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Commodities | Gold | Today's Gold Price Report on Monday 6, April 2020

Gold jumps 2% as virus-led economic toll fuels stimulus measures



GP: : Gold bullion Solar Capital Gold Zrt. in Budapest, Hungary
An Argor-Heraeus SA branded two hundred and fifty gram gold bar, center, sits in this arranged photograph at Solar Capital Gold Zrt. in Budapest, Hungary.
Akos Stiller | Bloomberg | Getty Images

Gold prices surged over 2% to a more than three-week high on Monday on expectations of global stimulus measures to counter the economic damage caused by the outbreak of the novel coronavirus.
Spot gold was up 1.8% at $1,645.93 per ounce, having hit its highest level since March 11 at $1,650.18 earlier in the session. U.S. gold futures were up 2.7% at $1,690.
“Physical demand continues to dominate and support gold prices. Massive amounts of stimulus are effectively diluting currencies so gold demand is coming from all directions,” said Phil Streible, chief  market strategist at Blue Line Futures in Chicago.
The U.S. dollar stalled against most currencies but continued its rise versus the Japanese yen as the rate of deaths from coronavirus in Europe slowed while deaths in Japan and elsewhere in Asia accelerated. Japan is to impose a state of emergency in Tokyo and six other prefectures as early as Tuesday to contain the coronavirus, while the government prepares a $990 billion stimulus package to soften the economic blow.
The pandemic has infected more than 1,250,000 people around the world, with over 68,400 deaths, according to a Reuters tally. The coronavirus is the European Union’s biggest test, German Chancellor Angela Merkel said on Monday, adding that it was important that the bloc emerges strong from the economic crisis unleashed by the pandemic.
Governments and central banks around the world have unleashed unprecedented fiscal and monetary stimulus and other support for economies floored by the coronavirus pandemic.
“We think the set-up for a multi-year bull market is being cemented as the market is awash with both monetary and fiscal stimulus while rates are at the zero bound,” analysts at TD Securities said in a note.
“Which suggests investors will continue to seek gold’s warm embrace as real global rates become entrenched in negative territory.”
Reflecting investor sentiment, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust , rose 0.7% to 978.99 tonnes on Friday - the highest in more than three years.
Meanwhile, the enhanced delivery gold futures contract launched by CME Group Inc , enabling delivery of 100-ounce, 400-ounce, or kilo bars, has also started trading.
Among other precious metals, autocatalyst palladium was down 2.5% at $2,134.32 per ounce.
Platinum gained 1.5% to $731.56 per ounce, while silver climbed 2.2% to $14.69 per ounce.

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On Friday 3, April 2020

Gold inches up on bleak US nonfarm payrolls, firmer dollar caps gains



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 inched up on Friday, after gloomy U.S. nonfarm payrolls data magnified the economic toll from the coronavirusalthough a stronger dollar capped bullion’s advance.
Spot gold rose 0.2% to $1,615.62 per ounce. The metal has declined nearly 0.2% so far this week. U.S. gold futures edged 0.4% higher to $1,644.10 per ounce.
“Gold continues to be in wait-and-see mode on how bad the global economy will get and how long will the depression-like conditions last,” said Edward Moya, a senior market analyst at broker OANDA.
The U.S. economy shed 701,000 jobs in March, ending a historic 113 straight months of employment growth as stringent measures to control the novel coronavirus hurt businesses and factories, confirming a recession is underway. The dollar firmed against rivals, edging towards a more than 2% weekly rise as global recession fears intensify.
“Most traders would expect gold to be higher (after payrolls data). Gold’s problem is that supply tightness is easing and the dollar continues to grind higher,” Moya added.
“Ultimately gold will shine from all the fiscal and monetary stimulus being pumped into markets globally.”
Swiss precious metals refinery PAMP has been given permission by local authorities to restart operations and will begin processing at less than 50% capacity, it said on Friday.
On Thursday, gold gained more than 1% after the number of Americans filing claims for unemployment benefits last week shot to a record high as more jurisdictions enforced stay-at-home measures to curb the pandemic.
Global cases of the new coronavirus have shot past 1 million with more than 53,000 fatalities, a Reuters tally showed on Friday, while the world economy nosedived.
“Technically, even when everything sold off in the market gold sold off the least, that tells you gold is strong, people want to own it. So theoretically, gold should be the leading asset for the next 6-8 months,” said Michael Matousek, head trader at U.S. Global Investors.
Reflecting investors interest in bullion, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust , rose 0.3% to 971.97 tonnes on Thursday.
Among other precious metals, palladium slipped 2% to $2,168.98 an ounce, and was set for a weekly decline of over 4%, while platinum dipped 1.5% to $716.11, and was down 3.7% so far this week.
Silver shed 0.7% to $14.43 per ounce.

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On Thursday 2, April 2020

Gold jumps; record US jobless claims lift safe-haven demand



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 prices jumped over 1% on Thursday, as record high U.S. jobless claims for a second week in a row intensified fears of economic damage due to the coronavirus and drove investors towards the safe-haven metal.
Spot gold gained 0.9% to $1,605.60 per ounce, while U.S. gold futures rose 2.4% to $1,629.20.
“The reality of that (jobless claims numbers) setting in along with the equities starting to turn lower, you get some fresh rounds of safe-haven buying in gold,” said Bob Haberkorn, senior market strategist at RJO Futures.
The number of Americans filing claims for unemployment benefits doubled from last week to a record high of 6.65 million, as more jurisdictions enforced stay-at-home measures to curb the coronavirus.
U.S. stock indexes fell after an explosive increase in U.S. jobless claims.
“The longer this thing drags out, the worse the situation will be in longer term. Gold is an asset that should do well through all this turbulence, all the money that is being printed to combat the effects of the virus and the interest rates being dropped to zero,” Haberkorn said.
The pandemic has infected over 935,000 people across the world and killed 46,906, and forced countries to ensure restrictions and lockdowns to combat the outbreak.
“We think that gold will likely continue to play an important role in investor allocations over the next few months given all the turbulence. However, volatility will remain quite high,” said Edward Meir, analyst at ED&F Man Capital Markets in a note.
“Signs of prolonged economic weakness and increasingly aggressive stimulus measures pursued by governments and central banks should provide gold with something of a floor.”
Indicative of sentiment, holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.18% to 968.75 tonnes on Wednesday, their highest since October 2016.
Among other precious metals, palladium fell 1.1% to $2,191.31 per ounce, while platinum gained 1.1% to $725.08.
“Auto data out of the U.S. and Europe paint a bleak picture. Chinese data is beginning to show green shoots and should be supportive to palladium and to a lesser extent platinum,” MKS PAMP said in a note.
Silver jumped 3.3% to $14.45 per ounce.
The global sliver market will be undersupplied for a third year in 2020 as investors are lured by decade-low prices, offsetting expected falls in its use by jewellers and industry, a report forecast.

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On Wednesday 1, April 2020

Gold surges as virus impact fears spur safe-haven purchases



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 jumped on Wednesday as concerns the near global lockdown to fight the coronavirus pandemic would spark a deep economic downturn prompted investors to seek safe havens.
Spot gold was up 1% at $1,586.61 per ounce, rebounding from a 3.1% slump in the last session. U.S. gold futures gained 0.4% to $1,603.60.
“Gold once again underpinned its status as a safe haven during the current corona crisis,” Julius Baer analyst Carsten Menke said in a note, adding: “Constraints to global air travel and the closures of gold refineries are showing up in product price premiums.”
“As the global recession unfolds and as uncertainties remain very high in financial markets, we still see more upside than downside for gold.”
Financial markets and oil prices tumbled in the first trading session of the quarter as the pandemic and the prospect of a global recession tore through investor confidence.
Gold is often used as a safe store of value during times of political and financial uncertainty and tends to appreciate on expectations of lower interest rates, which reduce the opportunity cost of holding it.
Major central banks have rolled out fiscal and monetary measures to try to limit economic damage from the coronavirus, which has infected more than 851,000 people and forced lockdowns across the globe.
“The ramification of easing monetary policy cycle and trillion dollars of stimulus means the market will be full of liquidity and ample supply of paper money in months, quarters or years to come, and that’s definitely supporting gold’s rally amid very limited supply (of physical bullion),” said CMC Markets analyst Margaret Yang Yan.
On the supply side, three of the world’s largest gold refineries said they had suspended production in Switzerland for at least a week after local authorities ordered the closure of non-essential industry.
The dollar also marched higher against major currencies, gaining more than 0.5%.
On Tuesday, the U.S. Federal Reserve broadened the ability of dozens of foreign central banks to access dollars during the coronavirus crisis by allowing them to exchange their holdings of U.S. Treasury securities for overnight dollar loans.
Reflecting investors’ interest in bullion, the Perth Mint’s gold product sales in March soared to their highest in about seven years, the refiner said on Wednesday.
Holdings in SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, rose 0.3% to 967 tonnes on Tuesday.
Elsewhere, platinum dropped 1.6% to $710.95 per ounce, silver slipped 0.5% to $13.90 and palladium was steady at $2,351.94.

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On Tuesday 31, March 2020

Gold slides, but set for sixth straight quarterly gain



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 dipped over 2% to their lowest in a week on Tuesday as the dollar firmed, but the metal was on track for a sixth straight quarterly rise on concerns of global economic damage due to the coronavirus pandemic.
Spot gold fell 0.8% at $1,609.64 per ounce. U.S. gold futures lost 0.6% to $1,611.60.
“The mood across markets seems to be improving as investors take comfort from the positive economic data from China.
However, a sense of caution still lingers in the air which is stimulating appetite for the dollar,” said FXTM analyst Lukman Otunuga.
Investors cheered as strong Chinese factory data held out hope for an economic revival even as much of the rest of the world locked down to fight the coronavirus.
For the quarter, gold has gained 6%, and 1.7% this month, on the back of U.S.-Iran tensions in January and since then the global pandemic.
“Global sentiment remains shaky despite central banks and governments standing together in the fight against COVID-19,” Otunuga said, adding “fears revolving around a global recession should send investors rushing towards gold, especially if cracks start showing in the largest economy in the world.”
Countries and global central banks have announced several policy measures to combat the economic toll from the coronavirus, which has infected over 777,000 people worldwide and killed 37,561. Russia’s central bank announced it would suspend buying gold starting April 1.
Elsewhere, platinum rose 1.5% to $733.69, but was on track to post its biggest quarterly decline since 2008 and worst month since 2015.
“Platinum demand from the automotive industry has been largely paralysed by the corona crisis,” Commerzbank analysts said in a note. “The production outages in South Africa will be unable to offset the negative effects on demand, assuming that production– as announced so far – remains restricted for only three weeks.”
The world’s largest platinum producers Anglo American Platinum, Sibanye-Stillwater and Impala Platinum have declared force majeure on contracts after a three-week national lockdown in South Africa forced operations to close.
Palladium rose 3.2% to $2,402.17 an ounce. The auto-catalyst metal was headed for its biggest quarterly gain since 2010, but was set for its first monthly decline in eight.
Silver rose 0.1% to $14.13, but was set to post its biggest quarterly decline since June 2013.


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On Monday 30, March 2020

Gold gains as virus-led growth fears spur safety buying



GP: : Gold bullion Solar Capital Gold Zrt. in Budapest, Hungary
An Argor-Heraeus SA branded two hundred and fifty gram gold bar, center, sits in this arranged photograph at Solar Capital Gold Zrt. in Budapest, Hungary.
Akos Stiller | Bloomberg | Getty Images

Gold prices rose on Monday as investors sought safe havens amid fears over growing economic damage from the coronavirus after governments extended lockdowns to curtail its spread.
Spot gold was up 0.3% at $1,621.89 an ounce. U.S. gold futures edged 0.1% higher to $1,625.70.
“Volatility due to covid-19 is back in the markets. Gold profited a bit from safe-haven buying after stock markets dropped in Europe,” said Quantitative Commodity Research analyst Peter Fertig.
“In the near term, gold should be supported by safe-haven buying, but if stock markets drop deeper, selling of gold to meet margin calls could re-emerge.”
Investors’ appetite for riskier assets remained weak as fears mounted that the global coronavirus shutdowns could last for months, sending European shares lower for a second straight session and oil prices to their weakest in 17 years.
The pandemic has already driven the global economy into recession and countries must respond with “very massive” spending to avoid a cascade of bankruptcies and emerging market debt defaults, the head of the International Monetary Fund warned on Friday.
Central banks around the world have rolled out a wave of fiscal and monetary measures to stem the economic hit from the virus, with China, Singapore and New Zealand the latest to add stimulus.
More than 720,000 people have been infected by the novel coronavirus across the world and 33,969 have died, according to a Reuters tally.
Last week, the U.S. House of Representatives approved a $2.2 trillion aid package — the largest in history — to help cope with the virus-inflicted economic downturn.
Lower interest rates and looser economic policy tend to benefit gold, as they cut the opportunity cost of holding non-yielding assets.
However, safe-haven gains for the U.S. dollar capped gold’s gains, as the dollar index rose 0.4%.
“The huge amount of liquidity that the U.S. Federal Reserve is going to send into the markets has been unable to generate further gold rallies, but the scenario could quickly change,” ActivTrades chief analyst Carlo Alberto De Casa said in a note.
Elsewhere, palladium fell 1.8% to $2,229.23 per ounce, platinum dropped 2.3% to $724.29, and silver slipped 2.8% to $14.07. 
“Negative impact from covid-19 on the industrial sector is weighing on platinum and palladium prices. Longer lock-downs mean less demand for PGMs from car producers,” said Quantitative Commodity Research’s Fertig said.
Platinum producer Sibanye-Stillwater said it would declare force majeure on supply contracts for platinum group metals (PGMs) after it temporarily closed its South African mines to comply with a three-week national lockdown.
Impala Platinum has also declared force majeure, a source with direct knowledge of the matter said.


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On Friday 27, March 2020

Oil drops nearly 5% as demand fears overshadow stimulus hopes



GP: Oil production as sun sets
Oil production in Azerbaijan
Vostok

Oil prices dropped nearly 5% on Friday and were on track for a fifth straight weekly loss as demand destruction caused by the coronavirus outweighed stimulus efforts by policymakers around the world.
Both contracts are down nearly two thirds this year and the coronavirus-related slump in economic activity and fuel demand has forced massive retrenchment in investment by oil and other energy companies.
Brent crude was trading 5.1% lower at $24.99 per barrel. U.S. crude fell $1.09, or 4.8%, to settle at $21.51 per barrel.
“We ran out of ammunition to support the market,” said Bob Yawger, director of energy futures at Mizuho in New York. “The government used up all their bullets this week - next week the market is on its own.”
With 3 billion people in lockdown, global oil requirements could drop by 20%, International Energy Agency head Fatih Birol said as he called on major producers such as Saudi Arabia to help to stabilise oil markets.
The calls may not be enough to bring the market back into balance.
“We have our doubts about whether Saudi Arabia will allow itself to be persuaded so easily to return from the path of revenge that it only recently embarked upon,” said Commerzbank analyst Eugen Weinberg, referring to the price war being waged between Russia and Saudi Arabia.
The Group of 20 major economies on Thursday pledged to inject more than $5 trillion into the global economy to limit job and income losses from the coronavirus and “do whatever it takes to overcome the pandemic”.
Leaders of the U.S. House of Representatives are determined to pass a $2.2 trillion coronavirus relief bill by Saturday at the latest, hoping to provide quick help as deaths mount and the economy reels.
Mainland China reported its first locally transmitted coronavirus case in three days and 54 new imported cases as Beijing ordered airlines to implement sharp reductions in international flights, for fear travellers could reignite the outbreak.
As global oil demand plummets, Saudi Arabia is struggling to find customers for its extra oil, undermining its bid to seize market share by expanding production.
The Organization of the Petroleum Exporting Countries (OPEC) and its de facto leader Saudi Arabia this month failed to reach agreement with other producers, including Russia, to curb oil production to support prices.
But the head of Russia’s sovereign wealth fund, Kirill Dmitriev, told Reuters a new supply pact between OPEC and its allies, a group known as OPEC+, might be possible if other countries join.
“It does not seem as though there is anything the Saudis or the broader OPEC+ group can do to push the market significantly higher,” said ING analyst Warren Patterson.
“The demand destruction we are seeing does mean the level of (production) cuts that would be needed by the group would be just too much to stomach,” he said.
Russian Deputy Energy Minister Pavel Sorokin said the coronavirus outbreak has dented global oil demand by 15 million to 20 million barrels per day (bpd).
Oil and gas research group JBC Energy said it had “drastically” reduced its oil demand forecast for 2020, expecting a decline of more than 7.4 million bpd on average.

