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Commodities | Gold | Today's Gold Price Report

                                    On Monday 13, December 2020

Gold slips as risk-on sentiment weighs, trade deal in view




GP: Gold Production At The JSC Krastsvetmet Precious Metals Plant
Freshly cast gold ingot bars sit in the foundry at the JSC Krastsvetmet non-ferrous metals plant in Krasnoyarsk, Russia, on Tuesday, Nov. 5, 2019.
Andrew Rudakov | Bloomberg | Getty Images
Gold prices fell on Monday as risk-on sentiment, bolstered by the upcoming signing of a preliminary U.S.-China deal and signs of de-escalation in the Middle East, dampened demand for safe-haven bullion.
Spot gold fell 0.8% to $1,549.50 per ounce, having fallen 1% to $1,546.27 earlier in the session. U.S. gold futures settled down 0.6% at $1550.60.
“You remove the risk of geo-political tensions rising and you don’t quite need gold to beef up your portfolio,” said Bart Melek, head of commodity strategies at TD Securities.
Stock markets around the world lingered just below record levels, buoyed by the expected signing of the Phase 1 U.S.-China trade deal. The trade agreement, due to be signed at the White House on Wednesday, marks the first step towards ending an 18-month-long trade dispute between the world’s two largest economies.
The U.S. dollar also rose against a basket of rivals, making bullion more expensive for holders of other currencies. Signaling a further ramp down of trade tensions, a Wall Street Journal report said on  Saturday that Washington and Beijing had agreed to semi-annual talks aimed at pushing reforms and resolving disputes.
Gold, considered a safe investment during political and economic turmoil, rose to a near seven-year peak of $1,610.90 last week after a U.S. drone strike killed a top Iranian commander in Baghdad and Iran launched missiles against U.S. bases in Iraq in retaliation.
The rally, however, faded with a lack of further military escalation in the region. Markets will still keep an eye on tensions with Iran over the accidental shooting of a passenger plane, and the finer points of the implementation of the U.S.-China deal, analysts said.
Reflecting investor sentiment, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.9% to 874.52 tonnes on Friday, their lowest since Sept. 16.
“Gold will remain vulnerable to spikes but could trend lower in the interim, with a break of $1,540 potentially triggering a move back towards $1,520,” OANDA analyst Craig Erlam said in a note.

Elsewhere, palladium rose 0.6% to $2,129.23 an ounce. Silver was down 0.6% at $17.98, while platinum fell 0.4% to $974.65.                                  

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On Friday 10, January 2020

Gold inches up on weak jobs data, easing Mideast tensions limit gains




GP: Gold and Silver Casting at the Perth Mint 190620
An employee arranges one kilogram gold bars at the Perth Mint Refinery in Perth, Australia, on Aug. 9, 2018.
Carla Gottgens | Bloomberg | Getty Images
Gold inched up on Friday, helped by disappointing U.S. nonfarm payrolls data, but abating tensions in the Middle East that bolstered appetite for risk assets kept the bullion’s gains in check.
Data from the U.S. Labor Department showed job growth slowed more than expected in December.
Spot gold was up 0.44% at $1,559.11 per ounce. U.S. gold futures were up 0.34% at $1,559.5 per ounce.
“Ahead of the weekend, people are not really selling gold here but there’s not much buying pressure either ... They are just waiting to see what happens with gold and in the Middle East before deciding on the next move,” said Fawad Razaqzada, market analyst with Forex.com.
Gold prices have so far fallen nearly 4% from a near seven-year high of $1,610.90 hit on Wednesday as tensions about a wider conflict in the Middle East eased. World stocks also set new record highs, driven by the thaw in U.S.-Iran tensions. The U.S. House of Representatives on Thursday passed a resolution to stop U.S. President Donald Trump from further military action against Iran.
“Everybody who wanted to be long is pretty much long at this point and it’s going to take a change in the fundamental situation to convince traders to take on bigger positions,” said Ryan McKay, a commodity strategist at TD Securities.
Adding pressure on the safe-haven asset was a firmer dollar which was set to post its best week in two months. Indicative of sentiment, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust , fell for the second straight session on Thursday.
The $1,555 level is pivotal, Razaqzada said, adding, “if we close below $1,555 today then we should see some further weakness next week, possibly towards $1,515. But if we go above $1,555 and hold there, that would probably reinstate the short-term bullish buyers.”
Elsewhere, palladium was up 0.5% at $2,117.32 per ounce, having hit a record peak of $2,149.50 in the previous session on supply constraints. The metal was still on track for its biggest weekly rise since mid-June, up nearly 7% so far.

Silver was up 1.1% at $18.09 per ounce. Platinum rose 1.1% to $977.04 per ounce.                               

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On Thursday 9, January 2020

Gold's rally fizzles on de-escalating US-Iran tensions




GP: Gold Bar Casting At Valcambi SA Precious Metals Refinery 191018
A mark of 999.9 fine sits on hallmarked one kilogram gold bullion bars at the Valcambi SA precious metal refinery in Lugano, Switzerland, on April 24, 2018.
Stefan Wermuth | Bloomberg | Getty Images

Gold fell on Thursday, having surged past the key $1,600 level for the first time in seven years in the last session, as markets wagered the United States and Iran will not resort to a further conflict, boosting risk-taking.
Spot gold fell 0.6% to $1,546.33 per ounce, having earlier slipped to $1,539.78 an ounce. U.S. gold futures was 0.8% lower at $1,547.40 per ounce.
“The return of risk appetite meant that safe assets such as gold have suffered from some profit-taking and it’s possible that could continue for a little longer,” Standard Chartered Bank analyst Suki Cooper said.
Gold prices slid after having risen as much as 2.4% early on Wednesday to break above the key $1,600 level after Iran’s retaliatory attacks on military bases housing U.S. troops in Iraq. Concerns of a wider war in the Middle East subsided after U.S. President Donald Trump refrained from ordering more military action on Wednesday and Iran’s foreign minister diplomat said missile strikes “concluded” Tehran’s response.
Reduced demand for safe-haven bullion was also reflected in the holdings of the world’s largest gold-backed exchange-traded fund SPDR Gold Trust , which dropped 1.05% on Wednesday.
“Gold will remain very twitchy on Iran related headlines or rocket fire in Baghdad for some days to weeks,” said Tai Wong, head of base and precious metals derivatives trading at BMO. “Even if the de-escalation happens there should still be some risk premium helping gold hold above $1,525 level where gold was trading before the U.S. strike.”
As the United States and Iran backed away from conflict in the Middle East, U.S. stock indexes hit record highs, while firming optimism about a U.S.-China trade deal added to the upbeat mood. China’s Vice Premier Liu He will sign a “Phase 1” deal in Washington next week, the commerce ministry said on Thursday.
Elsewhere, palladium hit a record peak of $2,149.50 an ounce on sustained supply concerns, and was last up 0.7% at $2,119.00 per ounce.
“The outlook for palladium remains bullish. There is simply not enough material around and being taken out of the ground,” said BMO’s Wong said. “The demand is really inelastic because substitution (with platinum) is difficult and if you are an automaker you need the catalytic converters to sell cars, so you will pay what you need.”

Silver fell 1.4% to $17.83 per ounce, while platinum gained 1.1% to $964.00.                                   

