Edition:
United Kingdom

Swati Verma

Gold jumps as dollar slides; palladium hits record high

17 Nov 2018

BENGALURU Gold rose as much as 1 percent on Friday as the dollar fell after U.S. Federal Reserve officials made cautions comments on the outlook for interest rate hikes, while palladium hit a record high driven by worries about short supplies.

PRECIOUS-Gold jumps as dollar slides; palladium hits record high

16 Nov 2018

* Gold on track for biggest weekly gain in five * Palladium set for biggest weekly gain since Sept. 21 * GRAPHIC-2018 asset returns: http://tmsnrt.rs/2jvdmXl (Updates prices) By Swati Verma and Karthika Suresh Namboothiri BENGALURU, Nov 16 Gold rose as much as 1 percent on Friday as the dollar fell after U.S. Federal Reserve officials made cautions comments on the outlook for interest rate hikes, while palladium hit a record high driven by worries about short supplies. Spot gold rose 0.7 percent to $1,221.60 an ounce by 13:52 p.m. EST (1852 GMT). The session high was the highest since Nov. 8 at $1,225.29. Gold has gained over 1 percent so far this week, its best in five weeks. U.S. gold futures settled up $8, or 0.7 percent, at $1,223. Two Fed officials cautioned that global economic growth was slowing. The dollar fell to one-week lows against a basket of major currencies , making bullion cheaper for buyers in other currencies. "When you get people talking about the economy slowing down, they may not raise rates so quickly or as aggressively and that is bearish for the dollar," said INTL FCStone analyst Edward Meir. Weaker global stock markets and lower U.S. Treasury yields gave another leg for gold. "A weaker dollar and lower yields are pretty much tailor made to benefit gold," said James Steel, chief metals analyst at HSBC Securities in New York, who sees prices rising to $1,245-$1,250. Palladium climbed 1.4 percent to $1,172.49 an ounce, up more than 5 percent this week. The metal hit a record high of $1,185.40 earlier in the session, within a whisker of parity with gold for the first time in 16 years. "The market is in a big deficit. There is a lot of fund interest in palladium because the funds like to buy something when its moving... But the supply is of concern now," INTL's Meir said. Used mainly in emissions-reducing auto catalysts for vehicles, palladium, the only precious metal on track for an annual gain, was also helped by speculation Beijing may provide a stimulus to Chinese auto markets. "In the medium to longer term, I do not think these price levels are sustainable ... also assuming we do get some sort of stimulus in China that pulls more and more demand into the present and weighs on the future demand outlook for the Chinese car market," said Julius Baer analyst Carsten Menke. Car dealers in the world's biggest car market have been pushing for Beijing to support the sector. Silver rose 0.7 percent to $14.38 an ounce, on course for a weekly gain of over 1 percent. Platinum was up 0.5 percent at $844.90, but was down slightly for the week. (Reporting by Nallur Sethuraman, Swati Verma and Karthika Suresh Namboothiri in Bengaluru Editing by David Gregorio and Tom Brown)

PRECIOUS-Gold hits one-week high as dollar softens; palladium near record

16 Nov 2018

* GRAPHIC-2018 asset returns: http://tmsnrt.rs/2jvdmXl (Updates prices)

Gold nears one-week high on Brexit deal logjam

15 Nov 2018

BENGALURU Gold hit a near one-week peak on Thursday as investors sought cover from market turmoil after Britain's long-awaited draft agreement to leave the European Union was thrown into chaos, helping the metal hold its ground against a rising dollar.

PRECIOUS-Gold nears one-week high on Brexit deal logjam

15 Nov 2018

* Palladium hits record high, insight of parity with gold * Gold drifts away from one-month low hit on Tuesday * Silver moves up from multi-year lows of previous session (Updates prices) By Swati Verma and Sethuraman N R BENGALURU, Nov 15 Gold hit a near one-week peak on Thursday as investors sought cover from market turmoil after Britain's long-awaited draft agreement to leave the European Union was thrown into chaos, helping the metal hold its ground against a rising dollar. British Prime Minister Theresa May battled to save a draft divorce deal with the EU after her Brexit secretary and other ministers quit in protest and eurosceptic lawmakers stepped up efforts to topple her. Spot gold was up 0.3 percent at $1,214.79 per ounce at 13:35 p.m. EST (1835 GMT) after touching its highest since Nov. 9 at $1,216.27 earlier in the session and moving away from a one-month low of $1,195.90 hit on Tuesday. U.S. gold futures settled up $4.90, or 0.40 percent, at $1,215 per ounce. "Uncertainty around Brexit is the biggest factor right now. It's becoming top of the news again," said Michael Matousek, head trader at U.S. Global Investors. "People are running to the safety of the hard assets such as commodities including gold and crude, and also the dollar. ... If gold can hold above the $1,209 level, we could see it rise to $1,235." The dollar held its gains versus a basket of currencies as data showed a stronger-than-expected increase in domestic retail sales in October. The currency has emerged as a dominant safe-haven asset this year, denting the appeal for gold, which has fallen 11 percent from an April peak, against the backdrop of a U.S.-China trade row and rising U.S. interest rates. "Geo-political risk remains high ... it should support gold and lead to gains into year-end and in 2019. This is seen in the political turmoil today and increased uncertainty regarding the outlook for Brexit," said Mark O'Byrne, research director of Dublin-based gold dealer GoldCore. On the technical front, while gold could test resistance at $1,235 and $1,250 before year-end, it is vulnerable to short-term weakness, he added. The trade war shows signs of possibly easing, with U.S. President Donald Trump expected to meet Chinese President Xi Jinping at a G20 summit in Argentina this month. Palladium jumped more than 4 percent to hit a record high of $1,178.30 per ounce. The metal, used mainly in emissions-reducing autocatalysts for vehicles, was $35 away from achieving parity with gold. "There seems to be good demand (for palladium) from electric cars and diesel engines in Europe and China," said George Gero, managing director at RBC Wealth Management. "Palladium is in shorter supply than people realized." Silver was up 1.3 percent at $14.31 per ounce. It fell to $13.85 in the previous session, a level last seen on Jan. 21, 2016. Platinum was up 1.1 percent at $843.50 an ounce. (Reporting by Swati Verma in Bengaluru Editing by Susan Thomas and Richard Chang)