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On Friday 27, March 2020

Gold eases, but eyes biggest weekly gain since 2008



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 fell on Friday on caution ahead of the weekend, but prices were set to post their biggest weekly gain since 2008 as economic damage expected from the coronavirus boosted bullion’s safe-haven appeal.
Platinum and palladium were on track for their biggest weekly gains on record on supply concerns arising from a lockdown in major producer South Africa.
Spot gold fell 0.5% to $1,620.81 per ounce as of 11:42 a.m. EDT (1542 GMT). U.S. gold futures were 1.7% lower at $1,623.30 per ounce.
“A sell-off in U.S. equities has weighed in on all asset classes again leading to a series of margin call pressure on precious metals,” said Phil Streible, chief market strategist at Blue Line Futures in Chicago.
Wall Street shares fell more than 3%, as fears about the economic damage from the coronavirus pandemic returned to the forefront.
“Gold has tied itself with the equity markets,” said Bob Haberkorn, senior market strategist at RJO Futures. “There are so many unknowns heading into the weekend, and though gold is a safety asset, there is just a reluctance to add risk-on.”
Gold has gained more than 8% so far this week, supported by the biggest-ever jump in U.S. weekly jobless claims, and the U.S. Federal Reserve’s unprecedented economic stimulus measures.
Investors are awaiting passage of a $2.2 trillion stimulus package bill that will pump money into the world’s largest economy to stem the damage caused by the pandemic.
“The market is looking to assess the impact of numerous lockdowns and business closures on the economy,” Standard Chartered Bank analyst Suki Cooper said in a note. “Gold prices have gained further ground in anticipation of further stimulus and weaker data to come.”
“Price risks remain to the upside barring profit-taking and (we) expect prices to average $1,725 per ounce in Q2-2020,” she said.
Gold market participants also kept a close eye on physical supply as virus-led lockdowns stalled supply chains.
Physical gold dealers struggled to meet surging safe-haven demand this week, especially in Singapore, as the pandemic choked global supply chains, while massive discounts were offered in India amid a lockdown.
Among other precious metals, palladium was down 3% at $2,261.88 per ounce, but has risen around 38.6% so far this week. Platinum was flat at $736.06 per ounce but has gained about 21% this week.
Silver fell 0.3% to $14.35 per ounce, but was heading for its largest weekly gain since 2008

On Thursday 26, March 2020

Gold jumps as record high US jobless claims fuel stimulus hopes



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 prices jumped to a two-week high on Thursday, after a record surge in U.S. jobless claims dented the dollar and boosted expectations of further stimulus to cushion the global economic toll from the coronavirus pandemic.
Spot gold rose 0.95% to $1,628.46 per ounce. U.S. gold futures rose 1.1% to 1,649 per ounce.
“More countries are expected to release some sort of stimulus packages which is a big event for gold. In addition to it, unemployment claims jumped. That tells the investors that QE is going to have more longevity,” said Michael Matousek, head trader at U.S. Global Investors.
Central banks have been turning to quantitative easing (QE), or large-scale purchases of government bonds and other financial assets to pump money into the economy.
Gold climbed more than 1% earlier in the session after data showed a record high of more than 3 million Americans filed claims for unemployment benefits last week as strict measures to contain the pandemic hit economic activity.
“It’s an indication that things are slowing down dramatically. The worse data you can get right now, the market should respond favourably, because that provides more ammunition for the Fed to be keep on stimulating,” Matousek added.
The dollar dropped to a near one-week low against rivals, making gold cheaper for holders of other currencies. Wall Street stocks jumped as investors bet on more stimulus measures.
The U.S. Senate on Wednesday overwhelmingly backed a $2 trillion bill aimed at helping unemployed workers and industries hurt by the outbreak. This came after the U.S. Federal Reserve said on Monday it would buy as many bonds as needed to stabilize financial markets and backstop direct loans to companies.
“Extraordinary steps by the Fed this week, including uncapping the size of asset purchases and buying investment grade bonds, should push real interest rates deeper into negative territory and in turn support demand for real assets like gold,” said UBS commodities analyst Giovanni Staunovo in a note.
Gold market participants remained concerned about a supply squeeze following a sharp divergence in London and New York prices as the coronavirus closed precious metals refineries.
U.S. exchange operator CME Group on Tuesday announced a new gold futures contract to combat price volatility caused by the shutdown of gold supply routes, but traders and bankers said it would not immediately calm markets. U.S. gold futures rose 0.8% to $1,646.80 per ounce, and held above the London spot contract.
Palladium dropped 2% to $2,270.06 per ounce, a day after posting its largest daily gain since 1997 as a lockdown in major producer South Africa exacerbated supply woes.
Platinum slipped 0.3% to $735.95, while silver was flat at $14.43.

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On Wednesday 25, March 2020

Gold volatile as expected US stimulus stirs stocks



GP: : Gold bullion Solar Capital Gold Zrt. in Budapest, Hungary
An Argor-Heraeus SA branded two hundred and fifty gram gold bar, center, sits in this arranged photograph at Solar Capital Gold Zrt. in Budapest, Hungary.
Akos Stiller | Bloomberg | Getty Images

Gold prices were volatile on Wednesday as markets responded to a $2 trillion U.S. government stimulus package to soften the economic damage of the coronavirus outbreak.
Spot gold, which rose as much as 5% on Tuesday was up 0.1% to $1,611.73 per ounce. It had earlier fallen 1% after notching up a gain of 1%. U.S. gold futures fell 1% to $1,644.20, while world stocks rebounded on expectations of a $2 trillion U.S. fiscal stimulus package being approved.
The big downside risk (in gold) remains the potential for those sharp sell-offs in equity markets to be repeated, especially following yesterday’s huge rally,” OANDA analyst Craig Erlam said in a note.
Senate majority leader Mitch McConnell said the U.S. package had been agreed upon and would be put to a vote on Wednesday.
“We still see a favorable backdrop for gold as the economic fallout from the corona crisis should strengthen safe-haven demand,” Julius Baer analyst Carsten Menke said.
Holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 1.3% on Tuesday.
Benchmark spot gold prices traded below U.S. gold futures in a sign that the market is worried that air travel restrictions and refinery closures will hamper shipments of bullion to the United States to meet contractual requirements.
Among other metals, palladium rose 3.9% to $2,007.33 per ounce, while platinum gained 0.5% to $711.83. Both climbed more than 10% in the previous session after a lockdown in major producer South Africa.
Silver fell 0.4% to $14.22 per ounce.


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On Tuesday 24, March 2020


Gold futures pop 5% amid extraordinary central bank actions







GP: Gold bar and coins
A one kilo Swiss gold bar and US dollars gold coins are pictured in Paris on February 20, 2020.
JOEL SAGET| AFP via Getty Images

Futures contracts tied to gold popped more than 5% on Tuesday, extending gains from a near 4% surge in the previous session, after the U.S. Federal Reserve’s unprecedented measures to help an economy reeling from the coronavirus pandemic halted a rush for cash.
Spot gold rose 4.4% to $1,622.45 per ounce. The metal rose 3.7% on Monday, its highest percentage gain since June 2016. U.S. gold futures climbed 5.3% to $1,650.70.
“Gold is surging higher after the Fed went above and beyond in unveiling measures to support the economy,” said Edward Moya, a senior market analyst at broker OANDA.
The U.S. central bank on Monday rolled out an extraordinary array of programs and will lend against student loans, credit card loans, and U.S. government backed-loans to small businesses.
That failed to push Wall Street higher on Monday, but it was enough to drive a rebound in Asian shares.
Meanwhile, a coronavirus economic stimulus package, remained stalled in the U.S. Senate on Monday as lawmakers haggled over its provisions, but the U.S. Treasury secretary and the Senate Democratic leader voiced confidence a deal would be reached soon.
“The U.S. Senate setback seems only temporary and gold traders are feeling pretty confident that at the end of the week, massive fiscal and monetary stimulus should help calm markets. If market volatility stabilizes somewhat, gold will resume its safe-haven status,” said OANDA’s Moya.
President Donald Trump said on Monday he is considering how to reopen the U.S. economy when a 15-day shutdown ends next week, even as the virus spreads rapidly.
Global central banks took various measures to mitigate the damage of the outbreak, which has infected over 351,300 and killed more than 15,300 people globally.
Australia’s central bank proposed to buy $2.35 billion in government bonds and Germany agreed for a package worth up to $808 billion.
Also propping up bullion markets was the closure of three of the world’s largest gold refineries in Switzerland due to the outbreak that has squeezed supply of the physical metal, Stephen Innes, chief market strategist at financial services firm AxiCorp, said in a note.
“There is just not enough around to support the underlying promissory notes (paper gold)... It’s a godsend for bullion investors.”
Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 1.8% to 923.99 tonnes on Monday.
Palladium surged 6.2% to $1,825.79 per ounce, silver advanced 3.2% to $13.67 and platinum rose 2.3% to $657.41 per ounce.


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On Monday 23, March 2020

Gold surges 2% after Fed unveils new stimulus plans



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 soared more than 2% on Monday, shrugging off early losses after the U.S. Federal Reserve mounted aggressive new steps to combat the economic impact from coronavirus outbreak, boosting investors sentiment.
The U.S. central bank said it would begin backstopping an unprecedented range of credit for households, small businesses and major employers in an effort to offset the “severe disruptions” caused by the coronarvirus outbreak.
Spot gold was up 1.7% at $1,522.49 an ounce. U.S. gold futures surged 2.8% to $1,526.10 an ounce.
“The Fed unveiled its biggest cannon seen to date - even bigger than in the great financial crisis,” said Tai Wong, head of base and precious metals derivatives trading at BMO.
“The market reacted instantly with equities and gold soaring behind the Fed’s new ‘Draghi’ approach.  However, the acid test here is whether this optimism will hold for more than one day.”
U.S. stock index futures surged more than 3%, while the dollar fell over 1% against major currencies after the Fed’s latest announcement.
After already aggressively easing monetary policy this month, including sending interest rates to near zero, the U.S. central bank said it would now lend against student loans and credit card loans as well as buy bonds of larger employers.
Major central banks around the world rolled out a wave of fiscal and monetary measures to stem the economic damage from the virus, which has infected more than 300,000 worldwide.
Gold has dropped more than 4% so far this month, tracking its worst month in over three years, as a collapse in stock markets drove investors to liquidate bullion to meet margin calls and to keep their money in cash.
“When you’re seeing so much wiped off the stock market on a regular basis, the shortfall has to be made up somehow and gold remains the favoured option,” OANDA analyst Craig Erlam said in a note.
“So far, $1,450 has provided a floor, but the trend is against it and sellers aren’t easing up.”
Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 1.5% to 908.19 tonnes on Friday.
Among other precious metals, silver jumped 1.8% to $12.81 an ounce, on track for its third straight session of gains.
Platinum gained 0.3% to $613.02 per ounce, while palladium eased 0.2% to $1,638.95.

_________________________________________________________________________________

On Friday 20, March 2020

Gold rises on safe-haven appeal but set for weekly drop




GP: Gold bar and coins
A one kilo Swiss gold bar and US dollars gold coins are pictured in Paris on February 20, 2020.
JOEL SAGET| AFP via Getty Images
Gold prices rose on Friday as safe-haven buying offset a rush for cash amid fears over the economic hit from the coronavirus, but bullion was headed for a second weekly drop as investors sold the metal to meet margin calls in other assets.
Spot gold gained 0.84% to $1,482.57 per ounce after a 1% fall in the previous session and was en route to post a near 3% decline for the week. U.S. gold futures climbed 0.34% to $1,484.70.
“It’s definitely risk hedge buying. If only for a day ... what can you buy to hedge weekend risk? You can be in cash or precious metals, that’s about it,” said Jeffrey Halley, a senior market analyst at OANDA.
Asian shares sought a reprieve following gains on Wall Street, while the dollar crossed a three-year high as the epidemic drove a dash for cash.
The U.S. Federal Reserve opened the taps for central banks in nine new countries to access dollars in hopes of preventing the outbreak from causing a global economic rout.
Several countries rolled out measures to stem the economic damage, with the U.S. Senate unveiling a $1 trillion economic stimulus plan, while the Bank of England promised 200 billion pounds of bond purchases and cut its key interest rate to 0.1%.
While gold has been reacting to moves in financial markets and at times found support from stimulus measures, “it’s a bumpy ride as liquidity and participation continue to fall by the wayside,” said Stephen Innes, chief market strategist at AxiCorp, in a note.
“I’m not so sure this is so much a function of the market, or due to the fact that many gold traders are working at home.”
The global economy is already in a recession as the hit to economic activity has become more widespread, a Reuters poll showed.
The number of Americans filing for unemployment benefits surged by the most since 2012 last week.
Among other precious metals, palladium rose 0.5% to $1,660.82 per ounce. Platinum jumped 4.6% to $613.54 but was set to post its biggest ever weekly fall. 
Platinum and palladium will remain turbulent in coming months after huge losses sparked by the spread of the coronavirus, before starting a tentative recovery with support from palladium’s supply gap and platinum’s correlation with gold, analysts said.

Silver gained 3.5% to $12.54, but was on track to post its second steepest weekly decline of about 15% since September 2011.  


