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Brijesh Patel

Gold slips on stronger dollar, improving risk appetite

11 Nov 2020

Gold fell as much as 1.1% on Wednesday, hurt by a stronger dollar, while optimism around a potential COVID-19 vaccine raised hopes for a quick economic rebound, driving investors towards riskier assets.

PRECIOUS-Gold slips on stronger dollar, improving risk appetite

11 Nov 2020

* Dollar hits near one-week high * Palladium dips over 5% * Fed policymakers suggest more specific fiscal support * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices) By Brijesh Patel Nov 11 Gold fell as much as 1.1% on Wednesday, hurt by a stronger dollar, while optimism around a potential COVID-19 vaccine raised hopes for a quick economic rebound, driving investors towards riskier assets. Spot gold fell 0.7% at $1,864.38 per ounce by 1:42 p.m. EST (1842 GMT). U.S. gold futures settled down 0.8% to $1,861.60. "Gold's got two things working against it, strong equities and a strong dollar at this point. It's hard for gold to continue to rally given those two markets being up higher," said Bob Haberkorn, senior market strategist at RJO Futures. "The flight to safety in the precious metals that we had last week after the U.S. elections is gone away on the back of coronavirus vaccine news." Denting gold's appeal, the dollar rose 0.3% to a near one-week high, making bullion more expensive for holders of other currencies. Risk sentiment among investors gained as prospects of an effective COVID-19 vaccine overshadowed worries over surging infections. But the breakthrough highlighted the logistical challenges of distributing hundreds of millions of doses once they become available. "Given the reaction we've seen to vaccine news in recent days, the immediate downside risks for gold have undoubtedly increased," OANDA analyst Craig Erlam said in a note. "The key area remains between $1,850-$1,860 and it's looking very vulnerable in the near-term." However, "the longer term prospects for gold are bullish, the road to recovery will take time and require more central bank and government support." Federal Reserve policymakers on Tuesday highlighted the need for more targeted fiscal support from the government. Gold, which has risen more than 22% this year, tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement. Silver rose 0.1% to $24.24 per ounce. Platinum fell 2% to $865.28 and palladium shed 5.6% to $2,316.20. (Reporting by Brijesh Patel in Bengaluru Editing by Nick Zieminski and Marguerita Choy)

PRECIOUS-Gold firms on stimulus bets and economic woes

10 Nov 2020

* Gold posted biggest daily decline in three months on Monday * Equities ease after vaccine-inspired rally * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices) By Brijesh Patel Nov 10 Gold regained some lost ground on Tuesday after a sharp fall in the previous session as concerns over global economic recovery and expectations of further fiscal and monetary stimulus offered support to the safe-haven metal. Spot gold rose 0.7% to $1,875.70 an ounce by 1:43 p.m. EST (1843 GMT). U.S. gold futures settled up 1.2% at $1,876.40. "Gold is trying to find equilibrium this morning, 24 hours after the Pfizer earthquake rearranged the landscape. I expect gold will continue to grind back higher, but it's going to take a bit longer," said Tai Wong, head of base and precious metals derivatives trading at BMO. "The fundamental factors for gold remain quite friendly. Stimulus is on the cards and with a vaccine we will get reflation." Gold lost 4.6% on Monday, its biggest daily fall since Aug. 11, after U.S. drugmaker Pfizer Inc said its COVID-19 vaccine was more than 90% effective based on initial trial results, lifting U.S. equities to record highs. However, shares eased on Tuesday as worries about the extent of the COVID-19 pandemic's economic impact resurfaced. "The fiscal and monetary response to the pandemic globally will remain highly accommodative. This will continue to provide gold and silver, as well as platinum, with reason to go higher," HSBC analysts said in a note. "But the psychological relief and shift in risk sentiment may still weigh on gold and the other metals, with the exception of palladium, in the immediate term." Gold tends to benefit from stimulus spending because it is considered a hedge against inflation risks and currency weakness. Meanwhile, Dallas Federal Reserve Bank President Robert Kaplan said he was "cautious and concerned" about downside economic risks in the short term because of the resurgence of the coronavirus. Silver gained 0.9% to $24.28 an ounce, platinum climbed 1.8% to $881.61 and palladium eased 0.7% to $2,460.33. (Reporting by Brijesh Patel in Bengaluru Editing by Chris Reese and Mark Potter)

Gold rises over 1% on stimulus bets and economic woes

10 Nov 2020

Gold regained some lost ground on Tuesday after a sharp fall in the previous session as concerns over global economic recovery and expectations of further fiscal and monetary stimulus offered support to the safe-haven metal.

