10 Dec 2019
(Updates prices)
* U.S. Fed's policy meeting set to begin later in the day
* Palladium's next logical resistance level at $2,000-
analyst
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl
By Sumita Layek
Dec 10 Gold was trading in a tight range on
Tuesday ahead of a two-day rate-setting meeting by the U.S.
central bank, with investors awaiting clarity on whether a next
round of U.S. tariffs on Chinese goods will come into effect
this weekend.
Spot gold was up 0.1% to $1,462.97 per ounce by 0734
GMT. U.S. gold futures rose 0.2% to $1,467.30.
"Both the events could be potential catalysts for gold,
prices could go down if Fed is more hawkish biased. However, in
case the U.S. and China can't reach any resolution and tariffs
kick in, traders will move back to the safe-haven gold," said
Margaret Yang Yan, a market analyst at CMC Markets.
Both the United States and China have adopted a
reconciliatory tone, with China saying it hoped to make a deal
as soon as possible.
President Donald Trump has said he was working with Beijing
on an agreement ahead of new tariffs on $156 billion worth of
Chinese imports on Dec.15.
"Given that we are tilting toward some sort of the deal
being reached with the Chinese, we think both gold and silver
will struggle going into year-end and see a lower trading range
for both over the next few weeks," said Edward Meir at ED&F Man
Capital Markets in a note.
The impact of a prolonged trade war on economic growth has
led the U.S. Federal Reserve to cut rates three times this year,
sparking demand for bullion. Gold is now on track for its best
year in almost a decade.
Most Fed policymakers have stressed on keeping the interest
rates steady unless the economic outlook deteriorates. The Fed
is widely expected keep interest rates on hold in the range of
1.50% to 1.75%.
Spot gold is expected to test a support at $1,455 per ounce,
a break below could cause a fall to $1,440, said Reuters
technical analyst Wang Tao.
Palladium rose 0.3% to $1,887.73 an ounce. Prices had
climbed to an all-time high of $1,898.50 on Monday.
The autocatalyst metal, used in vehicle exhausts to reduce
harmful emissions, has risen more than 49% this year.
"The rally so far this year has been driven by tight supply,
reflected in a persistent back in the forward curve and elevated
lease rates," Meir said.
"We suspect that palladium has more room to run, with $2,000
looking to be the next logical resistance level."
Silver rose 0.2% to $16.64, while platinum
gained 0.6% to $900.03.
(Reporting by Sumita Layek in Bengaluru; Editing by Arun
Koyyur)
09 Dec 2019
(Updates prices, adds comment and details)
* U.S. Fed's two-day meeting to begin on Dec. 10
* China's Nov. imports rise, while exports fall
* SPDR Gold holdings fall to lowest since Sept. 19
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl
By Sumita Layek
Dec 9 Gold inched up on Monday as investors
awaited cues from the U.S. Federal Reserve on its monetary
policy outlook, while trying to size up the chances of a new
round of U.S. tariffs on Chinese goods.
Spot gold rose 0.2% to $1,462.10 per ounce by 0740
GMT. U.S. gold futures rose 0.1% to $1,466.50.
The U.S. Fed will meet on Dec.10-12 for an interest rate
decision. Last week's booming jobs report was likely to give the
central bank all it needs to stick to its plan not to cut rates
further in the near future.
Gold has gained about 14% this year after the Fed cut rates
three times this year on the backdrop of a long-drawn trade war
and its impact on economy.
Meanwhile, White House economic adviser Larry Kudlow has
said the Dec. 15 deadline is still in place for a new round of
U.S. tariffs on about $156 billion worth of Chinese imports.
"Markets are waiting to size up what happens. They're
waiting both for the Fed meeting and some sort of last minute
(U.S.-China) deal," said Ilya Spivak, a senior currency
strategist at DailyFx.
"We've seen that from this administration in White House,
this kind of brinkmanship where they may decide to cancel
tariffs at the last second by a tweet late night on Dec. 14."