Asia rice: Indian rates up on firmer rupee; Thai harvest to shore up stocks

15 Nov 2018

BENGALURU Rice prices in top-exporter India nudged higher this week as the rupee firmed, while Thai exporters eyed fresh demand from the Philippines amid expectations of an increase in seasonal supply.

PRECIOUS-Gold gains 1 pct on dollar retreat, short-covering

14 Nov 2018

(Recasts throughout, updates prices, adds comments) * Gold sees biggest one-day gain in nearly two weeks * Silver gains after falling to lowest since January 2016 By Sethuraman N R and Swati Verma Nov 14 Gold rose 1 percent on Wednesday, helped by a slight retreat in the dollar following a rally and as some investors covered their short positions after the metal held the key $1,200 level. Spot gold was up 1 percent at $1,214.14 per ounce at 13:43 p.m. EST (1843 GMT). This was the metal's biggest one-day gain in nearly two weeks. Prices had slipped to their lowest since Oct. 11 at $1,195.90 in the previous session. U.S. gold futures settled up $8.70, or 0.72 percent, at $1,210.10 "The dollar has weakened a little bit and that has helped gold to catch a bid ... There has also been some short covering after gold held the $1,200 level well," said Walter Pehowich, executive vice president of investment services at Dillon Gage Metals. "Also, the rebound in oil prices has given some support from the inflationary point of view." An index that tracks the dollar versus a basket of six major currencies was down 0.2 percent after hitting a 16-month high on Monday. "The key driver in the near term continues to be currency movements," said Suki Cooper, precious metals analyst at Standard Chartered Bank. Factors including increased buying by central banks, the return of interest amongst exchange-traded fund (ETF) investors and seasonal demand for physical gold "are acting as a cushion to the downside," she added. Holdings of the world's largest gold-backed ETF, SPDR Gold Trust , remained near their highest level in more than two months. Bullion has fallen about 11 percent from a peak in April as investors instead flocked to the dollar, with U.S.-China trade friction unfolding against a background of higher U.S. interest rates. The dollar has benefited over the past week from expectations for further U.S. interest rate hikes, as well as concerns over Italy's budget and ongoing Brexit talks. The U.S. central bank is expected to increase rates in December for a fourth time this year. Rising U.S. interest rates increase the opportunity cost of holding non-yielding bullion. Among other precious metals, silver rose 1 percent to $14.12 per ounce, after earlier hitting $13.85 - its lowest since Jan. 21, 2016. "With so much silver around and lack of investment, nobody really cares about silver right now. There is so much above ground inventory that is causing silver prices to fall," Pehowich of Dillon Gage Metals said. Palladium rose about 1.5 percent to $1,126.20 per ounce, while platinum was down 0.1 percent at $833.90 an ounce. (Reporting by Swati Verma, Karthika Suresh Namboothiri and Arpan Varghese in Bengaluru; editing by G Crosse and Diane Craft)

PRECIOUS-Gold climbs back above $1,200 as dollar pauses rally

13 Nov 2018

* GRAPHIC-2018 asset returns: http://tmsnrt.rs/2jvdmXl (Recasts, updates prices and adds comments)

PRECIOUS-Gold hits 1-week low as dollar recovers before Fed meeting

08 Nov 2018

BENGALURU, Nov 8 Gold slid to a one-week low on Thursday as the dollar firmed in the wake of the U.S. midterm elections, with market participants now awaiting clues on the pace of interest rate hikes from the U.S. Federal Reserve.

PRECIOUS-Gold rises as dollar sags after U.S. mid-term results

07 Nov 2018

BENGALURU, Nov 7 Gold rose on Wednesday as U.S. mid-term elections delivered a split Congress and pressured the dollar, with investors now turning their attention to a Federal Reserve meeting for clues on future interest rate hikes.

World News