Edition:
United Kingdom

Asha Sistla

Gold falls on China tariff move, but set for a weekly gain

06 Dec 2019

Gold prices slipped on Friday after China's announcement to waive import tariffs on some American goods, but bullion was still poised for a weekly gain ahead of a U.S. jobs report that could offer further insight on the state of the economy.

PRECIOUS-Gold falls on China tariff move, but set for a weekly gain

06 Dec 2019

(Adds detail, quotes, updates prices) * China to waive tariffs for some U.S. soybeans, pork * Palladium holds near last session's record peak * Markets await U.S. non-farm payrolls report later in the day * GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl By Asha Sistla Dec 6 Gold prices slipped on Friday after China's announcement to waive import tariffs on some American goods, but bullion was still poised for a weekly gain ahead of a U.S. jobs report that could offer further insight on the state of the economy. Spot gold was down 0.2% at $1,473.16 an ounce at 0802 GMT. U.S. gold futures fell 0.3% to $1,478.00. Despite some losses, bullion is still headed for a second straight weekly gain, up about 0.7% for the week so far. The metal hit a one-month high of $1,484 an ounce on Wednesday. "This week gold continued to march on the higher side and today we can see some profit booking," said Ajay Kedia, director at Kedia Advisory in Mumbai, adding that China's move on Friday was pressuring prices further. China's finance ministry said that import tariffs for some pork and soybeans from the United States will be waived, indicating a positive move to de-escalate the trade war ahead of U.S. tariffs on Chinese goods effective from Dec. 15. U.S. President Donald Trump also said on Thursday that the trade talks were "moving right along" but some in the market remained cautious. "We have seen U.S. and China taking one step at a time and then we see that the deal is not going on - every time there is a new twist in the deal. So, unless this deal doesn't close, uncertainty will prevail in the market," Kedia added. The positive comments supported Asian stocks, weighing on bullion, which is favoured in times of political and financial uncertainty. "If the trade talks break down, then the price could spike up. Otherwise, we (expect gold to continue consolidating towards the year-end," said Margaret Yang Yan, a market analyst at CMC Markets. "It's completely different from earlier in the year when gold was absolutely the star." Bullion has gained 15% so far this year, which could be its biggest annual rise since 2010, mainly due to the trade war. Traders are now bracing for the U.S. non-farm payrolls report due later on Friday to determine how well the U.S. economy is holding up, after a series of weak U.S. economic data reports. In other precious metals, palladium was unchanged at $1,871.34, having notched a record high of $1,876.54 an ounce on Thursday on supply concerns for the auto catalyst metal. Platinum was flat at $896.63, while silver fell 0.3% to $16.89. Both were headed for their first weekly decline in four. (Reporting by Asha Sistla in Bengaluru; Editing by Tom Hogue and Emelia Sithole-Matarise)

Gold prices steady on mixed U.S.-China trade signals

05 Dec 2019

Gold prices inched up on Thursday as conflicting signals from Washington and Beijing prolonged uncertainty about a trade deal, a day after positive comments on the talks by U.S. President Donald Trump knocked bullion off its one-month high.