PRECIOUS-Gold gains as dollar rally stalls, virus cases mount

30 Oct 2020

* Gold still on track for third straight monthly decline * Wall St drops as COVID cases jump * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices) By Brijesh Patel Oct 30 Gold prices rose on Friday as the dollar rally paused, with worries over rising COVID-19 cases and uncertainty surrounding next week's U.S. presidential election offering support to the safe-haven metal. Spot gold was up 0.6% at $1,879.01 by 01:30 p.m. EDT (1730 GMT) following two straight sessions of sharp declines. Bullion is down 0.3% this month. U.S. gold futures settled up 0.6% to $1,879.90. "Gold rebounded as the dollar partially reversed its surprising two-day rally," said Tai Wong, head of base and precious metals derivatives trading at BMO. "Investors are finding the bottom of the recent range a good level at which to add to gold holdings ahead of the hotly contested election next week, which seems likely to return a one-party government that means much bigger and faster stimulus." The dollar index was steady against its rivals after climbing to its highest in a month in the previous session. Ahead of the Nov. 3 U.S. election day, Democrat challenger Joe Biden leads President Donald Trump nationally in the polls, but most competitive states have shown a closer race. "There's a lot of structural pieces in place for gold to continue to rise after the election, regardless of the outcome," said Kevin Rich, Global Gold Market Advisor for The Perth Mint. "Based on the amount of fiscal stimulus that is gone in from here in the United States and globally ... (and) the enormous amount of government debt taken on ... that's going to put a lot of currencies under pressure, including the U.S. dollar." Gold, which has risen 24% so far this year, tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement. Concerns about a surge in coronavirus cases in the United States and in Europe dented investors' appetite for riskier assets. Silver rose 1.3% to $23.57 per ounce, platinum fell 0.6% to $842.09 and palladium gained 0.9% to $2,210.67. (Reporting by Brijesh Patel in Bengaluru; Editing by Kirsten Donovan and Alistair Bell)

PRECIOUS-Gold falls to one-month low as dollar extends rally

29 Oct 2020

* No deal in sight on coronavirus relief -White House adviser * Dollar hits one-month peak * Silver slips to one-month low * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices) By Brijesh Patel Oct 29 Gold prices dropped to one-month lows on Thursday, hurt by a stronger dollar and lack of clarity on a U.S. stimulus agreement, while concerns over a spike in COVID-19 cases and uncertainty ahead of U.S. elections limited losses. Spot gold was down 0.5% at $1,867.40 per ounce by 1:39 p.m. EDT (1739 GMT), having earlier slipped to its lowest since Sept. 28 at $1,858.92. U.S. gold futures settled down 0.6% to $1,868. "The downturn we are seeing in gold prices is because there is a short-term concern about timing of the stimulus getting approved," said Jeffrey Sica, founder of Circle Squared Alternative Investments, adding "a strengthening U.S. dollar is impacting gold." President Donald Trump's chief economic adviser said on Thursday that any deal on coronavirus relief legislation would have to wait for now. Denting gold's appeal, the dollar index rose 0.7% to a one-month high, making gold more expensive for holders of other currencies. "Gold is now at levels where people could accumulate considering the chaos around the election, concerns about economic recovery and the coronavirus situation. The trend for gold is still bullish," Sica said. Gold, often used as a safe store of value during times of political and financial uncertainty, has risen 24% this year amid unprecedented global levels of stimulus during the pandemic. Rapidly rising COVID-19 infection rates in Europe forced France and Germany to order their countries back into lockdown. Meanwhile, data showed the U.S. economy grew at an unrivalled pace in the third quarter and weekly unemployment claims fell more than expected in the latest week. Ahead of the Nov. 3 election, Democratic challenger Joe Biden leads Trump nationally, but the competition is tighter in swing states. Elsewhere, silver dipped 0.5% to $23.30 per ounce after earlier slipping to a near one-month low. Platinum fell 2.2% to $848.58 and palladium slipped 1.8% to $2,197.90. (Reporting by Brijesh Patel in Bengaluru Editing by Nick Macfie and Steve Orlofsky)

PRECIOUS-Gold slides on dollar rally as U.S. stimulus remains elusive

28 Oct 2020

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices)

Gold slides on dollar rally as U.S. stimulus remains elusive

28 Oct 2020

Gold fell as much as 2% and silver nearly 6% on Wednesday as investors flocked to the dollar in the absence of signs of any imminent U.S. fiscal stimulus measures to ease the economic blow from the COVID-19 pandemic.

