Showing posts with label Gold Price Report. Show all posts
Showing posts with label Gold Price Report. Show all posts

Mar 3, 2021

Gold Price Report (Morning Edition): Gold Slips due to bond yields and equities resuming its appeal on Wednesday 3, March 2021.

Gold slips as U.S. bond yields and equities dull its appeal


Gold prices fell on Wednesday as U.S. Treasury yields resumed their advance and global equities also firmed, reducing the appeal of safe-haven bullion.

Spot gold fell 0.8% to $1,725.00 per ounce, having dropped to its lowest since June 15 at $1,706.70 on Tuesday. U.S. gold futures were down 0.6% to $1,724.00.

The main driver for gold remains U.S. 10 year Treasury yields, said analyst Xiao Fu at Bank of China International. "It seems like the broad equity market is stable, with a moderate risk-on sentiment, so that (also) diminishes safe-haven demand for gold," she added.

Benchmark U.S. 10-year Treasury yields edged higher but remained short of a one-year peak reached last week, while global equities and U.S. dollar gained.

Though gold is seen as an hedge against rising inflation, higher yields have threatened that status because they increase the opportunity cost of holding non-yielding bullion.

"There's a clear trend for gold to the downside, and as long as fiscal stimulus keeps getting pumped into the U.S. economy and the U.S. Federal Reserve remains reticent about doing something to quash yields, gold prices will struggle," said IG Market analyst Kyle Rodda.

Progress on the $1.9 trillion U.S. stimulus bill is being watched closely by investors, with the Senate due to debate the legislation this week.

"We anticipate recent headwinds to intensify again into the second half of this year, particularly as greater U.S. stimulus raises the prospect of an earlier than planned Fed rate hike," UBS analysts wrote in a note.

Fed officials, however, maintain that they will keep monetary easing in place despite a potential bout of inflation this spring.

In other precious metals, silver fell 0.7% to $26.56 an ounce, while palladium shed 0.5% to $2,351.18 and platinum eased 0.2% to $1,201.74.

Feb 26, 2021

Gold Price Report (Morning Edition): Gold is Set for a Second Monthly Dip on Friday 26, November 2021.

Gold set for second monthly dip as high U.S. yields erode appeal


A worker tends to gold bars at a precious metals plant.

Gold slipped on Friday and was headed for its second straight monthly decline, as U.S. Treasury yields held near a more than one-year high, eroding bullion's safe haven status.

Spot gold fell 0.3% to $1,765.06 per ounce. U.S. gold futures dropped 0.7% to $1,762.50.

"The main factor weighing on gold is the surge in bond yields, which makes gold less attractive because it doesn't pay any interest," said Commerzbank analyst Carsten Fritsch.

Bullion had dropped 1.9% on Thursday and was down 4.4% for the month so far.

The benchmark U.S. 10-year Treasury yields on Friday were hovering near an over one-year high scaled in the previous session.

While gold often benefits from expectations for more stimulus measures, given its status as an inflation hedge, government debt has turned out to be a more attractive bet for investors of late since bullion does not pay any fixed interest.

"Gold fell out of favour of investors, a clear sign you can see from continued outflows in gold exchange-traded funds (ETFs)," Fritsch said.

Holdings in the world's largest gold-backed ETF, SPDR Gold Trust , fell 0.6% on Thursday to its lowest since May 2020. "Bullion has failed to hold $1,800 and has now broken the support at $1,775, opening space for further declines," ActivTrades chief analyst Carlo Alberto De Casa said in a note.

"A strong greenback could be detrimental for gold as investors are switching back to bonds in the search for yields."

Silver slipped 1.8% to $26.92 an ounce and was poised for its first monthly decline in three, down 0.3% so far.

Palladium shed 0.8% to $2,382.50, while platinum eased 0.8% to $1,206.43.

Both the auto-catalyst metals were set to register their best month since November.

Nov 18, 2019

Commodities | Gold | Gold Price Report: Gold erases losses as US-China trade hopes ebb

2-3 minutos - Source: CNBC

GP: Gold Bars And Coins 181129
Canadian maple leafs sit on the faces of one ounce gold coins in London, the United Kingdom, on July 15, 2014.
Chris Ratcliffe | Bloomberg | Getty Images

Gold firmed on Monday, erasing losses from earlier in the session as fresh doubts over a U.S.-China trade deal pushed Wall Street into the red.
Spot gold was up 0.29% at $1,471.4 per ounce as of, reversing course from earlier when prices fell to as low as $1,455.82 on optimism that constructive trade talks had taken place between the world’s two largest economies over the weekend. U.S. gold futures settled up 0.22% to $1471.9 per ounce.
However, a report that Beijing was not as optimistic, owing to U.S. President Donald Trump’s reluctance to roll back tariffs, threw cold water over market cheer and on world shares that were near record levels.
“I am surprised how robustly the market reacts (to news on the trade talks). This isn’t the first time we have had this news, but the market keeps responding,” said Bart Melek, head of commodity strategies at TD Securities, adding that the report on pessimism from Beijing has triggered a rebound in gold prices. “It looks like gold is seeking a move towards $1,480, which is the 100-day moving average.”
The 16-month long Sino-U.S. tariff war has fanned recessionary fears, but recent optimism over a phase one deal has driven a rally in equity markets.
Gold is generally considered to be an attractive investment during times of political or economic uncertainty. Market participants now await minutes of the U.S. Federal Reserve’s last policy meeting, due on Wednesday, for clues about the future interest rate trajectory.
Gold is highly sensitive to interest rates, as lower interest rates reduce the opportunity cost of holding the non-yielding bullion. Investors also kept a close eye on developments in Hong Kong, with police on Monday trapping hundreds of protesters inside a major university and demonstrators rampaging through a tourist district, after almost two straight days of standoffs.
Among other metals, silver gained 0.3% to $17 an ounce and palladium rose 1.4% to $1,728.02 an ounce. Platinum rose 0.4% to $892.55, extending gains for a fourth straight session.

