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Eileen Soreng

Gold firms as dollar stalls, uncertainties loom ahead of U.S. polls

8:50am GMT

Gold inched up on Thursday after a sharp slide in the previous session as a halt in the dollar's rally supported some safe- haven buying driven by surging coronavirus cases and the approaching U.S. elections.

PRECIOUS-Gold firms as dollar stalls, uncertainties loom ahead of U.S. polls

8:24am GMT

* ECB policy decision at 1245 GMT * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Recasts, adds comments, updates prices) By Eileen Soreng Oct 29 Gold inched up on Thursday after a sharp slide in the previous session as a halt in the dollar's rally supported some safe- haven buying driven by surging coronavirus cases and the approaching U.S. elections. Spot gold rose 0.1% to $1,879.71 per ounce by 0805 GMT, with some investors also taking advantage of Wednesday's slide to a one-month low to buy gold. U.S. gold futures were up 0.1% at $1,880.10. The U.S. elections and expectation of a pause in the dollar index are propping up gold, said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade. Also, "in giant economies like France and Germany, COVID-19 cases are increasing and again they are going for lockdowns. So in that situation, there should be some safe-haven buying for gold." Ahead of the Nov. 3 election, Democratic challenger Joe Biden leads U.S. President Donald Trump nationally, but the competition is tighter in swing states. "The broad supportive band (for gold) through $1,870-$1,880 remains intact for the time-being... Key near-term drivers remain U.S. equity flows and dollar direction," MKS PAMP said in a note. Concerns over the pace of the global economic recovery have also gripped markets in recent days, as European countries impose new lockdowns to contain a new coronavirus wave. The dollar index rally took a breather as it steadied off a one-week peak scaled on Wednesday. Investors are now focussing on central bank meetings, with the European Central Bank expected to hold off on new measures later in the day and hinting at action in December. Gold, considered an inflation-hedge, has gained 24% this year, helped by near-zero interest rates globally and unprecedented stimulus measures to ease the economic blow from the pandemic. Silver fell 0.6% to $23.28 per ounce, while platinum rose 0.3% to $870.02. Palladium was up 0.5% at $2,247.76. (Reporting by Eileen Soreng and Asha Sistla in Bengaluru; editing by Uttaresh.V, Aditya Soni and Rashmi Aich)

PRECIOUS-Gold steady as coronavirus, U.S. election uncertainties loom

28 Oct 2020

* Spot gold may test support at $1,887/oz - technicals * Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Adds comment, updates prices) By Eileen Soreng Oct 28 Gold prices steadied above the $1,900 mark on Wednesday as uncertainties about the U.S. elections and surging global COVID-19 cases countered pressure from a firmer dollar and fading hopes of an immediate U.S. stimulus package. Spot gold was little changed at $1,909.20 per ounce by 0619 GMT. U.S. gold futures were flat at $1,911.60. "Investors need a reason to buy more gold and the reason to buy gold will come from a policy signal," said Stephen Innes, chief global market strategist at Axi. "With the virus raging all over, we are going to get stimulus at some point... This is also probably leaning towards more central bank intervention because the economic hit is going to be quite significant," he added. Unprecedented money printing and low interest rates globally has set gold on pace for its best year in a decade, given its appeal as a hedge against inflation and currency debasement. Bullion is up nearly 26% this year. As a fresh wave of coronavirus infections spread, European governments moved to impose new curbs and provide economic help to businesses to weather the pandemic. Putting a damper on sentiment, President Donald Trump said that a coronavirus economic relief deal would likely come after the Nov. 3 election. The dollar , also viewed as a safe-haven asset, rose 0.2% against a basket of major currencies, benefiting from the U.S. election uncertainty. "Gold prices are being kept in check by the dollar index... Gold's adherence to a tight range also indicates that some investors remain sceptical over the prospects of a 'blue wave'," said FXTM market analyst Han Tan. On the technical front, spot gold may test a support at $1,887, as the bounce triggered by this support is ending around a resistance at $1,912, according to Reuters technical analyst Wang Tao. Silver was steady at $24.52 per ounce, platinum rose 0.6% to $884, while palladium gained 0.9% at $2,351. (Reporting by Eileen Soreng in Bengaluru; Editing by Amy Caren Daniel and Uttaresh.V)

