Edition:
India

Nakul Iyer

CORRECTED-PRECIOUS-Gold dips on rising yields; faces worst week since March

14 Aug 2020

(Corrects to read March (not July) in headline, paragraph 1) * Gold on course for more than 4% weekly fall * Silver set to snap 9-week winning streak * Investors await U.S. retail sales data at 1230 GMT * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser By Nakul Iyer Aug 14 Gold fell on Friday as a rally in U.S. treasuries and a steady dollar prompted a sell-off in bullion, setting it up for its biggest weekly decline since March following a steep retreat from record peak. Spot gold dipped 0.3% to $1,947.67 per ounce by 1159 GMT. U.S. gold futures fell 0.7% to $1,956.50 per ounce. Having hit a record peak of $2,072.50 on Friday and posting gains in the previous nine weeks in a row, bullion has declined 4.2% so far this week. "Everybody was eager for gold and the buying became so intense over the last few weeks that gold became overextended," said Robin Bhar, an independent analyst. "Nothing goes up in a straight line ... (with the) over exuberance, things needed to correct, so we are now consolidating." Gold prices are being pressured as the benchmark U.S. 10-year yield climbed to seven-week highs, analysts said. Higher yields increase the opportunity cost of holding non-yielding assets such as bullion. Gold also largely ignored economic data from top consumer China, which missed market expectations, and data showing the euro zone's economy recorded its deepest contraction on record in the second quarter. Markets now await U.S. retail sales figures due at 1230 GMT for further clues on the economy. Investors are also keeping a close eye on developments around fragile China-U.S. relations, ahead of key talks on Aug. 15 and a stalemate in Washington over a new stimulus package. "It could be the case that before the elections, there would be no further stimulus," Bank of China International analyst Xiao Fu said. "Gold could then be lacking upward impetus that will imply the shorts or the profit-taking side will be winning momentum, pushing gold even lower." In other markets, silver fell 3.1% to $26.70 per ounce, set to snap a 9-week winning streak, down 5.3% so far. Platinum fell 1.3% to $945.15 and palladium was down 0.5% at $2,155.30 per ounce. (Reporting by Nakul Iyer in Bengaluru; editing by David Evans)

PRECIOUS-Gold firms above $1,900/oz as softer dollar boosts demand

13 Aug 2020

* Dollar drops to 1-week low * U.S. weekly jobless claims due at 1230 GMT * Silver up over 3%, recovering from Wednesday's 2-week low * Fed officials warn of muted U.S. growth until virus is contained * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Nakul Iyer Aug 13 Gold firmed above $1,900 on Thursday as the dollar fell and bargain hunters bet on a resumption of bullion's broader upwards trend after its steep slide from a record peak. Spot gold rose 0.8% to $1,932.46 per ounce by 1137 GMT, after slipping below $1,900 in choppy trade the previous session. Prices hit a record $2,072.50 on Friday. U.S. gold futures eased 0.2% to $1,946.10 per ounce. "The overall consensus is the price should move higher rather than lower and that's why we see some bargain hunting," said Julius Baer analyst Carsten Menke, adding the mood was still "very bullish". Bolstering gold's appeal for those holding other currencies, the dollar hit a one-week low, pressured by a stalemate in Washington over additional stimulus for the U.S. economy. Gold's dip below $1,900 "flushed out a lot of weak longs", said Michael McCarthy, chief strategist at CMC Markets. "The outlook remains positive in a lower interest rate environment, particularly with the weakening dollar." Adding to the gloomy outlook, U.S. Federal Reserve policymakers warned U.S. growth would be muted until the coronavirus was contained. On Wednesday, data showed Britain's economy recorded the biggest contraction of any major economy so far in the second quarter. Massive money-printing by central banks, an ultra-low interest rate environment and worries over the economic fallout from mounting coronavirus cases have helped safe-haven gold rise more than 27% so far in 2020. But while the fundamentals are favourable, "any significant upside from these levels would be detaching again from fundamentally justified levels," since gold as an insurance is still quite expensive at the moment, Julius Baer's Menke said. Investors are waiting for U.S. weekly jobless claims data due at 1230 GMT, and watching for developments between the United States and China ahead of trade talks on Aug. 15. Silver rose 3.9% to $26.56 per ounce, platinum gained 1.8% to $947.75 per ounce and palladium climbed 1.4% to $2,160.03 per ounce. (Reporting by Nakul Iyer in Bengaluru and Brijesh Patel; Editing by Kirsten Donovan and Barbara Lewis)