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On Thursday 19, March 2020

Gold drops as investors cash out, dollar surges



GP: : Gold bullion Solar Capital Gold Zrt. in Budapest, Hungary
An Argor-Heraeus SA branded two hundred and fifty gram gold bar, center, sits in this arranged photograph at Solar Capital Gold Zrt. in Budapest, Hungary.
Akos Stiller | Bloomberg | Getty Images

Gold prices slipped on Thursday as the dollar jumped to multi-year highs, with the coronavirus pandemic threatening to cripple economic activity and prompting investors to sell assets to keep their money in cash.
Spot gold was down 0.6% at $1,477.07 per ounce, while U.S. gold futures were up 0.2% at $1,479.80.
“Clearly gold’s safe-haven status has not been held up,” said David Meger, director of metals trading at High Ridge Futures, adding, “players are moving towards cash.” “Also, we have seen extremely strong move in the dollar over the course of the last several sessions. As we do see more  central banks around the world act in regards to coronavirus, we do see the dollar is the flight to safety.”
The dollar notched a fresh three-year high as demand stayed high despite the recent burst of liquidity injection operations undertaken by central banks around the world.
“The world marketplace has seen confirmation that the greenback is still king when times get really tough. The big grab for greenbacks is perpetuating dislocations in the financial markets,” Kitco Metals senior analyst Jim Wyckoff said in a note.
Investors shed riskier assets as another round of sweeping emergency action from policymakers failed to convince panic-stricken stock markets.
“With all the extra stimulus from governments and central banks out there, it’s been a wild ride in debt markets recently, further feeding the frenzy in precious metal markets,” OANDA analyst Craig Erlam said in a note.
The relentless spread of the virus, which has infected nearly 230,000 across the world, has triggered panic and sparked a wide sell-off in assets, including safe-haven bullion.
Official data out of the United States showed the number of Americans filing for unemployment benefits surged last week to their highest level since 2017 in the first indication of the outbreak’s toll on employment.
Meanwhile, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust , fell 0.7% on Wednesday.
Among other precious metals, palladium rose 4.5% to $1,659.87 per ounce after sliding over 5% earlier in the day, while platinum dropped 5.4% to $590.52, falling for the seventh straight session.
Platinum and palladium will likely remain turbulent in coming months after huge losses sparked by the spread of coronavirus, before starting a tentative recovery, analysts said.
Silver gained 0.8% higher to $12.07 an ounce, but hovered close to an 11-year low hit in the previous session.

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On Wednesday 18, March 2020

Gold reverses course to fall 2% as flight for cash resumes



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 erased early gains to fall more than 2% on Wednesday as mounting fears over the economic hit from the coronavirus overshadowed additional stimulus measures by the United States and prompted investors to sell precious metals to hoard cash.
Spot gold fell 2.9% to $1,484.72 per ounce. U.S. gold futures were down 2.65% to $1,485.3 an ounce.
“The fact that equity markets are still falling is signalling deteriorating global sentiment, which means more investors are going for cash,” said Michael McCarthy, chief strategist at CMC Markets.
“Globally, we are lengthening our expectations of how long the economic interruptions from the virus will last and that’s another reason driving people to cash.”
U.S. stock futures and several Asian shares fell in choppy trade as worries about the virus eclipsed hopes broad policy support would combat the economic fallout of the outbreak.
The U.S. dollar eased, but hovered near a four-week high scaled on Tuesday against key rivals, making gold costlier for investors holding other currencies.
The U.S. Federal Reserve said on Tuesday it would reinstate a funding facility used during the 2008 financial crisis to get credit directly to businesses and households as fears over a liquidity crunch due to the virus have grown in recent days.
Meanwhile, the Trump administration pursued a $1 trillion stimulus package that could deliver $1,000 checks to Americans within two weeks to cushion the economy.
The U.S. measure helped gold prices rise 1% in early Asian trade before the metal changed its course.
“That had boosted sentiment a little and we saw the unwinding of some of that behaviour, which is ‘sell gold among everything else to find cash,’” IG Markets analyst Kyle Rodda said.
Among countries and central banks providing stimulus to their virus-hit economies, Britain launched a new lending scheme to provide short-term bridging finance for large businesses hurt by the epidemic, which will be run and funded by the Bank of England.
Underscoring the economic strain from the virus, a survey showed that the mood among German investors slumped in March to levels last seen at the beginning of the world financial crisis in 2008 due to alarm at the impact on Europe’s largest economy. 
Among other precious metals, palladium fell 0.7% to $1,631.42 per ounce, while platinum eased 0.1% to $660.75. Silver was 1.2% lower at $12.44.


________________________________________________________________________________

On Tuesday 17, March 2020

Gold drops 3%, other metals extend slide in rush for cash




GP: : Gold bullion Solar Capital Gold Zrt. in Budapest, Hungary
An Argor-Heraeus SA branded two hundred and fifty gram gold bar, center, sits in this arranged photograph at Solar Capital Gold Zrt. in Budapest, Hungary.
Akos Stiller | Bloomberg | Getty Images
Gold tumbled 3% on Tuesday, while other precious metals also extended heavy losses from the previous session, as fears over the global economic toll from the fast-spreading coronavirus prompted investors to dump most assets and hoard cash.
Platinum and silver shed more than 6%, while palladium lost over 4%. Industrial metals were worst hit in Monday’s meltdown on concerns of a global recession.
“Cash and bonds are king right now. It’s just the place where investors are seeing value in terms of what they hold,” OANDA analyst Craig Erlam said, adding precious metals seemed to be the go-to assets for investors liquidating positions.
“Investors hate uncertainty, but at the moment, we’re navigating completely blind. So that’s why we’re seeing so much panic and unrest in the markets.”
Spot gold was down 2.6% to $1,475.26 per ounce, having slumped as much as 5.1% on Monday to its  lowest since November 2019. U.S. gold futures were down 0.7% to $1,475.70.
European stocks failed to rebound, following a sharp sell-off in the previous session triggered by panic over coronavirus and its impact on businesses and the economy.
The dollar rose over 1% against rivals, making gold more expensive for holders of other currencies.
The contagion has killed more than 7,000 and infected more than 182,260 people globally and forced countries and major central banks to ramp up measures to protect their economies from the outbreak.
“We believe that a major new factor may weigh on the gold price: the sharply falling oil prices and the increasingly likely economic recession could spark fears among market participants of a deflationary shock. That would be fatal for gold,” Commerzbank analysts said in a note.
Reflecting investor sentiment, holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust fell 0.2% to 929.84 tonnes on Monday.
Palladium, meanwhile, fell 2% to $1,585 per ounce, having plummeted as much as 18% in the previous session. Platinum lost 4.2% to $635.37, having posted its biggest one-day percentage decline ever on Monday.
The moves in autocatalysts platinum and palladium have been particularly pronounced as they have outperformed the precious metal market recently, said OANDA’s Erlam.

Silver fell 3.9% to $12.40, after touching its lowest since 2009 in the last session.                               

                               


_________________________________________________________________________________

On Monday 16, March 2020                                

Gold falls below $1,500 as it is dragged into the global market rout

Elliot Smith

Gold has been swept up in the broad market sell-off to fall below $1,500 on Monday, down $200 from its peak early last week.
The precious metal hit a low of $1,456.8, its lowest level since Nov 27, and traded below its 200-day moving average level of $1,497.4 for the first time since Dec 20, 2018 on an intraday basis.
By mid-afternoon in Europe, spot gold was trading at $1,472.3, while stock markets around the world continued to tumble at an alarming pace.
Gold typically performs well during market sell-offs owing to its traditional role as a so-called “safe haven,” but it has not been immune to this past week’s global stock market plunge as the coronaviruspandemic takes hold.
Analysts are attributing the historic fall over the past week to a “dash for cash” as investors abandon all asset classes in favor of parking their money and cutting losses.

‘Dash for cash’

Stephen Gallo, European Head of FX Strategy at BMO Capital Markets, said in a note Monday that the past week has seen a shift in demand towards physical cash, which has benefited the dollar and hit the price of precious metals.
“That dynamic appears to be persisting at the start of this week, and there are few signs of this sort of flow ebbing,” he added.
Adrian Ash, head of research at online trading platform BullionVault, told CNBC on Monday that markets were seeing a “dash for cash” and projected further downward price momentum in the short term. He said the usual consumer demand for jewelry remained absent, and many funds and investors were closing out positions and take profits from the metal’s surge in recent months.
“In the past, when we’ve had volatility in pricing, that consumer demand is what has come in and put a floor under pricing. But I would suggest what we’re seeing at the moment is much more like what we saw during Lehman Brothers, where you had huge swings in gold prices and you had a lot of really shocked new investors who were moving into gold as a safe haven, who then saw the price swing,” Ash said.
However, he highlighted that there remained high demand for gold as a long-term value asset, with BullionVault experiencing the heaviest two-week inflow into gold since the aftermath of U.S. President Donald Trump’s election in November 2016.
Volatility in prices meant last week the platform saw the highest-ever Sunday-to-Sunday value of metal changing hands, up more than 300% from the previous 52-week average.
Ash said the trend was similar to during the financial crisis of 2008, when demand was hit in the futures market because people were forced to close out of positions.
“But on the other side, you’ve got strong and rising, really quite rampant, physical bullion demand coming in the other direction,” he added.

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 On Friday 13, March 2020                       

Gold down about 4%; palladium faces worst week ever



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 reversed course on Friday, tumbling as much as 4.5% and heading for its biggest weekly decline since 1983, as investors preferred cash and continued to sell bullion to meet margin calls across other markets.
Palladium, meanwhile, dived more than 8%, a day after a 28% plunge, and was heading for its biggest weekly percentage decline on record.
Spot gold was down 3.8% at $1,517.38 per ounce. For the week, it was down more than 9%. U.S. gold futures shed 4.6% to $1,516.60.
“While equity markets continue to be under pressure and there is a push towards liquidity across the markets, it wouldn’t be unusual for gold prices to sell off as well,” Standard Chartered Bank analyst Suki Cooper said.
“In the near-term, gold could see further downside because of the need to meet margin calls across other markets and if investors are preferring to move to cash and reduce risk exposure across the board.”
A sharp rebound on Wall Street on Friday largely fizzled out following reports that U.S. President Donald Trump will declare a national emergency over the coronavirus pandemic.
Trump said earlier on Friday that he would hold a news conference about the pandemic at 3 p.m. EDT. He did not provide more details.
Bullion has lost more than $180 since hitting more than a seven-year high of $1,702.56 per ounce on Monday, as market participants used the safe-haven metal to meet margin calls.
“Gold and equities have been positively correlated over the most recent days, but today the metal couldn’t really rally when stocks backed up, which is a troubling sign and indicates that spec longs are retreating to cash, the safest haven,” said Tai Wong, head of base and precious metals derivatives trading at BMO.
Denting bullion’s safe-haven appeal, the dollar jumped 1.2% to a two-week high.
On the physical side, major Asian hubs saw activity dwindle due to the impact of the coronavirus outbreak, especially in the world’s biggest gold consumer, China.

Palladium fell 7.8% to $1,689.33 per ounce, and was headed for a weekly decline of more than 34%.
“Palladium remains extremely volatile. The metal still has plenty of downside potential from a technical perspective. In addition, there has been more and more negative fundamental news for palladium of late,” Commerzbank analysts wrote in a note.
Platinum dropped 3.7% to $734.74 and was down more than 18% for the week.
Silver fell 2.4% to $15.45, putting it on track for its biggest weekly decline since 2011.

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On Thursday 12, March 2020

Gold down over 2% amid broader sell-off



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 slipped 2% on Thursday as the United States travel ban on Europe over virus spread drove jittery investors to liquidate assets across the board. Palladium plunged more than 11%, en route to its biggest daily drop since 2008.
Other precious metals also joined the free fall, with platinum declining over 7% and silver sliding more than 6%.
Global stocks plunged into a bear market and oil slumped more than 5% after U.S. President Donald Trump banned travel from Europe to stem the spread of coronavirus, threatening more disruption to the world economy.
“It is a rush to cash and a mild panic type move. What we are seeing is market participants and investors indiscriminately selling every asset class,” said David Meger, director of metals trading at High Ridge Futures. “People are selling gold and silver positions in order to finance equity positions or other situations,” he added.
Spot gold was down 1.9% at $1,602.99 per ounce. U.S. gold futures dropped 2.4% to $1,602.30. The precious metal surged past the $1,700 per ounce level for the first time since late 2012 on Monday as investors flew to safety amid falling oil prices and rise in virus cases across the world.
Gold got a little relief after the Federal Reserve announced extraordinary funding actions to ease strained capital markets in the wake of the coronavirus sell-off.
The coronavirus, which has infected more than 121,000 people in 118 countries and killed over 4,300, was described as a pandemic by the World Health Organization (WHO) on Wednesday.
“The Covid-19 pandemic has the global marketplace in panic. “When in doubt, get out” is the mantra today,” Kitco Metals senior analyst Jim Wyckoff said in a note.
Global central banks have taken steps to help economies to cope with the growing cost of the coronavirus. The U.S. Federal Reserve reduced rates in an emergency move last week. Lower interest rates decrease the opportunity cost of holding nonyielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies
The dollar index gained 0.5% against a basket of major currencies.
Meanwhile, the European Central Bank approved fresh stimulus measures on Thursday, but kept interest rates unchanged.
Auto-catalyst metal palladium plunged 11% to $2,051.64 to a two-month low.
“Palladium is one of the riskier assets,” said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade, adding reduced demand from the automobile sector was weighing on the metal.
Silver fell 5.3% to $15.86, its lowest since July 17. Platinum lost 7.4% to $796.45, on track for its worst day since Dec. 2008.

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On Wednesday 11, March 2020

Gold rises 1% as virus fears overshadow firmer equities




GP: Gold bar and coins
A one kilo Swiss gold bar and US dollars gold coins are pictured in Paris on February 20, 2020.
JOEL SAGET| AFP via Getty Images
Gold rose 1% on Wednesday, regaining some ground after the previous day’s near 2% slide, as fears over the economic toll of the coronavirus outweighed an uptick in equity markets following an interest rate cut from the Bank of England.
The BoE on Wednesday joined other central banks in cutting rates, raising hopes for more coordinated monetary and fiscal stimulus. Looser monetary policy, while stimulating economic growth, tends to benefit gold, as it cuts the opportunity cost of holding non-yielding assets.
Spot gold was up 1% at $1,664.81 per ounce, while U.S. gold futures gained 0.4% to $1,666.90.
“Gold remains driven by developments in global financial markets, which are driven by the further development of the coronavirus (outbreak),” Commerzbank analyst Carsten Fritsch said.
The BoE cut rates by half a percentage point, while the British government is also set to spend billions extra in its budget to minimize the economic impact from the outbreak, which has infected more than 119,000 globally. European stock markets rose for the first time in five sessions following the BoE cuts.
“All of a sudden, the BoE comes up with emergency rate cut and there’s also news from Italy on a complete lockdown, travel restrictions from several European countries and cancellation of big events - so it’s getting bigger and bigger,” Fritsch said.
The European Central Bank too is expected to unveil new stimulus measures on Thursday. The U.S. Federal Reserve slashed its benchmark rates in an emergency move last week.
The White House and Congress meanwhile negotiated stimulus measures on Tuesday, although there was no immediate sign of a deal, with the resulting uncertainty also contributing to gold’s gains on Wednesday.
Further supporting bullion, U.S. 10-year Treasury yields resumed their slide back towards Monday’s record low, while the dollar fell.
Holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust , held near their highest in more than three years.
“ETFs are reflecting investment,” said Soni Kumari, a commodity strategist at ANZ, adding that the lower interest rate environment and safe-haven demand were boosting inflows.
Elsewhere, palladium fell 2.2% to $2,367.95 per ounce.
“It was quite surprising that palladium was able to withstand massive headwinds from coronavirus for such a long time, so now it feels the pain of it,” Commerzbank’s Fritsch said, adding the autocatalyst metal will be weighed down by declining car sales.Platinum was up 0.8% at $876.13. Silver rose 0.6% to $16.96 per ounce.                      


