BENGALURU/MUMBAI Physical gold purchases gathered steam ahead of the Lunar New Year celebrations in China and Singapore, while demand in India dwindled this week, encouraging retailers to offer more discounts.
* Indian buyers delay purchases on hopes of further price
Dec 31 Oil prices are likely to hover around $63
a barrel next year, a Reuters poll showed on Tuesday, benefiting
from deeper production cuts by OPEC and its allies, and hopes
that a U.S.-China trade deal could jumpstart economic growth.
Gold prices are set for their strongest annual increase since 2010, as worries over global economic health triggered a surge of interest in precious metals, while palladium soared more than 50% to record highs thanks to supply shortages.
* Graphic: https://fingfx.thomsonreuters.com/gfx/editorcharts/GLOBAL%20PRECIOUS/0H001QXSMB5Q/index.html
Oil prices are likely to hover around $63 a barrel next year, a Reuters poll showed on Tuesday, benefiting from deeper production cuts by OPEC and its allies, and hopes that a U.S.-China trade deal could jumpstart economic growth.
India's oil imports in November grew at their fastest pace in seven months, while diesel exports soared the most in about 2 years, indicating higher refinery runs amid falling local demand for gasoil due to a slowing economy.
India's fuel demand is expected to rise 1.3% in 2019-20, its slowest pace in six years, with the petroleum ministry on Thursday revising down its initial projections amid a broader economic slowdown.
(Updates prices, adds comments)
* Gold set for biggest annual gain since 2010
* Markets eye U.S. President Trump's impeachment vote
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl
By Swati Verma
Dec 18 Gold eased on Wednesday as a rising
dollar offset support for the safe haven metal from lingering
U.S.-China trade uncertainty, while palladium slipped after a
record run to the key $2,000 an ounce level.
Spot gold was 0.3% lower at $1,471.96 per ounce by
1410 GMT, reversing gains from earlier in the session. U.S. gold
futures were down 0.3% at $1,476.
"The dollar is a little bit stronger,” said Afshin Nabavi,
senior vice president at precious metals trader MKS SA, adding,
that due to a lack of follow-through on the upside, investors
had started modestly selling gold.
A break of the $1,465-$1,495 range could attract fresh
interest, Nabavi added.
The dollar strengthened as U.S. economic data suggested the
Federal Reserve was unlikely to cut interest rates further and
as liquidity waned before the coming holidays.
World stocks also remained just off record highs.
Gold, often used as a hedge against political and economic
uncertainties, is however on track for its biggest annual gain
since 2010, bolstered by interest rate cuts by major central
banks and the protracted tariff dispute.
U.S. Trade Representative Robert Lighthizer said on Tuesday
details of Chinese purchases under the phase one deal would be
detailed in writing, but did not say when the written agreement
would be released.
"This is only phase one (of the trade deal) and there are
still open questions as to what will happen next year with IT
protection and all the other major issues still to be
addressed," said Mitsubishi analyst Jonathan Butler.
Also on investors' radar is a U.S. House of Representatives'
vote on whether to impeach President Donald Trump later in the
Palladium dipped 1% to $1,935.38 per ounce. The autocatalyst
metal hit a record high of $1,998.43 in the previous session,
driven by a sustained shortfall and worsened by recent mine
closures in major producer South Africa.
"The market set their sights on the key target. Once we did
that, we definitely did see some profit-taking - that's the
reason we saw that price inflection," said ING analyst Warren
Silver fell 0.6% to $16.90 per ounce, while platinum
was down 0.2% at $925.37.
(Reporting by Swati Verma and Eileen Soreng in Bengaluru;
Editing by Edmund Blair, Kirsten Donovan)
Gold traded in a narrow $5 range on Thursday as investors gauged the impact of U.S. backing of Hong Kong protesters on its trade negotiations with China, while palladium scaled a record peak on a sustained supply crunch.