Edition:
United Kingdom

Karthika Suresh Namboothiri

PRECIOUS-Gold little changed after Fed minutes, trade tensions lend support

20 Nov 2019

(Recasts, adds analyst comment, updates prices) * 'Phase One' U.S.-China trade deal may not be completed this year * Fed minutes from October meeting show rates on hold By Karthika Suresh Namboothiri and Brijesh Patel Nov 20 Gold held steady on Wednesday in the wake of the release of the minutes from the U.S. Federal Reserve's October meeting, while report of a delay in U.S.-China "phase one" trade deal offered support to the safe-haven metal. The minutes showed the central bank remains on hold with regard to the direction of interest rates, as an increasingly divided Fed offered little guidance on what would cause policymakers to change their minds on the outlook. Spot gold was mostly unchanged at $1,471.90 per ounce as of 03:20 p.m. ET (2020 GMT). U.S. gold futures settled unchanged at $1,474.20. "We had news on U.S.-China trade deal, which pushed gold positive before the minutes. This might be the new information that the Fed has not taking into account probably voided out what they said in the minutes," said Bob Haberkorn, senior market strategist at RJO Futures. "Had that U.S.-China news not come out before the Fed announcements, gold would have been at least $10-$15 down. Right now the market wants more information on U.S.-China trade to move in either direction," he added. Reuters reported that completion of an initial U.S.-China trade deal could slide into next year as Beijing presses for tariff rollbacks. It cited trade experts and people close to the White House. Earlier in the session, the U.S. Commerce Department confirmed it has begun issuing licenses for some U.S companies to supply non-sensitive goods to Huawei. "Gold price action lately has been nearly formulaic: the market starts to lean one way, gets disappointed in the price action, and a contrary headline gives it a shove in the opposite direction," said Tai Wong, head of base and precious metals derivatives trading at BMO. The mood in markets had been sour after the U.S. Senate angered China by passing a bill requiring annual certification of Hong Kong's autonomy and warning Beijing against violently suppressing protesters. China demanded the United States stop interfering in its internal affairs and said it would retaliate. U.S. President Donald Trump also threatened to raise tariffs on Chinese goods if a trade deal is not reached soon. Uncertainty surrounding the "phase one" trade deal prompted world stocks to fall from a 22-month peak, with Wall Street firmly in the red. Elsewhere, silver was up 0.1% to $17.15 an ounce, while platinum gained 0.8% to $917.10. Palladium was up 0.2% to $1,767.24. (Reporting by Karthika Suresh Namboothiri and Brijesh Patel in Bengaluru; Editing by Andrea Ricci and Nick Zieminski)

PRECIOUS-Gold rebounds as impeachment inquiry uncertainty weighs on stocks

19 Nov 2019

(Updates prices) * Markets await Fed minutes due Wednesday * Wall Street back off from record highs * U.S. grants extension for companies to do business with Huawei By Karthika Suresh Namboothiri Nov 19 Gold on Tuesday pared losses to scale a one-week peak as Wall Street eased from record highs on U.S. political uncertainties and somber earnings, while markets awaited more cues on the Federal Reserve's monetary policy. Spot gold edged up 0.3% to $1,474.65 per ounce as of 1:48 p.m. ET (1848 GMT) after touching its highest since Nov. 7. U.S. gold futures settled 0.2% higher at $1,474.30 an ounce. "For people trading gold they want more insight to the path forward and where the Fed is at. With equities trading lower, gold is getting a little bit of a lift based off that," said Bob Haberkorn, senior market strategist at RJO Futures. Financial markets eased as underwhelming earnings and concerns on the ongoing impeachment inquiry against U.S. President Donald Trump overshadowed hopes for a U.S.-China trade deal. Earlier in the session, Washington granted an extension for U.S. companies to continue doing business with China's Huawei Technologies Co Ltd , a move markets took as a sign of progressing U.S.-China trade relations. After adding Huawei to an economic blacklist in May, the U.S. Commerce Department has allowed it to purchase some American-made goods, and granted a new 90-day extension to minimize disruption for its customers. This prompted Wall Street to open at a record high, and stocks globally raced to a 22-month peak and pushed bullion to the day's low of $1,464.20. "The fact that gold has been stable within an environment with equity markets driving to new highs ... is a testament that there is still interest in safe haven assets," David Meger, director of metals trading at High Ridge Futures said, attributing it to concerns about economic growth and lingering doubts about a trade deal. In the previous session, a report that Beijing was not as optimistic about a deal, owing to Trump's reluctance to roll back tariffs, had pushed gold into positive territory. However, assumptions that a "phase one" trade deal could be reached soon outweighed any creeping doubts, with gold shedding about 2.5% so far this month. Market participants were now awaiting the minutes from the Fed's latest policy meeting, where the U.S. central bank had cut interest rates for the third time this year. Other precious metal prices rose, with silver gaining 0.8% to $17.16 per ounce, platinum rose 1.8% to $910.15 and palladium climbed 1.9% to $1,770.44 an ounce. (Reporting by Karthika Suresh Namboothiri and K. Sathya Narayanan in Bengaluru; Editing by Richard Chang and Lisa Shumaker)

