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Brijesh Patel

PRECIOUS-Gold dips as dollar holds onto gains; U.S.-China spat in focus

8:12am BST

* Specs cut gold bullish positions in week ended Aug 4 - CFTC * Japan, Singapore markets closed for public holidays * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Brijesh Patel Aug 10 Gold prices fell on Monday as the dollar held onto gains made after better-than-expected U.S. payrolls data, while investors kept a close eye on Sino-U.S. relations ahead of scheduled trade talks. Spot gold was down 0.3% at $2,029.19 per ounce by 0701 GMT. U.S. gold futures rose 0.6% to $2,039.60. Japanese and Singapore markets were closed for public holidays. Gold hit a record high of $2,072.50 on Friday before retreating nearly 2% as the dollar bounced on data showing U.S. nonfarm payrolls increased by 1.763 million jobs in July. "The stronger dollar narrative is weighing on investors' decisions, along with the fact that people will be more (prone) to profit-taking after such a big run-up," said Stephen Innes, chief market strategist at financial services firm AxiCorp. "A correction is very possible here. It really depends on how market views the overall dollar, with U.S.-China trade escalation sort of favourable to the dollar." The dollar has, on occasion, been the favoured safe haven amid flare-ups in tensions between Washington and Beijing. Last week, U.S. President Donald Trump took steps to ban two popular Chinese apps. "There is room here for people to unwind some of their gold exposure," said DailyFx currency strategist Ilya Spivak, since it appears the U.S. Federal Reserve might start "to take their foot off the gas" on aggressive stimulus after recent better economic data. Speculators reduced their bullish positions in COMEX gold and silver contracts in the week to Aug. 4. But gold's appeal as a safe haven has been underpinned by the uncertainty driven by the COVID-19 pandemic, with resultant widespread global stimulus also fuelling concerns of inflation. In the United States, which has marked a grim milestone of 5 million cases, Trump signed executive orders on Saturday partly restoring enhanced unemployment payments to millions of Americans. Silver gained 0.2% to $28.33 per ounce, platinum rose 1% to $970.86 and palladium was steady at $2,177.08. (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Aditya Soni)

PRECIOUS-Gold steadies near record high as dollar bounces on U.S.-China row

07 Aug 2020

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

PRECIOUS-Gold rush intact as prices flirt with record levels

06 Aug 2020

* Gold up 34% so far this year * Silver tops more than 7-year peak * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Recasts, adds comments, and updates prices) By Brijesh Patel Aug 6 Gold prices raced towards a record high on Thursday as dismal U.S. jobs data hammered the dollar and intensified worries about a recovery in the pandemic-ravaged global economy. Spot gold was just a hair's breadth away from its all-time high touched in the previous session, up 0.6% at $2,051.44 per ounce by 0645 GMT. U.S. gold futures rose 0.8% to $2,064.60. "There are real concerns about whether the global economic recovery will continue with infection cases continuing to rise in the U.S.," said Harshal Barot, research consultant for South Asia at Metals Focus. "Those concerns have now intensified, raising doubts that whatever recovery we had in the last couple of months would not last, leading to safe-haven buying. Broadly, inflation expectations have also started to pick up slightly." Three Federal Reserve policymakers warned the pandemic would continue to hurt the U.S. economy, with local cases topping 4.7 million. The sombre outlook sent the dollar index to a more than two-year low, with data on Wednesday showing U.S. private payrolls growth slowed sharply last month. "The only real cure to claw back some economic dignity is that global interest rates remain low for as far as the eye can see and even redoubled amounts government stimulus," Stephen Innes, chief market strategist at financial services firm AxiCorp, said in a note. Gold has rallied over 34% this year as it's considered an asset that should hold its value while the pandemic and central bank money printing erode the value of others. Falling real yields have also made the non-interest bearing metal an attractive investment, analysts said. However, technical indicators point to signs of exhaustion, said DailyFx currency strategist Ilya Spivak, adding "we might get a pause relatively soon, at least to consolidate." Silver jumped 2.5% to $27.69 per ounce after hitting its highest since April 2013. Platinum rose 0.7% to $973.52 and palladium edged up 0.1% to $2,183.52. (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)