PRECIOUS-Gold retreats more than 1% to three-week low as dollar rallies

28 Oct 2020

* European stocks hit late-May lows * Dollar climbs to highest in over a week * Silver, palladium down more than 3% * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Recasts, adds comments, updates prices) By Brijesh Patel Oct 28 Gold slid more than 1% to a three-week low on Wednesday as investors opted for the dollar as a preferred refuge from concerns about rising coronavirus cases in Europe and uncertainty going into next week's U.S. presidential election. Spot gold slipped 1.3% to $1,882.41 per ounce by 1225 GMT, after hitting its lowest since Oct. 7 at $1,880.99. U.S. gold futures fell 1.6% to $1,882.20. "We have increased uncertainty related to the pandemic and the prospect of renewed lockdowns in Europe, so we have stock markets down and the dollar in response is receiving the bids," said Saxo Bank analyst Ole Hansen. That is hurting gold, he said. "Gold's break below $1,885 could trigger additional long liquidation and send the market further (down)." The rival safe-haven dollar jumped 0.7% to a more than one-week high , with the prospect of fresh lockdowns weighing heavily on the euro and European stock markets. The United States, Russia, France and other countries have registered record numbers of coronavirus infections in recent days. "With gold investors not banking on pre-election stimulus - and it may even get delayed if the U.S. elections results are contested - EURUSD levels might be a crucial bellwether for gold," said Stephen Innes, chief global market strategist at Axi, in a note. President Donald Trump on Tuesday said that an economic relief deal would likely come after the Nov. 3 election despite a rise in infections and a stalling labour market recovery. Gold, considered a hedge against inflation and currency debasement amid unprecedented global levels of stimulus, is still up about 25% so far this year. Focus was on the U.S. elections, with Democratic challenger Joe Biden leading Trump in nationwide polls. Elsewhere, silver slipped 3.4 % to $23.72 per ounce, platinum fell 1.9% to $861.74 and palladium dropped 3.2% to $2,257.84. (Reporting by Brijesh Patel in Bengaluru; Editing by Mike Harrison and Jan Harvey)

PRECIOUS-Gold edges up as dollar slips, coronavirus concerns persist

27 Oct 2020

* Palladium to test $2,600/oz by mid-2021 - UBS * Platinum up more than 1% * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Recasts, updates prices) By Brijesh Patel Oct 27 Gold prices edged higher on Tuesday, helped by a weaker dollar and worries over a second surge in coronavirus cases, although the safe-haven metal held a narrow range as investors' focus on next week's U.S. presidential election. Spot gold was up 0.4% at $1,909.58 per ounce at 1:35 p.m. EDT (1735 GMT). U.S. gold futures settled up 0.3% to $1,911.90. The dollar index slipped 0.3% against its rivals, making gold less expensive for holders of other currencies. "Gold is stuck in a tight range and there's probably not going to be too much activity before the U.S. election," said Michael Matousek, head trader at U.S. Global Investors. However, people are still carrying bullish bias on gold because of the coronavirus worries, slowdown in global economies and stimulus measures, which is prompting investors to add gold into their portfolios, he added. The United States, Russia, France and many other countries are setting records for coronavirus infections, forcing some countries to impose new curbs. The White House on Tuesday tamped down expectations for a major coronavirus relief package to be agreed upon by the Nov. 3 U.S. presidential election, saying House of Representatives Speaker Nancy Pelosi was seeking too much. Democratic challenger Joe Biden leads President Donald Trump in national polls but the race is much tighter in battleground states that determine the election outcome. "Gold's outlook will remain very bullish if Election Day delivers a 'blue wave' that signals massive stimulus on coronavirus relief and infrastructure spending," Edward Moya, senior market analyst at OANDA, said in a note. Gold, considered a hedge against inflation and currency debasement, has jumped 26% this year amid unprecedented global levels of stimulus during the pandemic. Elsewhere, palladium fell 0.5% to $2,340.21 per ounce, while platinum rose 1.6% to $883.88. Palladium could test $2,600 by mid-2021 bolstered by market tightness and stimulus measures, UBS said in a note. Silver gained 0.6% to $24.46 per ounce. (Reporting by Brijesh Patel in Bengaluru; Editing by Marguerita Choy and Lisa Shumaker)

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