Oct 31, 2019

Commodities | Gold | Gold Price Report on October 31, 2019: Gold gains as dollar weakens after Fed's interest rate cut

3minutos - Source: CNBC

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Gold bars on display in Tokyo on September 27, 2010.
Yoshikazu Tsuno | AFP | Getty Images
Gold prices climbed on Thursday as the U.S. dollar weakened after the Federal Reserve cut interest rates for the third time this year, but signaled the monetary-easing cycle would be paused.
Hopes that the United States and China will sign a preliminary agreement and call a truce to their 16-month trade war was also a factor behind the Fed’s decision to signal that further rate cuts are on hold.
Spot gold was up 0.77% at $1,506.2 per ounce. Prices have risen nearly 2% this month. U.S. gold futures rose 0.82% to $1,508.9 per ounce.
“We took this step to help keep the economy strong in the face of global developments and to provide some insurance against ongoing risks,” Fed Chair Jerome Powell said.
Powell ticked off an extensive list of reasons why he feels the economy is doing well, and likely to continue to do so under the current stance of monetary policy - from robust consumer spending, strengthening home sales, and asset prices he considered healthy but not to a level of excess.
“Gold might not hold its current upside in the short run as it is likely to suffer a little as some recent economic data showed modest growth in the economy,” said Michael McCarthy, chief market strategist at CMC Markets, attributing the present rise in gold prices to a weaker dollar after Fed’s rate cut.
The dollar index against a basket of six major currencies dipped 0.3% to 97.36, making gold cheaper for holders of other currencies.
“A rise in inflation might be the next catalyst for gold buying in the short run, as the Fed is more likely to tighten with a higher inflation rate, making some investors hedge against it (inflation),” McCarthy added.
Asian shares cheered the rate cut and U.S. stock futures edged higher, with MSCI’s broadest index of Asia-Pacific shares outside Japan gaining 0.2%.
“While buoyed by a weaker dollar, if equities continue to outperform, it’s challenging to see gold move above the $1,510 critical primary resistance level,” AxiTrader market strategist Stephen Innes said in a note.
Among other metals, palladium gained slightly to $1,807.68, after jumping nearly 2% in the previous session, and was set to climb for a third consecutive month.
Silver edged up 0.8% to $18.01 an ounce, while platinum advanced 0.2% to $928.36 an ounce.

Oct 16, 2019

Commodities | Gold | Gold Price Report: Gold firms, eyes US-China ties; palladium bolts to record

3minutos - Source: CNBC

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 on concerns that Washington’s stance on Hong Kong could hamper trade negotiations with Beijing and as investors awaited a key Brexit summit, but bullion’s gains were dwarfed by deficit-hit palladium as it smashed new records.
Spot gold rose 0.2% to $1,483.53 per ounce. U.S. gold futures were up 0.3% at $1,487.20.
In a move that soured ties between the United States and China on Tuesday, the U.S. House of Representatives passed four pieces of legislation taking a hard line on Beijing, three related to pro-democracy protests in Hong Kong, drawing opposition from China.
“A lot of people think this (U.S. legislation on Hong Kong) is going to hinder the negotiations with the tariffs (between U.S.-China), so again, when the tariffs are questionable, people run to gold,” said Michael Matousek, head trader at U.S. Global Investors.
Analysts are also wary of the situation in Europe as they await the outcome of the Brexit summit in Brussels on Thursday and Friday which will determine whether Britain is headed for a deal to leave the bloc on the due date, a disorderly no-deal exit or a delay.
Also helping gold, U.S. equity markets opened lower as positive earnings offset cautious traders worried about the legislation targeting Hong Kong.
Investors also await the U.S. Federal Reserve meeting at the end of the month for clarity on further interest rate cuts.
Indicative of sentiment, holdings of the world’s largest gold-backed ETF, SPDR Gold Shares, fell on Tuesday to 919.66 tonnes, but held close to their highest level in nearly three years.
Elsewhere, palladium rose 2.4% to $1,774.32 an ounce, after hitting a record high of $1,779.23 earlier.
The metal used in vehicle exhausts to reduce harmful emissions has climbed about 40% so far this year on a sustained supply crunch.
“It (palladium) has been on a great uptrend and more technical than anything else. Same as gold, if anything is rallying the way it is - 20-year or 1-year the trend looks great and people want to own it, bringing more momentum players into the trade. The driver behind is about 75% technical and 25% fundamental,” U.S. Global Investors’ Matousek added.
Silver fell 0.4% to $17.30 per ounce and platinum slipped 0.9% to $880.23.