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On Wednesday, January 2020

Gold eases off 7-year peak as Middle East worries abate




Reusable Gold coins and bars
Gold retreated after vaulting above the $1,600 level for the first time in nearly seven years on Wednesday as fears of a larger conflict in the Middle East abated on milder rhetoric between Iran and the United States.
Spot gold fell 0.95% to $1,558.93 per ounce, having soared to $1,610.90 earlier in the session, its highest level since March 2013. Meanwhile, U.S. gold futures fell 0.87% lower to $1,560.7.
“Expectations are that we’re not going to see a war, so you might see some softness. The rest of the catalysts remain in place for gold,” said Edward Moya, a senior market analyst at OANDA
Gold jumped as much as 2.4% in the session after Iran attacked U.S.-led forces in Iraq in retaliation for a U.S. drone strike that killed an Iranian military commander last week. The U.S. attack led to fears of a new war in the Middle East.
However, the United States said it is not aware of any casualties resulting from Iran’s attack.
Tweets from Iranian officials stating that Tehran did not want a war and that its strikes “concluded” its response to Friday’s killing, and U.S. President Donald Trump’s comment that “all is well,” helped ebb concerns of conflict in the region.
“Gold is seeing minor profit-taking after tumultuous moves supported by stocks see-saw due to geopolitical events in Middle East,” George Gero, managing director at RBC Wealth Management, said in a research note, adding that a trading range of $1,550-$1,600 will likely hold for now.
Gold is a preferred asset during times of political and economic uncertainty.
The geopolitical and economic drivers which impacted gold prices in 2019 - including U.S.-China trade tensions, Brexit and the U.S. Federal Reserve’s monetary policy - would continue into 2020, the World Gold Council said in a note.
Investors also kept a close eye on economic data from the United States for clues to the health of the world’s largest economy. Data showed U.S. private payrolls surged in December, weighing on the metal.
Meanwhile, palladium extended its rally, undaunted by most market events driving other precious metals. Prices were up 2.4% at $2,100, close to the all-time high of $2,106 notched earlier in the session.

Platinum eased 1.1% to $960.66 an ounce, while silver shed 0.3% to $18.33. Silver prices had earlier notched a four-month high of $18.85.                           

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On Tuesday 7, January 2020

Gold edges up, but trades below 7-year peak as Middle East worries ebb



Reusable Gold coins and bars
Gold surged on Moday to a near seven-year high as the U.S. killing of a top Iranian commander stirred fears of a wider conflict in the Middle East. Palladium surpassed $2,000 an ounce for the first time.
Spot gold was up 0.45% at $1,572.83 per ounce, after rising to $1,582.59 earlier in the session, its highest since April 2013. U.S. gold futures settled 0.35% higher at $1574.3 per ounce.
“The markets are nervous about what comes next between the United States and Iran; there are political risks and there is safe haven buying in gold,” said Bob Haberkorn, senior market strategist at RJO Futures. “The equities are lower, and this is a perfect storm for higher gold between now and until we get some clarity on the situation.”
Iraq’s parliament called on Sunday for U.S. and other foreign troops to leave while Iran lambasted U.S. President Donald Trump after he threatened to hit 52 Iranian sites, including targets important to Iranian culture, if Tehran were to retaliate.
The conflict took a hit at risk appetite, sending world stocks down 0.3%. On Wall Street, the Nasdaq turned positive, a sign investors were taking a cautious approach.
“Even though the stock markets pared its losses, and gold pared some gains, we still look for a higher extended range because gold has become a necessary haven,” said George Gero, managing director at RBC Wealth Management.
Elsewhere, U.S. Federal Reserve policymakers agreed that interest rates were likely to stay on hold for “a time,” minutes of the Fed’s Dec. 10-11 policy meeting, released on Friday, showed. Gold is highly sensitive to interest rates, as higher rates lift the opportunity cost of holding non-yielding bullion.
Palladium was up nearly 2% to $2,024.64 an ounce, after hitting an all-time high of $2,031. The industrial metal added 53.93% in 2019, and is expected to remain in high demand this year.
“It (palladium) seems to be unstoppable. Many market players are of the opinion that the market will remain severely tight, and that’s the main driving force for prices,” Commerzbank analyst Daniel Briesemann said.
Silver gained 0.7% to $18.17, having earlier hit its highest in more than three months at $18.50. Platinum shed 2.2% to $958.94 an ounce.

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                                                      On Monday 6, January 2020

Gold surges to more than 6-year high on geopolitical turmoil, inflation fears

Fred Imbert




GP: Gold bars 171204
An employee arranges gold bars for a photograph at the YLG Bullion International headquarters in Bangkok, Thailand on January 13, 2016.
Dario Pignatelli | Bloomberg | Getty Images

Gold surged Monday to its highest level in nearly seven years as investors fled riskier assets such as stocks amid rising tensions between Iran and the U.S.
Futures for February delivery were up 1.1% at $1,569 per ounce and hit a high of $1,590.90 per ounce. That’s the metal’s highest level since April 2, 2013, when it traded at $1,604.30. Gold was also headed for its ninth straight day of gains.
“This is a bullish development, and while stretched, should lead to higher gold prices in the days/week ahead,” said Mark Newton, managing member of Newton Advisors. He added that the precious metal could soon reach $1,650 to $1,700.
Gold prices have been on a tear over the past two sessions after President Donald Trump authorized the killing of Iran’s top general, Qasem Soleimani, in Baghdad. On Friday, gold rallied 1.6%.
On Sunday, Iraq’s parliament voted to expel foreign troops from the country, and Iran vowed to retaliate against the U.S. The Iranian regime also said Sunday it would not abide by the uranium-enrichment limits set by the 2015 nuclear deal.
Stock prices tumbled last week after Soleimani was killed. The S&P 500 and Dow Jones Industrial Average had their worst trading day in a month on Friday. The Dow added to those losses on Monday. The S&P 500 and the Nasdaq were marginally higher.
“The killing of Soleimani has heightened geopolitical risks as he was a well-known figure in Iran,” wrote Keith Lerner, chief market strategist at SunTrust Private Wealth. “The Iranians may take time to calculate their next move; if they do decide to retaliate, risk assets could come under additional pressure.”
Investors have turned to gold in part because the metal is seen as a hedge against market volatility and economic slowdowns, particularly if they are sparked by geopolitical tensions.
“We found that spikes in geopolitical tensions lead to higher gold prices when they are severe enough to cause currency debasement,” Jeff Currie, head of commodities research at Goldman Sachs, said in a note. “This most often happens during wars or military escalations.”
“Therefore, additional escalation in US-Iranian tensions could further boost gold prices,” he said.
The tensions between Iran and the U.S. come at a time when the global economy is fragile. Last month, the U.S. registered its biggest contraction in manufacturing activity since June 2009.
Gold is also used as a hedge against inflation, which could rise if oil prices keep spiking. Crude prices jumped more than 3% on Friday amid worries that the U.S.-Iran conflict could disrupt the global oil supply. On Monday, oil briefly rose more than 1% before erasing those gains. 

U.S. inflation has remained stagnant over the past year, leading the Federal Reserve to cut interest rates three times in 2019. The personal consumption expenditures price index, the Fed’s preferred measure of inflation, rose just 1.6% in November. That’s well below the Fed’s preferred inflation target of 2%.                                     