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On Tuesday 10, March 2020                    

Gold dips 1% as policy easing hopes buoy equity markets



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 slid over 1% on Tuesday, after breaching the $1,700 ceiling in the previous session, as signs of global policy easing to cushion the economic impact from the virus epidemic eased some of the investors’ concerns.
Spot gold lost 1.3% to $1,657.23 an ounce. U.S. gold futures fell 1.1% to $1,658.
“People are rebalancing portfolios ... we expect to hear more dovish remarks from the global central banks, and some policy easing,” said Michael Matousek, head trader at U.S. Global Investors.
Bullion rose as much as 1.7% on Monday to its highest since December 2012 at $1,702.56 after a rout in global equity markets on prospects of the economic impact of the virus outbreak, and an oil price war triggered a crash in crude prices.
U.S. equities surged 2% at the open as signals of coordinated policy easing to avert a global recession soothed traders.
U.S. President Donald Trump vowed to take “major” steps to bolster the economy, and Japan unveiled a second package of measures worth about $4 billion to cope with fallout from the virus outbreak.
The U.S. central bank, having delivered an emergency rate cut last week, is expected to cut rates again at its next meeting on March 18.
The European Central Bank is under pressure to help bolster economic growth. It meets on Thursday.
U.S. Treasury yields rose from all-time lows, and the dollar also rebounded after major losses. 1/2USD/ 3/8
However, the spectre of the coronavirus remained in the background with over 114,300 people infected globally.
“It could be that Tuesday’s rebounds in the equities markets could be the so-called ‘dead-cat bounce’ that occurs after major market sell-offs, only to see prices continue to trend down,” Kitco Metals senior analyst Jim Wyckoff said in a note.
Holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose to 30.99 million ounces, its highest since October 2016.
In other precious metals, palladium fell 3.2% to $2,409.90 an ounce, silver declined 0.5% to $16.89 and platinum rose 0.9% to $870.32.

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On Monday 9, March 2020               

Gold backtracks from $1,700 top on profit-taking



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 retreated from the $1,700 level touched briefly earlier on Monday, as investors sold the bullion to cover margin calls amid plummeting equities and energy markets, overshadowing the metal’s safe-haven demand. Autocatalyst metal palladium, meanwhile, slid as much as 8% in early trade amid wider risk-off sentiment.
Spot gold rose 0.1% to $1,675.40 per ounce, while U.S. gold futures rose 0.23% to $1,676.90.
Gold had been up as much as 1.7% in a volatile session, having touched its highest since December 2012 at $1,702.56 earlier. However, the price rally has led to profit taking in the metal, analysts said.
“It’s a little bit surprising with gold not having done better - we did hit $1,700 mark in early trading but it has come down and it seems to be a sale across all assets,” said Mitsubishi analyst Jonathan Butler. “The (decline) maybe partly because of margin calls being made in other commodities or asset classes, which means liquidation in gold.”
Wall Street’s main indexes dropped 7% and the Dow Jones Industrials fell as much as 2,000 points in what would be its biggest one-day points fall ever.
MSCI all-country world stocks index slumped more than 5% on Monday, and was on track for its biggest daily drop since the 2008 global financial crisis.
Oil prices dived by a third, its biggest daily rout since the 1991 Gulf War, as Saudi Arabia and Russia indicated that they would increase supply to an oversupplied market. Gold is often viewed as a hedge against oil-led inflation.
“We’ve this two-way battle going on between leveraged hedge funds, who need to reduce again, and investors trying to find some safe haven away from falling stock markets, especially the energy sector,” said Saxo Bank analyst Ole Hansen.
On Sunday, Italy put much of its north under virtual lockdown to contain the virus outbreak. Globally, the number of cases worldwide has climbed above 110,000, with 3,800 deaths.
Investor focus next turns to the European Central Bank meeting due on Thursday and the U.S. Fed’s policy meeting on March 18. In other precious metals, palladium fell 3.1% to $2,486.29 an ounce, having earlier dipped to its lowest since Feb. 12 at $2,352.
“Expectations of industrial demand across metals are being re-evaluated in light of the coronavirus and that is affecting palladium (whose) biggest single market is China,” Mitsubishi’s Butler said.
Silver fell 2.4% to $16.89 an ounce, while platinum was down 4.1% to $863.71.

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On Friday 06, March 2020

Gold gains, on way to biggest weekly gain in 11 years as virus risks mount




GP: Gold bar and coins
A one kilo Swiss gold bar and US dollars gold coins are pictured in Paris on February 20, 2020.
JOEL SAGET| AFP via Getty Images

Gold prices rose on Friday and were on course for their biggest weekly gain since January 2009 as the global spread of the coronavirus dimmed growth prospects and sent investors scurrying for safe-haven assets.
Spot gold was up 0.5% at $1,678.25 per ounce. Earlier, it touched a high of $1,689.65, or 1.2%, its highest since January 2013. Prices are up around 6.3% so far this week. U.S. gold futures rose 0.5% to $1,679.50.
“The usual out of risky assets into safe havens” flow is fuelling gold’s rise, driven by concerns about the economic fallout from the virus, said Peter Fertig, an analyst at Quantitative Commodity Research.
Earlier on Friday, gold prices reversed course, dipping alongside other commodities like oil, after OPEC reportedly failed to reach a deal.
Gold tumbled alongside oil prices, which sank 7% to multi-year lows as OPEC’s allies reportedly rejected additional production cuts proposed by OPEC on Thursday, according to a report from Reuters. There are also reportedly questions over whether the existing production cuts will be extended, Reuters said. The meeting between OPEC and its allies, known as OPEC+, is underway in Vienna after talks were delayed.
Gold is on pace for its biggest weekly gain since January 2009 as the global spread of the coronavirus dimmed growth prospects and sent investors scurrying for safe-haven assets.
“The market has no understanding of what’s going on. Investors are buying bonds as well as gold as insurance from the deteriorating economic outlook,” said SP Angel analyst Sergey Raevskiy.
Globally, there have been more than 98,000 cases and over 3,300 deaths from the coronavirus. The International Monetary Fund on Wednesday said the outbreak would hold 2020 global output gains to their slowest pace since the 2008-2009 financial crisis. The epidemic poses “evolving risks” to the U.S. economy and central bank officials are monitoring developments closely, New York Federal Reserve President John Williams said on Thursday.
“Gold is looking to be one of the most attractive assets to own now as short term interest rates fall to near zero and most equity earnings are also expected to fall,” Phillip Futures analysts said in a note. “However a drastic and prolonged drop in equity prices may not be good for gold as traders cash in from gold to pay off margin calls in equity.”
The U.S. Federal Reserve made an emergency 50 basis point interest rate cut on Tuesday. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Elsewhere, palladium rose 3.1% to $2,610.80 per ounce. The autocatalyst metal had hit an all-time high of $2,875.50 in late February.Silver was up 0.2% to $17.45 an ounce, while platinum rose 4.1% to $900.08.                            

---------------------------------------------------------------------------------

 On Thursday 5, March 2020

Gold jumps to over 1-week high as virus fears spark rush to safety-------------

3minutes - Source: CNBC



GP: : Gold bullion Solar Capital Gold Zrt. in Budapest, Hungary
An Argor-Heraeus SA branded two hundred and fifty gram gold bar, center, sits in this arranged photograph at Solar Capital Gold Zrt. in Budapest, Hungary.
Akos Stiller | Bloomberg | Getty Images

Gold climbed over 1% to a more than one-week high on Thursday as worries over the global spread of the coronavirus spurred safe-haven flows and raised hopes of further monetary policy easing by major central banks.
Spot gold had gained 1.7% to $1,663.78 per ounce. U.S. gold futures jumped 1.3% to $1,664.80.
Clearly as the equity markets are under pressure and there are more concerns about the coronavirus, so obviously we are seeing money flowing out of riskier assets into safe havens like gold,” said David Meger, director of metals trading at High Ridge Futures.
“In addition, we continue to view gold as a quintessential hedge against a flood of global central bank liquidity. Gold continues to lead the charge and continues to be our favourite alternative investment out there.”
Equity markets tanked after California declared an emergency over the epidemic as the death toll rose in the United States.
There are now more than 90,000 COVID-19 coronavirus cases globally, with over 3,000 deaths.
The International Monetary Fund said on Wednesday the global spread had crushed hopes for stronger growth this year, while a Fed report showed there were signs the epidemic had begun to weigh on U.S. business sentiment.
The U.S. Fed and Bank of Canada have both responded by cutting interest rates by 50 basis points. Markets in the euro zone are pricing in a 90% chance that the European Central Bank will cut its deposit rate next week.
“Gold’s macro argument is simple. The virus hit to global growth and low interest rates globally will keep gold prices climbing higher,” said Edward Moya, a senior market analyst at broker OANDA, in a note.
Further supporting bullion, the dollar index slipped 0.5% to a near two-month low against a basket major of currencies, while the U.S. 10-year treasury yield fell back below 1%.
Elsewhere, palladium dropped 3.6% to $2,484.86 per ounce.
“While we expect the price of palladium to be more volatile over the coming weeks, we continue to anticipate it will trend higher over the coming quarters, supported by solid fundamentals,” UBS said in a note.
“Despite weaker car sales (likely also related to the coronavirus outbreak), we think 2020 will be a ninth consecutive deficit year for the white metal.”
Silver gained 0.7% to $17.30 per ounce, while platinum slipped 1.4% to $860.23.

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On Wednesday 4, March 2020                

Gold steadies after previous day's rally on Fed cut



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 was little changed on Wednesday, a day after its biggest percentage gain since June 2016 on the U.S. Federal Reserve’s surprise rate cut, as traders awaited further direction from other major central banks and governments.
Spot gold was up 0.2% to $1,642.05 per ounce, while U.S. gold futures slipped 0.1% to $1,642.10.
Gold surged as much as 3.7% on Tuesday after the U.S. central bank cut interest rates by 50 basis points, in an emergency move to help cushion the economic damage caused by the coronavirus outbreak.
“The market is probably waiting for additional potential announcements from other central banks ... the stock market has recovered a little bit, and that’s (leading to) some profit taking in gold,” said Saxo Bank analyst Ole Hansen.
“Cutting rates was probably a wrong decision because it also leaves the Fed with even less ammunition for future cuts ... the market is based on the assumption that it’s a small plaster on the big  wound and it’s not going to help in the short term.”
This was the Fed’s first cut outside of a scheduled meeting since the 2008 financial crisis. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
European equities rose as traders hoped the European Central Bank and euro zone governments would provide more stimulus after the Fed’s move.
The dollar index recovered from a two-month low hit in the last session, capping bullion’s gains.
“I think the reason why gold isn’t doing very much (today) is because across the spectrum of the financial assets nobody’s really quite sure what the immediate, or for that matter the medium-term, outlook is,” INTL FCStone analyst Rhona O’Connell said.
Euro zone businesses largely withstood the impact of the coronavirus in February, though a survey on Wednesday painted a gloomier outlook, with falling export demand and disruptions to supply chains.
The release of U.S. ISM non-manufacturing PMI data and the Fed’s Beige Book are awaited later on Wednesday.
Meanwhile, U.S. private payrolls increased more than expected in February, ADP National Employment Report showed.
Elsewhere, palladium fell 1.9% to $2,454.27 per ounce, while platinum was unchanged at $874.57. Silver fell 0.1% to $17.17 an ounce.
Auto industry platinum demand will rise for the first time since 2016, but it won’t be enough to offset a decline in investment buying, leaving the market in surplus, the World Platinum Investment Council said.

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On Tuesday 3, March 2020

Gold rises after Fed's surprise rate cut




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 prices rose on Tuesday after the Federal Reserve announced an emergency rate cut Tuesday of half a percentage point in response to the growing economic threat from the novel coronavirus.
Spot gold was up 3.3% at $1,643.85 an ounce, having gained more than 1% in the previous session. U.S. gold futures firmed 3.1% to $1,644.10.
The move was the first such cut since the financial crisis. It comes amid a volatile patch on Wall Street and amid a steady stream of pressure from President Donald Trump, who has called for lower rates to stay competitive with policy at other global central banks.
“The coronavirus poses evolving risks to economic activity,” the Fed said in a statement. “In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate.”
The dollar index held close to the previous session’s one-and-a-half-month low against a basket of currencies.
Investors are now focused on a G7 conference call on Tuesday, in which finance ministers and central bank governors will discuss ways to bolster their economies in the face of the spreading coronavirus outbreak.
Bank of England Governor Mark Carney said global policymakers are working on a “powerful and timely” response to allay fears of a new global recession.
“Global economic conditions were fragile entering into 2020 and any hopes of them recovering in light of the expected dilution in trade tensions were snuffed out because of this coronavirusoutbreak,” FXTM’s Tan said.
Gold prices slumped more than 4.5% on Friday amid a broader market sell-off but have recovered since.
“I think we have done enough on the downside (in gold) for the time being and with much talk of rate cuts/stimulus in the offing, the next move should be upwards,” said David Govett, head of precious metals at Marex Spectron.

“However, this does depend on the scale of the support offered by central banks.”
Lower interest rates reduce the opportunity cost of holding non-yielding bullion and also weigh on U.S. yields and the dollar, in which gold is priced.
Meanwhile, global equities also rose on expectations of central bank stimulus.

Among other precious metals, palladium rose 0.5% to $2,535.an ounce, silver gained 0.7% to $16.84 and platinum was up 0.7% at $866.70.                             


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On Monday 2, March 2020                      

Gold gains as coronavirus raises policy-easing chances



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 rose nearly 1% on Monday after suffering its largest daily fall in nearly seven years, as expectations grew for policy easing by the U.S. Federal Reserve and other central banks to help boost the coronavirus-hit global economy.
Spot gold was up 0.62% at $1,594.36 an ounce, and U.S. gold futures rose 1.8% to $1,595.50.
On Friday, the precious metals market was routed by traders liquidating their positions amidst a coronavirus-led selloff across global markets, with gold diving as much as 4.5%.
“We are seeing a little bit of recovery from late last week, (when) there was lot of selling to generate liquidity and cover margins,” said Ryan McKay, a commodity strategist at TD Securities.
“There are lot of expectations on interest rate cuts from the Fed, and also cuts from other global central banks ... offering very good support.”
The U.S. central bank will “act as appropriate” to support the economy on the backdrop of the virus outbreak, Chair Jerome Powell said on Friday.
Futures now imply a full 50 basis-point rate cut at the Fed’s March 18 monetary policy meeting.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion and also weigh on U.S. yields and the dollar.
The world economy is set to grow only 2.4% this year, the lowest rate since 2009, the Organisation for Economic Co-operation and Development stated on Monday.
Stephen Innes, chief market strategist at financial services firm AxiCorp, said the negative correlation between the U.S. currency and gold has reappeared since the dollar’s safe-haven appeal has faded.
The dollar index slid on bets that the Fed is likely to ease policy, while implied yields on the U.S. 10-year Treasury futures traded below 1% for the first time. 1/8
Palladium fell 1.7% to $2,548.32 an ounce, having plunged as much as 13% on Friday, the most since the 2008 financial crisis.
Platinum dipped 0.9% to $855.84, while silver rose 0.5% to $16.75, after both fell to their lowest levels in about six months in the previous session.
Platinum is on track to end lower for an eighth straight session.
“Car sales growth is an important driver for the platinum price, particularly sales in Europe,” said UBS commodities analyst Giovanni Staunovo.
“The falling share of newly sold diesel cars (which use platinum in their catalytic converters) in Europe is another drag on the white metal.”