Sep 25, 2019

Futures & Commodities | Gold | Gold Price Report: Gold dips 1% as investors opt for dollar amid Trump probe

3 minutes - Source: CNBC

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 slid 1% on Wednesday, retreating from a multi-week peak, as political uncertainties in the United States stemming from an impeachment inquiry into President Donald Trump drove investors to the safety of the dollar, limiting bullion’s appeal.
Spot gold fell 1.2% to $1,513.75 per ounce. On Tuesday, prices hit their highest since Sept. 5 at $1,535.60. U.S. gold futures were down 1.3% at $1,520.70.
The dollar index hit a two-week high on safe haven interest amongst investors looking to hedge against risks emanating from the inquiry into Trump accusing him of seeking foreign help to smear Democratic rival Joe Biden ahead of next year’s election, in turn limiting the appeal of the traditional haven, gold.
“It (gold’s pullback) started out with the strength in the dollar weakening the metals and crude; the dollar seems to be a haven,” said George Gero, managing director at RBC Wealth Management.
Gold, however, will continue to be supported “because besides the impeachment worries, everywhere the investor looks, he sees nothing but new worries which support gold prices like continuation of Middle East problems, tariff talks with China etc.”
Adding to an increasingly fragile backdrop on the global geopolitical front, U.S. Secretary of State Mike Pompeo on Wednesday announced the United States is imposing sanctions on certain Chinese entities for knowingly transferring oil from Iran.
“The major underlying factor holding gold near highs is the debt that is out there with all these countries and negative interest rates ... so when you have that, you need to own gold, what else are you going to use to hedge inflation,” said Michael Matousek, head trader at U.S. Global Investors.
“You can use bitcoin, but gold is un-hackable; bitcoin can be hacked, gold is the un-hackable bitcoin.”
Also on the radar was the long drawn U.S.-China trade dispute, Trump delivering a stinging rebuke to China’s trade practices in a speech on Tuesday, saying he would not accept a “bad deal” in the negotiations.
However, U.S. stock indexes hit session highs after Trump said a trade deal with China could happen sooner than expected.

Aug 30, 2019

Futures & Commodities I Gold I I Gold Price Report Gold, silver eye best month in over 3 years

3 minutes - Source: CNBC

RT: Gold ingots Russia 170922
Gold and silver were poised for their best month in more than three years as fears of a global recession and uncertainty on U.S.-China trade relations drove investors to safe havens, although a slight recovery in equities curbed gains on Friday.
Spot gold rose 0.1% to $1,529.17 per ounce, but has gained nearly 8% so far this month, which would be its biggest monthly gain since June 2016. U.S. gold futures rose 0.1% to $1,538.30.
The market is awaiting news on the trade front, said Suki Cooper, precious metals analyst at Standard Chartered Bank.
“At the moment, the gold market is focused on impact in terms of global growth and whether we’ll continue to see central banks around the world easing monetary policy,” Cooper added.
Chinese and U.S. trade negotiating teams are maintaining effective communication, a day after both sides discussed the next round of in-person negotiations in September, China’s foreign ministry said on Friday.
On Thursday, China’s commerce ministry said a September round of meetings was being discussed by the two sides, but added it was important for Washington to cancel a tariff increase.
Positive signs on the trade front also lifted world stocks to a one-week high, limiting bullion’s upside.
“Gold will have a very high beta to any reduction in trade tensions given that they have driven so much of its rally,” OANDA analyst Jeffrey Halley wrote in a note.
Escalation in the trade war between the world’s biggest economies and heightened fears over a global downturn contributed to a rise of more than $100 for gold in August.
A recent inversion of the U.S. yield curve, where short-dated yields are running above long-dated ones, has also unsettled investors as it often precedes a recession.
Meanwhile, the U.S. Federal Reserve and the European Central bank are widely expected to cut rates next month to stimulate their economies.
Elsewhere, silver rose 0.8% to $18.38 per ounce, on track for its biggest monthly percentage gain since June 2016, gaining 13% so far in August.
“Silver will be volatile going forward and is more likely to come under pressure when we see prices rising given that the industrial picture looks a little bit weak going forward,” Standard Chartered’s Cooper said.
Meanwhile, consumers in top Asian hubs sold their physical gold holdings this week to cash in on high prices with many opting for cheaper silver.
Spot platinum gained 2.2% to $936.02 per ounce, holding near a 16-month high while palladium jumped 4.3% to $1,538.55 per ounce after hitting a one-month peak of $1,504.71 earlier.

Aug 28, 2019

Futures & Commodities | Gold Price Report: Gold eases as investors book profits, dollar firms