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                                                      On Friday 3, January 2020

Gold nears 6-year high, other safe havens like bonds and dollar rise after US kills Iran general

Yun Li




RT: NYSE traders on floor
Traders work on the floor of the NYSE.
Brendan McDermid | Reuters

Safe-haven assets rallied Friday after the U.S. killing of a top Iranian general sparked fears of a broader conflict that could disrupt energy production and drag down the global economy.
Gold rose 1.5% to $1,551.8 per ounce, inches away from hitting a six-year high reached in September. The benchmark 10-year Treasury yield, which moves inversely with bond prices, tumbled more than 8 basis points to around 1.79%, the biggest decline in one month. The U.S. dollar index popped 0.2%, while the Japanese yen hit a two-month high of 107.92 against the greenback.
Investors flocked to safe assets after the U.S. airstrike ordered by President Donald Trump killed Iran’s top general, Qasem Soleimani, in Baghdad. Soleimani had been a key figure in Iranian politics, and his death has raised concerns over a potential retaliation from the Iranian forces.
Iran’s foreign minister tweeted that the U.S. bears responsibility for all consequences of its “rogue adventurism,” while the Fars News Agency reported that Iran’s top security body will meet to discuss Tehran’s response.
“It is impossible to know what comes next,” Chris Rupkey, chief financial economist at MUFG, said in a note on Friday. “Markets don’t even know what they are waiting for to signal the all-clear siren.”

On the flip side, riskier equities sold off Friday with the Dow Jones Industrial Average down as much as 300 points.                          


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                                                  On Thursday 2 January 2020

Gold races to 3-month peak on doubts over stocks rally



Reusable Gold coins and bars
Gold prices on Thursday began the year with a healthy start, boosted by doubts surrounding the strength of Wall Street’s rally, while platinum added 3% on industrial demand.
Spot gold was up 0.6% at $1,525.96 per ounce, having notched a three-month high of $1,531.20 earlier in the session. U.S. gold futures gained 0.3% to settle at $1,528.10 an ounce.
“Investors are coming back from the holidays and repositioning their portfolios,” said Jeffrey Christian, managing partner of CPM Group, citing the rally in equities as the main reason for diversification. “The fact that stock markets are at record highs is continuing to strengthen gold and silver. There is nervousness about why the stock markets are as high as they are, given the economical and political environment.”
U.S. stocks kicked off the new year at record levels as fresh stimulus from Beijing to prop up its slowing economy lifted risk appetite. Gold prices were further boosted by uncertainties surrounding the U.S.-China trade negotiations.
U.S. President Donald Trump said on Tuesday that a “phase-one” of the deal would be signed on Jan. 15, though considerable confusion remains about its details. The much-awaited trade deal between the world’s two largest economies was expected to have been inked by the end of 2019. However, with merely the initial chunk of the deal placed on the table for talks, investors remain apprehensive.
The dollar inched 0.4% higher in the session, but was trading not far from a six-month low hit on Tuesday. Gold benefits from a weaker dollar, in which the precious metal is priced.
“Technically, the gold bulls have the overall near-term technical advantage as an accelerating price uptrend is in place on the daily chart,” Kitco Metals senior analyst Jim Wyckoff said in a note. Spot gold may test a resistance at $1,531 per ounce, a break above which could lead to a gain to $1,542, according to Reuters technical analyst Wang Tao.

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Gold holds steady near two-month peak in slow year-end trading



Reusable Gold Bullion
Gold steadied after rising to its highest in nearly two months earlier on Friday, as investors cautiously adjusted their positions in thin year-end trading, but the metal was still on path for its best week in more than four months.
Spot gold was little changed at $1,510.51 per ounce. Gold rose to its highest since early November at $1,513.88 earlier in the session, but pared gains as traders took profits. It has gained over 2% so far this week, the most since the week of Aug. 9.
“At the end of this year and beginning of the next, a lot of investors will take and quit their positions in gold, keeping it kind of steady,” said Frederic Panizzutti, managing director at MKS Dubai.“We expect gold prices to be supported by ongoing U.S.-China trade war, geo-political tensions and very low interest rate environment. Central banks are on the buying side and that is not expected to change next year as well.”
Gold has rallied this year on the back of the long-drawn U.S.-China trade war that triggered fears of a global economic slowdown and helped the safe-haven metal gain over 17% so far this year.
As 2020 approaches, uncertainty is expected to remain high with unresolved U.S.-China trade issues, Brexit and upcoming U.S. Presidential elections.
“With the given uncertainties, $1,500 is quite a good pivot level for gold. If and when the phase one (trade) deal goes through, we might see gold breaking that level and trade in the $1,400s, but only for a short period of time,” MKS’ Panizzutti said.
Meanwhile, news that Russia could consider a part-investment of its National Wealth Fund in gold provided some further support to the yellow-metal.
“If Russia starts holding gold, being one of the biggest suppliers to the market, that would significantly dampen supplies. This is a significant macro driver,” said Stephen Innes, a market strategist at AxiTrader.
Indicative of investor interest in bullion, holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.4% to 892.37 tonnes, its highest since Nov. 29.
Elsewhere, silver fell 0.2% to $17.85 per ounce, while platinum rose 0.4% to $950.50. Both the metals were poised to register their best week since late August.
Palladium advanced 0.4% to $1,908.58 per ounce.

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                                     On Tuesday 24, December 2019

Gold prices climb as trade deal concerns linger



Reusable: Gold bullion bars and coins 030109
Gold bullion bars and coins.
Getty Images

Gold prices climbed to their highest in nearly two months on Thursday as lingering uncertainty around the signing of the “phase one” Sino-U.S. trade deal bolstered demand for safe-haven metal.
Spot gold rose 0.43% to $1,505.10 per ounce. Prices hit their highest since Nov. 5 earlier in the session at $1,503.87. U.S. gold futures were up 0.2% to $1,507.40 per ounce.
“The U.S.-China trade tensions are very intense. Though recent news suggest a deal will go through, but until and unless something is on the paper, uncertainty will persist and gold will be riding on that,” said Bernard Sin, group head of trading at MKS.
China’s Commerce Ministry said on Thursday that Beijing and Washington were still in the process of completing the necessary procedures while maintaining close communication to sign the deal. U.S. President Donald Trump said on Tuesday there would be a signing ceremony with the Chinese President Xi Jinping for the first phase of the agreement.
A prolonged trade spat between the United States and China has weighed on financial markets and the global economy, helping gold gain more than 17% so far this year and putting it on track for its best year since 2010.
For the week, gold has already gained 1.9% in a trade thinned by the holiday season.
“The driver appears to be mostly technical following the breakup of the trading range between $1,450 and $1,475 in which the price was trapped for a few weeks,” Carlo Alberto De Casa, Chief analyst at ActivTrades said in a note.
“The first target is placed at $1,512 ... while the next key levels are at $1,530 and $1,550-$1,555,” he said.
Growth concerns over the U.S. economy lingered as data on Monday showed that new orders for key U.S.-made capital goods hardly rose in November and shipments fell, suggesting business investment will probably remain a drag on the economy in the fourth quarter.
Monetary policies of the Federal Reserve and other central banks heavily depend on economic data from the United States. Higher interest rates raise the opportunity cost for holding the non-yielding metal.

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                                     On Tuesday 24, December 2019

Gold hits a 7-week high on mixed U.S. economic data



Reusable Gold bullion american eagle
Gold will continue to shine amid a weak dollar, says author and gold pro Jim Rickards.
Simon Dawson | Bloomberg | Getty Images
Gold rose to its highest in more than 1-1/2 months on Tuesday, as a dip in equity markets and weak U.S. data improved demand for bullion in subdued trading ahead of the holidays.
Spot gold prices hit their highest since Nov. 7 at $1,489.52. U.S. gold futures also edged up 0.3%, to $1,492.80.
Data on Monday showed new orders for key U.S.-made capital goods barely rose in November and shipments fell, suggesting business investment will probably remain a drag on economic growth in the fourth quarter.
“There is a pause in the rally in riskier assets and that is why we are seeing gold and the dollar move higher,” Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade said, adding weak U.S. economic data added to bullion’s safe-haven appeal.
Asian shares edged lower, while U.S. stock futures darted in and out of losses on Tuesday, as the holiday lull tempered optimism that a U.S.-China trade deal will boost exports and corporate earnings.
“Gold was in a range and trading with a downside bias because of the positive outcome in the China-U.S. trade deal, but it is now discounted in the market,” Bharti said.
Gold, an alternative investment during times of economic and political uncertainties, has risen about 16% so far this year due to U.S.-China trade tensions and dovish global central banks, with the Federal Reserve cutting rates three times in 2019.
Investors are currently awaiting further information on the Phase One trade deal between the world’s two biggest economies.
“We are still not 100% clear if the ‘phase one’ deal will go through or not, it has not been signed yet,” said Stephen Innes, a market strategist at AxiTrader. “We then pivot to ‘phase two’ that suggests you need some gold, because we don’t know what the next phase is all about, how contentious a deal that is going to be.”
Even as Beijing and Washington have taken steps to defuse their dispute, they still diverge on a slew of issues, including anti-government protests in Hong Kong and the treatment of China’s Muslim Uighur minority.

