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Shreyansi Singh

PRECIOUS-Gold eases but on track for first weekly gain in four weeks

1:07am IST

(Updates prices) * Silver set for first weekly gain in four weeks * Platinum eyes best week since late March * U.S. job growth slows sharply By Shreyansi Singh Dec 4 Gold fell on Friday as investors booked profits from sharp gains in the previous sessions while equities rallied, but bets for fresh U.S. stimulus buoyed bullion's appeal as an inflation hedge and kept it on track for its first weekly gain in four weeks. Spot gold was down 0.3% at $1,834.92 per ounce by 2:05 p.m. EST (1905 GMT), on track for a weekly gain of about 2.6%. U.S. gold futures settled down 0.1% at $1,840. "After a superb four-day bounce, gold is running into profit-taking ahead of a key technical level at $1,850; considered a significant hurdle as it was remarkably resilient as support over the past two months," said Tai Wong, head of base and precious metals derivatives trading at BMO. "Gold's reaction to a notably weak U.S. payrolls report - selling off instead of rallying - suggests bargain-hunters might be sated for the moment," adding there could be some modest but steady "program selling" possibly by exchange traded funds. Data on Friday showed the U.S. economy added the fewest workers in six months in November, cementing expectations of more fiscal stimulus that lifted Wall Street's main indexes to all-time highs. A bipartisan, $908 billion coronavirus aid bill drew support in the U.S. Congress on Thursday. Non-yielding bullion is considered a hedge against inflation likely to result from the unprecedented stimulus. "Beyond near-term corrections, a weaker dollar, negative real rates, concerns surrounding inflation and expectations of further fiscal stimulus amid accommodative monetary policy are likely to keep gold price risk-skewed to the upside," Standard Chartered analyst Suki Cooper said. Meanwhile, the dollar was headed for its worst week since early November, making gold cheaper for holders of other currencies. Platinum gained 2.9% to $1,059.17 per ounce, and was on track for its best week since late March. Silver rose 0.2% to $24.11 an ounce, while palladium was up 2.3% at $2,353.56. (Reporting by Shreyansi Singh and Aaron Saldanha in Bengaluru; Editing by Andrea Ricci, Paul Simao and Jonathan Oatis)

PRECIOUS-Gold firms on stimulus bets, weak dollar

04 Dec 2020

(Updates prices) * Platinum hits highest since Jan. 16 at $1,034/oz * Palladium falls over 7% * Dollar trades near 2-1/2 year low * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa By Shreyansi Singh Dec 3 Gold firmed on Thursday as the dollar fell and investors clung to hopes of an eventual breakthrough in negotiations over a new U.S. coronavirus aid package. Spot gold gained 0.4% to $1,838.83 per ounce at 2:15 p.m. EST (1915 GMT). It earlier hit its highest since Nov. 23 at $1,843.80, but gave up gains following a lower-than-expected U.S. jobless claims number. U.S. gold futures settled up 0.6% at $1,841.10. U.S. lawmakers sought to hammer out an agreement on aid for an ailing U.S. economy with signs that a $908 billion bipartisan proposal was gaining traction, while U.S. President Donald Trump expressed support for a relief bill. Joe Biden coming to power in Washington could lead to more stimulus, said Daniel Pavilonis, senior market strategist at RJO Futures. But ultimately, "the gold market expected a lot more stimulus" than is being negotiated, he added, capping bullion's upside. Optimism surrounding a stimulus deal and progress over COVID-19 vaccines kept the dollar index near a more than two-year low, buoying appeal for gold among investors holding other currencies. "Stimulus talks and further dollar weakening are lending more support to gold," said StoneX analyst Rhona O'Connell in a note. Gold, considered a hedge against inflation and currency debasement, has risen more than 21% this year, benefiting from near-zero interest rates and the risk of higher inflation likely to result from massive stimulus globally to ease the economic blow from the pandemic. Platinum hit a near eleven-month peak at $1,034 per ounce. It was last up 1.3% at $1,028.07. Platinum has consolidated above $1,000 on positive global growth sentiment, with initial targets extending towards $1,040 as exchange traded fund interest drives price action related to deficits forecast in 2021, MKS PAMP said in a note. Palladium fell 4% to $2,301.68 per ounce, after plunging as much as 7.3% earlier and silver was down 0.4% at $24.00. (Reporting by Shreyansi Singh and Aaron Saldanha in Bengaluru. Editing by Mark Potter/Barbara Lewis/Jane Merriman)