3 minutes

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A worker holds a gold bar in the Austrian Mint (Muenze Oesterreich) headquarters in Vienna.
Leonhard Foeger | Reuters
Gold eased on Wednesday on a stronger dollar and as investors locked profits following the more than 1% jump in the last session, but uncertainty over U.S.-China trade and the global economy kept safe-haven bullion near a multi-year peak.
Spot gold fell 0.4% to $1,536.83 per ounce. On Monday it touched $1,554.56, its highest since April 2013. U.S. gold futures fell $2.70 to settle at $1,549.10 per ounce.
“We aren’t seeing any additional tensions. A lot of the news - the trade war and economic concerns - has been factored in by the market over the last few days,” said David Meger, director of metals trading at High Ridge Futures, adding profit-taking following the rally in response to a firmer dollar was weighing on gold.
The dollar rose 0.2%, making gold more expensive for holders of other currencies, while U.S. stock markets moved into positive territory.
However, sentiment in wider markets remained fragile due to a sharper inversion in the U.S. Treasury yield curve, signaling a possible recession, and the lack of clarity on the U.S.-China trade front, which kept interest for safe havens intact.
“I do not see this (drop in gold prices) lasting for long as traders seem to be trying to buy dips in the precious metals right now and with the yield curve and the U.S. Federal Reserve’s (current stance), expect that dip to be bought up fairly quickly,” said Bob Haberkorn, senior market strategist at RJO Futures.
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.
Federal funds futures implied traders saw a 91% chance of a 25 basis point rate cut by the U.S. central bank next month, and a 100 basis point cut within 2020.
Markets also kept a close eye on Britain’s planned exit from the European Union, with concerns of a hard Brexit heightened after British Prime Minister Boris Johnson dissolved the Parliament.
Elsewhere, spot silver rose 0.7% to $18.29 per ounce, hitting its highest level since April 2017 earlier.
“There is not much at present to suggest that the demand for gold and silver might abate,” Commerzbank analysts wrote in a note.

Aug 27, 2019

Futures & Commodities I Gold I Gold Price Report: Gold gains on trade concerns, silver breaches $18/oz mark

3-4 minutes - Source: CNBC

RT: Gold products in a jewelry store 170511
A woman checks products in a gold and jewelery store in Corum, Turkey.
Umit Bektas | Reuters
Gold rose on Tuesday as investors sought cover from global uncertainties including the U.S.-China trade dispute, while silver latched on to bullion’s rally to breach the $18 an ounce mark for the first time in nearly two years.
Spot gold rose 1.1% to $1,542.7 per ounce.
However, gold prices shed nearly $30 from a high of $1,554.56 it hit on Monday, a level last seen in April 2013, after U.S. President Donald Trump said negotiations with China on the long-drawn tariff war have resumed.
U.S. gold futures for December delivery rose 1% to $1,552.7.
While Trump’s comments that China had offered to resume trade talks assuaged some concerns in the wider financial markets, uncertainty prevailed as Beijing declined to confirm the assertion.
“We continue to have concerns about the global economy. The U.S. President’s deal with China is pending and that may be the rhetoric from the White House as opposed to an actual fact pointing to negotiation,” said Bart Melek, head of commodity strategies at TD Securities in Toronto.
“We have a target of $1,586 for gold. There is a very good probability we will get there, not far in the distant future.”
The trade war between the world’s two largest economies has roiled markets since it began more than a year ago, triggering fears of a global economic slowdown. This helps gold, often considered a safer place to park assets during times of global uncertainty.
Adding to uncertainty over the health of the global economy, data showed Germany’s economy contracted on weaker exports in the second quarter. Also, U.S. home price growth cooled to its slowest in seven years.
Further supporting gold, the dollar eased, making the metal cheaper for investors holding other currencies.
“Gold is a strategic asset, from a risk-adjusted returns perspective, so amid heightened economic and geopolitical risk, we see it benefiting from its safe-haven status,” analysts at ANZ bank said in a research note.
Meanwhile, markets priced in a quarter-point cut in interest rates by the U.S. Federal Reserve next month, and over 100 basis points of easing by the end of next year. Lower U.S. interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.
Elsewhere, silver extended gains for a third straight session, hitting its highest since September 2017.
“When gold does really well and gets quite expensive investors on the margin will move into silver... not a big surprise that silver is doing well,” TD Securities’ Melek said.
Platinum climbed 0.5% to $859.62 while palladium rose 0.4% to $1,479.48.

Aug 26, 2019

Futures & Commodities | Golds | Gold Price Report: Gold scales over 6-year peak on heightened trade, economic risks

3-4 minutes - Source: CNBC

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Gold surged to a more than six-year peak on Monday, surpassing $1,550 in early trade, as investors sought safety from a host of uncertainties including heightened U.S.-China trade tensions and a fragile global economy.
Spot gold rose 0.6% to $1,534.44 per ounce, paring gains to shed more than $20 from earlier in the session when the metal had jumped to its highest since April 2013 at $1,554.56. U.S. gold futures for December delivery gained 0.5% to $1,544.50.
Meanwhile, gold in euro and Australian dollar hit record levels.
“There’s a great deal of uncertainty and instability in the global financial markets and economies. And in that kind of environment, investors are bouncing around so they are buying into gold and buying out of gold,” said Jeffrey Christian, managing partner of CPM Group.
Washington announced last week an 5% additional duty on $550 billion in targeted Chinese goods, hours after China unveiled retaliatory tariffs on $75 billion worth of U.S. products. Typically, gold is used as a place to park assets during times of global uncertainty.
The long-drawn trade war between the world’s two largest economies has roiled markets since its inception more than a year ago, triggering fears of a global slowdown.
Stock markets, however, recovered from lows after U.S. President Donald Trump, speaking on the sidelines of the G7 summit of world leaders in France, said Chinese officials had contacted U.S. trade counterparts overnight and offered to return to the negotiating table.
“Gold prices could fall a $100 very quickly if there were a resolution not only to the trade war but to other problems that are out there,” Christian said.
Data showed a modest rise in new orders for key U.S.-made capital goods in July while shipments fell by the most in nearly three years, pointing to continued weakness in business investment in the third quarter.
While monetary policy easing by central banks would be supportive for gold, “the single biggest risk to the recent gold rally would be central bank success, potentially added by fiscal stimulus or a détente in the trade dispute,” a BofA Merrill Lynch Global Research note stated.
“Central Bank policy working out may in all likelihood provide a relatively more benign volatility environment, which in turn would challenge the current gold bull run.”
Federal Reserve Chair Jerome Powell on Friday said the U.S. central bank will “act as appropriate” to keep the economy healthy.
Other precious metals gained as well, with silver up 2.1% at $17.75 an ounce, platinum and palladium each rising about 0.5% to $858.33 and $1,467.88 respectively.
Silver touched $17.77 an ounce earlier in the session, its highest since September 2017.