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                                       On Monday 23, December 2019

Gold firms on sparse trade as economic concerns support



GP: gold bullion pile 191220
An employee arranges one kilogram gold bars for a photograph at the YLG Bullion International headquarters in Bangkok, Thailand, on Jan. 13, 2016.
Dario Pignatelli | Bloomberg | Getty Images

Gold prices gained on Monday on sparse trade ahead of the holiday season, with lingering concerns about the health of major global economies supporting demand for safe-haven bullion.
Spot gold rose 0.4% at $1,483.86 per ounce. U.S. gold futures gained 0.5% to $1,487.90 per ounce.
“Investors are looking at political risks in the longer term... There are potential economic risks still in the majority of economies. That’s not going to go away in a hurry,” said INTL FCStone analyst Rhona O’Connell.
The United States and China have still not signed a ‘Phase-1’ deal and tensions in the Middle east are contributing to gold’s appeal, she added.
U.S. President Donald Trump said on Saturday the United States and China would “very shortly” sign “Phase 1″ of a trade agreement. China said on Monday it would lower tariffs on products ranging from frozen pork and avocado to some types of semiconductors next year.
While the world’s two largest economies have exchanged banter about the conditions of the trade deal, there is much room for uncertainty. Any hints of a fall-through in talks could propel gold higher, analysts say. The 17-month trade war has rocked markets and fanned global recessionary fears.
China’s economy is expanding at its weakest rate in nearly 30 years and could face more downward pressure next year.
Canada’s economy unexpectedly shrank by 0.1% in October, the first monthly decline since February.
Fresh data from the United States provided little respite, with new orders for U.S.-made capital goods barely rising in November and shipments declining, suggesting business investment will probably remain a drag on economic growth in the fourth quarter.
“Despite the upbeat tenor of the overall marketplace, the safe-haven metals are showing keen resilience and even a bit of bullishness as global stock markets rally,” Kitco Metals senior analyst Jim Wyckoff said in a note.
The S&P 500 and the Nasdaq hit record highs on Monday.

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                                    On Friday 20, December, 2019

Palladium drops over 5% as investors lock in profits; gold subdued



GP: gold bullion pile 191220
An employee arranges one kilogram gold bars for a photograph at the YLG Bullion International headquarters in Bangkok, Thailand, on Jan. 13, 2016.
Dario Pignatelli | Bloomberg | Getty Images

Palladium slumped more than 5% on Friday, erasing more than $100 per ounce in the session, as investors booked profits following a strong record run, while gold prices were subdued as investors remained on the sidelines ahead of the holiday season.
Spot palladium shed 5% to $1,839.47 an ounce, on track for its biggest percentage fall since early August.
“Palladium got so close to the $2,000 level and now the fact that it’s broken down two days in a row, the pull back here shows that the technical in the market has taken over,” said Bob Haberkorn, senior market strategist at RJO Futures. “When the markets are overextended, the corrections tend to become pretty dramatic.”
The auto-catalyst metal hit by supply deficit scaled an all-time peak of $1,998.43 an ounce earlier this week. Prices of palladium has risen about 46% so far this year.
Meanwhile, spot gold was little changed at $1,477.40 an ounce, but was on track for a modest weekly rise. U.S. gold futures settled 0.2% lower at $1,480.90 an ounce.
“There are concerns that the stocks are so hot right now. And there are investors who are buying gold as a backstop if that thing is to turn,” Haberkorn added.
World stock markets touched record highs, while the U.S. dollar was set for its best week in six against a basket of currencies.
Gains in bullion were limited after data showed U.S. economic growth edged up in the third quarter amid signs the economy more or less maintained the moderate pace of expansion as the year ended.
Recent positive economic data and optimism around the U.S.-China trade war has fuelled expectations that the U.S. Federal Reserve is unlikely to cut interest rates again in the near future. U.S. Treasury Secretary Steven Mnuchin said the United States and China would sign their so-called Phase 1 trade pact in early January.
Safe-haven gold has so far gained more than 15% in the year on global recessionary fears, owing to the 17-month trade war between the two largest economies. The likelihood that negotiations are proceeding smoothly has drawn some attention away from gold.

“Traders and investors are turning their attention to the upcoming holidays, including squaring  their books, so trading interest and volumes are likely to wane the next couple weeks,” Kitco Metals senior analyst Jim Wyckoff said in a note.
Platinum eased 2.2% to $913.64 per ouce, while silver rose 0.6% to $17.15 an ounce. Silver extended gains into a second week, up 1.4%.

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                                     On Thursday 19, December 2019

Gold listless as markets look past trade talks, impeachment



GP: Gold bars 171204
An employee arranges gold bars for a photograph at the YLG Bullion International headquarters in Bangkok, Thailand on January 13, 2016.
Dario Pignatelli | Bloomberg | Getty Images

Gold held steady in a narrow range on Thursday as investors awaited further developments on U.S.-China trade and as political uncertainty in Washington failed to move markets across the board.
Spot gold edged 0.1% higher to $1,476.28 per ounce. U.S. gold futures gained 0.1% to $1,480.30 per ounce.
“The market is on hold waiting for the next piece of impetus,” said David Meger, director of metals trading at High Ridge Futures. “There is an acceptance by the market that this trade deal is officially signed and also that there isn’t going to be any quick jump (from either side) ... Changes in that expectation will see changes in the market.”
China on Thursday announced a new list of import tariff exemptions for six chemical and oil products from the United States, days after the world’s two largest economies announced an interim trade deal. The 17-month long trade dispute has triggered a 15% rise in gold prices in the year, and fanned global recessionary fears. Gold is often used by investors as a hedge against political and economic uncertainties.
“The safe-haven metal bulls have shown resilience recently, amid the keener risk appetite that has been prevalent in the market place the past few weeks evidenced by U.S. stock indexes near record highs,” said Kitco Metals senior analyst Jim Wyckoff in a note.
Investors also kept a close eye on political proceedings in Washington, where the Democratic-led House of Representatives formally charged President Donald Trump with abuse of power and obstruction of Congress in a historic step that will inflame partisan tensions across a deeply divided America. However, the Republican-controlled Senate is widely expected not to convict Trump and remove him from office.
If the U.S. Senate convicts Trump, “which would be unexpected, that throws next year’s election into a very uncertain place,” Ilya Spivak, a senior currency strategist at DailyFx said, adding the resultant aversion toward riskier assets could benefit gold.
Among other precious metals, palladium eased 0.1% to $1,921.62 an ounce, and was far from Tuesday’s peak of$1,998.43.
Platinum dropped 0.3% to $932.55 an ounce, while silver was unchanged at $17.01.