Investors also took stock of data from China that pointed to
a growth in imports, although exports fell. This follows solid
U.S. job growth in November, after which gold recorded its
biggest daily percentage fall in a month.
"Traders are unable to take a direction due to the upcoming
events," said Hareesh V, head of commodity research at Geojit
Financial Services, adding that a weaker dollar is helping the
metal.
Speculators upped their bullish positions in COMEX gold in
the week to Dec. 3.
Holdings of the world's largest gold-backed exchange-traded
fund SPDR Gold Trust fell to their lowest since Sept. 19
on Friday.
Palladium rose 0.1% to $1,879.31 per ounce, having
hit a record high at $1,880.65 on Friday.
Silver rose 0.3% to $16.61, after touching its lowest
since early August in the last session, while platinum
eased 0.3% to $893.07.
(Reporting by Sumita Layek in Bengaluru;
Editing by Arun Koyyur)
03 Dec 2019
Gold prices were trading in a narrow range on Tuesday as investors stayed on the sidelines, even as U.S. President Donald Trump's move to slap tariffs on Brazil and Argentina stoked fresh global trade tensions.
03 Dec 2019
(Updates prices, adds comment and details)
* SPDR Gold holdings down 0.7% on Monday, lowest since Sept.
19
* Gold Specs cut bullish positions in week to Nov. 26 -CFTC
By Sumita Layek
Dec 3 Gold prices were trading in a narrow range
on Tuesday as investors stayed on the sidelines, even as U.S.
President Donald Trump's move to slap tariffs on Brazil and
Argentina stoked fresh global trade tensions.
Spot gold was unchanged at $1,462.58 per ounce by
0803 GMT. U.S. gold futures fell 0.1% to $1,468.20.
Trump on Monday announced tariffs on U.S. steel and
aluminium imports from Brazil and Argentina "effective
immediately", opening new fronts in his trade war.
"Prices haven't risen because investment demand for gold is
not there," said Jigar Trivedi, a commodities analyst at
Mumbai-based Anand Rathi Shares & Stock Brokers.
"In SPDR gold exchange-traded funds (ETF), flows have
reduced, investor demand has faltered and that's why prices have
not reacted to the trade uncertainties."
Holdings of the world's largest gold-backed ETF, SPDR Gold
Trust , fell 0.7% to 889.16 tonnes on Monday, their lowest
since Sept. 19.
Speculators also cut their bullish positions in COMEX gold
in the week to Nov. 26, data showed on Monday.
"People are expecting the U.S.-China trade war to
de-escalate, plus the U.S. Federal Reserve has signalled that
there will be no further rate cuts unless there is a U-turn in
the economy, so sentiment will be bearish (in gold)," Trivedi
said.
The Fed has cut interest rates three times this year and is
due to meet on Dec. 10-11 for its next policy meeting.
Trump on Monday said U.S. legislation backing protesters in
Hong Kong did not make trade negotiations with China easier, but
added he believes Beijing still wants a deal.
Gold has risen about 14% so far this year, mainly due to the
17-month-old trade dispute.
"After strong Chinese manufacturing data, market is a bit
down on gold, and slowly gold prices should move in a downward
direction," said Vandana Bharti, assistant vice-president of
commodity research at SMC Comtrade.
China's factory activity unexpectedly expanded at the
quickest pace in almost three years in November, a private
business survey showed on Monday.
On the technical front, "the metal continues to hold range
bound heading into year-end, seemingly well supported around
$1,450, however lacking any meaningful demand to break top-side
resistance through $1,465 - $1,470 and $1,480 the key level
above this," MKS PAMP said in a note.
Elsewhere, palladium was flat at $1,852.21 per ounce,
after scaling an all-time peak in the previous session at
$1,861.71.
Silver rose 0.1% to $16.92, while platinum was
unchanged at $897.97.
(Reporting by Sumita Layek in Bengaluru; Editing by Sriraj
Kalluvila and Christian Schmollinger)
02 Dec 2019
Gold prices fell on Monday as investors turned to riskier assets on signs of economic growth following reports of an expanding Chinese factory sector and as a rising dollar reduced demand.