Aug 21, 2019

Futures & Commodities | Gold | Gold Price Report: Gold slips as equities gain; investors eye Fed minutes

3 minutes - Source: CNBC

Reusable: Gold bars S.S. Central America shipwreck salvage
Gold edged lower on Wednesday as equities gained and investors awaited minutes from the U.S. Federal Reserve’s July meeting for clues on future interest rate cuts.
Spot gold was down 0.3% at $1,502.96 per ounce, while U.S. gold futures fell 0.2% to $1,513.
”(Market participants) are just being cautious ahead of the FOMC minutes; they’re just taking gold off,” said Phillip Streible, senior commodities strategist at RJO Futures.
“There seem to be spouts of optimism as far as the trade deal and the economy go, and these glimmers of hope are driving a rally in equities and people are jumping out of safety to take on risk through equities.”
President Donald Trump on Wednesday said the United States is “doing great with China and other trade deals,” while pressuring the Fed to lower interest rates, saying its policies were hampering U.S. growth and reducing the country’s ability to compete economically.
Minutes from the Federal Open Market Committee’s most recent meeting in July - when the U.S. central bank cut interest rates for the first time in a decade, by a quarter of a percentage point - are due at 2 p.m. EDT (1800 GMT).
“If the FOMC doesn’t give any indication that they are considering cutting rates or doing any kind of quantitative easing, then gold futures will most likely continue to break down,” Streible said
Lower interest rates decrease the opportunity cost of holding nonyielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.
U.S. stocks rose broadly following upbeat retail earnings, while U.S. Treasury yields rose as rising stock prices reflected improving risk sentiment.
“Still, the precious metals market bulls should not be too disappointed in price action so far this week, as it can be argued gold and silver are showing resilience in the face of rallying global stock markets this week,” Jim Wyckoff, senior analyst with Kitco Metals, wrote in a note.
Bullion has risen more than $100 since the beginning of August on concerns over the outlook for the global economy and the prospect of more U.S. interest rate cuts.
The central bank’s annual seminar in Jackson Hole, Wyoming, later this week is also eagerly awaited, with the major focus on a scheduled speech by Fed Chair Jerome Powell.
Indicative of sentiment, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, have increased by about 17 tonnes so far this month, and stood at 845.17 tonnes on Tuesday.

Aug 20, 2019

Futures & Commodities | Gold | Gold Price Report: Gold firms above $1,500 as bond yields dip on stimulus hopes

3 minutes - Source: CNBC

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Gold rose on Tuesday to above $1,500, recovering from a more than 1% slide in the previous session, as U.S. yields fell on increasing expectations for looser monetary policy to address fears of a global downturn.
Spot gold was up 0.5% at $1,502.41 per ounce, after falling to a near one-week low of $1,492.10 on Monday. U.S. gold futures rose 0.1% to $1,512.50.
Monday’s correction followed a sharp price rally earlier this month that took gold to six-year highs, largely on the back of U.S.-China trade war concerns, expectations for further cuts in U.S. interest rates and as the U.S. yield curve inverted for the first time since 2007.
“The yield curve inverting has spooked investors in the U.S.,” said Bob Haberkorn, senior market strategist at RJO Futures, adding “People are kind of looking to buy dips ahead of the Federal Reserve’s minutes coming out and what news will come out at Jackson Hole.”
Investors will closely scan the minutes from the U.S. Fed’s July policy meeting due on Wednesday, with focus on the central bank’s Jackson Hole seminar and the Group of Seven summit this week.
“If they (the Fed) talk about more interest rate cuts for the rest of the year, gold will continue higher, but if they say ‘wait-and-see’, gold will probably sell off,” Haberkorn said.
Lower U.S. interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.
U.S. stocks opened slightly lower after a three-day run, while U.S. Treasury yields fell as the prospect of more central bank easing boosted demand for government debt.
“Participants will be eager to hear what Fed Chairman Jerome Powell has to say about the future of interest rates, especially now that the bond market has already driven yields sharply lower on the long end,” INTL FCStone analyst Edward Meir said in a note.
The shift in sentiment towards riskier assets contributed to a more than 1.2% drop in gold prices on Monday, its biggest daily percentage decline in a month. But prices have risen nearly 17% this year and more than $80 so far this month.
Meanwhile, palladium climbed 1% to a more than two-week high of $1,487.97 per ounce.
Russia’s Norilsk Nickel (Nornickel), the world’s largest producer of the autocatalyst metal, said the global palladium market will remain in structural deficit this year due to growing demand from the auto sector amid tighter emission regulations.
Elsewhere, silver rose above the $17 per ounce mark, gaining 1.5% to $17.11, while platinum fell 0.6% to $844.70.