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                                    On Wednesday 18, December 2019

Gold dips as dollar rises; palladium recedes from near $2,000



GP: Swiss gold 191002
An employee returns a box of one kilogram gold bars to the safe in Budapest, Hungary, on June 17, 2013.
Akos Stiller | Bloomberg | Getty Images
Gold dipped on Wednesday, weighed down by a firmer dollar which found support from mounting expectations the U.S. Federal Reserve will not cut interest rates soon, while palladium retreated from record highs.
Spot gold dipped 0.1% to $1,474.80 per ounce. U.S. gold futures dropped 0.1% to $1,479.10.
“The strength of the dollar is weighing on gold, coupled with the fact that the trade deal has removed the urge to get into safe havens like gold or yen,” said Edward Meir, analyst at ED&F Man Capital Markets. “We are kind of watching the paint dry... Big and complex issues are deferred and even the phase one deal is not completely nailed down yet.”
Data on Tuesday showed U.S. manufacturing output rebounded more than expected in November, making it less likely that the Fed would cut interest rates soon. Gold is sensitive to rising interest rates, which lift the opportunity cost of holding it, and boost the dollar, in which the metal is priced.
The U.S. currency against a basket of others held gains at 97.36. Wall Street stocks were flat at the open.
Due to a lack of follow-through on the upside in gold, investors had started modestly selling the metal, said Afshin Nabavi, senior vice president at precious metals trader MKS SA, adding a break of the $1,465-$1,495 range could attract fresh interest.
Gold, on track for its biggest annual gain since 2010, is supported on the back of recessionary fears and as major central banks around the world resort to monetary easing.
The U.S. House of Representatives is due to vote later in the day on whether to impeach President Donald Trump.
Further support for bullion came from fresh fears of a no-deal Brexit, analysts said.On Tuesday, Britain set a hard deadline of December 2020 to reach a new trade deal with the European Union, reviving fears of a chaotic exit from the bloc.
Palladium retreated from a near $2,000 record peak, dipping 1.1% to $1,932.37 in the session.
“The (palladium) market is blowing off froth and is likely to mark time towards year-end, but tightness in supply is unlikely to be mitigated in the near future,” INTL FCStone analyst Rhona O’Connell said in a note.
Among other precious metals, platinum edged 0.1% lower to $927.05 an ounce, and silver fell 0.3% to $16.95.


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                                On Tuesday 17, December 2019


Gold steadies; palladium retreats after surge towards $2,000/oz



GP: People mining gold 190227
People mining gold in a traditional way at a river dam in Sausi, Parigi Moutong in Central Sulawesi in Indonesia on Oct. 21, 2015.
Inayah Azmi Atifah | Pacific Press | LightRocket via Getty Images

Gold steadied on Tuesday as robust U.S. manufacturing data lifted risk appetite and countered support from lingering doubts on U.S.-China trade, while scarce palladium retreated after its record run towards the $2,000 an ounce level.
Spot gold was little changed at $1,476.46 per ounce. U.S. gold futures inched 0.1% higher to $1,481.10.
U.S. manufacturing output rebounded more than expected in November, the U.S. central bank said, keeping Wall Street near record levels.
“The competition for gold today is equities... but there is danger out there in the way central banks are behaving, gold has to reflect that. We’ve created an environment where we require central banks to move the economy forward,” said Rob Lutts, chief investment officer at Cabot Wealth Management.
While the United States and China claimed to have reached an initial trade agreement, there were still many questions left unanswered. The preliminary deal reached last week will double U.S. exports to China, White House adviser Larry Kudlow said on Monday.
Washington will also reduce some tariffs on Chinese goods. U.S. officials have touted a deal, but Chinese officials have been more cautious, emphasizing the dispute has not been completely settled. “From a technical standpoint, gold is in a bull market... Trade deficits and negative interest rates across the globe have been good for gold,” said Michael Matousek, head trader at U.S. Global Investors.
Elsewhere, British Prime Minister Boris Johnson, emboldened table, saying he would make extending the transition period beyond 2020 illegal. Gold is generally used by investors as a place to park assets during economic or political uncertainty.
Spot palladium shed 01.5% to $1,948.14 per ounce, retreating from an all-time high of $1,998.43 hit earlier in the session.
The metal, used heavily by the auto-sector in the making of catalytic converters, could see a surge in demand owing to stringent anti-carbon emissions globally.
“Supply is tight and when you’re adding the speculation about a potential pick-up in demand due to recovery in the global economy, you have a perfect storm of bullish news continuing to keep palladium supported,” Saxo Bank analyst Ole Hansen said.
Last week’s mine shutdowns in South Africa added fuel to palladium’s upward surge. “It’s times like these that create the opportunities to buy on pull backs,” Matousek said.
Platinum eased 0.7% to $922.56 an ounce, while silver was little changed at $17.03.

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                                                         On Monday 16, December 2019


3-4 minutos




GP: People mining gold 190227
People mining gold in a traditional way at a river dam in Sausi, Parigi Moutong in Central Sulawesi in Indonesia on Oct. 21, 2015.
Inayah Azmi Atifah | Pacific Press | LightRocket via Getty Images

Gold held steady on Monday as the dollar eased and investors sought clarity on the fine print of the “phase one” trade deal between the United States and China, offsetting strong gains in the equities markets.
Spot gold rose 0.02% to $1,475.85 per ounce. Prices gained 1.1% last week as the world’s two largest economies negotiated ahead of another potential round of tariffs. U.S. gold futures fell 0.07% to $1,480.5.
“This (trade deal) does not mean things get fundamentally better; it essentially means they’re not going to get any deeper into a slowdown ... There still are risks down the road,” said Bart Melek, head of commodity strategies at TD Securities. “A combination of expectations of high (trade) deficit, lower interest rates and U.S. political risks emerging during election year, all point to investors wanting to at least have some gold in their portfolio.”
Washington and Beijing cooled their tariff dispute last week, reducing some U.S. tariffs in exchange for what U.S. officials said would be a big jump in Chinese purchases of American farm products and other goods. This bolstered risk sentiment, with Wall Street at record highs. However, the much-awaited initial deal failed to trigger any sharp sell off in gold. It shook off some initial pressure from early in the Asian session.
“The markets lack conviction to push bullion lower as there still remain concerns about what this deal entails and how much this phase one agreement will alleviate the downward pressure on the global economy going into 2020,” said FXTM market analyst Han Tan. “These overall concerns are still keeping gold prices relatively elevated.”
The 17-month long trade war has fanned concerns of a global economic slowdown, prompting major central banks to ease monetary policy.
Elsewhere, palladium jumped 2% to $1,969.41 an ounce. The autocatalyst metal struck an all-time high of $1,979.95 on Friday, when it also snapped a 15 session-long winning streak that saw it repeatedly breaking new records.
Platinum was flat at $928.22, while silver inched 0.3% higher to $16.99.
While palladium’s bull run has been underpinned by a structural deficit, platinum has been in a surplus, Wall Street bank Goldman Sachs said in a note.
“However, substitution of palladium for platinum is unlikely to happen until extreme physical shortages develop which create problems in producing automobiles to force the automakers to make expensive investments to make the switch. Until then, palladium will likely continue to outperform platinum.”