02 Dec 2019
(Updates prices)
* Gold to trade between $1,450-$1,500/oz until year-end-
analyst
* China's Nov factory activity expands at quickest pace in 3
years
* U.S. manufacturing PMI data due later in the day
By Sumita Layek
Dec 2 Gold prices fell on Monday as investors
turned to riskier assets on signs of economic growth following
reports of an expanding Chinese factory sector and as a rising
dollar reduced demand.
Spot gold was down 0.5% at $1,456.70 per ounce by
0802 GMT, having earlier touched its highest since Nov. 22. U.S.
gold futures fell 0.7% to $1,463.
An unexpected expansion in factory activity during November
in China, the world's second-largest economy and biggest gold
user, spurred investors into equity markets.
This followed official government data on Saturday that also
showed an expansion.
"Positive data from China creates an optimism that the
Chinese market is improving, that gives people confidence to
invest in riskier assets, and in turn, reduces the safe-haven
demand for gold," said Hareesh V, head of commodity research at
Geojit Financial Services.
Manufacturing surveys for Europe and United States are due
to be released later on Monday.
Investor demand for gold was further pressured by the rising
dollar, which makes dollar-denominated gold more expensive for
buyers using other currencies.
The uncertainty around a resolution to the 17-month-old
trade dispute between the United States and China has supported
gold, with reports that a preliminary agreement has now stalled
because of U.S. legislation supporting protesters in Hong Kong
and Chinese demands that the United States roll back its tariffs
as part of phase one deal.
"Nothing particularly has really changed (on the trade
front) from last week, the market remains in the dark about how
things will progress. Investor appetite for gold is just waning
a little bit on lack of direction," ANZ analyst Daniel Hynes
said.
Gold has risen more than 13% this year mainly due to the
trade dispute driving demand for safe assets.
"The fundamentals are still quite supportive, this lull is
not going to last too much longer. Maybe into year end we will
see gold prices recommit the uptrend we saw earlier this year,"
Hynes said, adding until then gold will trade between
$1,450-$1,500.
Spot gold may test a support at $1,455 per ounce, a break
below which could cause a fall to $1,440, according to Reuters
technical analyst Wang Tao.
Elsewhere, silver fell 1% to $16.85 per ounce,
platinum was down 1.3% to $888.50 and palladium
was slipped 0.2% at $1,838.
(Reporting by Sumita Layek in Bengaluru; Editing by Sherry
Jacob-Phillips, Kirsten Donovan)
29 Nov 2019
BENGALURU/MUMBAI Gold was sold at a premium this week in India as a dip in prices prompted purchases of the precious metal, while demand was soft in other Asian hubs as interest for the metal waned going into the year-end season.
29 Nov 2019
* Price drop below $1,400/oz likely to induce buying-
analysts
29 Nov 2019
(Updates prices)
* Palladium climbs to record $1,844.50/oz, up for 4th month
* Break below $1,445/oz for gold could cause correction -
Fitch
* Dollar set for highest weekly finish against yen since May
By Sumita Layek
Nov 29 Gold prices were little changed on Friday
as investors refrained from making big bets amid doubts whether
the United States and China could seal a trade deal.
The metal was, however, on track for its biggest monthly
decline in three years, as upbeat comments by both countries
earlier this month had raised hopes of an interim deal.
Palladium scaled a new high of $1,844.50 an ounce, extending
its record-setting run on supply deficit.
Spot gold was flat at $1,458.47 per ounce by 0749
GMT, having shed 0.2% so far this week. U.S. gold futures
rose 0.3% to $1,458.
"(Gold) Market definitely is divided because previously most
people were thinking that a trade deal is going to happen, and
now they are not sure which side it is going to go, and that
reflects in the trading prices," said Brian Lan of Singapore
dealer GoldSilver Central.