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On Friday 28, February 2020                

Gold falls 3% as precious metals join virus-led free fall



GP: Gold bar and coins
A one kilo Swiss gold bar and US dollars gold coins are pictured in Paris on February 20, 2020.
JOEL SAGET| AFP via Getty Images

Gold slid 3% as coronavirus drove panic-stricken investors to liquidate assets across the board.
The rout hammered other precious metals as well, with platinum declining as much as 6.1% and silver sliding 6.6%.
“A lot of investors and traders are having to meet margin calls for other products, so they are selling what they can. That’s why it is hitting gold and the gold mining stocks,” said Michael Matousek, head trader at U.S. Global Investors.
“People are trying to sell whatever they can. It’s an overall sell-off.”
Spot gold plunged 3.2% to $1,590.17 per ounce.  U.S. gold futures declined 3.5% to $1,585.30 per ounce.
The precious metal saw sharp price swings this week, having hit a seven-year high of $1,688.66 on Monday. The metal is now on track to post its biggest weekly decline since November.
The rapid spread of the coronavirus raised fears of a pandemic, with six countries reporting their first cases and the World Health Organization warning it could spread worldwide.
The virus panic sent world share markets on course for their worst weekly fall since 2008, with almost $6 trillion wiped from their market value so far this week.
“As sentiment has deteriorated, investors have closed some of their open positions in currencies, but most likely also in gold. Therefore, gold prices have failed to make new highs now that equity markets have aggressively sold off,” ABN Amro analyst Georgette Boele wrote in a note.
“If risk aversion were to result in a market panic, investors will find cash and very liquid assets attractive. They will probably liquidate gold investment positions.”
In other precious metals, palladium dived 9% to $2,590.50 per ounce. The metal has shed about $390 from a record high of $2,875.50 on Thursday.
“With palladium it is a similar phenomenon, where people need to sell to cover up their losses elsewhere,” said Ryan Giannotto, head of research at GraniteShares.
The auto catalyst metal was still on track to gain for the seventh consecutive month due to a sustained supply shortfall.
Platinum shed 4.4% to $859.24, facing its worst weekly fall since 2011.
Silver fell 6.2% to $16.60 an ounce, on track for its worst week since 2013.

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On Thursday 27, February 2020                   

Gold gains on virus spread, rate cut hopes



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 prices rose on Thursday as the rapid spread of coronavirus outside China fueled demand for safe-haven assets and bolstered bets for interest rate cuts by major central banks, while palladium scaled an all-time high on supply deficit worries.
Spot gold rose 0.63% to $1,649.63 per ounce. Prices jumped more than 1% in intraday trade on Wednesday before closing 0.3% higher. U.S. gold futures were up 0.5% at $1,652.50.
“Safe-haven demand is strong at the moment on the global economic impact of the coronavirus. There are growing expectations that central banks will certainly need to take action if it continues to spread, particularly outside China,” ANZ analyst Daniel Hynes said.
Governments ramped up measures on Thursday to battle the coronavirus as the number of infections outside China, the source of the outbreak, for the first time surpassed those appearing inside the country.
U.S. health authorities, managing 59 cases so far, warned of the potential for a pandemic, although President Donald Trump said the risk from coronavirus remained “very low”.
Oil and Asian share markets slipped on Thursday, as investors sought safety in gold and bonds, while U.S. Treasuries rallied into record territory on concerns over the global spread of the coronavirus.
Investors, meanwhile, have increased bets for a rate cut by the U.S. Federal Reserve to ease the impact on the economy, according to an analysis of Fed funds futures compiled by the CME Group.
Money markets have also priced in cuts by the European Central Bank and the Bank of England.
“Markets are already pricing in some decent cuts to rates across the globe so that’s the clear driver of (gold) prices and demand,” ANZ’s Hynes said.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Among other precious metals, palladium rose 0.7% to $2,807.65 per ounce, after hitting a record high of 2,847.50 earlier in the session.
A correction in palladium prices is likely but the metal is rallying on deficit concerns and overall positive sentiment in precious metals, said Jigar Trivedi, a commodities analyst at Anand Rathi Shares and Stock Brokers in Mumbai.

Platinum rose 0.6% to $916.56, having earlier slid to its lowest level since December.
Silver gained 1.0% to $18.05 an ounce, after touching a one-week low in the previous session.

--------------------------------------------------------------------------------------------------------------------------

On Wednesday 26, February 2020    

Gold rebounds as virus spread fuels rate cut hopes



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 rebounded on Wednesday, a day after it posted its biggest one-day decline in nearly four months, as the coronavirus scare triggered safe-haven flows towards bullion and raised hopes of interest rate cuts by major central banks.
Spot gold rose 0.42% to $1,641.89 per ounce, having slumped as much as 1.9% in the previous session as investors took profits. U.S. gold futures dipped 0.3% to $1,644.30.
“It is a typical flight into safe havens after the coronavirus has spread not only to the Asian countries but also to Italy and Middle East,” said Peter Fertig, an analyst at Quantitative Commodity Research.
“There’s a possibility that the safe-haven has not yet reached its peak. The economic impacts have to be stronger than the market is currently pricing in. There is already a certain possibility for another Fed rate cut by 25 basis points.”
Investors have pushed up expectations for rate cuts from the U.S. Federal Reserve and European Central Bank. China’s central bank has also vowed it will take further steps to support the virus-hit economy.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Gold is up more than 3% so far this month, having hit a 7-year high of $1,688.66 an ounce earlier this week as the rapidly spreading coronavirus aggravated fears of an economic slowdown.
The United States alerted Americans on Tuesday to begin preparing for the spread of coronavirus in the country as outbreaks in Iran, South Korea and Italy escalated.
The effects of the outbreak are likely to reverberate beyond China as most major economies in the region are expected to either slow significantly, halt or shrink in the current quarter, Reuters polls found.
Further lifting demand for gold, global stocks tumbled for the fifth straight day, while U.S. bond yields held near record lows.
“In this environment, gold remains in considerable demand as a safe haven and crisis currency. It recouped some of its initially high losses yesterday ... profiting from ongoing ETF inflows,” Commerzbank analysts wrote in a note.
Holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.7% to 940.09 tonnes on Tuesday.

Among other precious metals, palladium gained 0.4% to $2,709.14 per ounce, while platinum fell 0.5% to $920.83, having touched its lowest in two months earlier.
Silver rose 0.5% to $18.08 an ounce, having fallen as much as 4.1% in the previous session.

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On Tuesday 25, February 2020                      

Gold slides from 7-year high, coronavirus concerns persist



GP: : Gold bullion Solar Capital Gold Zrt. in Budapest, Hungary
An Argor-Heraeus SA branded two hundred and fifty gram gold bar, center, sits in this arranged photograph at Solar Capital Gold Zrt. in Budapest, Hungary.
Akos Stiller | Bloomberg | Getty Images

Gold prices dipped on Tuesday as investors booked profits after the metal soared to a seven-year high in the previous session against the backdrop of a rise in coronavirus cases outside China.
Spot gold had slipped 0.5% to $1,652.35 per ounce, having shed more than 1% at one point earlier in the session. U.S. gold futures fell 1.3% to $1,655.30.
On Monday, the metal surged as much as 2.8% to $1,688.66, its highest since January 2013.
“Since then the market has basically run into some profit-taking despite the biggest sell-off in the global stocks for quite a while and it just highlights the market may have run ahead of itself,” said Saxo Bank analyst Ole Hansen.
Global stock markets stabilised on Tuesday after European shares had their worst one-day loss since June 2016 in the last session.
Countries around the world are stepping up efforts to stop a pandemic of the virus that emerged in China and is now spreading in Europe and the Middle East.
Mainland China in total had 508 new confirmed cases, up from 409 on Feb. 23, bringing the total number of confirmed cases so far to 77,658.
Gold in euros and gold priced in sterling slid from all-time peaks hit on Monday.
“With the virus spreading to other regions, and if China experiences a relapse and the drags on growth extend into April, (spot) gold could move to $1,6501,700 per ounce,” UBS analysts wrote in a note.
The rapid spread of the virus beyond China has heightened fears over its impact on the global economy, driving some bets that the U.S. Federal Reserve will be pressed to cut rates to cushion the hit.
“The market is most certainly already in the process of pricing in additional rate cuts in the U.S. where the speculation about the March cut has started to attract some attention,” Saxo Bank’s Hansen said.
However, “the dollar could strengthen even further which slows gold’s approach, but major central banks are most certainly trying to do what they can to support the economies.”
On the technical front, gold may retest a support at $1,639 per ounce, according to Reuters analyst Wang Tao.
Among other precious metals, palladium jumped 1.9% to $2,677 per ounce.
Silver fell 1.3% to $18.37 an ounce, having touched its highest since early September on Monday, while platinum slid 1.1% to $952.42.

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On Monday 24, February 2020           

Gold surges to 7-year top as pandemic fears spark safe-haven rush.




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 soared as much as 2.8% on Monday to its highest level in seven years, as investors worried about global economic growth in the face of sharply rising coronavirus cases outside China.
Spot gold climbed 1.7% at $1,671.24 per ounce. The session high, $1,688.66, was its highest since January 2013. U.S. gold futures jumped 1.5% to $1,674.30.
“The markets are spooked right now,” said Bob Haberkorn, senior market strategist at RJO Futures, citing coronavirus fears.
“The concern is not about the virus precisely, it is from the economic standpoint. The Dow Jones is down about 1,000 points, the bond yields are also lower.”
There was a sharp rise in coronavirus cases reported in Italy, South Korea and Iran, with Afghanistan and Iraq reporting their first cases. However, the rate of infection in China has eased.
Outside mainland China, the outbreak has spread to about 29 countries and territories, with a death toll of about two dozen, according to a Reuters tally.
The World Health Organization said it was worried about the growing number of cases without any clear link to China.
Investors view gold and other assets like government bonds and the U.S. dollar as safe havens during times of stress.
The curve inversion between the 3-month and 10-year U.S. Treasury bond yields deepened, in what economists view as a recession signal. The benchmark 10-year Treasury yield fell to its lowest since July 2016.
Investors’ fears over the virus outbreak triggered a wide sell-off in equity markets. The Dow Jones industrials slid more than 800 points, below its 100-day moving average for the first time since October.
In Europe, markets had their biggest daily declines since mid-2016.
“The upswing in the gold price is being accompanied by further ETF inflows. Speculative financial investors have also increased their bets on rising gold prices significantly,” Commerzbank analysts said in a note.
“However, this also means that the gold price upsurge is on shaky ground, so falls can be expected in the event of profit-taking.”
Reflecting increased investor interest in bullion, speculators raised their bullish positions on COMEX gold and silver contracts in the week to Feb. 18, data showed on Friday.
Mirroring gold’s gains, silver rose 1.6% to $18.75 an ounce, having hit its highest since September at $18.90.

Palladium eased 3.3% to $2,613.59 per ounce, while platinum shed 1.1% to $962.72.                                        

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 On Wednesday 19, February 2020

Gold firms above $1,600/oz on coronavirus impact fears, palladium hits record


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 rose on Wednesday, holding above $1,600 per ounce, as worries over the new coronavirus and its impact on global growth boosted safe-haven demand, while palladium continued its record run driven by short supplies of the metal.
Spot gold was up 0.3% to $1,607.16 per ounce. The session high was $1,610.80, its highest since Jan. 8, when gold hit its highest in nearly seven years. U.S. gold futures rose 0.4% to $1,609.90 an ounce.
"Gold is holding above the $1,600 level, we went through pretty quick," said Bob Haberkorn, senior market strategist at RJO Futures. Questions about the level of impact of the virus were lending the metal ample support, he said.
China is struggling to get manufacturing back online after severe travel restrictions were imposed to contain the coronavirus.
Stoking concerns further, Apple Inc on Monday warned that its sales might fall because of slow ramp-ups in manufacturing facilities in China.
"The uncertainty regarding when the global supply chain will return to normal is likely to continue to squelch trader and investor risk appetite for at least the near term. That's bullish for the precious metals markets," Kitco Metals senior analyst Jim Wyckoff said in a note.
Reflecting positive investor sentiment towards bullion, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose to their highest since Nov. 11, 2016 on Tuesday.
Limiting gold's advance were better-than-expected U.S. housing starts data and stronger equity markets, lifted by signs of slowing coronavirus infections.
Markets now await the minutes of the U.S. Federal Reserve's last policy meeting, due at 2 p.m. EST.
Palladium rose 0.5% to $2,650.35 an ounce after hitting a record high of $2,841.54.
The autocatalyst metal gained 54% in 2019 on supply shortages and will remain in a substantial deficit in 2020 as well, Anglo American Platinum Ltd said.
"What we are seeing is likely some commodity traders loading up on the metal in anticipation of China's door reopening," said Daniel Ghali, commodity strategist at TD Securities.
"Once the coronavirus impact on logistics and supply chains dissipates, we anticipate that demand from China for palladium is going to come back very quickly which will further strengthen the metal's demand."
Silver rose 0.7% to $18.29 after hitting a more than one-month high, while platinum climbed 0.8% to $999.16.

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On Tuesday 18, February 2020

Gold back above $1,600/oz as Apple's virus warning lifts safety demand



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 surged over 1% on Tuesday to fetch more than $1,600 an ounce as Apple Inc’s surprise warning about the impact of the coronavirus outbreak fueled concerns about global economic weakness, driving investors to lower-risk assets.
Palladium notched an all-time high, driven by short supplies of the auto-catalyst metal.
Spot gold was up 1.4% at $1,602.64 per ounce, its highest since Jan. 8. U.S. gold futures climbed 1.2% to $1,604.70 an ounce.
“The equity markets are under pressure and gold is still being viewed as a quintessential safe-haven asset as we do get some negative news in this case in regards to coronavirus and its effects on the global economy,” said David Meger, director of metals trading at High Ridge Futures.
Apple, the world’s most valuable technology company, said it was unlikely to meet its March-quarter sales forecast because the coronavirus outbreak was pressuring its supply chain.
The surprise sales warning knocked global equities off record highs and fed buying of safe-haven assets.
“There are concerns that this whole coronavirus situation may be little worse than many expected and the implication is that central banks around the world will be somewhat more dovish and the market is staring to price this reality in,” said Bart Melek, head of commodity strategies at TD Securities.
China’s central bank cut the interest rate on its medium-term loans on Monday as policymakers sought to reduce the economic shock from the virus outbreak.
The death toll in China had climbed to 1,868, the National Health Commission said, and the World Health Organization said “every scenario is still on the table” in terms of the epidemic’s evolution.
“Gold continues to make these moves sideways to higher in the midst of a traditionally firmer dollar which has the tendency to limit or cap commodities moves shows how strong the gold market is,” High Ridge Futures’ Meger said.
The dollar index climbed to a more than four-month high against key rivals, also gaining from safe-haven interest.
Palladium gained 2.3% to $2,580.25 per ounce after hitting an all-time high of $2,590.
“This can be only partly explained by the ongoing production problems in South Africa due to power supply disruptions and this year’s renewed high supply deficit,” Commerzbank analysts said in a note.
Silver rose 2.2% to $18.16 per ounce, while platinum surged 2.5% at $992.69.