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                                    On Friday 13, December 2019

Gold gains as lack of details on trade deal lifts demand



GP: Gold bars 180809
Gold bars sit in a vault at the Perth Mint Refinery, operated by Gold Corp, in Perth, Australia, on August 9, 2018.
Carla Gottgens | Bloomberg | Getty Images
Gold prices rose on Friday as investors remained cautious about the developments in the United States and China trade negotiations, while political uncertainties in the world’s biggest economy further boosted the metal’s safe-haven appeal.
Spot gold was up 0.5% at $1,477.09 per ounce and with gains of more than 1.2% so far this week, the yellow metal is on track for its best week in nearly three-months. U.S. gold futures settled up 0.6% at $1,481.20.
China will likely hit $50 billion in purchases of U.S. agricultural products, U.S. President Donald Trump said on after earlier announcing that he would roll back scheduled tariffs on Chinese imports as Washington and Beijing finalized an initial trade deal.
“Although there seems to be some progress, the lack of details is causing a lot of concern that we’re not as far along in the trade deal as people would like and as a result we are getting a flight to safety,” said Jeffrey Sica, founder of Circle Squared Alternative Investments.
Stocks swung between gains and losses, as investors were confused about signs of progress despite positive comments from both sides.
“The fact that gold is trading near $1,475 shows that there is still good interest in gold market... Although we have seen some risk appetite emerging on the back of phase one trade deal, other uncertainties continue to linger around U.S. political outlook,” Standard Chartered Bank analyst Suki Cooper said.
A Democratic-controlled U.S. House of Representatives committee approved charges of abuse of power and obstruction against Republican President Donald Trump on Friday, making it almost certain he will become the third American president in history to be impeached.
The dollar fell against a basket of currencies helping dollar-denominated gold edge higher.
Elsewhere, palladium fell 0.8% to $1,923.14 an ounce, having notched up an all-time high of $1,979.95.
“The auto sector is gradually gaining steam and with palladium being used as an autocatalyst in cars, demand is going up, while the supply still remains a constraint,” said Quantitative Commodity Research analyst Peter Fertig.
Plagued by a supply deficit, the metal has gained about 2.5% so far this week, predominantly supported by mine closures across major producer South Africa.
Platinum fell 1.9% to $925.71 per ounce, but was up about 3.5% for the week. Silver inched down 0.2% at $16.90 but was set to record its best weekly gain since the end of October.


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                                   On Thursday 12, December 2019

Gold falls after Trump says close to trade deal



GP: Gold bars 180809
Gold bars sit in a vault at the Perth Mint Refinery, operated by Gold Corp, in Perth, Australia, on August 9, 2018.
Carla Gottgens | Bloomberg | Getty Images
Gold retreated from an over one-month peak in a volatile session on Thursday after U.S. President Donald Trump said Washington was close to a trade deal with China, denting the safe-haven metal’s appeal.
Scarce palladium’s record surge, meanwhile, showed no signs of abating.
Spot gold dropped 0.44% to $1,468.31 per ounce. Prices hit their highest since Nov. 7 at $1,486.80 earlier in the session. U.S. gold futures settled down 0.2% at $1,472.3.
Trump said the U.S. was “very close” to nailing down a deal with China, helping world stocks soar to a record, and taking some steam off gold’s initial rally driven by the trade uncertainties ahead of a Dec. 15 deadline when new U.S. tariffs on Chinese goods come into effect.
″(Trump’s) tweet saw risk appetite bid, with capital flowing to equities. The problem for gold is that when everything else looks good, there’s less incentive to move into gold, which is what we’ve seen,” said Bart Melek, head of commodity strategies at TD Securities.
Also on investors’ radar was the British election, which will pave the way for Brexit under Prime Minister Boris Johnson or propel Britain towards another referendum that could ultimately reverse the decision to leave the European Union.
While major opinion polls suggest Johnson will win, any surprises could add further support to bullion, analysts said.
Palladium, meanwhile raced to a fresh all-time high of $1,944 in the session, up 1.2% at $1,933.73 an ounce.
The metal, set for a 15th straight gain, surpassed $1,900 for the first time on Tuesday as mines in major producer South Africa shut after flooding triggered severe power blackouts.
“Palladium has been one of the stars of not just the metals, but the commodities arena overall for the year,” said David Meger, director of metals trading at High Ridge Futures.
“Just the power outages bring about more supply constraints to what is already a tightly supplied market with strong demand.”
Platinum was little changed at $938.80 an ounce, while silver was down 0.2% to $16.82.


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                                   On Wednesday 11, December 2019

Gold rises after Fed leaves rates unchanged



GP: Gold bars 171005
One kilogram gold bars are displayed for a photograph at the YLG Bullion International headquarters in Thailand on January 13, 2016.
Dario Pignatelli | Bloomberg | Getty Images
Gold rose on Wednesday after the Federal Reserve held interest rates steady following its two-day meeting this week and indicated that no action is likely next year amid persistently low inflation.
Gold prices rose earlier in the day on worries about a trade deal between the U.S. and China.
Spot gold gained 0.92% to $1,477.36 per ounce, extending gains into a third straight session. U.S. gold futures inched 0.93% higher to $1,482.0.
U.S. President Donald Trump has only days to decide whether to impose tariffs on nearly $160 billion in Chinese goods, a move that would exacerbate the 17-month long trade war.
Top economic and trade advisers from the White House are expected to meet in coming days with Trump over the decision, a source told Reuters, though a final decision has not been made.
“Gold has been up because of the uncertainty of the trade talks, along with the FOMC meeting this afternoon,” said Bob Haberkorn, senior market strategist at RJO Futures.
Better than expected U.S. consumer prices in November, supported the Fed’s intention not to cut interest rates again.
The European Central Bank is also expected to keep rates steady at a meeting on Thursday.
“The global economy appears to have stabilized after a year of growth uncertainty. If yields on U.S. 10 (Treasury) yields rise above 1.90%, we think that will signal the end of golds rally and push prices below $1,400/oz,” analysts at OCBC bank said in a note.
Palladium rose 0.6% to $1,907.70 an ounce, scaling a fresh peak of $1,911.50, on concerns that stagnating supply of the autocatalyst metal may fail to meet demand.
Adding fuel to supply concerns, prices zoomed past the key $1,900 level on Tuesday after mines across South Africa began shutting down after flash flooding triggered the most severe power blackouts in more than a decade.
Palladium was on track for a 14th straight session of gains.
Platinum jumped 0.8% on Wednesday, having hit a one-month high of $930.
South Africa is a major producer of palladium and also has the biggest and most lucrative platinum reserves.
Meanwhile, spot silver inched 0.1% higher to $16.67 an ounce.

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                                  On Tuesday 10, December 2019

Gold rises amid uncertainty around US trade; Palladium hits record high



GP: Gold and Silver Casting at the Perth Mint 190918
Gold bars sit in a vault at the Perth Mint Refinery in Perth, Australia, on August 9, 2018.
Carla Gottgens | Bloomberg | Getty Images

Gold got a lift form uncertainties surrounding U.S.-China trade talks ahead of a Dec. 15 tariff deadline and a weaker dollar.
Spot gold was up 0.13% to $1,463.75 per ounce. U.S. gold futures settled up 0.21% to $1,468.1. 
“Gold is riding higher on dollar weakness and caution ahead of a looming tariff deadline,” said FXTM analyst Lukman Otunuga. If Washington proceeds with the earmarked tariffs, gold could get a further boost, he added.
A report from the Wall Street Journal said trade negotiators from both sides are planning for a delay of the December tariff. Gold pared gains slightly on the report, but remained supported as doubts over a phase-one deal persisted.
Markets also sought monetary outlook for 2020 by the U.S Federal Reserve, which is expected to keep rates unchanged at its two-day policy meeting ending Wednesday.
“In the short-term, if the Fed shifts to a more hawkish assessment, gold is at risk from further repositioning. Technically this could pull prices back to $1,410/oz,” UBS analysts said in a note.
Palladium zoomed past $1,900 an ounce for the first time ever on Tuesday as a power crisis halted production at mines in major producer South Africa, exacerbating concerns over supply of the autocatalyst and extending the metal’s record run.
Spot palladium jumped 0.72% to $1,894.70 an ounce, after hitting an all-time high of $1,901.
“South Africa produces 40% of world’s palladium and the ESKOM outages are hitting some mines, giving palladium just that extra nudge above $1,900,” said Tai Wong, head of base and precious metals derivatives trading at BMO. “We’ve now had 13 consecutive positive sessions, which seems a little rich, so it wouldn’t be surprising to see some consolidation, though the overall trend continues to look quite positive.”
Mines across South Africa are shutting down after flash flooding caused the largest power blackouts in more than a decade, with major miners Harmony Gold , Impala Platinum, and Sibanye-Stillwater all being forced to cut production. Scarcity concerns surrounding palladium have already helped the metal rise about 50% in 2019, owing to its large demand in the auto sector.
Other metals, too, gained on the outages in South Africa, with platinum rising 2.6% to $918.37 an ounce, marking its biggest intra-day jump since Oct. 23. Silver rose 0.2% to $16.63.