PRECIOUS-Gold firms above $1,900/oz as softer dollar boosts demand

13 Aug 2020

* Dollar drops to 1-week low * U.S. weekly jobless claims due at 1230 GMT * Silver up over 1%, recovering from Wednesday's 2-week low * Fed officials warn of muted U.S. growth until virus is contained * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Recasts, adds comments, updates prices) By Nakul Iyer Aug 13 Gold firmed above $1,900 on Thursday as the dollar fell, with bargain hunters betting on a resumption of bullion's broader upwards trend attracted by its recent steep slide from a record peak. Spot gold was 0.7% higher at $1,930.20 per ounce by 1000 GMT, after slipping below $1,900 in choppy trade the previous session. Prices soared to a record $2,072.50 on Friday. U.S. gold futures eased 0.4% to $1,941.00 per ounce. "The overall consensus is the price should move higher rather than lower and that's why we see some bargain hunting," said Julius Baer analyst Carsten Menke, adding the mood was still "very bullish." Bolstering gold's appeal for those holding other currencies, the dollar hit a one-week low, pressured by a stalemate in Washington over additional stimulus for the U.S. economy. Gold's dip below $1,900 "flushed out a lot of weak longs", said Michael McCarthy, chief strategist at CMC Markets. "The outlook remains positive in a lower interest rate environment, particularly with the weakening dollar." Adding to the gloomy outlook, U.S. Federal Reserve policymakers warned U.S. growth would be muted until the coronavirus was contained. On Wednesday, data showed Britain's economy recorded the biggest contraction among any major economy so far in the second quarter. Massive money-printing by central banks and an ultra-low interest rate environment amid worries over the economic fallout from mounting COVID-19 cases have helped safe-haven gold rise more than 27% so far in 2020. But while the fundamentals are favourable, "any significant upside from these levels would be detaching again from fundamentally justified levels," since gold as an insurance is still quite expensive at the moment, Julius Baer's Menke said. Investors are now waiting for U.S. weekly jobless claims data due at 1230 GMT, and watching for developments between the U.S. and China ahead of trade talks on Aug. 15. Elsewhere, silver rose 1.4% to $25.92 per ounce, platinum gained 1.2% to $942.32 per ounce and palladium climbed 0.3% to $2,138.05 per ounce. (Reporting by Nakul Iyer in Bengaluru; Editing by Kirsten Donovan)

PRECIOUS-Volatile gold rebounds above $1,900 as UK economy slumps

12 Aug 2020

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices, adds comments, graphic)

PRECIOUS-Gold dives 4% as dollar holds gains and shares bounce

11 Aug 2020

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices, adds comment)

PRECIOUS-Gold drops below $2,000 as dollar holds gains and shares bounce

11 Aug 2020

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Adds graphic, updates prices)

PRECIOUS-Gold eases as dollar extends rally; U.S.-China ties in focus

10 Aug 2020

* Dollar hits near 1-week high * Gold could fall to $2,000, but still in favour -analyst * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Nakul Iyer Aug 10 Gold prices edged lower on Monday and retreated sharply from a record peak in the last session, as the dollar made further gains with investors keeping a cautious eye on the U.S.-China spat ahead of key trade talks on Aug. 15. Spot gold fell 0.2% to $2,031.39 per ounce by 1225 GMT. U.S. gold futures rose 0.7% to $2,041.60 per ounce. Gold hit a record high of $2,072.50 on Friday but pulled back as much as 2.5%, hurt by a bounce in the dollar after data showed the U.S. economy added 1.763 million jobs in July. "We're seeing a little bit of a top (in gold) in the short to medium term and because of the rebound of the dollar, we could see a little bit of a drift lower over the course of the next few days" said Michael Hewson, chief market analyst at CMC Markets UK. While gold could decline further towards $2,000 or lower as investors book profits, bullion hasn't lost its lustre, he added. The dollar has at times been the favoured refuge amid escalations between Washington and Beijing, and hit a near-one week high earlier in the day, with investors also focusing on fiscal stimulus in the U.S. ahead of trade talks on Aug. 15. Escalating tensions with the United States, China said it would impose sanctions against U.S. officials, after Washington imposed sanctions on Hong Kong and Chinese officials on Friday. Unprecedented global stimulus packages due to the COVID-19 pandemic have buoyed gold's appeal as a hedge against inflation and currency debasement, driving it 34% higher so far this year. "As long as the price remains above $2,000, the bullish momentum can continue, as the hunger for gold is still at its peak," ActivTrades chief analyst Carlo Alberto De Casa said in a note. Silver rose 0.3% to $28.37 per ounce, platinum gained 2% to $981.12 per ounce, and palladium was also up 0.7% at $2,191.90 per ounce. (Reporting by Nakul Iyer in Bengaluru; editing by David Evans)

LBMA clears Perth Mint of serious wrongdoing in sourcing gold

08 Aug 2020

The London Bullion Market Association (LBMA) said on Friday it would continue to accredit the Perth Mint after an investigation into allegations that it processed unethically sourced gold found no significant wrongdoing.

CORRECTED-PRECIOUS-Gold set to break longest winning streak since end-2017

31 Jul 2020

* Q2 U.S. GDP contracts at steepest pace since Great Depression

PRECIOUS-Record rally for gold stalls ahead of U.S. Fed meeting

28 Jul 2020

* Goldman Sachs raises 12-month gold price forecast to $2,300

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