PRECIOUS-Gold erases losses as U.S.-China trade hopes ebb

18 Nov 2019

(Updates prices) * Markets await Fed minutes due on Wednesday * Platinum climbs for fourth straight session By Karthika Suresh Namboothiri Nov 18 Gold edged up on Monday, erasing losses from earlier in the session as fresh doubts over a U.S.-China trade deal pushed Wall Street into the red. Spot gold was up 0.3% at $1,471.92 per ounce as of 01:51 p.m. ET (1851 GMT), reversing course from earlier when prices fell to as low as $1,455.87 on optimism constructive trade talks had taken place between the world's two largest economies over the weekend. U.S. gold futures settled up 0.2% at $1,471.90 per ounce. However, a report that Beijing was not as optimistic, owing to U.S. President Donald Trump's reluctance to roll back tariffs, threw cold water over market cheer and on worldwide stock markets that were near record levels. "I am surprised how robustly the market reacts (to news on the trade talks). This isn't the first time we have had this news, but the market keeps responding," said Bart Melek, head of commodity strategies at TD Securities, adding the report on pessimism from Beijing has triggered a rebound in gold prices. "It looks like gold is seeking a move towards $1,480, which is the 100-day moving average." The 16-month long Sino-U.S. tariff war has fanned recessionary fears, but recent optimism over a phase one deal had driven a rally in equity markets. Gold is considered an attractive investment during times of political or economic uncertainty. It is highly sensitive to interest rates, as lower rates reduce the opportunity cost of holding the non-yielding bullion. Market participants now await minutes of the U.S. Federal Reserve's last policy meeting, due on Wednesday, for clues about the future interest rate trajectory. Investors also kept a close eye on developments in Hong Kong, as police on Monday trapped hundreds of protesters inside a major university and demonstrators rampaged through a tourist district. Among other metals, silver gained 0.6% to $17.04 an ounce, while palladium rose 2% to $1,739.60 an ounce. Platinum was up 0.5% at $893.74, extending gains for a fourth straight session. (Reporting by Karthika Suresh Namboothiri in Bengaluru; Editing by Steve Orlofsky, Chris Reese and Richard Chang)

Asia Gold-Indian sellers charge first premiums in 5-1/2 months as demand firms

15 Nov 2019

* Activity muted in China, premiums little changed at $4-$4.50/oz

Indian rice falls on weak demand; cyclone damages fields in Bangladesh

14 Nov 2019

BENGALURU Indian rice export prices extended losses for a second week as the rupee weakened and demand from Africa remained low, while a cyclone damaged paddy fields in neighbouring Bangladesh.

PRECIOUS-Gold rises as trade uncertainty hurts risk appetite

13 Nov 2019

Nov 13 Gold prices gained on Wednesday on lack of clarity on the U.S.-China trade negotiations, keeping markets wary about the tariff war's toll on the health of the global economy.

Gold eases as hopes of U.S.-China trade progress lift risk appetite

12 Nov 2019

Gold prices eased on Tuesday as expectations of positive trade talks between the United States and China bolstered risk appetite, while investors booked profits.

PRECIOUS-Gold eases as hopes of U.S.-China trade progress lift risk appetite

12 Nov 2019

Nov 12 Gold prices eased on Tuesday as expectations of positive trade talks between the United States and China bolstered risk appetite, while investors booked profits.

PRECIOUS-Gold rises on trade war doubts, weak stocks on Hong Kong turmoil

11 Nov 2019

Nov 11 Gold prices rose on Monday on fresh doubts over whether China and the United States can strike a trade deal, while a sluggish start to the week in equities weighed on risk appetite after violent weekend protests in Hong Kong.

PRECIOUS-Gold eases as China factory data whets risk appetite

01 Nov 2019

* Palladium eyes fourth consecutive weekly rise (Adds comment, details, updates prices)

World News

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