PRECIOUS-Gold prices steady on mixed U.S.-China trade signals

05 Dec 2019

(Updates prices) * Trump says trade deal with China going "very well" * Palladium hits fresh record high of $1,874.50/oz * GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl By Asha Sistla Dec 5 Gold prices inched up on Thursday as conflicting signals from Washington and Beijing prolonged uncertainty about a trade deal, a day after positive comments on the talks by U.S. President Donald Trump knocked bullion off its one-month high. Gold rose to $1,484 on Wednesday, its highest since Nov. 7, but settled lower after Trump said that trade talks with China were going "very well". That came a day after Trump dented hopes for a trade resolution when he said an agreement might have to wait until after the U.S. presidential election in November 2020. Spot gold was up 0.1% at $1,475.58 per ounce, as of 0811 GMT on Thursday, and U.S. gold futures were up 0.1% at $1,480.90 per ounce. "Trump mentioned he is happy to wait a year for the China deal to happen and we are not sure whether the first agreement has been inked yet and that's what everybody is looking for," said Brian Lan of Singapore dealer GoldSilver Central. "Gold has always had the safe-haven asset status and people hold on to gold when they don't know what's going to happen ... U.S. dollar has weakened a bit and that has also helped push gold prices at this time." The dollar index extended losses and was down 0.1%, making gold cheaper for investors holding other currencies. Gains in bullion, however, were limited as stocks strengthened after a Bloomberg report on Wednesday that the two sides were close to a "phase one" deal, and Trump's positive comments on trade. A further 15% U.S. tariff on about $156 billion worth of Chinese imports is set to take effect on Dec. 15. Washington and Beijing have yet to ink a so-called "phase one" agreement announced in October, which had raised hopes of a de-escalation. Gold has gained about 15% so far this year, which could be its biggest annual gain since 2010, mainly bolstered by the impact of the prolonged U.S.-China trade war on the global economy. "With doubts emerging about a U.S.-China trade talk, we expect investor demand for safe-haven assets, such as gold-backed ETFs, to increase," ANZ analysts said in a note. In other precious metals, palladium edged 0.1% higher to $1,871.00 per ounce, after hitting a fresh peak of $1,874.50. "Tougher environmental regulations are also boosting palladium demand ... As the average loading of palladium in autocatalysts increases, we expect to see an ongoing surge in demand for palladium-rich autocatalysts," ANZ said. Silver rose 0.4% to $16.89, while platinum was up 0.1% at $896.00 per ounce. (Reporting by Asha Sistla in Bengaluru, Editing by Sherry Jacob-Phillips and Muralikumar Anantharaman)

PRECIOUS-Gold hits near 1-month high as trade drag prompts safety buying

04 Dec 2019

(Updates prices, adds comments) * Trump says China trade deal may have to wait until next year * Dollar hovers near one-month low, stocks extend losses * GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl By Asha Sistla Dec 4 Gold prices rose to a near one-month high on Wednesday, as U.S. President Donald Trump's comments dampened hopes for a quick preliminary trade agreement with China, driving support for safe-haven assets. Spot gold gained 0.3% to $1,482.02 per ounce by 0707 GMT, its highest since Nov. 7, while U.S. gold futures were up 0.2% to $1,487.90. President Trump on Tuesday said a deal with China might have to wait until after the U.S. presidential election in November 2020. Trump's comments come shortly after he slapped tariffs on U.S. steel and aluminium imports from Brazil and Argentina. "Gold has benefited from strong safe-haven flows, equities tanked and the dollar fell as well. And, that's the reason why gold has risen overnight," said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA. "President Trump saying a trade deal may not happen until after the U.S. election next year and the passage of the second China bill in the House of Representatives will add to the extreme trade worries because the fear is - China might just walk away from any trade negotiations." The U.S. House of Representatives approved a bill that would require Washington to toughen its response to China's crackdown on its Uighur Muslim minority, which investors fear can possibly deteriorate trade ties. Dimming hopes of a deal further, U.S. Commerce Secretary Wilbur Ross rejected any deadlines on a trade deal with Beijing and launched a fresh attack on telecoms giant Huawei . Trump's remarks prompted investors to reduce their exposure to risk, with Asian shares extending their losses, while the U.S. dollar hovered close to a one-month low, making gold more attractive. Gold, which is seen as safe investment during times of political and economic stress, has gained about 15% so far this year, mainly due to the 17-month long trade dispute and its impact on the global economy. "Bull-run in gold is expected to continue and it can touch the $1,500 level this week, and $1,520 in the week going forward," said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai, India. Among other precious metals, palladium was flat at $1,855.39 per ounce, after scaling to an all-time peak of $1,861.71 on Dec. 2. "Platinum and palladium are rallying because they have an industrial use and there's just a massive squeeze on the supplies," OANDA's Halley said. Platinum advanced 0.3% to $912.46 per ounce and silver rose 0.4% to $17.22. (Reporting by Asha Sistla in Bengaluru, Editing by Sherry Jacob-Phillips and Uttaresh.V)