PRECIOUS-Gold hits record above $2,000/oz on soft dollar, stimulus bets

05 Aug 2020

* Recovery worries push 10-year Treasury yield to 5-month low

PRECIOUS-Gold steadies near record high as virus concerns persist

04 Aug 2020

* Asia stocks rise on upbeat factory data * Gold hit record high of $1,984.66/oz on Monday * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Brijesh Patel Aug 4 Gold held steady near record highs on Tuesday as worries over global economic fallout from mounting COVID-19 cases offset an uptick in risk sentiment driven by positive U.S. economic data. Spot gold was steady at $1,976.19 per ounce by 0725 GMT, $8.47 shy of the all-time high hit in the previous session. U.S. gold futures rose 0.4% to $1,993.20. "The coronavirus problem is going to be with us for a while. It seems that economies around the world will be very fragile for an extended period of time," said Edward Meir, analyst at ED&F Man Capital Markets. "They (economies) would require stimulus, monetary easing and lower interest rates to cushion the shocks. All of those would be beneficial for gold." Coronavirus cases continue to surge in the United States and elsewhere. The World Health Organization warned that the road to normality would be long, with some countries requiring a reset of strategy. Central banks around the world have rolled out a flurry of stimulus measures and cut interest rates to mitigate the economic damage caused by the pandemic, helping gold rise more than 30% so far this year as it is seen as a hedge against inflation and fears of currency debasement. Meanwhile, U.S. lawmakers said they had made progress in talks on a new coronavirus relief bill. "What makes gold investing so appealing over the short-term or the medium-term perspective that when U.S. real yields are lower or negative, investors have no opportunity cost in owning bullion," Stephen Innes, chief market strategist at financial services firm AxiCorp, said in a note. Holding back the metal, investor appetite for riskier assets rose after strong U.S. manufacturing data and gains in tech stocks. Silver gained 0.4% to $24.34 per ounce, platinum rose 0.5% to $921.26 and palladium climbed 0.8% to$2,100.73. (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Christian Schmollinger)

PRECIOUS-Gold soars to record high as virus fears lift safe-haven demand

03 Aug 2020

* Spot gold may retreat into $1,943-$1,954/oz range - technicals

PRECIOUS-Gold eyes best month since Jan. 2012 as weak U.S. data dents dollar

31 Jul 2020

* Silver on track for best month on record * Dollar hits over two-year low, eyes worst month in decade * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Brijesh Patel July 31 Gold rose on Friday en route to its best month in 8-1/2 years as the dollar slid further after dismal U.S. data added to doubts about a swift recovery from the pandemic-induced economic slump, driving investors towards the safe-haven metal. Spot gold was up 0.8% at $1,975.44 per ounce by 0651 GMT after snapping a nine-session winning streak on Thursday. U.S. gold futures rose 1.5% to $1,970.70. The U.S. dollar fell to a two-year low and was on course for its worst month in a decade, making bullion cheaper for investors holding other currencies. Apart from U.S. data showing the deepest economic contraction in at least 73 years in the second quarter, and a rise in unemployment benefits, the dollar was also hurt as President Donald Trump raised the idea of delaying the Nov. 3 presidential election. "The weak Q2 GDP also underscores the point of a weak economy, and investors seeking refuge in gold," said National Australia Bank economist John Sharma. A deterioration in the coronavirus situation, escalation in geopolitical tensions and further declines in the dollar could push gold above the $2,000 level, he added. Gold has risen nearly 11% so far this month, its biggest monthly percentage gain since January 2012, having soared to an all-time high of $1,980.57 on Tuesday. The jump took gains for the year to nearly 30%, driven by a worsening pandemic and low interest rates globally amid widespread stimulus from central banks since the metal is considered a refuge against inflation and currency debasement. "However, further gains are reliant on investor demand, with consumer demand showing no signs of recovery," ANZ analysts said in a note. Among other metals, silver climbed 2.6% to $24.16 an ounce, on course for its best month on record - up over 30%, with additional support coming from hopes for a revival in industrial activity. Platinum rose 0.8% to $909.98 and palladium gained 0.7% to $2,096.84. (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)