PRECIOUS-Gold rises on stimulus bets, subdued dollar

03 Dec 2020

(Updates prices) * Dollar trades near 2-1/2 year low * Britain approves Pfizer-BioNTech's COVID-19 vaccine * Interactive graphic tracking global spread of coronavirus: open * https://tmsnrt.rs/3aIRuz7 in an external browser By Shreyansi Singh Dec 2 Gold firmed near an over one-week high on Wednesday as prospects of a U.S. coronavirus relief package reinforced its appeal as a hedge against likely inflation and sent the dollar to a multi-year trough. Top U.S. economic officials on Tuesday urged Congress to provide more help for small businesses to cope with the pandemic, while support was growing for a $1.4 trillion spending bill. Spot gold rose 0.7% to $1,827.63 per ounce by 01:49 p.m. EST (1849 GMT). Prices peaked at $1,832.20, the highest since Nov. 24, earlier in the session. U.S. gold futures settled up 0.6% at $1,830.20. "We're one step closer to the next stimulus package; that has weakened the dollar, eroding the currency and supporting commodity prices across the board, including gold and silver," said David Meger, director of metals trading at High Ridge Futures. U.S. economic growth is moderating as the coronavirus spreads and fiscal help fades, Philadelphia Federal Reserve Bank President Patrick Harker said on Wednesday. Raising gold's appeal for other currency holders, the dollar held near a 2-1/2 year low. Non-yielding bullion, which has risen over 20% so far this year, tends to benefit from widespread stimulus measures because it is widely viewed as a hedge against inflation and currency debasement that could result from the stimulus. The stimulus would drive "some physical demand, encourage notions of problematic price inflation in the coming months," said Kitco Metals senior analyst Jim Wyckoff. Gold, however, registered its worst monthly performance in four years in November, weighed down by optimism over a vaccine-fuelled economic rebound. Britain on Wednesday became the first country to approve Pfizer-BioNTech's COVID-19 vaccine. Elsewhere, silver fell 0.2% to $23.96 per ounce. Platinum rose 1% to $1,009.90 and palladium eased 0.4% to $2,397.63. (Reporting by Shreyansi Singh and Aaron Saldanha in Bengaluru; editing by Barbara Lewis and Sandra Maler)

PRECIOUS-Gold jumps 2%, silver up 6% as dollar slides

02 Dec 2020

(Updates prices) * Dollar trades near 2-1/2 year low * Rising industrial demand to help silver outperform gold- analyst * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa By Shreyansi Singh Dec 1 Gold jumped more than 2% on Tuesday, rebounding from a five-month low in the last session, and silver soared over 6%, as the dollar slid, with U.S. stimulus bets adding to bullion's appeal as an inflation hedge. Spot gold climbed 2.1% to $1,814.99 per ounce by 1:54 p.m. EST (1854 GMT). U.S. gold futures settled up 2.1% at $1,818.90. Gold plunged to $1,764.29 on Monday, a trough since July 2, driven by a rush to riskier assets. "We saw gold recapture the $1,800 level and a lot of that has to do with the weakening dollar trade," said Edward Moya, senior market analyst at OANDA. "The unwind of the gold trade has run its course" and we are likely to see more efforts from the U.S. Congress to support the economy. Making gold more attractive to investors holding other currencies, the dollar fell on expectations of more U.S. stimulus. In remarks released on Monday, Federal Reserve Chair Jerome Powell highlighted challenges of production and mass distribution before the economic impact of a vaccine becomes clear. The Fed is going to remain fairly accommodative, OANDA's Moya said. Gold, considered a hedge against inflation and currency debasement, has risen over 19% this year, helped by unprecedented stimulus to help coronavirus-hit economies. "The bottom was in for gold now and we see prices north of $2,000 next year," said Daniel Ghali, commodity strategist at TD Securities. "Gold's actually now in a new regime" with vaccines a likely catalyst for higher inflation expectations as the economy recovers, supporting gold longer term, especially amid lower real rates, Ghali added. Silver was up 6% at $23.95 an ounce, after rising to a one-week high earlier in the session. Rising industrial demand should help silver outperform gold, Fawad Razaqzada, market analyst with ThinkMarkets, said in a note. Platinum rose 3.6% to $999.96 and palladium rose 1.7% to $2,412.93. (Reporting by Shreyansi Singh and Aaron Saldanha in Bengaluru Editing by Mark Potter and Matthew Lewis)