Aug 13, 2019

Gold | Gold Price Report | Gold sheds 2% on signs of US-China trade thaw

2-3 minutes - Source CNBC

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Gold bullion bars and coins.
Getty Images
Gold fell 2% on Tuesday, reversing course from earlier in the session when it scaled a six-year peak, after the United States said it would delay tariffs on some Chinese products and on news that both sides agreed to continue trade talks.
Spot gold was down 0.7% at $1,501.36 per ounce, having earlier hit its highest level since April 2013 at $1,534.31. U.S. gold futures were down 0.3% to $1,512.6 an ounce.
The Office of the U.S. Trade Representative said the Trump administration will delay 10% tariffs on certain Chinese products, including laptops and cell phones, that had been scheduled to start next month.
“A thawing, perhaps reconsideration of the new proposed tariffs has drained the heat from the (gold) rally for now,” said Tai Wong, head of base and precious metals derivatives trading at BMO.
“While this does not dramatically dim the overall positive outlook for gold, it will temper its momentum in the short term.”
U.S. stocks turned positive and the dollar rose on the news, with further momentum also coming from news that both sides had agreed to conduct phone calls on trade again in two weeks.
“Gold will be trading in a defensive position until the next two weeks; there will be some buying at the dips but the explosive moves higher we’ve seen in the last two weeks is not expected with the trade talks hanging over the market,” said Bob Haberkorn, senior market strategist at RJO Futures.
Gold’s rise to over 6-year highs earlier in the day was triggered by a rout in the Argentine peso and protesters clashing with police at the Hong Kong international airport after flights were disrupted for a second day.
Market focus is now on the U.S. Federal Reserve’s annual symposium next week for clues on the future trajectory of interest rates. Traders see a 91.2% chance of a 25 basis-point rate cut by the U.S. central bank this September.
Meanwhile, holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, jumped 0.9% to 847.77 tonnes on Monday.
Among other precious metals, silver fell 0.5% to $16.97 per ounce, while platinum was up 0.5% to $856.41. Palladium, meanwhile gained 2% to $1,456.20 an ounce.

Jul 31, 2019

Gold Price Report on Wednesday 31, 2019 I Gold heads for third monthly gain but dips after Fed cuts interest rates

2-3 minutes

Gold bars at the Austrian Gold and Silver Separating Plant in Vienna, Austria.
Leonhard Foeger | Reuters
Gold prices fell on Wednesday but were still heading for a third straight monthly gain.
The precious metal extended the day's losses slightly after the Federal Reserve voted to cut interest rates by a quarter point for the first time in over a decade, a highly-anticipated but widely-expected move.
Spot gold fell as much as 1% following the Fed's decision but quickly recovered most of the loss, down just 0.3% at $1,426.31 an ounce. U.S. gold futures were down 0.4% at $1431.30 an ounce.
Investors were expecting an interest rate cut by the Fed, as well as by other leading central banks, which would cut the opportunity cost of holding non-yielding gold. The expectation has the precious metal on track for a 1.5% gain for July.
"The metal looks strong for now. In the recent time it has been supported by falling government bond yields. Gold's next moves will be dependent on how dovish the Fed will be today," said Fawad Razaqzada, market analyst with
Fed funds rate futures had fully priced in an interest rate cut of 25 basis points. Backing a dovish policy tilt by the U.S. central bank's policymaking Federal Open Market Committee, U.S. consumer spending and prices rose only moderately in June, pointing to slower economic growth and benign inflation. Industrial and trading services group MKS PAMP said in a note has a "top-side target for bullion" at $1,450 an ounce.
"Aside from the FOMC meeting, there remain a number of ongoing risk events to provide price direction to bullion, namely the increasing likelihood of a no-deal Brexit and a lack of progress between the U.S. and China in trade negotiations," MKS PAMP said.
U.S. President Donald Trump warned China against waiting out his presidency before finalizing a trade deal, saying the outcome could be no agreement or a harsher one if he wins re-election in November 2020.
"So far, because of the fact (bond) yields have been falling and the technical structure has been bullish, traders have been happy to pick gold at the dips. But that could change today" after the Fed meeting, Razaqzada said.

Source: CNBC

Jun 20, 2019

Metals I Gold I Gold Price Report I Gold prices surge to more than five-year high after dovish Fed opens door for rate cut.

Eustance Huang, Maggie Fitzgerald

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 hit a five-year high on Thursday after a dovish U.S Federal Reserve opened the door to further rate cuts, pressuring U.S. Treasury yields and the dollar.
Spot gold prices surged to levels not seen in more than 5 years. The commodity is currently trading 2.2% higher at around $1,389.8 per ounce.
Gold futures also saw strong gains, rising 3.3% to $1,394.2 per ounce.

