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K. Sathya Narayanan

PRECIOUS-Gold set for biggest weekly gain since April on bearish economic outlook

12 Jun 2020

* Gold up about 3% so far this week * Platinum set for biggest weekly fall since end-April (Adds comment, updates prices) By K. Sathya Narayanan June 12 Gold rose on Friday as fears over the resurgence of coronavirus infections and a grim economic outlook by the U.S. Federal Reserve boosted demand for bullion, leading the metal towards its biggest weekly gain since early-April. Spot gold was 0.5% higher at $1,736.26 per ounce by 1303 GMT and has jumped about 3% so far this week, heading for its its biggest gain since the week of April 10. U.S. gold futures gained 0.5% to $1,748.20. "One of the reasons has been the statement form the FOMC and the testimony of the (Fed Chair) Jerome Powell, painting a darker picture of the U.S. economy," said Quantitative Commodity Research analyst Peter Fertig. Also, "there is talk about a second wave especially after cases of new infections of the virus have risen again in some countries. A warning which many people ignored." Meanwhile, the dollar was on track to record its fourth week of declines, making gold cheaper for investors using other currencies. Earlier this week, Fed policymakers projected the U.S. economy to shrink 6.5% in 2020, while data showed that Britain's economy shrank by 20.4% in April. "There is still significant uncertainty about how the economic recovery will play out and any disappointments could support the gold price," Robin Bhar, an independent consultant said in a note. Gold is considered a safe haven during times of economic uncertainty. Elsewhere, palladium rose 1.1% to $1,943.40 per ounce, while silver declined 0.5% to $17.61. Platinum climbed 1.4% to $822.54 an ounce, but was set for its biggest weekly fall since end-April. (Reporting by K. Sathya Narayanan in Bengaluru, editing by Louise Heavens, Kirsten Donovan)

PRECIOUS-Gold gains for a third day on hopes of dovish U.S. Fed

10 Jun 2020

* U.S. Fed policy decision due at 1800 GMT * Dollar falls to near three-month low * Gold to reach $1,800/oz on a 12-month basis - Goldman (Updates prices) By K. Sathya Narayanan June 10 Gold rose for a third straight session on Wednesday, helped by a weaker dollar and expectations the Federal Reserve will maintain its accommodative policy to support the U.S. economy. Spot gold rose 0.4% to $1,721.16 per ounce by 1129 GMT, having jumped more than 1% in the last session. U.S. gold futures gained 0.3% to $1,727.20. "While you can be optimistic about the fact that the U.S. economy did add some jobs, that doesn't necessarily mean the crisis is over," said Michael Hewson, chief market analyst at CMC Markets UK. The Fed was likely to remain fairly easy for some time and the economic outlook was likely to remain cloudy, Hewson said, adding that a weaker dollar was helping prices. The dollar fell to a near three-month low against rival currencies before the Fed's monetary policy meeting at 1800 GMT. U.S. central bankers will be publishing their first economic projections since the coronavirus crisis led to recession in February. "Gold traders would be looking to clues from the Fed as to the reality of a V-shaped economic recovery or whether stock market investors have gone ahead of themselves in assuming a V-shaped recovery," Phillip Futures said in a note. Easy monetary policy tends to benefit non-yielding gold and weighs on dollar and Treasury yields. Gold is also seen as a safe-haven during economic uncertainties. The global economy will suffer the biggest peace-time downturn in a century, the OECD said on Wednesday. Goldman Sachs expects gold to reach $1,800 per ounce on a 12-month basis and the tail risk of above-target inflation as a potential driver for prices to climb beyond $2,000. Elsewhere, silver rose 0.8% to $17.72 an ounce, palladium gained 0.6% to $1,951.83, while platinum fell 0.6% to $831.87. (Reporting by K. Sathya Narayanan in Bengaluru; Editing by Edmund Blair)

PRECIOUS-Gold gains as stock market rally fizzles

09 Jun 2020

* As gold breaks $1,700, recovery likely to continue -analyst * Fed statement due at 1800 GMT on Wednesday * Palladium down 30% from February's record peak (Updates prices) By K. Sathya Narayanan June 9 Gold prices rose on Tuesday as a pullback in equities increased the appeal of the safe-haven metal while investors awaited the U.S. Federal Reserve's two-day monetary policy meeting starting later in the day. Spot gold gained 0.7% to $1,705.77 an ounce by 1150 GMT, climbing for a second straight session. U.S. gold futures rose 0.6% to $1,715.50. "Stock markets aren't rising any further, or at least not meaningfully, and that is taking pressure away from gold," said Commerzbank analyst Daniel Briesemann. European shares eased as declines in British American Tobacco and banking stocks halted a rally driven by hopes of economic recovery. "We are seeing a temporary return of risk-off ... gold is gaining strength as liquidity flows back into bullion markets despite the recovery of the greenback," ActivTrades chief analyst Carlo Alberto De Casa said in a note. As gold has broken through the resistance level of $1,700, recovery seems likely to continue if there are further declines on stocks, De Casa added. Gold prices fell last Friday to $1,670.14, their weakest in more than a month after an unexpected jump in U.S. employment numbers signalled that an economic recovery was under way. Traders have stopped pricing in the possibility of negative interest rates in the United States and are now focused on the Fed's monetary policy meeting for guidance on how the world's biggest economy can recover after the coronavirus. In other precious metals, silver dropped 1.6% to $17.58 an ounce while platinum slipped 0.9% to $824.87. Palladium fell 3.1% to $1,961.10, with prices of the metal used in autocatalysts now down more than 30% from a record peak in late February. "The (palladium) market could be more or less balanced due to the very low demand from the automotive industry, and that is probably keeping a check on prices," Commerzbank's Briesemann said. (Reporting by K. Sathya Narayanan in Bengaluru Additional reporting by Swati Verma and Eileen Soreng Editing by Susan Fenton and David Goodman)

PRECIOUS-Gold rises after steep fall as focus turns to Fed meeting

08 Jun 2020

* For an interactive graphic tracking the global coronavirus spread, open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices)

India gold dealers offer big discounts as virus fears stifle demand

05 Jun 2020

BENGALURU/MUMBAI Physical gold dealers in India offered the highest discounts in about two months this week as customers kept away with coronavirus cases in the country continuing to mount, while Singapore saw steady safe haven demand.

Asia Gold-India dealers offer big discounts as virus fears stifle demand

05 Jun 2020

* Supply tight amid higher physical demand in Singapore-dealer

PRECIOUS-Gold rises on bargain hunting, focus on U.S. payrolls data

04 Jun 2020

* For an interactive graphic tracking the global coronavirus spread, open https://tmsnrt.rs/3aIRuz7 in an external browser (Adds comments, details, updates prices)

PRECIOUS-Gold dips as equities rally on economic recovery hopes

03 Jun 2020

* For an interactive graphic tracking the global coronavirus spread, open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices)

PRECIOUS-Gold dips on strong equities; trade jitters, U.S. unrest limit losses

02 Jun 2020

* SPDR Gold Trust holdings rose on Monday to a fresh 7-year high

PRECIOUS-Gold gains on weaker dollar, U.S.-China tensions

01 Jun 2020

* For an interactive graphic tracking the global coronavirus spread, open https://tmsnrt.rs/3aIRuz7 in an external browser (Adds comments, updates prices)

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