PRECIOUS-Gold set for worst month since 2016 on vaccine optimism

01 Dec 2020

(Adds details, updates prices) * Gold set for a 5.3% monthly decline * Silver on track to fall 4.6% for the month * Interactive graphic tracking global spread of coronavirus: open * https://tmsnrt.rs/3aIRuz7 in an external browser By Shreyansi Singh Nov 30 Gold slipped to a five-month low on Monday and was on track for its worst month in four years as optimism over a swift vaccine-fuelled economic recovery dented allure for safe havens. Spot gold was down 0.5% at $1,779.05 per ounce by 1:46 p.m. EST (1846 GMT), having earlier hit its lowest level since July 2 at $1,764.29. It has shed 5.3% so far this month. U.S. gold futures settled down 0.4% at $1,780.90 per ounce. "They (investors) are abandoning gold because they feel that the vaccine is going to open up the markets at some point and it looks like the transition is going to be orderly," said George Gero, managing director at RBC Wealth Management. "It is going to be a long road ahead for gold because there does not seem to be any need for the haven at this time." Gold's slide came despite a subdued dollar, which hit its lowest level in two and a half years. The prospect of a vaccine-led economic recovery next year has put world shares on track for a record-breaking month, while Bitcoin hit a record high as its 2020 rally powered on. Propping up hopes for more government action to aid the economy, President-elect Joe Biden named former Federal Reserve Chair Janet Yellen, seen as a force for more fiscal action, as nominee for Treasury secretary. Investors are now eyeing a congressional testimony by U.S. Federal Reserve Chairman Jerome Powell this week. "Traders and investors are exhibiting little risk aversion recently, amid no geopolitical hotspots at present, COVID-19 vaccine hopes and an apparent smoother transition of U.S. presidential duties seen," Kitco Metals senior analyst Jim Wyckoff said in a note. "That's all bearish for the safe-haven metals." Silver fell 0.6% to $22.55 an ounce, on track for a 4.6% fall on a monthly basis. Platinum rose 0.1% to $964.08, while palladium slipped 1.7% to $2,383.26. (Reporting by Shreyansi Singh in Bengaluru; Editing by Pravin Char and Steve Orlofsky)

PRECIOUS-Gold holds steady as weak U.S. data pauses Wall Street rally

26 Nov 2020

(Recasts; updates prices, market activity) * Weekly jobless claims increase 30,000 to 778,000 * Fed officials discussed evolving role of asset purchases * Dollar at near three-month low * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3aIRuz7 in an external browser By Shreyansi Singh Nov 25 Gold prices held steady on Wednesday as Wall Street retreated from a record run on an unexpected rise in U.S. jobless claims, and the precious metal bounced off a sharp slide toward $1,800. Spot gold was little changed at $1,806.87 an ounce at 2:55 p.m. EST (1955 GMT), a day after hitting its lowest since July 17 at $1,800.01. U.S. gold futures settled up 0.1% at $1,805.50. The U.S. Labor Department reported initial claims for state unemployment benefits last week increased to 778,000 from 748,000 in the prior week. The jobless data is supportive for gold "just on notions that we've still got a very dark period ahead before we get through this pandemic," Kitco Metals senior analyst Jim Wyckoff said. The surprise rise in weekly jobless claims amid surging COVID-19 infections dampened investor risk appetite and halted a record rally in Wall Street fuelled by vaccine hopes. Safe-haven gold has lost nearly $160 since Pfizer's promising COVID-19 vaccine data boosted investors hopes for a quick economic rebound and prompted a shift towards riskier assets. The dollar's slide "along with the technical support (for gold near $1,800), convinced some people to maybe stop selling and acquire some more positions," said Bart Melek, head of commodity strategies at TD Securities. Meanwhile, U.S. central bankers agreed asset purchases were providing accommodation to the economy after market conditions stabilized, according to the Federal Reserve minutes of the Nov. 4-5 meeting released on Wednesday. Some participants in the Federal Open Market Committee said they expected the Fed to eventually lengthen the maturity of the bonds purchased, according to the deliberations.[ nW1N2HH01B] Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement. Silver was up 0.3% at $23.31 an ounce, platinum inched up 0.1% to $960.47 and palladium was down 0.4% at $2,339.26. (Reporting by Shreyansi Singh in Bengaluru; editing by Barbara Lewis, David Gregorio and Tom Brown)

PRECIOUS-Gold extends fall as investors shift to 'risk on' mode

25 Nov 2020

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3aIRuz7 in an external browser

PRECIOUS-Gold at 4-mth low as strong U.S. data, vaccine trials boost recovery hopes