PRECIOUS-Gold slips as Fed policy moves whet risk appetite

30 Jul 2020

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

PRECIOUS-Gold pauses as investors await confirmation on Fed stance

29 Jul 2020

* Silver eases from multi-year peak * Gold up more than 28% so far this year * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Recasts, updates prices) By Brijesh Patel July 29 Gold was little changed on Wednesday, having retreated from an all-time high as investors booked profits, with caution setting in as focus turned to a U.S. Federal Reserve meeting widely expected to reinforce loose monetary policy. Spot gold was steady at $1,959.04 per ounce by 0723 GMT. Prices hit an all-time high of $1,980.57 on Tuesday. U.S. gold futures rose 0.1% to $1,958.20. "As we get closer to the Fed announcement and the event risk, the market will get a bit more wary," said DailyFx currency strategist Ilya Spivak. Gold is closely following moves in the dollar as well, Spivak added. The dollar index resumed its downtrend after a brief pause to hold near its lowest level since June 2018 touched this week . A weaker dollar, also considered a rival safe haven, makes gold cheaper for holders of others currencies. Coronavirus cases continued to surge in the United States and stood at over 16.6 million globally. Its intensifying spread and an escalation in U.S.-China tensions have dented hopes of quick economic recovery, and have been driving inflows to safe-haven assets like gold, which has risen more than 28% so far this year. The Fed will publish its interest rate decision at 1800 GMT, widely expected to keep rates unchanged, following which Chair Jerome Powell is scheduled to hold a press conference. "I expect the Fed to maintain its uber-dovish tone and this will support precious metals prices," said Jeffrey Halley, a senior market analyst at OANDA. Gold tends to gain when interest rates are low, which reduces the opportunity cost of holding non-yielding bullion. It's also considered a hedge against inflation and currency debasement as central bank pump out stimulus. Republicans in the White House and the U.S. Congress struggled to reach a deal over a $1 trillion aid plan. Elsewhere, silver dropped 1.1% to $24.31 per ounce, platinum fell 1.1% to $937.93 and palladium slipped 1.1% to $2,257.49. (Reporting by Brijesh Patel in Bengaluru; Editing by Vinay Dwivedi and Uttaresh.V)

PRECIOUS-Gold surrenders gains after record run as dollar slide pauses

28 Jul 2020

* Silver rises to over 7-year high * China H1 gold consumption down 38% y/y -association * Fed's two-day policy meeting ends on Wednesday (Updates prices) By Brijesh Patel July 28 Gold gave up gains on Tuesday after scaling record highs as the dollar regained some ground, although simmering U.S.-China tensions and bets that the U.S. Federal Reserve would maintain its dovish policy stance kept demand solid for the metal. Spot gold was steady at $1,941.23 per ounce by 0707 GMT, but off its peak of $1,980.57 hit earlier, with the retreat also attributed to profit-taking. U.S. gold futures rose 0.2% to $1,935.10. Silver dropped 0.7% after rising as much as 6.4% to $26.19 per ounce, its highest since April 2013. "A slight reversal in the dollar could have triggered nervous longs to bail out, but there's been no change in the fundamentals whatsoever," said Michael McCarthy, chief strategist at CMC Markets. "We've had a very steep rise over the previous eight sessions from $1,800 to all the way up to $1,980, and such a rise in any market in such a short period of time does make it vulnerable to pullback." The dollar index crept higher after slumping to a two-year low, with markets awaiting the passage of a new fiscal rescue package in the United States. Traders also took stock of association data showing gold consumption from traditional top buyer China fell 38.25% in the first half of the year. The focus now shifts to the Fed's two-day meeting that ends on Wednesday. "(This meeting) is expected to discuss implementing dovish forward guidance which gold investors would consider supportive as real yields, the key driver of gold, would be expected to remain at record lows," Phillip Futures analysts said in a note. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold. Deteriorating U.S.-China ties and dimming hopes of a quick economic recovery as the virus showed no signs of slowing kept demand solid for the safe-haven metal, which has risen nearly 28% so far this year. Platinum lost 1.6% to $930.32 and palladium dropped 1.7% to $2,270.24. (Reporting by Brijesh Patel in Bengaluru; Editing by Uttaresh.V and Subhranshu Sahu)

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