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On Monday 17, February 2020 ( At 1.16 a.m. )                          

Gold slips on strong dollar as coronavirus outbreak weigh on stocks (At 1.16 a.m. EST)



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 fell on Monday as the U.S. dollar hovered close to a more-than four-month high, while concerns about the economic impact of the coronavirus outbreak weighed on Asian equities, limiting bullion’s downside.
Spot gold was down 0.2% at $1,581.81 per ounce, as of 0058 GMT.
U.S. gold futures slipped 0.1% to $1,584.80.
The dollar index, which measures the greenback against a basket of six major currencies, was at 99.14 on Monday after rising to 99.17 in the previous session, the highest since Oct. 8. The rising dollar makes greenback-denominated gold costlier for investors paying for the metal with other currencies.
The number of reported new cases of coronavirus in China’s Hubei province rose on Monday, as authorities imposed tough new restrictions on movement to prevent the spread of the disease which has now killed more than 1,700 people.
Asian shares stepped back from three-week highs as investors weighed the near-term hit on global growth from a fast-spreading virus outbreak in China.
Singapore downgraded its 2020 economic growth forecast as it braces for a hit from the epidemic, the trade ministry said in a statement on Monday.
The epidemic could be a drag on the U.S. economy this quarter, Cleveland Federal Reserve Bank President Loretta Mester said on Friday
The London Metal Exchange has canceled its annual LME Asia Week dinner in Hong Kong and postponed the seminar that would have taken place on the same day due to the outbreak, the exchange said in a notice on Friday.
Russia’s central bank has maintained the discount at which it buys gold for its reserves at December’s peak level, it told Reuters on Friday, potentially prompting more local producers and bankers to export the metal.
Holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.2% to 923.99 tonnes on Friday from 922.23 tonnes on Thursday.
Speculators increased their bullish positions on COMEX gold, while they cut their bullish bets on silver contracts in the week to Feb. 11, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Palladium was steady at $2,431.10 an ounce, silver was flat at $17.72, while platinum was up 0.3% at $965.49.

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On Friday 14, February 2020                                            

Gold posts weekly gain as virus fears lift safe-haven demand



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 prices rose to the highest in more than one week on Friday and posted a weekly gain, as investors bet on the safe-haven metal to hedge against the economic impact of the coronavirus outbreak.
Spot gold rose 0.3% to $1,581.25 per ounce by 1554 GMT, after touching $1,582.60, its highest since Feb. 3. For the week, bullion has so far gained about 0.7%.
U.S. gold futures rose 0.4% to $1,585.50.
“The coronavirus scenario is still unclear and the on-off headlines on the situation are making the stock markets volatile, forcing investors to take refuge in safe-haven gold,” George Gero, managing director at RBC Wealth Management.
“Even with the virus gone, gold is expected to trade in the $1,550-$1,600 range as other uncertainties like lower interest rates across the major central banks, Middle East tensions and other political risks still exist.”
Chinese authorities on Thursday reported 121 new deaths and 5,000 new coronavirus cases in mainland China, and economists scaled back growth expectations for the world’s second-largest economy as they assessed the impact of the outbreak.
Global stock markets have had a volatile week as investors took and quit positions in riskier assets driven by the frequently changing headlines around coronavirus outbreak in China.
Wall Street opened slightly higher, with gains kept in check by concerns about the economic hit from the outbreak.
Further supporting gold’s rise, U.S. Treasury yields declined after soft retail sales data amid virus concerns.
U.S. consumer spending appears to have slowed further in January, which raises concerns about the economy’s ability to continue expanding at a moderate pace.
“We still target a decline in U.S. Treasury yields, in addition to dollar weakness from a trade-weighted angle. We believe this gives gold a good risk-reward even if we see no further bouts in equity market uncertainty,” UBS analysts said in a note.
Among other precious metals, palladium fell 0.87% to $2,330.53 an ounce.
Silver rose 0.5% to $17.705 per ounce, while platinum fell 0.76%, to $967.3.

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On Thursday 13, February 2020                             

Gold rises to over 1-week high as virus victims mount in China



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 jumped to their highest in more than a week on Thursday after a sharp increase in the number of new coronavirus cases in China renewed fears over global economic impact and persuaded investors to seek lower-risk assets.
China reported a record rise in deaths and thousands more infections using a broader definition on Thursday, while Japan became the third location outside mainland China to experience a fatality.
Spot gold rose 0.7% to $1,575.75 per ounce by 1554 GMT, its highest since Feb. 4.
U.S. gold futures were 0.46% higher at $1,578.7.
“Gold will continue to rise until the market is sure as to what extent the virus has damaged,” said Bob Haberkorn, senior market strategist at RJO Futures. “We got conflicting news overnight about the course that the epidemic is taking. We are not sure of how China is handling the situation.”
Global share markets retreated from record highs as the spike in new coronavirus cases in China weighed on the sentiment.
Gold is often used as a safe store of value during times of political and financial uncertainty.
“Even before the coronavirus, gold was being supported by easy policies by global central banks and they are not going to change course soon,” Haberkorn said, adding that if the coronavirus is contained gold would go down at maximum by $20 to $30.
Federal Reserve Chair Jerome Powell reiterated his confidence in the U.S. economic outlook, despite some drag “soon” from the coronavirus situation.
On Wednesday, China reported its lowest number of new virus cases since late January, lending weight to a prediction from its senior medical adviser that the outbreak might be over by April.
“Investors were starting to get a little more confident that we were turning a corner potentially even starting to see some light at the distant end of the tunnel, and then this spike in the numbers on Wednesday has kind of just knocked the wind out of the sizeable bet,” OANDA analyst Craig Erlam said.
Palladium rose 0.9% to $2,427.34 per ounce, having hit a one-week high earlier in the session.
Rising demand from automakers pushed the palladium market to its biggest deficit for five years in 2019 and the deficit is expected to grow this year too, materials maker Johnson Matthey said.
Silver rose 1.3% to $17.69 per ounce, while platinum gained 1.1% to $970.99.

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On Wednesday 12, February 2020  

Gold at 1-week low as abating virus fears sharpen risk appetite




GP: Gold bullion 191001
An Argor-Heraeus SA stamp sits on a 250 gram gold bar in Budapest, Hungary, on  March 10, 2016.
Akos Stiller | Bloomberg | Getty Images
Gold prices edged lower to a near one-week low on Wednesday, hurt by an improvement in risk sentiment as a drop in the number of new coronavirus cases comforted markets that the epidemic’s effects could be contained.
Spot gold was down 0.2% to $1,564.66 per ounce, having touched its lowest since Feb. 6 at $1,561.16 earlier. U.S. gold futures edged 0.2% lower to $1,567.70.
“It’s basically just risk-on (sentiment) here. Some of the coronavirus fears seem to be fading a little bit and safe-haven buyers who where buying gold are starting to unwind some positions,” said Ryan McKay, a commodity strategist at TD Securities.
“Gold is going to continue to trade range-bound... but the underlying factor that’s supporting gold is the Federal Reserve and the central banks globally, especially when the interest rates have been kept really low.”
Investors appetite for riskier assets grew as a drop in the number of new coronavirus cases and the Federal Reserve chairman’s optimistic view of the economy lifted world stocks for a third day.
China reported its lowest number of new virus cases since late January, lending weight to a prediction from its senior medical adviser that the outbreak might be over by April.
Also limiting gold’s appeal, the dollar held near a four-month high against a basket of rivals, making the metal expensive for investors holding other currencies.
Fed Chair Jerome Powell on Tuesday told Congress the U.S. economy was in a good place, but cited the potential threat from the virus epidemic and concerns about the economy’s long-term health.
However, it was still unclear as to what extent economic growth would take a hit from the fast-spreading virus that has killed more than 1,100 people, shuttered businesses in China and roiled financial markets since late January.
“With a plethora of global risk simmering on the backburner supply chains and demand contraction notwithstanding, I still think it’s too early to downgrade Covid-19 to a nasty case of the sniffles and gold will remain bid on a dip,” Stephen Innes, chief market strategist at AxiCorp, said in a note.
Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.67% to 922.23 tonnes on Tuesday, the highest in over three months.

In other precious metals, palladium was steady at $2,340.07 an ounce, silver fell 0.8% to $17.49 to a one-week low and platinum slipped 1.4% to $955.45.                             


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On Tuesday 11, FEBRUARY 2020                                                         

Gold slips as stronger dollar, risk-on sentiment weighs



GP: : Gold bullion Solar Capital Gold Zrt. in Budapest, Hungary
An Argor-Heraeus SA branded two hundred and fifty gram gold bar, center, sits in this arranged photograph at Solar Capital Gold Zrt. in Budapest, Hungary.
Akos Stiller | Bloomberg | Getty Images

Gold prices dipped on Tuesday as the dollar held firm and investors opted for riskier assets after a fall in the number of new confirmed cases of coronavirus eased some of fears over global economic impact.
Spot gold was down 0.4% at $1,565.09 per ounce, having touched its highest since Feb. 4 at $1,576.76 on Monday. U.S. gold futures shed 0.7% to $1,568.40 an ounce.
“Gold is slightly down in tandem with another round of new highs across the board in equity markets, as there has been some conversation that the impacts from coronavirus are slightly overdone,” said David Meger, director of metals trading at High Ridge Futures.
However, “dips in gold are still been fairly bought very readily... given the strength seen in global equities and the fact that gold continues to hold up so well.”
Global financial markets scaled new highs as the number of new coronavirus cases slowed in China and the country’s factories slowly returned to work.
After more than 1,000 deaths, the China’s foremost medical adviser on the epidemic said infections may be over by April, with the number of new cases already declining in some places.
Further limiting gold’s appeal, the dollar hit a four-month high against a basket of rivals on safety buying and Federal Reserve Chair Jerome Powell’s upbeat view of the U.S. economy.
The U.S. central bank kept benchmark interest rates unchanged at its January policy meeting, citing moderate economic growth and a strong jobs market.
Powell also cited a potential threat from the virus and concerns about the economy’s long-term health in his latest testimony to the house panel.
“Gold’s longer-term bullish backdrop will remain primarily supported on physical demand from central banks and rising risks to the global growth that will trigger another wave of worldwide stimulus,” Edward Moya, a senior market analyst at broker OANDA, said in a note.
Gold, which is used as an insurance against economic risks, tends to appreciate on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.

Among other precious metals, palladium fell 0.8% to $2,334.75 an ounce, silver dropped 0.9% to $17.59, while platinum rose 0.8% to $967.97.                                  


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On Monday 10, February 2020   

Gold hits 1-week high as virus fears boost safety demand



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

Gold rose to its highest in one week on Monday as the death toll from the coronavirus outbreak rose further and investors sought safe havens from the economic impact.
Spot gold was up 0.4% at $1,576.44 per ounce. Its session high was the highest since Feb. 4 at $1,576.21. U.S. gold futures were 0.42% higher at $1,579.90.
“The coronovirus fears continue to see safe-haven inflows heading into gold and that has been positive for prices,” said Daniel Ghali, commodity strategist at TD Securities.
“At the same time, it is very crowded trade which means that rallies tend to be capped as people take advantage to off-load the metal for profits.”
Safe-haven gains for the U.S. dollar capped gold’s gains, as the dollar index scaled a four-month peak.
The death toll from the epidemic has surpassed that of Severe Acute Respiratory Syndrome (SARS) from 2002-2003 and the World Health Organization said the number of cases outside China could be just “the tip of the iceberg”.
Investors remained cautious even though Chinese authorities lifted some work and travel curbs, helping businesses to resume operations.
Since late last month, the world’s second-largest economy has suffered prolonged business closures, lockdowns and travel restrictions due to the outbreak that hit around the Lunar New Year holidays, a peak time for travel and business.
Bullion, seen as a safe investment during crisis, is off to a solid start this year, gaining nearly 4% so far in 2020 after an annual rise of about 18% in 2019.
Markets are looking forward to Federal Reserve Chair Jerome Powell’s two-day address to the U.S. Congress starting Tuesday, especially for commentary related to the China-linked virus.
The U.S. Federal Reserve kept benchmark interest rates unchanged at its January policy meeting, citing moderate economic growth and a strong jobs market.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.
On the technical front, “gold now faces the resistance level of $1,575, and a clear surpass of this level could open space for further rallies, with a first target of $1,600,” ActivTrades chief analyst Carlo Alberto De Casa said in a note.
Palladium rose 1.3% to $2,346.54 an ounce, silver gained 0.7% to $17.80, while platinum eased 0.2 to $962.56.

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On Friday 7, February 2020

Gold gains as virus fears outweigh strong US jobs data



GP: : Gold bullion Solar Capital Gold Zrt. in Budapest, Hungary
An Argor-Heraeus SA branded two hundred and fifty gram gold bar, center, sits in this arranged photograph at Solar Capital Gold Zrt. in Budapest, Hungary.
Akos Stiller | Bloomberg | Getty Images

Gold prices rose on Friday as fears of an economic slowdown from the coronavirus outbreak and lower interest rates globally offset strong U.S. economic data.
Spot gold rose 0.15% to $1,572.6 per ounce, but was down about 1.3% this week. It was on track for the biggest weekly loss since early November.
U.S. gold futures rose 0.1% to $1,571.90.
“The market seems to be growing more nervous about the outbreak in China,” said Tai Wong, head of base and precious metals derivatives trading at BMO. “This sharp, fast, counterintuitive reaction in gold is very telling. There’s good demand here in the face of a very strong economic signal.”
U.S. nonfarm payrolls increased by 225,000 jobs last month, data showed, higher than 160,000 jobs additions expected by a Reuters poll.
Fears of a global economic slowdown and uncertainty around the coronavirus are keeping gold supported, Edward Moya, a senior market analyst at broker OANDA.
The coronavirus outbreak in China that has killed more than 600 people and infected thousands, has dented investor interest in riskier assets.
“A big jump in reported cases or even harsher quarantine measures that contravene the story of the official numbers could push gold back to $1,600 level. However, some incontrovertible good news out of China and/or a sharp bond sell-off could trigger a reversal,” BMO’s Wong said.
Also supporting gold were low interest rates by major central banks across the globe and their quantitative easing policy.
The U.S. Federal Reserve kept benchmark interest rates unchanged at its January policy meeting, citing moderate economic growth and a strong jobs market.
Gold is a safe haven that investors turn to in times of economic and financial uncertainty, and lower interest rates reduce the opportunity cost of holding the non-yielding metal.
Limiting gold’s advance, however, the dollar rose to its strongest against major rivals since mid-October.
“The environment for gold is still supportive and a clear breakthrough of $1,575 could open space for another rally to the key threshold of $1,600,” ActivTrades chief analyst Carlo Alberto De Casa said.
Elsewhere, palladium fell 2% to $2,298.87 an ounce but was on track for its first weekly gain in three.
Silver slipped 0.7% to $17.69, set for its worst week in two months, while platinum rose 0.1% to $962.76.

