe has increased the possibility of a double dip recession and a protracted economic slowdown," said Harshal Barot, a senior research consultant for South Asia at Metals Focus. "Slowing economic growth will mean that we would see more monetary and fiscal stimulus down the line." Gold, widely viewed as a hedge against inflation and currency debasement, has risen about 25% this year as governments and central banks unleashed a wave of stimulus measures to limit economic damage from the pandemic. Worldwide coronavirus cases crossed 40 million on Monday, according to a Reuters tally, while much of Europe enacts new restrictions to curb the outbreak. "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, an economist at OCBC Bank. 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. However, she acknowledged an agreement would have to come within 48 hours for that to happen. Elsewhere, silver climbed 2.4% to $24.74, having hit a near one-week peak. Citi in a note said it expects silver prices to rally to $40 over the next 12 months, on the back of sustained investor demand and a recovery in industrial consumption during 2021. Platinum rose 1.2% to $870.69 per ounce and palladium was 0.9% higher at $2,351.94. (Reporting by Eileen Soreng and Nakul Iyer in Bengaluru; Editing by Amy Caren Daniel)

PRECIOUS-Firm dollar, fading stimulus hopes put gold on course for weekly loss

16 Oct 2020

* Spot gold down 1.4% so far this week after two weeks of gains * Break below $1,896/oz to prompt further dip in gold- technicals * Fresh lockdowns in Europe stoke silver demand concerns- analyst * Interactive graphic tracking global spread of coronavirus: open * https://tmsnrt.rs/3aIRuz7 in an external browser (Adds quotes, updates prices) By Eileen Soreng Oct 16 Gold eased on Friday and looked set to post its first weekly drop in three, as the dollar held firm while additional U.S. fiscal stimulus appeared unlikely before the presidential election. Spot gold fell 0.2% to $1,903.24 per ounce by 0631 GMT, losing 1.4% so far this week. U.S. gold futures dipped 0.1% to $1,907.50. "There's some further upside for the dollar and that's been a major headwind for gold, in addition to the ongoing (U.S.) stimulus negotiations which have yielded no progress," said Edward Moya, senior market analyst at OANDA. "Everyone is settling on the likelihood that we're not going to have a deal before the election." 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 dollar , also considered a safe haven, was headed for its first weekly gain in three, supported by surging coronavirus cases globally and fading bets for a U.S. stimulus deal. The COVID-19 pandemic has prompted unprecedented money printing and low interest rates globally, putting gold on track for its best year in a decade given its appeal as a hedge against inflation and currency debasement. Gold may retest support at $1,896 per ounce, a break below which could cause a fall to $1,877, according to Reuters technical analyst Wang Tao. Elsewhere, silver fell 0.8% to $24.11 per ounce, and was down 3.9% for the week. "Silver prices fell back on concern that industrial metals demand in Europe will take a hit after some of the region's biggest cities imposed fresh lockdown measures," Avtar Sandu, senior commodities manager at Phillip Futures, said in a note. Platinum fell 0.4% to $860.22 and palladium eased 0.1% to $2,350.45. (Reporting by Eileen Soreng in Bengaluru; Editing by Uttaresh.V and Subhranshu Sahu)

PRECIOUS-Gold eases on buoyant dollar as U.S. stimulus bets fade

15 Oct 2020

* Gold to trade in the range of $1,880-$1,920/oz in near-term - analyst * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Eileen Soreng Oct 15 Gold edged lower on Thursday as the dollar gained after U.S. Treasury Secretary Steve Mnuchin dashed hopes for a new fiscal stimulus package before the presidential election. Spot gold fell 0.1% to $1,899.57 per ounce by 740 GMT, after rising as much as 1.2% on Wednesday. U.S. gold futures were down 0.2% to $1,903.90 per ounce. "The (gold) market is still treading water waiting for further clarity on what stimulus package may be needed in the United States," said Cameron Alexander, manager of precious metals research at Refinitiv Metals Research. "Gold will rise once the details of a possible stimulus package become available, but that may not happen for a while." Mnuchin's said he and democrat lawmakers were "far apart" on a coronavirus economic relief package, and that a deal would be hard to reach before the Nov. 3 election, prompting investors to seek the safety of the dollar. The dollar is still regarded as a safe haven and is holding gold prices down, Refinitiv's Alexander added. Gold, considered a hedge against inflation and currency debasement, has climbed 25% this year amid unprecedented levels of global stimulus to ease the economic blow from the pandemic. "Gold should resume its longer-term rally after the election into the end of the year," said Jeffrey Halley, a senior market analyst at OANDA, adding that the metal was likely to trade between $1,880 and $1,920 in the near-term. Fuelling further concerns about an economic recovery, some European nations are closing schools, cancelling surgery and enlisting student medics as COVID-19 cases surge. Silver fell 0.7% to $24.10 per ounce and platinum slipped 0.1% to $855.93, while palladium rose 0.2% to $2,349.98. (Reporting by Eileen Soreng in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)