Indian gold sellers opt for discounts; China, Hong Kong demand weak

22 Nov 2019

BENGALURU/MUMBAI Gold demand remained subdued in China this week against a backdrop of slowing economic growth, and in Hong Kong where protests continued, while prices in India flipped into discount as demand eased.

Asia Gold-Indian gold sellers opt for discounts; China, HK demand weak

22 Nov 2019

BENGALURU/MUMBAI, Nov 22 Gold demand remained subdued in China this week against a backdrop of slowing economic growth, and in Hong Kong where protests continued, while prices in India flipped into discount as demand eased.

India rice export prices slide to multi-year low on supply influx

21 Nov 2019

BENGALURU Indian rice export prices fell to their lowest in nearly three years this week as fresh supplies from the summer-sown crop loom large, with subdued global demand also crimping exports from other major centres.

Gold gains as souring U.S.-China relations hit risk appetite

20 Nov 2019

Gold prices rose to their highest levels in nearly two weeks on Wednesday as U.S. Senate action on Hong Kong created a potential obstacle to a trade deal between the United States and China, denting appeal for riskier assets.

PRECIOUS-Gold gains as souring U.S.-China relations hit risk appetite

20 Nov 2019

* China condemns U.S. Senate measure on Hong Kong * U.S. Fed's October minutes due at 1900 GMT * Gold could rise into range of $1,480-$1,485 -technicals (Updates prices) By Asha Sistla Nov 20 Gold prices rose to their highest levels in nearly two weeks on Wednesday as U.S. Senate action on Hong Kong created a potential obstacle to a trade deal between the United States and China, denting appeal for riskier assets. Spot gold was rose 0.2% to $1,475.83 per ounce at 1139 GMT and U.S. gold futures was up 0.1% at $1,476.20. "The U.S. senate passing the Hong Kong democracy bill is raising further risk of a trade deal running into problems and it's causing some renewed risk-off in the markets," said Saxo Bank commodity strategist Ole Hansen. "We see stocks trading weaker, bond yields moving lower and gold is ticking higher." The U.S. Senate passed two bills backing human rights in Hong Kong and banning export of certain munitions to the region's police forces. China condemned the move and called for Washington to stop meddling in its internal affairs. European stocks edged away from their recent peak. U.S. 10-year bond yields slipped to their lowest in nearly three weeks, also pressured by U.S. President Donald Trump's threat to raise tariffs on Chinese imports if a trade deal cannot be reached with Beijing. Investors are also waiting for the minutes from the U.S. Federal Reserve's October policy meeting, due at 1900 GMT, for additional cues on the monetary policy outlook. The U.S. central bank cut interest rates three times this year to help sustain U.S. growth but last month signalled that there would be no further cuts unless the economy takes a turn for the worse. "The market is pricing in one cut over the next 12 months and that will change very quickly on failure to reach a (trade) deal," Saxo Bank's Hansen added. Lower interest rates reduce the opportunity cost for holding non-yielding bullion. Spot gold could rise into a range of $1,480-$1,485 an ounce, according to Reuters technical analyst Wang Tao. Silver was flat at $17.15, platinum edged 0.1% higher to $911.16 and palladium rose 0.2% to $1,766.37. Palladium prices could continue to firm on supply issues, and $2,000 an ounce is a likely scenario for the autocatalyst metal next year, said Ross Norman, a London-based independent analyst. The metal hit a record high of $1,824.50 on Oct. 30, buoyed by a sustained supply deficit. (Reporting by Asha Sistla in Bengaluru Editing by David Goodman and Jane Merriman)

World News