Following the Fed meeting on Wednesday, where the U.S. central bank left interest rates unchanged but opened the door for a possible rate cut in the future, the 10-year Treasury yield fell below 2% for the first time since November 2016, breaching an important psychological level.
One economist told CNBC that the surge in gold prices were likely driven by the declines in yields of shorter-duration Treasurys ranging between three months and two years. The yield on the 3-month Treasury note trickled lower to 2.146%. The 2-year note dropped to 1.716%.
With expectations for the U.S. Federal Reserve’s funds rate to drop by 2020, gold has become “quite attractive” as a result, said Rob Carnell, chief economist and head of research for Asia Pacific at ING.
The shorter end of the yield curve tends to move in line with interest rate movements, meaning that a lower expected Fed funds rate will likely drive short term yields down. As the yields on the shorter-duration notes go down, gold becomes more attractive as an investment option due to its relatively higher yield.
“The gold market is suggesting to us that there’s sufficient liquidity to move the medal higher,” said Jeff DeGraaf, founder and chairman of Renaissance Macro Research. “Whether that’s a precursor to inflation or just a reflection of low carry cost, it’s hard to pin down what that cause is.”
Fed Chair Jerome Powell said at a post meeting news conference that “many participants now see the case for somewhat more accommodative policy has strengthened. ”
The Fed’s rate projections showed that eight Fed members see a cut this year, which traders took as a further sign the central bank was close to cutting rates. Its median forecast, however, still reflected no cuts this year, but additional easing in 2020. Nine members on the Federal Open Market Committee wanted a cut to a funds rate around 2.1% in 2020.
Demand for safe-haven assets is still elevated because of ongoing geopolitical uncertainties, said founder of The Sevens Report Tom Essaye.
“The global fundamental backdrop remains unclear, which is keeping a flight-to-safety trade alive. But with real yields on bonds declining, gold’s appeal as a safe haven is growing, all while a weaker dollar is supportive of commodities broadly,” said Essaye.
Han Tan, market analyst at forex brokerage FXTM, attributed the gold price spike to a weakening dollar on the back of the dovish Fed statement as well.
“The Dollar’s weakness that followed the Fed’s dovish pivot has sparked the surge in Gold prices, given the gloomier outlook over the global economy. With major central banks such as the Fed and the ECB citing greater uncertainties, such dovish tones from policymakers are roaring on Bullion bulls,” he wrote in a note.
The dollar dropped broadly against its rivals on Thursday and is on track for its biggest two-day drop in a year.
— CNBC’s Jeff Cox, Yun Li and Fred Imbert contributed to this report.

Source: CNBC

Jun 18, 2019

Futures & Commodities I Gold I Gold Price Report on Tuesday 18, 2019 I Gold pares gains on US-China trade war optimism

3 minutes

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 prices pared gains on Tuesday after U.S. President Donald Trump confirmed he would meet with Chinese President Xi Jinping at an international summit, fanning hopes that an end to the U.S.-China trade dispute could be nearing.
Earlier in the session, gold prices had briefly surged to 1% after central banks in Europe and the United States hinted at monetary easing.
Spot gold gained 0.2% to $1,342.15 per ounce by 10:44 a.m. EDT (1444 GMT). Prices had risen to $1,354.20 earlier, before Trump said in a tweet he had a “very good telephone conversation” with China’s Xi.
The two leaders will meet at the G20 meet later this month in Japan, where the discussions will focus on trade in the midst of a bitter tariff spat, that has upset global markets since its conception a year ago.
U.S. gold futures settled $7.80 higher at $1,350.70.
“We are seeing a bit of a resurgent in risk appetites... ,” said Bart Melek, head of commodity strategies at TD Securities in Toronto, adding that equities have moved higher, which has helped the dollar.
“Commodities on the risk side have gone up and gold has traded lower, on the back of the agreement between the U.S. and China on the trade side.”
Equity markets rallied following Trump’s comments while the dollar index held tight at two week highs.
European Central Bank President Mario Draghi said the bank would need to ease policy again amidst tepid inflation, while markets expect the U.S. Federal Reserve to cut interest rates later this year.
“Traders are looking at an immediate future for easing money from central banks, which should see gold trading higher for the time being,” said Bob Haberkorn, senior market strategist at RJO Futures.
Spot gold may break a support at $1,337 per ounce and fall to the next support at $1,324, Reuters technical analyst Wang Tao.
“As long as gold hold the $1,333 level intraday, it is good for bullion... prices ran up after the expectations from central banks, but there has been no definitive answers to retain those levels on an intraday basis,” said Michael Matousek, head trader at U.S. Global Investors.
Other precious metals saw gains as well, with silver gaining 0.6% to $14.93 per ounce and platinum up 0.8% to $798.31.
Palladium rose 2.3% to $1,483.85 per ounce, having hit $1,489 earlier in the session, its highest level since March 27.