PRECIOUS-Gold gains as focus returns to pandemic, U.S. election

14 Oct 2020

* Gold's broader $1,850-$1,940 range intact- analyst * 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 Eileen Soreng Oct 14 Gold firmed on Wednesday as uncertainties over a global economic recovery and the U.S. presidential election prompted investors to exploit a sharp pullback in the previous session to buy bullion. Spot gold rose 0.2% to $1,895.16 per ounce by 0729 GMT, after shedding as much as 1.9% on Tuesday on the dollar's jump. U.S. gold futures gained 0.2% to $1,897.30. "Whenever there is a price drop, there's a section of strategic investors who think gold is still a very good hedge against global uncertainties... So they keep coming in," said Harshal Barot, a senior research consultant for South Asia at Metals Focus. With the COVID-19 pandemic showing no signs of slowing and uncertainty over U.S fiscal stimulus, the broader $1,850-$1,940 range remains intact, he added. News that key COVID-19 vaccine trials were paused, along with an impasse in U.S. stimulus talks, soured appetite for riskier assets while propping up the dollar, capping gold's gains. Analysts said fading hopes for a U.S. coronavirus aid package, especially before the presidential election, after House Speaker Nancy Pelosi rejected a $1.8 trillion proposal from the White House, could also limit bullion's gains. "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 But gold's appeal as a hedge against likely inflation and currency debasement from unprecedented money printing globally due to the pandemic has seen bullion prices rise about 25% so far this year. "The broader case for gold" is still supportive, with the global economic slowdown likely to last much longer prompting lower interest rates, said Metals Focus' Barot. Silver fell 0.1% to $24.14 per ounce, while platinum rose 0.9% to $872.77 and palladium gained 1.8% to $2,357.17. (Reporting by Nakul Iyer and Eileen Soreng in Bengaluru; Editing by Subhranshu Sahu)

PRECIOUS-Gold falls as dollar rebounds, investors eye U.S. stimulus

13 Oct 2020

* "Blue wave" likely to lift gold prices - analyst * Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Updates prices) By Eileen Soreng Oct 13 Gold edged lower on Tuesday as the dollar rebounded, although the metal is likely to be supported going forward due to an eventual U.S. stimulus package that will boost its appeal as a hedge against the resultant inflation. Spot gold inched 0.1% lower to $1,919.76 per ounce by 0813 GMT. U.S. gold futures were down 0.3% at $1,922.70 per ounce. "In the absence of further dollar downside, gold bulls are feeling a little jittery at the moment," said Howie Lee, an economist at OCBC Bank. "Over the near or longer term, there is a boost for gold prices if it is (stimulus) passed. But because we're stuck in a deadlock now and it increasingly looks like there'll be none before the elections, gold is struggling a bit here." The dollar index was up 0.2% against rivals. A White House spokeswoman said on Monday Senate Republicans will go along with what President Donald Trump wants in a coronavirus relief legislation. Trump on Sunday called on Congress to pass a stripped-down bill. Investors also kept close tabs on the upcoming U.S. elections with polls showing Democrat rival Joe Biden leading the race. "A so-called 'blue wave' would likely pave the way for a larger fiscal support package, which in turn could exert more upward pressure on bullion," said FXTM market analyst Han Tan. "A protracted delay to the U.S. elections outcome could also spur risk aversion in the interim, which could buffer the supportive environment for gold," Tan said, adding, however, that the risk of a higher dollar and yields remained a headwind. Meanwhile, adding to the uncertainty over the economic recovery was a recent spike in COVID-19 cases across major economies, including the U.S. and the UK, with worldwide infections crossing 37.74 million. Silver fell 0.8% to $24.90 per ounce, platinum dipped 0.3% to $870.75, while palladium rose 0.6% to $2,416.51. (Reporting by Eileen Soreng and Nakul Iyer in Bengaluru; Editing by Rashmi Aich and Uttaresh.V)

PRECIOUS-Gold eases off three-week high as dollar steadies

12 Oct 2020

* Gold hits highest since Sept. 21 at $1,932.96/oz * Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Updates prices) By Eileen Soreng Oct 12 Gold retreated slightly from a three-week high, as the dollar recouped some of its losses after a new U.S. coronavirus aid package ran into resistance. Spot gold fell 0.3% to $1,923.81 per ounce by 0737 GMT, after hitting its highest level since Sept. 21 at $1,932.96 earlier in the session. U.S. gold futures were up 0.2% at $1,930.10. "The dollar index has rebounded slightly, weighing on the precious metal," said Margaret Yang, a strategist with DailyFx, which covers currency, commodity and index trading. But, "the technical trend has turned bullish in the near term and very soon it may test the key resistance level of $1,942," she added. The dollar index steadied, marginally recovering from a three-week low against rivals, after negotiations on the U.S. stimulus package ran into resistance and as the yuan dropped after China's central bank took a measure seen as aimed at curbing its strength. The Trump administration on Sunday called on Congress to pass a stripped-down coronavirus relief bill using leftover funds from an expired small business loan programme. But while the $1.8 trillion economic stimulus proposal drew criticism from congressional Democrats and Republicans, investors seem optimistic that spending will resume at some point. "There is going to be a stimulus coming really quickly after the election... The market will look through the fact that we don't have stimulus now but that it is coming and that will be supportive for gold," Stephen Innes, chief global market strategist at Axi. Gold, considered a hedge against inflation and currency debasement, has gained over 26% so far this year, boosted by unprecedented stimulus measures unveiled globally to cushion the economic fallout from the COVID-19 pandemic. Silver gained 0.2% to $25.16 per ounce and palladium rose 0.1% to $2,440.61, while platinum fell 0.2% to $884.21. (Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)

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