PRECIOUS-Gold gains as fresh virus wave looms over economic recovery

27 Oct 2020

* Palladium to test $2,600/oz by mid-2021 -UBS * Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Updates prices) By Eileen Soreng Oct 27 Gold prices rose on Tuesday as a weaker dollar and a fresh wave of coronavirus infections threatened to further slow down a global economic recovery from the COVID-19 pandemic, bolstering bullion's safe-haven appeal. Spot gold was 0.1% higher at $1,903.16 per ounce by 0801 GMT. U.S. gold futures were steady at $1,906.50. "The resurgence of COVID-19 is leading to a broader risk-off sentiment in global markets and this is supportive of safe-haven assets," said Harshal Barot, senior research consultant for South Asia at Metals Focus. "Investors are clearly not bearish on gold at the moment... Long-term investors continue to hold gold amid the broader uncertainty, be it the U.S. elections or the pandemic," Barot added. Many countries, including the United States, Russia and France, are setting records for COVID-19 infections and forcing some of them to impose new restrictions, risking derailing any global economic recovery. The dollar index dipped 0.1% against rivals, pressured by strong economic data out of China and South Korea, making the bullion cheaper for holders of other currencies. Investors were, however, cautious ahead of the Nov. 3 U.S. elections, while negotiations over a new relief aid showed no signs of progress. While U.S. House Speaker Nancy Pelosi expressed hope that an agreement can be reached before the elections, White House economic adviser Larry Kudlow told reporters on Monday that talks have slowed. Gold tends to benefit from widespread stimulus measures from central banks because it is considered a hedge against inflation and currency debasement. Elsewhere, palladium gained 1% to $2,374.88 per ounce, while platinum was up 0.9% at $877.34. Palladium prices could test $2,600 by mid-2021 bolstered by market tightness and stimulus measures, UBS analyst Giovanni Staunovo said in a note. Silver rose 0.5% to $24.44 per ounce. (Reporting by Eileen Soreng in Bengaluru; Editing by Amy Caren Daniel and Rashmi Aich)

Gold slips on strong dollar, U.S. stimulus doubts

26 Oct 2020

Gold fell below the key psychological level of $1,900 on Monday to its lowest in more than a week, pressured by a firmer dollar and stalled progress in talks for a new U.S. coronavirus aid package.

PRECIOUS-Gold slips on strong dollar, U.S. stimulus doubts

26 Oct 2020

* Break below $1,887/oz could drive further dips -technicals * Chinese car sales to buoy platinum, palladium -analysts * Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Updates prices) By Eileen Soreng Oct 26 Gold fell below the key psychological level of $1,900 on Monday to its lowest in more than a week, pressured by a firmer dollar and stalled progress in talks for a new U.S. coronavirus aid package. Spot gold fell 0.2% to $1,897.71 per ounce by 0908 GMT, after hitting $1,890.19, its lowest since Oct. 15. U.S. gold futures fell 0.3% to $1,900.50. "There seems to be a lack of impetus to find extra buyers (for gold)... A lot of it is because we're trading in the looming shadow of the U.S. elections and stimulus speculation," said IG Markets analyst Kyle Rodda. The dollar rose 0.3% against a basket of other currencies. U.S. House Speaker Nancy Pelosi on Sunday said the Trump administration was reviewing the latest plan for more COVID-19 relief and that she expected a response on Monday. But with the presidential elections fast approaching, analysts said a victory for Democrat rival Joe Biden could help gold rally on a potential large stimulus package, especially amid COVID-19 cases surging in the United States. France registered a record increase in infections over the weekend and Spain announced a state of emergency as cases surged through Europe. Widely viewed as a hedge against inflation and currency debasement, bullion has gained 25.1% this year as central banks and governments unveiled unprecedented stimulus to cushion the economic fallout from the pandemic. A break below support at $1,887 per ounce could push gold lower to $1,872, according to Reuters technical analyst Wang Tao. Elsewhere, auto-catalyst metals palladium and platinum dropped 1.5% to $2,356.16 and 1.4% to $888.59 respectively. "Although supply shocks for the pair have eased in recent weeks, Chinese car sales continue to eclipse expectations, which paints a bullish picture into the year end and should keep prices buoyant," MKS PAMP said in a note. Silver fell 1.9% to $24.12 per ounce. (Reporting by Eileen Soreng in Bengaluru; Editing by Richard Chang and Rashmi Aich)

Copper seen struggling to hit further highs in 2021

21 Oct 2020

LONDON/BENGALURU Copper prices will struggle to scale fresh peaks next year after a stunning recovery from coronavirus-related shocks in leading global consumer China, despite a wider deficit, a Reuters poll showed. <0#BASEMETALPOLL>

PRECIOUS-Gold gains on renewed hopes of U.S. stimulus deal, weaker dollar

21 Oct 2020

* Spot gold hits one-week peak at $1,920.27/oz * Gold may test resistance at $1,935/oz- technical analyst * Dollar hits one-month trough * Interactive graphic tracking global spread of coronavirus: open * https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Eileen Soreng Oct 21 Gold rose on Wednesday as optimism that U.S. lawmakers could reach an agreement on a pre-election coronavirus relief package weakened the dollar and bolstered bullion's appeal as a hedge against inflation. Spot gold gained 0.6% at $1,918.56 per ounce by 0742 GMT, after hitting a one-week high earlier in the session. U.S. gold futures were up 0.4% at $1,922.10 per ounce. The White House and Democrats in the U.S. Congress moved closer to agreement on Tuesday as President Donald Trump said he was willing to accept a large aid bill despite opposition from his Republican Party. The news lifted appetite for equities and sent the dollar index to a one-month low, bolstering gold's appeal to other currency holders. "The falling U.S. dollar is the main contributor to gold's rally ... Gold may eventually complete this consolidation period and trend upwards," said Margaret Yang, a strategist with DailyFx, which covers currency, commodity and index trading. "A very accommodative monetary and fiscal policy environment, low interest rates and uncertainties surrounding the virus and presidential elections" could push prices to $2,000 and above by end-2020, Yang added. Gold has been range-bound near the psychologically important $1,900 level in the past few sessions, as investors tracked developments on the U.S. stimulus. Prices have gained more than 26% this year, helped by near-zero interest rates globally and unprecedented stimulus to ease the economic blow from a worsening pandemic. The market needs more certainty on the stimulus front before taking a position, IG Markets analyst Kyle Rodda said. Gold may test a resistance at $1,935 per ounce, a break above which could open the way towards $1,967, according to Reuters technical analyst Wang Tao. Elsewhere, silver rose 1.4% to $24.99 per ounce, platinum was up 0.7% at $877.25 and palladium gained 0.4% at $2,409.00. (Reporting by Eileen Soreng and Nakul Iyer in Bengaluru; Editing by Aditya Soni, Rashmi Aich and Amy Caren Daniel)