24 Nov 2020

(Updates prices) * U.S. manufacturing, services activity expanded rapidly in Nov * AstraZeneca says COVID-19 vaccine can be 90% effective * Tailwinds behind gold have not yet fully dissipated-analyst * Interactive graphic tracking global spread of coronavirus: open * https://tmsnrt.rs/3aIRuz7 in an external browser By Shreyansi Singh Nov 23 Gold fell more than 2% to its lowest level in four month on Monday as better-than-expected U.S. business activity data and promising COVID-19 vaccine trials boosted hopes for a swifter economic recovery. Spot gold dipped 1.7% to $1,838.71 per ounce by 01:50 p.m. EST (1850 GMT), after falling as much as 2.2% to its lowest since July 21 at $1,830.19. U.S. gold futures settled down 1.9% at $1,837.80. "Gold broke below the key $1,850 level after an unbelievably strong U.S. PMI release just dampened the need for stimulus. No one was expecting such strong readings in both services and manufacturing," said Edward Moya, senior market analyst at OANDA. Data on Monday showed U.S. business activity in November expanded at its fastest rate in more than five years, boosting optimism about the health of the U.S. economy among investors. The upbeat data came after Britain's AstraZeneca said its vaccine could be around 90% effective without any serious side effects. "Investors are rotating back to stocks because of the fact that there is little less uncertainty now than there was," said Jeffrey Sica, founder of Circle Squared Alternative Investments. "The data that came out today makes it more likely that we will see a recovery (sooner) than originally anticipated." Further denting bullion's appeal, the dollar rose against rivals. Gold has risen more than 21% this year, benefiting from its attraction as a safe haven against inflation and currency debasement. "While we do expect gold to go onto the defensive when the global economies start to show sustainable recoveries, the tailwinds behind the market have not yet been fully dissipated," StoneX analyst Rhona O'Connell said in a note. Silver fell 2.4% to $23.56 an ounce, platinum dipped 2.2% to $925.24, while palladium rose 1.3% to $2,355.57. (Reporting by Shreyansi Singh and Sumita Layek in Bengaluru; Editing by Jane Merriman and Richard Chang)

Oil faces bumpy road to recovery as second virus wave accelerates: Reuters poll

30 Oct 2020

Oil prices will be hemmed in the $40-45 per barrel range for the rest of the year, a Reuters poll showed on Friday, with analysts expecting a rough road to recovery into 2021 as an accelerating coronavirus outbreak fans renewed demand concerns.

PRECIOUS-Gold set for best month in 4 years; silver eyes record monthly gain

01 Aug 2020

* Platinum on track for biggest monthly gain since January 2017 * Palladium eyes its first monthly rise in five * Dollar set for steepest monthly drop in decade * BofA sees gold hitting $3,000/oz in next 18 months (Updates prices) By Shreyansi Singh July 31 Gold rose on Friday, hovering near its all time peak, as a sliding dollar and dire economic numbers from far and wide sparked a rush to safety in bullion, which is on course for its biggest monthly gain since February 2016. Silver climbed 2.3% to $24.08 per ounce, on course for a monthly rise of about 33%, its largest on records going back to 1982, supported by investment and industrial demand. Spot gold gained 0.6% to $1,971.83 per ounce by 2:17 p.m. EDT (1817 GMT), while U.S. gold futures settled 1% higher at $1,985.9. Prices hit a record $1,980.57 on Tuesday and are up over 10% so far this month. "The macro environment still remains very positive and prices continue to track real rates ... extreme weakness in the dollar has helped buoy gold prices further," said Standard Chartered analyst Suki Cooper. The dollar was on track for its biggest monthly drop in almost a decade. Data showed the U.S. economy suffered its harshest blow since the Great Depression in the second quarter due to the pandemic, while investors also geared up for an uncertain political situation in the country. Safe-haven bullion has gained nearly 30% so far this year, propelled by low interest rates globally and widespread stimulus from central banks adding to support for the metal considered a refuge from inflation and currency debasement. "With policy rates already at or even below the zero bound, support to gold prices will increasingly have to come from higher inflation, in our view," said BofA Global Research, which expects gold to hit $3,000 per ounce in the coming 18 months. Elsewhere, platinum eased 0.5% to $898.66 per ounce, but looked to post its biggest monthly gain since January 2017. Palladium rose 0.4% to $2,090.60 and was set for a more than 8% monthly rise, its first in five. (Reporting by Shreyansi Singh and Swati Verma in Bengaluru; Editing by David Gregorio and Tom Brown)

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