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                                   On Monday 9, December 2019

Palladium eyes $1,900 in record surge, gold firms on trade doubts

3minutes - Source: CNBC



GP: Gold bars and ingots 171121
Close up image of assorted gold ingots and gold coins.
Anthony Bradshaw | Getty Images
Palladium soared to a record just shy of the $1,900 mark on Monday, while gold edged higher as uncertainty over U.S.-China trade talks took center stage ahead of a Dec. 15 deadline for fresh U.S. tariffs.
Autocatalyst metal palladium climbed to an all-time high of $1,898.50 an ounce and was last up 0.19% at $1,881.43.
“Palladium has a very strong fundamental backdrop with supply set to stay quite scarce and demand growth set to increase,” said Daniel Ghali, commodity strategist at TD Securities.
Palladium has risen nearly 50% in 2019 on a sustained supply squeeze, and has constantly been breaking records, despite a weakening global auto sector. Increasingly stringent emissions regulations globally are raising the palladium in autocatalysts for gasoline-powered cars and 2020 could see the most number of regulations, Ghali added.
“There is a widespread expectation that (palladium) spot prices are headed towards $2,000 and the market does currently appear to be in a one-way street,” INTL FCStone analyst Rhona O’Connell said in a note. “Even with the (auto) sector under pressure, palladium will be in deficit for the foreseeable future and the funds are chasing it higher.”
Elsewhere, spot gold was up 0.05% to $1,460.15 per ounce. U.S. gold futures was flat at $1,464.7.
“The tariff deadline of Dec. 15 is certainly top of everyone’s mind ... The situation is still uncertain, helping gold stay firm,” TD Securities’ Ghali said. China said on Monday it hoped to make a trade deal with the United States as soon as possible, as Washington’s next round of tariffs against Chinese goods is scheduled to take effect on Dec. 15. Also supporting bullion, equity markets were further pressured after China’s exports shrank in November.
Markets now await the U.S. Federal Reserve’s two-day meeting starting on Tuesday for cues on its monetary policy. The central bank is expected to highlight the economy’s resilience and keep interest rates on hold in the range of 1.50% to 1.75%.
U.S. investment bank Goldman Sachs said investment demand for gold would be supported by recession fears and political uncertainty, forecasting prices at $1,600 an ounce over a three- and 12-month period.
Platinum and silver were up 0.2% at $897.36 and $16.60 an ounce, respectively.

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                                      On Friday 6, December 2019

Gold falls 1% after robust US jobs data




Gold will continue to shine amid a weak dollar, says author and gold pro Jim Rickards.
Simon Dawson | Bloomberg | Getty Images
Gold slid 1% on Friday as strong U.S. jobs data renewed bets the Federal Reserve would hold pat on interest rates and boosted demand for riskier assets, while supply-squeezed palladium soared to a new record high. U.S. job growth increased by the most in 10 months in November, confirming that the economy remained on a moderate expansion path despite a prolonged manufacturing slump.
Spot gold slipped 1% to $1,461.01 per ounce. U.S. gold futures settled down 1.1% at $1,465.1 per ounce.
“The better-than-expected jobs report has dented demand for safe-haven products such as gold,” said David Meger, director of metals trading at High Ridge Futures.
The jobs data pushed up the dollar, while U.S. stock index futures jumped as the positive economic readings added to an upbeat mood after U.S. President Donald Trump said trade talks with China were “moving right along”.
In a positive gesture, China said it will waive import tariffs for some soybeans and pork shipments from the United States. Looking ahead, the market focus will be on the Fed’s meeting on Tuesday and Wednesday next week. The U.S. central bank is expected to keep interest rates on hold at 1.50% to 1.75% .
“The (jobs) report falls squarely to the camp of the U.S. monetary policy hawks who do not want to see interest rates rise anytime soon, and that is bearish for the metals market,” said Kitco Metals senior analyst Jim Wyckoff.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar.
“On the technical side, a close below the $1,460-65 area could open gold up to the $1,445-47 November lows, and beyond that towards $1,400-$1,420 congestion area over the summer,” said Tai Wong, head of base and precious metals derivatives trading at BMO.
Elsewhere, autocatalyst metal palladium continued scaling fresh peaks, hitting $1,880.37 for the first time.
“The demand for palladium is typically steady and practically price-inelastic, so it could be on its way to the $1,900 mark. The strong jobs numbers are helping the metal since jobs growth indicates a healthy economy and translates into more people buying cars,” BMO’s Wong said.
Other metals latched onto gold’s slide as well, with silver falling 2% to $16.60 per ounce, having earlier touched a low since Aug. 7 at $16.51. Platinum fell 0.4% to $893.25.



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                                                           On Thursday 5, December 2019

 Gold rises slightly as US-China trade uncertainty persists




GP: Gold and Silver Casting at the Perth Mint 190620
An employee arranges one kilogram gold bars at the Perth Mint Refinery in Perth, Australia, on Aug. 9, 2018.
Carla Gottgens | Bloomberg | Getty Images

Gold edged higher on Wednesday as uncertainty emerging from mixed messages on the U.S-China trade negotiations offset headwinds from positive economic data out of the United States, while deficit-hit palladium extended a record surge.
Spot gold was up 0.27% at $1,478.14 per ounce, having hit its highest since Nov. 7 at $1,484 the previous day. U.S. gold futures rose 0.22% to $1,483.1.
“We’re seeing safe haven demand for gold,” said Quantitative Commodity Research analyst Peter Fertig. “As long as (U.S. President Donald) Trump does not make a clear statement about what he wants, the markets will remain puzzled,” said Fertig.
Tariffs must be cut if Washington and Beijing are to reach an interim trade agreement, the Chinese commerce ministry said on Thursday. This came a day after Trump said trade talks were going “very well,” which were in contrast to his previous comments, suggesting a deal might have to wait until after the 2020 U.S. presidential election, denting risk appetite.
On the technical side, a break below the key support around $1,450 could prompt a test of the $1,400 level, Standard Chartered Bank analyst Suki Cooper said in a note. “For now, the physical market is providing a sufficient cushion against the downside, and we believe the macro environment presents upside risk to prices in 2020.”
Also helping gold, the dollar slipped versus major currencies, making the metal cheaper for investors holding other currencies. Limiting the upside for safe-haven bullion, however, were positive economic readings from the United States.
Data showed initial claims for state unemployment benefits dropped to the lowest level since mid-April for the week ended Nov. 30, while U.S. trade deficit dipped to its lowest level in nearly 1-1/2 years in October.