The dollar was set for its highest weekly finish against the
yen since May, while global shares stalled just short of an
all-time peak as some doubts remained about an interim deal.
U.S. President Donald Trump on Wednesday signed into law
congressional legislation backing protesters in Hong Kong,
prompting Beijing to warn of "firm counter measures".
The signing of the bill is a provocative but symbolic move,
said Michael McCarthy, chief market strategist at CMC Markets,
adding that: "China's response was also largely a symbolic
retaliation, this makes no impact to the trade negotiations."
For the month, prices were down almost 4%, their biggest
since November 2016, as earlier optimism about a deal between
Beijing and Washington dampened demand for the safe-haven metal.
However, gold, considered a safe store of value during
economic or political uncertainties, has gained more than 13%
this year, mainly due to the tariff dispute.
"A break above $1,500/oz would suggest the potential for
additional upside in prices. In contrast, a break below
$1,445/oz would point to a more significant correction underway,
and we would expect further losses for gold prices," Fitch
Solutions said in a note.
Among other precious metals, palladium fell 0.4% to
$1,834.14 per ounce, after touching an all-time peak.
The metal, used in vehicle exhausts to reduce harmful
emissions, has gained about 45% this year and was headed for its
fourth consecutive monthly gain on sustained supply issues.
Platinum shed 0.3% to $898.72 per ounce and silver
rose 0.6% to $16.96.
(Reporting by Sumita Layek in Bengaluru; Editing by Subhranshu
Sahu and Aditya Soni)
28 Nov 2019
(Updates prices, adds comment and details)
* China condemns U.S. move, warns of "firm counter measures"
* Palladium hits all-time high of $1,836.61
* Yen gains versus dollar
By Sumita Layek
Nov 28 Gold prices rose on Thursday as investors
bought the safe-haven metal on doubts about whether the United
States and China will seal a trade deal after President Donald
Trump signed a legislation supporting Hong Kong protesters.
Palladium retreated slightly after hitting an all-time peak
of $1,836.61 earlier in the session.
Spot gold was up 0.1% at $1,455.63 per ounce by 0659
GMT. U.S. gold futures rose 0.1% to $1,454.80.
Trump on Wednesday signed a legislation into law that
requires the State Department to certify, at least annually,
that Hong Kong retains enough autonomy to justify favourable
U.S. trading terms.
Beijing condemned the move and said it would take "firm
counter measures."
"With the latest developments of Trump signing the Hong Kong
bill, there are doubts that there will be any deal, even a first
phase," said Jigar Trivedi, a commodities analyst at
Mumbai-based Anand Rathi Shares & Stock Brokers.
"Even though they've said they will sign a deal by year-end,
they've not talked about the venue, or who will go to whom. So,
I don't think the trade deal will be signed so easily and gold
will be supported."
Asian shares fell, while the safe-haven yen rose against the
dollar on concerns that the protracted tariff dispute between
the world's two biggest economies could become more complicated.
Gold eased 0.5% in the last session on a raft of upbeat
economic data from the United States. Economic growth picked up
slightly in the third quarter, weekly jobless claims fell, while
new orders for key U.S.-made capital goods increased.
"Global growth concerns have definitely eased, but not
gone," said John Sharma, an economist at National Australia
Bank, adding gold would remain supported even if an interim deal
is passed since the most complex issues, such as intellectual
property, have been pushed down the road.
Gold, considered a safe store of value during economic or
political uncertainties, has gained more than 13% this year,
mainly due to the tariff dispute.
Among other precious metals, palladium shed 0.1% to
$1,831.69 per ounce.
The autocatalyst metal used in vehicle exhaust systems to
reduce harmful emissions has risen about 45% this year on a
supply crunch.
"Strong demand from China and sluggish supply growth have
tightened palladium's physical market this year...," ANZ said in
a note.
Platinum was flat at $892.95 per ounce and silver
rose 0.1% to $16.96 per ounce.
(Reporting by Sumita Layek in Bengaluru; Editing by Aditya
Soni)