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On Thursday 6, February 2020    

Concern over coronavirus drives gold higher




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 prices rose on Thursday as concern over the coronavirus and its impact on the global economy drove buying in the safe-haven asset and outweighed news of lower Chinese tariffs that are likely to ease trade tensions with the United States.
Spot gold gained 0.6% to $1,565.06 per ounce as of 1252 GMT, having dropped on Wednesday to its lowest since Jan. 21 at $1,546.90. U.S. gold futures rose 0.4% to $1,569.00.
“There is a fundamental demand for gold based on expectations of a slowdown in economic growth due to the virus outbreak and there is also support from central banks keeping rates low,” Saxo Bank analyst Ole Hansen said.
Buyers are returning to the market after finding some confidence from gold managing to hold on to support around $1,550, Hansen added.
Spot gold could rise into a range of $1,564 to $1,570 after stabilising around a support at $1,549, Reuters technical analyst Wang Tao said.
The death toll from the virus in mainland China jumped to 563, with experts stepping up efforts to combat a disease that has shut down Chinese cities and forced thousands more into quarantine around the world.
The World Health Organization on Wednesday played down reports of “breakthrough” drugs being discovered to treat people infected with the new virus.
“Globally, people are looking at the coronavirus more than anything else and also how that would affect the global economy. That is supporting gold,” said Brian Lan, of Singapore dealer GoldSilver Central.
“It (the cutting of tariffs) is countered by how the virus is going to affect the economy, businesses and China’s GDP.”
China on Thursday said it would halve additional tariffs levied against 1,717 U.S. goods last year. The move comes after Beijing and Washington signed a Phase 1 deal that brought a truce to a bruising trade war between the world’s two largest economies.
For future market direction, investors will look to the U.S. non-farm payrolls report due on Friday to gauge the strength of the labour sector, which is also an indicator of the economy’s health.
Elsewhere, palladium fell 0.7% to $2,415.70, while silver rose 1% to $17.77.

Platinum eased by 0.6% to $975.51 after touching a one-week high of $987.60.

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On Wednesday 5, February 2020                     

Gold rebounds on bargain hunting, bets for loose central bank policy



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 rose on Wednesday on bargain hunting, reversing course from a two-week low touched earlier, as investors latched on to the metal’s overall uptrend on the back of a low interest rate environment globally and lingering uncertainties.
Spot gold rose 0.38% to $1,558.20 per ounce. U.S. gold futures rose 0.4% to $1,562.30.
“Overall the trend is up, people want to be in gold right now just because of the central banks and what they’re doing in the long term. So, people are looking at the dip as an opportunity to accumulate more gold,” said Bob Haberkorn, senior market strategist at RJO Futures.
“People are coming into the market because of the lower interest rates and the loose policy of global central banks.”
Gold’s gains came despite a surge in U.S. stock markets, helped by strong monthly domestic private jobs data and reports of progress in developing a treatment to fight the fast-spreading coronavirus, as well as a stronger dollar.
The World Health Organization played down media reports of “breakthrough” drugs being discovered to treat people infected with the new virus, which has claimed about 500 lives in China and has spread to at least 20 other countries.
“When something like a virus comes out, or a big world fear, people shoot first and ask questions later and when they shoot first, they grab gold. This is the buy the pullback mode,” said Michael Matousek, head trader at U.S. Global Investors.
Bullion had slipped to its lowest since Jan. 21 after a Chinese TV report said a research team at Zhejiang University had found an effective drug for the virus.
Investors now await the U.S. non-farm payrolls report on Friday to gauge the strength of the labor sector as the Federal Reserve kept interest rates unchanged in the last meeting, citing continued moderate economic growth and a “strong” job market.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
On the technical side, a break below the $1,545 level could change the pull back into a consolidation while a rise above the $1,560 level could give way to further upside, U.S. Global Investors’ Matousek said.
Among other precious metals, palladium was down 0.1% at $2,431.29 an ounce, having touched a near two-week peak earlier in the session.
Silver rose 0.3% to $17.63, while platinum gained 1.8% to $980.09.

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On Tuesday 4, February 2020                           

Gold falls 1% as China works to stem economic impact of virus



Reusable Gold coins and bars
Gold slid more than 1% on Tuesday as Chinese steps to mitigate the economic impact from the coronavirus epidemic drove some investors away from safe havens and back into riskier assets.

Spot gold was down 1.4% at $1,553.79 per ounce, after hitting its lowest since Jan. 22 at $1,550.75. U.S. gold futures fell 1.6% to $1,557.50.
“The dramatic move in global equity markets, especially in the U.S. markets, clearly indicates there is lesser concern about coronavirus denting GDP and we have a lesser need for safe havens,” said David Meger, director of metals trading at High Ridge Futures.
Wall Street built on a recovery in world stocks as fresh intervention by China’s central bank calmed investor nerves.
Beijing’s efforts included signing off on more government spending, tax relief and subsidies for virus-hit sectors, policy sources said.
The outbreak has undermined the country’s economic activity as cities are locked down, with travel restrictions and businesses closed.
Further, the dollar strengthened, making gold more expensive for buyers holding other currencies.
Nevertheless, some uncertainty remained about the extent of the impact on the Chinese and global economies.
“In case the impact of the virus is less than the market has priced in, it could lead to a correction in gold prices, but as long as we don’t see economic growth accelerate, gold prices will remain supported,” said Quantitative Commodity Research analyst Peter Fertig.
Some traders have also started to price in a cut to U.S. interest rates by June.
Lower interest rates reduce the opportunity cost of holding the non-yielding bullion.
However, gold should stay within a range of $1,550 to $1,600 an ounce ahead of more political and economic headlines, George Gero, managing director at RBC Wealth Management, said in a note.
On the economic front, new orders for U.S.-made goods rose 1.8% in December, beating analysts’ consensus forecast of a 1.2% gain.
Among other precious metals, palladium was up 4.2% at $2,417.50, after touching its highest since Jan. 27 at $2,425.
“Now that optimism has returned to financial markets, it seems that market participants have forgotten their fears of how the spread of the coronavirus might affect demand,” Commerzbank analysts said in a note.
“Nonetheless, the consequences for China, the main consumer of palladium, are likely to be very serious.”
Silver fell 0.4% to $17.59, while platinum was down 0.8% at $958.38.

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On Monday 3, February 2020

Gold slides 1% as dollar gains, risk sentiment improves



Reusable Gold coins and bars
Gold fell 1% on Monday as the dollar firmed and investors opted for riskier assets after China took steps to relieve pressure on its economy from the impact of the coronavirus epidemic.
Spot gold was down 0.9% at $1,576.76 per ounce after touching its highest since Jan. 8 earlier in the session. U.S. gold futures fell 0.45% to $1,580.10 per ounce.
“China have been taking very strong measures to make sure this thing (coronavirus) is contained, that’s kind of helping market sentiment,” said Bart Melek, head of commodity strategies at TD Securities.
“We have a bit of jump in the U.S. dollar and the biggest thing is that we’re seeing a rebound in stocks, getting people to perhaps take some profits and reposition modestly.”
China’s central bank unexpectedly lowered the interest rates and injected 1.2 trillion yuan ($171 billion) into money markets as it attempted to limit the damage from travel curbs and business shutdowns on the economy.
China’s move cheered some investors as U.S. stocks were set to open higher after the three main indexes suffered their worst week in at least four months.
The dollar gained 0.4% against its rivals, making gold expensive for holders of other currencies.
“Once we get through this ‘band-aid effect,’ the reality will set in that there is an economic tumult about to happen in China, which is going to spread globally and force a lot of central banks to cut rates,” said Stephen Innes, chief market strategist at AxiCorp.
Gold tends to appreciate on expectations of lower interest rates, which reduce the opportunity cost of holding nonyielding bullion.
Gold, often used as a safe store of value during times of political and financial uncertainty, registered its best week in a month in the week to Jan. 31, as economic growth worries due to the epidemic boosted appetite for safe havens.
“Gold’s rally seems to be in pause mode as markets will likely see central banks globally be proactive to thwart any slump coronavirus concerns will trigger,” Edward Moya, a senior market analyst at broker OANDA, said in a note.
Speculators cut their bullish positions in COMEX gold contracts in the week to Jan. 28, data showed on Friday.
Elsewhere, silver fell 2.1% to $17.66 per ounce. Palladium gained 1% to $2,301.53 and platinum rose 1.1% to $967.11.

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On Friday 31, January 2020                         

Gold gains on epidemic fears, eyes best month in five



Reusable Gold Bullion
Gold prices edged higher on Friday and were on track for their biggest monthly gain in five, as concerns of an economic slowdown arising from the coronavirus epidemic kept the safe-haven metal supported.
Spot gold rose 0.75% to $1,585.8 per ounce. The metal has gained 4% so far this month, on course for its best month since August. U.S. gold futures rose 0.1% to $1,590.8 an ounce.
The World Health Organization on Thursday declared the coronavirus outbreak a global emergency, however, it opposed restrictions on travel or trade with China and showed confidence that China could contain it.
“The virus and its potential to impact the global economy negatively is keeping gold supported,” Saxo Bank analyst Ole Hansen said.
“However, the lack of fresh buying is keeping the metal from moving up even though uncertainties around coronavirus is affecting other markets like the equities.”
The virus, which has claimed 213 lives so far in China and has spread to at least 22 countries, has brought a halt to many provinces in the world’s second-largest economy with lockdowns, travel restrictions and closed businesses.
World share markets fought to regain their footing as investors clutched at hopes that China could contain the coronavirus.
“At this point, it (impact from the virus) is not something the Chinese economy can shrug off, there will be a hit to growth, the magnitude of which will be difficult to chisel out in detail for quite a while,” said Ilya Spivak, a senior currency strategist at DailyFx.
Meanwhile, surveys showed steady Chinese factory activity and firm services this month, though this was likely before the virus took full hold.
“Wuhan fears should ensure that a break below $1,560 is very unlikely ahead of the weekend,” Jeffrey Halley, senior market analyst at OANDA, said in a note.
In Europe, the United Kingdom will leave the European Union an hour before midnight.
Palladium was down 0.7% at $2,294. Prices were set to gain 18% this month, the best since November 2016, but were down 5.7% this week.
Silver rose 0.1% to $17.85 and but was down 1.3% for the week, the worst since the week ended Dec. 6. Platinum shed 0.8%, to $970.04, and was on track to decline 3.2% for the week, its steepest since early November.

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On Thursday 30, January 2020                 

Gold holds gains on worries of coronavirus impact on world economy

3minutes - Source: CNBC



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 held onto gains on Thursday, supported by concerns over the potential impact on global economic growth of a fast-spreading coronavirus outbreak in China which has killed 170 people.
Spot gold was up 0.35% to $1,582.615 per ounce after rising 0.7% on Wednesday, while U.S. gold futures were 0.7% higher at $1,587.3 per ounce.
“The whole run into gold and government debts (bonds), away from equities, is due to worries regarding the scale of the outbreak of the virus,” said SP Angel analyst Sergey Raevskiy.
“Copper prices are falling off a cliff, which is an indication of how the markets perceive the risks of the virus to the economic growth.” Copper is often regarded as a leading indicator of the health of the global economy.
Global equity markets fell, while Germany’s benchmark 10-year Bund yield dropped to a near three-month low and U.S. 10-year Treasury yields hit their lowest since Oct. 10.
A Chinese government economist on Wednesday said China’s economic growth may drop to 5% or even lower due to the outbreak, which has spread to more than 10 countries.
Federal Reserve chair Jerome Powell acknowledged the risks of a short-term slowdown in China, including to the U.S. economy, following the central bank’s widely expected decision to keep interest rates unchanged.
Bullion is often seen as a safe store of value during times of political and economic uncertainty.
The World Health Organisation (WHO) will reconvene on Thursday to decide whether the coronavirus outbreak constitutes a global emergency.
“Technically, if the (gold) price can surpass the high reached three days ago at (around) $1,585, we will have another signal of strength,” ActivTrades chief analyst Carlo Alberto De Casa said in a note.
Gold is being supported by markets’ struggle to understand the “real” impact of the virus on the global economy, he added.
Elsewhere, palladium lost 0.2% to $2,283.85 per ounce, having hit a record high of $2,582.19 on Jan. 20 on supply worries.
Russia’s Norilsk Nickel said on Wednesday its Global Palladium Fund would deliver three tonnes of palladium ingots to the market from its current stock to provide short-term relief to tight supplies.
Silver gained 1.1% to $17.74, while platinum fell 0.4%, to $970.23.

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On Wednesday 29, January 2020

Gold rises as virus woes persist, focus turns to Fed




Reusable Gold Bullion
Gold gained on Wednesday as worries over economic growth due to the fast-spreading coronavirus buoyed safe haven demand, with investors awaiting the U.S. Federal Reserve’s monetary policy decision.
Spot gold was up 0.4% at $1,572.22 per ounce.  U.S. gold futures edged 0.1% higher to $1,572.00 per ounce.
“Investors are looking for hints on what the Fed will do with rates in 2020,” said Bob Haberkorn, senior market strategist at RJO Futures.
The U.S. central bank is set to share the statement of a two-day monetary policy meeting at 2 p.m. EST (1900 GMT).
While the Fed is not expected to change interest rates, investors will want to hear whether its chairman, Jerome Powell, retains his cautiously upbeat language.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.
“Other than the Fed factor, reasons for investors’ interest in gold are the coronavirus impact and how it will affect the Chinese economic data,” Haberkorn added.
The United States and Japan evacuated their nationals from a quarantined city, Wuhan, in China, while British Airways suspended flights as deaths from the outbreak rose to 132 and the first cases emerged in the Middle East.
Although better-than-expected corporate earnings helped drive a slight recovery in financial markets, fears over the economic fallout from the outbreak weighed on investor appetite for riskier assets.
On Tuesday, gold prices fell nearly 1% after positive U.S. economic data lifted equity markets along with the dollar.
Further bolstering gold’s appeal, U.S. Treasury yields also fell on concerns surrounding the epidemic.
“The main driver for gold this year will be strategic inflows, as it will continue to be viewed as an attractive diversifier for investor portfolios in an environment where rates remain low,” UBS strategist Joni Teves said.
Elsewhere, palladium fell 1% to $2,265.91 per ounce, while platinum eased 0.3% to $982.91.
Palladium will cost on average more than twice as much as platinum this year, but that premium will narrow in 2021, a Reuters poll showed.Silver rose 0.2% to $17.48, having earlier dipped to its lowest since Dec. 23 at $17.35.                              

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On Tuesday 28, January 2020            

Gold eases off 3-week peak as equities sell-off pauses



Reusable Gold coins and bars
Gold prices edged down on Tuesday from the previous session’s near three-week high as equities regained some ground, but concerns the coronavirus outbreak could impact the global economy cushioned safe-haven bullion’s losses.
Spot gold was down 0.7% to $1,570.64 per ounce, having touched its highest since Jan. 8 on Monday. U.S. gold futures were down 0.46% to $1,570.1.
“The flight to safety is not continuing today. Equity markets have stabilized, European equities are broadly flat, so the wave of risk aversion that swept across the financial markets seems to be off,” said Julius Baer analyst Carsten Menke.
European markets steadied after the previous day’s thumping, while the U.S. dollar rose to a near two-month high.
However, concerns the coronavirus outbreak could hinder the global economy persist, Menke said, adding reactions to the spreading virus had been very different across markets and the decline in oil prices suggested a slowdown of economic activity in China.
Gold is seen as an alternative investment during times of economic and political uncertainties.
The death toll from the virus reached 106 in China and some health experts questioned whether Beijing can contain the virus which has spread from the city of Wuhan to more than 10 countries.
The outbreak has prompted authorities to impose travel restrictions and extend the Lunar New Year holidays, which helped bullion to rise for the past four sessions.
“Fears over the Wuhan virus have driven the rally (in gold), but it appears that investors much prefer the safety of high-grade government bonds to the yellow metal,” Jeffrey Halley, senior market analyst, OANDA, said in a note.
Benchmark U.S. 10-year Treasury yields fell to their lowest since Oct. 10.
Government bonds are also considered a safe-haven asset during times of economic and political uncertainty.
Also on investors’ radar was the U.S. Federal Reserve’s first policy meeting of the year, scheduled to start later in the day. Fed Fund futures show traders expect the U.S. central bank to keep interest rates unchanged.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Elsewhere, palladium jumped 1.1% to $2,293.34 an ounce, having declined about 7% in the previous session.
Silver fell 0.3% to $18.04, while platinum rose 0.4% to $986.98.