PRECIOUS-Gold gains on U.S. stimulus deal optimism, weaker dollar

21 Oct 2020

* Spot gold hits one-week peak at $1,920.27/oz * Dollar hits one-month trough * Interactive graphic tracking global spread of coronavirus: open * https://tmsnrt.rs/3aIRuz7 in an external browser (Adds comments, updates prices) By Eileen Soreng Oct 21 Gold prices rose on Wednesday as optimism that U.S. lawmakers could reach agreement on a pre-election coronavirus relief package pressured the dollar and bolstered the precious metal's appeal as an inflation hedge. Spot gold gained 0.6% to $1,917.76 per ounce by 0323 GMT, having earlier hit a one-week high. U.S. gold futures were up 0.4% at $1,922.80. The White House and Democrats in the U.S. Congress moved closer to agreement on a fresh stimulus package on Tuesday as President Donald Trump said he was willing to accept a large aid bill despite opposition from his Republican Party. Talks will continue on Wednesday, an aide to top U.S. Democrat Nancy Pelosi said. The news lifted risk appetite and sent the dollar index to a one-month low against a basket of major currencies. "The falling U.S. dollar is the main contributor to gold's rise," said Margaret Yang, a strategist with DailyFx, which covers currency, commodity and index trading. The pandemic has prompted unprecedented money printing and low-interest rates globally, putting gold on track for its best year in a decade given its appeal as a hedge against inflation and currency debasement. But the precious metal has been rangebound in the past few sessions, hovering near the psychologically important level of $1,900, as investors await developments on the U.S. stimulus deal. The market needs more certainty on the U.S. stimulus front before taking a position, IG Markets analyst Kyle Rodda said. On the physical front, customs data showed Switzerland's gold exports to China and India dwindled in September, with the country instead importing record volumes of bullion from Hong Kong and sending the metal to Britain. Elsewhere, silver rose 1.4% to $24.98 per ounce, platinum was up 0.8% at $877.91. Palladium was 0.4% higher at $2,407.95. (Reporting by Eileen Soreng in Bengaluru; Editing by Uttaresh.V, Aditya Soni)

PRECIOUS-Gold holds tight range on caution over U.S. aid

20 Oct 2020

* Gold could test $1,932/oz if stimulus is passed- analyst * Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices) By Eileen Soreng Oct 20 Gold traded on Tuesday in a narrow range above $1,900 an ounce as caution spread ahead of a deadline for agreement on a new U.S. coronavirus stimulus package and next month's presidential election. Spot gold fell 0.2% to $1,900.71 per ounce by 0757 GMT. U.S. gold futures were down 0.4% to $1,903.30. "Sentiment surrounding bullion remains tentative, keeping spot gold around the $1,900-mark, as some...continue to hold out hope that Democrats and the White House can arrive at a deal over the immediate term," said FXTM market analyst Han Tan. "Bullion may continue moderating as such hopes wane, when realisation sinks in that a fresh round of U.S. fiscal stimulus is likelier to be a post-election event." U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin "continued to narrow their differences" about the package, her spokesman Drew Hammill said. Pelosi hopes that by the end of Tuesday there will be "clarity" on whether a stimulus bill can be passed before the Nov. 3 election, he wrote on Twitter. Gold is considered a hedge against inflation and currency debasement amid the unprecedented levels of global stimulus to ease the economic blow from the pandemic. "A lot of investors are on the sidelines and also in particular because the (U.S.) elections are coming up," said Brian Lan, managing director at GoldSilver Central, adding that a stimulus would make bullion prices test the higher end of the $1,882-$1,932 range. Investors are now waiting for the final debate between U.S. President Donald Trump and his Democratic challenger Joe Biden on Thursday. The dollar index was flat versus rivals, while Asian stocks slipped as investors adjusted risk exposure heading into the election. Elsewhere, silver fell 0.5% to $24.37 per ounce and platinum dipped 0.4% to $852.81, while palladium rose 0.2% to $2,348.83. (Reporting by Eileen Soreng in Bengaluru; editing by Uttaresh.V and Subhranshu Sahu)

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