Elsewhere, palladium continued its record run, scaling an all-time peak of $1,876.54 an ounce on concerns over supply of the auto catalyst metal. It was last down 0.2% at $1,865.44.
“Constrained mine supply and growing demand should send palladium into its ninth straight year of market deficit in 2020,” UBS commodity analyst Giovanni Staunovo said in a note.
Among other metals, platinum eased 0.4% to $891.64 while silver climbed 0.6% to $16.92.


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                                 On Wednesday 4, December 2019

Gold retreats as trade optimism resurfaces, palladium soars



GP: Gold bullion bars 190920
An employee arranges one kilogram gold bars for a photograph in Bangkok, Thailand, on January 13, 2016.
Dario Pignatelli | Bloomberg | Getty Images
Gold shrugged off earlier gains to fall on Wednesday, as a report suggesting progress on the U.S.-China trade negotiations rekindled risk appetite, while palladium notched up a fresh peak.
Spot gold slipped 0.3% to $1,472.26 per ounce. Prices had hit $1,484 earlier in the session, their highest level since Nov. 7. U.S. gold futures settled down 0.3% at $1,480.2.
The latest development on the trade front prompted gold to erase gains, said Michael Matousek, head trader at U.S. Global Investors. Washington and Beijing are moving closer to agreeing on the amount of tariffs to be rolled back in a phase-one trade deal, a Bloomberg report said. “That hit the tape when the U.S. was asleep, causing U.S. (gold) futures to drop, because U.S. equity futures started to rally.”
The report comes a day after U.S. President Donald Trump said a trade agreement may be delayed until after November 2020 U.S. elections which had prompted a rapid sell-off in global equities, and pushed gold up more than 1%.
“It’s been an interesting see-saw ... The market is looking for reliable information concerning tariff talks, more than anything else,” said George Gero, managing director at RBC Wealth Management. “Gold traders have been buying dips and doing well selling at the bigger rallies. This has kept gold range-bound for some time between $1,480 and $1,500.”
Safe-haven bullion has benefited from the trade uncertainties, propelling it 15% higher so far this year. Gold also found little support from weaker economic readings from the United States, with data showing private employers added the fewest jobs in six months in November, and in turn, a weaker dollar.
Elsewhere, platinum fell nearly 1% to $901.38 an ounce, while palladium rose 0.6% to $1,866.63.
Palladium, used mainly in catalytic converters in vehicles, jumped to a record high of $1,869.57 in the day, extending gains for a ninth straight session. The metal has jumped about 48% in 2019 on a sustained supply squeeze, despite a weakening global auto sector. However, some analysts said the metal was bound for a correction.
“We continue to think that palladium price increases are not justified by the fundamentals, and that prices will fall back,” ABN Amro analyst Georgette Boele said in a note, adding she expects prices to dip to $1,450 by end-2020.
Elsewhere, silver shed 1.9% to $16.83 an ounce.
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                                    On Tuesday 3, December 2019
Gold jumps over 1% as Trump says trade deal could extend to 2020



GP: Gold and Silver bars 190926
A one kilogram gold bar sits on top of silver bars at London bullion dealers Gold Investments in this arranged photograph in London, United Kingdom, on April 4, 2013.
Simon Dawson | Bloomberg | Getty Images
Gold jumped more than 1% on Tuesday on fading optimism surrounding a U.S.-China trade deal after U.S. President Donald Trump said talks could extend until after the presidential elections in November 2020.
Spot gold gained 1.12% to $1,478.72 per ounce, after touching $1,481.80, its highest since Nov. 7. U.S. gold futures settled up 1.1% at $1484.4
“Stock markets are lower and there is flight to safety in gold right now. Gold prices are up with what Trump said about China-U.S. tariffs,” said Bob Haberkorn, senior market strategist at RJO Futures. “All signs point towards a move back above $1,485 on the February contract, which could be enough to push it above $1,500.”
Trump said a trade deal with China might be delayed until after the November 2020 elections, dashing hopes that an agreement could be reached before another round of tariff hikes take effect on Dec. 15.
Gold prices have gained nearly 15% this year owing to the protracted tariff dispute, which has fanned  recessionary fears and prompted central banks around the world to ease interest rates. Risk appetite was also hit on Monday after Trump tweeted he would slap tariffs on Brazil and Argentina for what he saw as both countries’ “massive devaluation of their currencies.”
Further dampening risk sentiment, Washington also threatened duties on French goods because of a digital services tax that could harm U.S. tech companies, to which France and the European Union said they are ready to retaliate, if those threats were to materialize.
Most other precious metals latched on to gold’s rally, with silver gaining 1.6% to $17.17 per ounce and platinum up 1.3% to $909.05.
“If gold and silver heat up over the next year (because of an extended trade war), platinum will naturally get pulled in. Palladium, on the other hand, is a little too high on a lot of supply concerns,” Haberkorn said.
Palladium dipped 0.2% to $1,848.11, after notching a record high of $1,861.71 in the previous session. The metal was on track to snap a seven-day winning streak.
“How high palladium can go depends on how much the car makers are willing to pay for steady supply of the metal,” Saxo Bank analyst Ole Hansen said. “However, these multiple record highs may lead to a correction soon, and we may see palladium hitting $1,800 before it gets a chance to hit the $1,900 range.”

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                                      On Monday 2, December 2019

Gold steadies after weak US data; palladium zooms past $1,860/oz

3-4 minutes - Source: CNBC




GP: Gold bars and ingots 171121
Close up image of assorted gold ingots and gold coins.
Anthony Bradshaw | Getty Images

Gold steadied on Monday after paring losses as weak U.S. manufacturing data rekindled worries about a slowing economy, while palladium exceeded $1,860 per ounce in its week-long surge to new all-time highs on a supply crunch.
Spot gold was little changed at $1,464.20 per ounce. U.S. gold futures settled down 0.3% at $1469.2.
Gold initially fell to a low of $1,453.60 per ounce on a stronger dollar and as better-than-expected manufacturing data from China propped up equities. However, U.S. stock indices dropped and the dollar slipped on data showing an unexpected drop on construction spending in October as investment in private projects tumbled to a three-year low.
“Market started the day on a risk-on tone, but got caught off guard when the ISM data was a bit weaker-than-expected. We saw equities, yields and the dollar all correct, which has helped gold a bit,” said Ryan McKay, a commodity strategist at TD Securities.
World equities began the week on a strong footing after a private business survey showed Chinese factory activity expanded at the quickest pace in almost three years in November. However, markets reversed course following a report that U.S. President Donald Trump said he would immediately restore tariffs on U.S. steel and aluminium imports from Brazil and Argentina. Investors favor gold during times of global uncertainty.
“The notion is that the U.S. Federal Reserve is done cutting (interest rates) for now and we’ll need to see a trend in weaker data through early 2020 to convince the market that we’re going to get more cuts. Until then, there’s no real impetus to see gold rally,” McKay added.
The Fed cut rates three times this year and has one more meeting on Dec.10-11. However, investors now see the Fed keeping interest rates unchanged until at least mid-2020. Markets also awaited clarity on an interim U.S.-China trade deal.
Palladium was up 0.3% at $1,845.80 an ounce, after hitting a new high of $1,861.71 earlier in the session. The metal has been breaking records daily since Nov. 25.
“Palladium positioning is slightly counter-intuitive to the price action, implicitly confirming heavy OTC interest from the long side,” INTL FCStone analyst Rhona O’Connell said in a note. “After weak longs were shaken out in early November another push to the upside is now approaching resistance from the uptrend.”
Concerns that supply of the metal used in car exhaust systems could run out has helped to lift prices by more than 47% this year alone, despite a weakening auto sector.
Silver shed 0.4% to $16.95 an ounce and platinum gained 0.4% to $903.51.

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