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On Monday 27, January 2020                   

Gold hits three-week high as virus fears spur flight to safety



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 climbed to a near three-week high on Monday as mounting concerns over the economic fallout of the coronavirus outbreak sent investors scurrying for safe havens.
Spot gold was up 0.4% at $1,577.31 per ounce. Prices rose to $1,586.43, the highest level since Jan. 8, earlier in the session. U.S. gold futures settled 0.3% higher at $1,577.4 per ounce.
“Safe-haven buying has been triggered by this virus in China and we’re seeing a big sell-off in equity markets ... It’s mostly panic, the markets are looking at the prospect of the Chinese economy slowing down,” said Edward Meir, analyst at ED&F Man Capital Markets. “We could hit the recent highs above $1,600s if this thing deteriorates.”
The death toll from the coronavirus outbreak has risen to 81 in China, with 2,800 confirmed cases, and the virus has spread to more than 10 countries, including the United States and France.
U.S. stocks opened more than 1% lower, while U.S. 10-year Treasury yields fell to their lowest level in more than three months.
“The main trend (in gold) remains bullish, with the short-term correction seen in the last few weeks seemingly over, increasing the chance of the price achieving a new 7-year-high in the next few weeks,” ActivTrades Chief analyst Carlo Alberto De Casa said in a note.
Gold scaled a near 7-year high of $1,610.90 per ounce earlier in the month after an Iranian general was killed in an U.S. airstrike, but the rally was short-lived.
Investors will be watching the U.S. Federal Reserve’s first policy meeting of this year on Jan. 28-29, where it is widely expected to keep rates unchanged.
In other metals, deficit-hit palladium dropped 5.8% to $2,287.46 per ounce. Platinum fell 1.8% to $983.76 per ounce.
“Palladium had seen a big run until now, it can’t go up forever. Somewhere some correction has to happen,” ED&F Man Capital Markets’ Meir said.
Silver fell 0.2% to $18.05 per ounce, having earlier touched its highest level since Jan. 8 at $18.33.

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On Friday 24, January 2020

Gold scales two-week peak as virus fears fuel safe-haven bids




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 jumped to a more than two-week high on Friday as the latest updates on the coronavirus dented risk sentiment, and prompted a flight into safe-haven assets.
Spot gold rose 0.76% to $1,574.0 per ounce, holding above the key $1,550 level, its highest since Jan. 8. The metal was up about 0.9% for the week so far. U.S. gold futures settled up 0.65% to $1,572.6 per ounce.
“The entire market just switched into risk-off mood,” said Bart Melek, head of commodity strategies at TD Securities.
The U.S. Centers for Disease Control and Prevention confirmed a second U.S. case of the coronavirus in the country, denting appetite for riskier assets.
This comes after the World Health Organization (WHO) designated the coronavirus outbreak an emergency for China but not for the rest of the world currently, and added it was tracking it “every minute.”
The spread of the virus ahead of the Lunar New Year, a peak period of travel in China has kept investors concerned.
“Mounting concerns about the virus ahead of the weekend are driving accumulation of gold. ... Clearly, the headlines will get worse before they get better,” said Tai Wong, head of base and precious metals derivatives trading at BMO.
Further developments surrounding the outbreak and a U.S. Federal Reserve meeting on Jan. 28-29 will be key drivers for gold into next week, Wong added.
Keeping with a global trend of accommodative monetary policy, the European Central Bank left rates unchanged on Thursday.
Gold is highly sensitive to any reduction in interest rates, which decreases the opportunity cost of holding non-yielding bullion.
Also helping non-interest-bearing bullion, U.S. 10-year Treasury yields fell to a two-week low.
Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.2% to 900.58 tonnes on Thursday.
Elsewhere, palladium fell 1.7% to $2,420.09 per ounce, having shed more than 3% earlier in the session; and was on track to register its first weekly fall in five at about 2.9%.
Platinum rose 0.6% to $1,008.33, but was down 1.1% for the week so far.

Silver was up 1.3% to $18.02 per ounce, and had risen around 0.3% so far this week.                                  

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On Thursday23, January 2020

Gold steadies as risk sentiment sours on virus threat




Gold steadied on Thursday as sentiment for riskier assets soured on jitters over a virus outbreak in China, although the safe-haven metal held a tight range as investors awaited further catalysts.
Spot gold was up 0.3% at $1,563.77 per ounce. U.S. gold futures rose 0.44% to $1,563.6 per ounce.
"Equities are slightly softer so that is stoking some interest in the metal," said Bob Haberkorn, senior market strategist at RJO Futures. "But absence of any geopolitical risk in the short term is keeping gold prices in check. The European Central Bank meeting did not move the needle too much."
U.S. stocks opened lower on Thursday on rising worries over the coronavirus outbreak in China that prompted a lockdown of two cities in the country, while a mixed bag of corporate results added to the dour sentiment.
Traders remained anxious about the spread of the virus as a higher death toll could hurt one of the world's largest economies, as occurred during an epidemic in 2002-2003.
However, OANDA analyst Jeffrey Halley said the virus fears appear to have been overlooked by the gold market.
"If regional investors were seriously concerned about coronavirus, we would have expected gold to be higher and not lower today," he said in a note.
Gold, considered a safe store of value in times of political and economic uncertainty, climbed to a near seven-year peak of $1,610.90 on Jan. 8 after an escalation in U.S.-Iran tensions. It has held above $1,550 for the most part ever since.
Lingering geopolitical uncertainties and a low interest environment across the board - reducing the opportunity cost of holding non-yielding bullion - will continue to support gold in the longer term, analysts said.
The European Central Bank kept interest rates unchanged at its latest policy meeting on Thursday and launched a "strategic review" of its inflation goal and tools.
Focus will now shift to the U.S. Federal Reserve's first meeting of the year scheduled for Jan. 28-29.
Spot gold is biased to revisit its Jan. 21 low of $1,545.96, looking shaky around a resistance at $1,564, said Reuters technical analyst Wang Tao.

Among other precious metals, palladium fell 2.9% to $2,399.58, silver dipped 0.4% to $17.75 and platinum was also down 1.1% at $1,001.09.                                 

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On Wednesday 22, January 2020

Gold slips on resurgent risk appetite as virus fears ebb




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 eased slightly on Wednesday as risk sentiment recovered and the dollar held firm, but expectations of dovish monetary policy from global central banks capped bullion’s losses and kept prices above the $1,550 an ounce level.
Spot gold was down 0.2% at $1,555.16 an ounce. U.S. gold futures fell 0.2% to $1,555.20.
“Investors are actually selling excess positions, and that is keeping the prices capped,” said Daniel Ghali, commodity strategist at TD Securities.
“On the other hand, we’re also seeing a steady flow of interest in (gold), and markets are currently building as capital looks to shelter itself from negative real rates across the globe.”
Investors will keep a close eye on the European Central Bank’s first policy meeting of the year on Thursday, while the U.S. Federal Reserve’s first meeting is scheduled for Jan. 28-29.
Both banks are expected to be dovish.
The dollar index has gained about 1.3% since the start of this year.
In 2020, “precious metals remain a story linked to easy monetary policy globally and broad U.S. dollar weakness,” UBS analysts said in a note.
“Apart from low U.S. real rates and a weaker dollar, gold should benefit from any sudden spikes in market volatility due to late cycle dynamics and ongoing geopolitical noise, especially when we approach the 2020 U.S. presidential election,” UBS said, forecasting gold to rise to $1,600 this year.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar.
“Concerns are growing that we will see a return of risk aversion once the Fed signals the balance sheet will no longer keep growing at a pace of $60 billion a month or if we see phase-two (U.S.-China trade) talks hit a road block,” said Edward Moya, a senior market analyst at OANDA, in a note.
The Chinese response and quick updates about the new coronavirus has boosted optimism that its spread would be contained, helping world stock markets recover.
Worries the outbreak could hit economic activity ahead of the Lunar New Year festivities in China had knocked equities off record peaks on Tuesday.
Elsewhere, palladium gained 2.3% to $2,457.36 an ounce, having slid by about 4% in the previous session.
A structural change in demand after tighter emission rules in some countries will boost palladium demand, said Ghali.
Palladium touched a record high of $2,582.19 on Monday. Silver rose 0.4% to $17.84, and platinum was up 1% at $1,008.86.                                   

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On Tuesday 21, January 2020

Oil market shrugs off Libya oil crisis




Reusable: Iraq Oil Daura oil refinery Bagdad 091105
An Iraqi worker gauges gas emissions from an oil pipe at the Daura oil refiner
Getty Images

Oil prices dipped on Tuesday on expectations that a well-supplied market would be able to absorb disruptions that have cut Libya’s crude production to a trickle.
Brent crude was down 47 cents at $64.74 a barrel, having hit a session low of $64.06. U.S. West Texas Intermediate crude was down 11 cents at $58.43, after hitting a low of $57.68 earlier in the day.
“Market participants appear to fret less about supply disruptions in the Middle East, or at least the risk of disruptions, thanks to the impressive growth we have seen in U.S. output over recent years,” Bank ING said.
Almost all of Libya’s crude export capacity is now under force majeure - a waiver on contractual obligations - after pipeline blockades in the east and west of the country hindered oil production.
If Libyan exports are halted for any sustained period, storage tanks will fill within days and production will slow to 72,000 barrels per day (bpd), said a spokesman for state oil company NOC. Libya has been producing about 1.2 million bpd recently.
Anti-government unrest in Iraq, another major oil producer, also supported oil prices initially, but officials later said output from southern oilfields has been unaffected by the unrest.
Any supply disruptions could be offset by increased output from the Organization of the Petroleum Exporting Countries (OPEC), which could limit the impact on global oil markets, the head of Japan’s petroleum industry body said.
ING said that spare OPEC capacity, which stands in excess of 3 million bpd, was reassuring the market. The International Monetary Fund (IMF) on Monday trimmed back its 2020 global economic growth forecasts by a tenth of a percentage point to 3.3% because of sharper than expected slowdowns in India and other emerging markets. But the IMF said that a U.S.-China trade deal was another sign that trade and manufacturing activity could soon bottom out.
Barclays on Tuesday forecast 2020 oil demand to rise by 1.4 million bpd, 50,000 bpd higher than its previous forecast and up from growth of 900,000 bpd in 2019.The bank maintained its 2020 forecasts for Brent and West Texas Intermediate (WTI) prices at $62 and $57 a barrel respectively.                                   

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On Tuesday 21, January 2020

Gold falls 1% after hitting 2-week high but stays above $1,550




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 shed 1% on Tuesday in volatile trade as investors booked profits after prices hit a two-week high early in the session, although losses were limited by a slide in equities due to worries about a virus outbreak in China.
The precious metal pared losses and climbed back up above the $1,550 level, buoyed by a low interest-rate environment and lingering geopolitical tensions.
Spot gold was down 0.2% at $1,557.90 per ounce, after hitting its highest since Jan. 8 at $1,568.35 in early trading. U.S. gold futures fell 0.2% to $1,558.
“We’ve had a fairly decent period of performance for gold and we’re giving back some of that,” said Bart Melek, head of commodity strategies at TD Securities, adding gold is likely to hold in a fairly tight range around the $1,550 level for the time being.
“I’ve not heard of any news that would suggest that this (gold’s decline) is some sort of a structural, permanent fundamental set of developments. This is more of an adjustment towards the downside due to technical reasons.”
Safe-haven bullion drew some support as global stock markets slid on mounting concern about a new strain of coronavirus in China. Bullion is up more than 6% since Dec. 6. On Jan. 8, gold pierced the $1,600 ceiling for the first time in nearly seven years on escalating tensions between the United States and Iran.
“The bullish structure in gold has not changed yet. It has to break below $1,450 to change that trend,” said Michael Matousek, head trader at U.S. Global Investors, adding gold will be supported by the U.S. Federal Reserve keeping interest rates steady and increased buying by central banks.
Focus is now likely to turn to the Fed as it meets for its first policy meeting of the year on Jan. 28-29. Higher interest rates lift the opportunity cost of holding non-yielding bullion.
Elsewhere, palladium fell 4.5% to $2,387, after hitting a record high on Monday, marking its largest daily percentage fall since Aug. 2018.
“Palladium is taking a bit of a pause here as risk appetite dries up,” Melek said. Silver fell 1.2% to $17.85, while platinum dropped 1.1% to $1,004.52 per ounce.                                   

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On Monday 20, January 2020

Gold gains on Yemen attacks, China Lunar New Year buying





Gold will continue to shine amid a weak dollar, says author and gold pro Jim Rickards.
Simon Dawson | Bloomberg | Getty Images
Gold prices rose to their highest in more than a week on Monday, after a missile attack in Yemen over the weekend fanned geopolitical concerns and boosted the metal’s safe-haven appeal, while buying ahead of the Chinese New Year also lent support.
Spot gold was up 0.3% at $1,560.89 per ounce by 0726 GMT, after touching its highest since Jan. 10 at $1,562.51 earlier in the session. U.S. gold futures were flat at $1,560.50.
“Chinese New Year is in front of us and some buying has emerged because of that,” Ajay Kedia, director at Kedia Advisory in Mumbai, said.
“The market is also going up because of central bank buying, geopolitical risks such as Yemen missile attack - all these factors are supporting gold.”
Iran-aligned Houthis attacked a military training camp in the Yemeni city of Marib on Saturday, killing dozens of people.
Gold is considered a safe investment in times of political and economic uncertainty.
“Investors are clearly focused on the longer term dynamics, which should play in gold’s favour with low interest environment, central banks’ loosening policy to help support growth and subsequent weakness in the dollar,” ANZ analyst Daniel Hynes said.
The U.S. Federal Reserve will meet for its first policy meeting of the year later this month, where it is widely expected to keep interest rates unchanged.
The central bank cut interest rates three times last year before deciding in December to stand pat. Lower interest rates encourage the buying of non-interest-paying bullion.
However, limiting gold’s advance, Asian stocks held close to a 20-month high, supported by an extended rally in global stocks on Wall Street and solid U.S. economic data.
U.S. homebuilding surged to a 13-year high last month as activity increased across the board, while production at factories increased for a second straight month, data showed on Friday.
Trading volumes were low with U.S. markets closed for a holiday.
Spot gold may test a resistance at $1,564 per ounce, according to Reuters technical analyst Wang Tao.
Speculators cut their bullish positions in COMEX gold contracts in the week to Jan. 14, data showed.
Holdings of the world’s largest gold-backed exchange-traded fund SPDR Gold Trust rose 2.20% to 898.82 tonnes on Friday, their highest since November 11.
Palladium advanced 0.9% to $2,502.00 an ounce, after the auto-catalyst metal hit a record high of $2,537.06 on Friday. Silver rose 0.4% to $18.07, while platinum jumped 0.8% to $1,026.53.                                   

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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



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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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