Source: CNBC

May 23, 2019

Latest on Futures & Commodities I Gold I Gold prices rise 1% as dollar pulls back from 2-year high

Tom DiChristopher

RT: Gold Bullion An employee sorts gold bars in the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, December 15, 2017.
Gold bars at the Austrian Gold and Silver Separating Plant in Vienna, Austria.
Leonhard Foeger | Reuters
Gold prices jumped 1 percent on Thursday as the U.S. dollar pulled back from a two-year peak scaled earlier in the session and as global equities slid on the escalating Sino-U.S. trade tensions.
Spot gold climbed 1 percent to $1,285.63 per ounce by 11:21 am EDT (1522 GMT), after falling to its lowest since May 3 on Tuesday at $1,268.97.
U.S. gold futures rose 0.9 percent to $1,285.50 an ounce.
“We have seen a sharp reversal in the dollar and that has helped buoy gold prices,” said Suki Cooper, precious metals analyst at Standard Chartered Bank.
The dollar index, which earlier in the session touched its highest level in two years at 98.371, gave back some gains after the release of U.S. weekly jobless data.
“After the U.S. Federal Reserve said it would remain patient the market has taken this as a positive cue and has started to price in the greater probability of a rate cut,” Cooper added.
Lower interest rates tend to lift gold as it reduces the opportunity cost of holding the non-yielding bullion.
The Fed officials at their last meeting agreed that their current patient approach to setting monetary policy could remain in place “for some time,” a further sign policymakers see little need to adjust rates.
“Yields are (also) a bit lower and equity markets are down (supporting gold),” said ABN AMRO analyst Georgette Boele.
World shares fell as concerns grew that the China-U.S. trade conflict was fast turning into a technology cold war between the world’s two largest economies.
China said the United States needs to correct its “wrong actions” for trade talks to continue after it blacklisted Chinese technology company Huawei Technologies Co Ltd.
U.S. 10-year Treasury yields dropped to the lowest since December 2017 earlier in the session.
Among other precious metals, silver rose 1.2% to $14.62 per ounce, while palladium edged 0.2% higher to $1,316.80.
Platinum rose 0.2% to $800.52 an ounce, after touching the lowest since Feb. 15 at $791 earlier in the session.

Source: CNBC

Apr 30, 2019

Gold | Gold Price Report on Tuesday 30, April 2019 | Gold edges up as weak Chinese data dampens risk sentiment

Sam Meredith

RT: Gold ingots Russia 170922
Gold prices edged up on Tuesday as disappointing Chinese factory activity data brought back concerns about the health of the global economy, denting risk appetite.
Spot gold rose 0.4 percent to $1,285 per ounce. U.S. gold futures were up 0.4 percent at $1,286.20 an ounce.
“The weaker Chinese PMI is a supportive element and aiding gold. Also, from a technical point of view, we have seen a rebound from $1,280, which is a good support level,” said Carlo Alberto De Casa, chief analyst with ActivTrades, adding that a weaker dollar was also helping gold.
”(I) don’t see much room for decline in prices from here and only the strength of the U.S. dollar can hurt gold.”
European equity markets nudged down on Tuesday, following weaker Asian stock markets as the latest Chinese data pointed to some fragility in the world’s second-largest economy despite Beijing’s attempts to spur growth.
Gold is generally used by investors as a safe-haven investment in times of economic and political concerns.
Investors now look to the U.S. Federal Reserve’s two-day policy meeting starting later in the day for clues on the interest rate outlook.
The Fed is expected to leave interest rates unchanged as it seeks to balance robust economic growth against low inflation.
Gold is highly sensitive to rising interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
While the Fed’s decision will boost bullion’s appeal, the metal is yet to overcome bearish factors, and any rallies may be short-lived, traders and analysts said.
“The yellow metal remains toppish toward $1,290 and is likely to continue to see bears weigh upon rallies over the near-term as the recent downtrend remains intact,” MKS PAMP Group said in a note.
“Downside targets through to $1,275-$1,270 remain in play over the near term as the metal sees muted physical interest out of Asia this week due to both Chinese and Japanese festivities.”
Elsewhere, silver gained 0.6 percent to $14.99 per ounce, while platinum rose 0.5 percent to $899.
Palladium, on the other hand, fell 0.4 percent to $1,365.50 an ounce, after touching its lowest in nearly two weeks at $1,354. The metal slumped over 7 percent on Monday.

Source: CNBC

Apr 25, 2019

Gold Price Report on April 25, 2019 | Gold firms as weak data puts focus back on growth risks

Jeff Daniels

Reusable: Gold bars 001
Gold inched higher on Thursday as weak economic data rekindled fears over global growth, while bullion’s recovery from four-month lows and an improved technical picture prompted some investors to cover their short positions.
Spot gold was up 0.1 percent at $1,276.43 per ounce. U.S. gold futures settled $0.30 higher at $1,279.70.
World equity markets slipped as a surprise deterioration in German and South Korean economic data brought back to the fore concerns about a global downturn.
“The correction in (stock) markets has provided some support for gold. But the (gold) market is still looking for catalysts for a significant move and there is not much momentum in either direction,” Capital Economics analyst Ross Strachan said.
“Gold is awaiting bigger developments. We’ve got U.S. GDP and that’s expected to have a significant impact on the dollar.”
U.S. gross domestic product data will be released on Friday, with the economy forecast to have grown by 2.1 percent in the first quarter.
Gold has recovered after hitting a four-month low of $1,265.90 an ounce this week, despite expectations that prices could fall towards the 200-day moving average around $1,251, analysts said.
“Gold prices are showing some resilience here. We haven’t managed to see an extension to the technical breakout we saw this week,” said Ole Hansen, commodity strategist at Saxo Bank.
“The fact that we have managed to recover and find bids is making some shorts nervous and that is providing some support right now. The correction in global markets is also just adding to the equation.”
Data from the U.S. Commodity Futures Trading Commission showed speculators switched to a net short position in COMEX gold in the week to April 16.
The bearish sentiment in gold was also reflected in holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund. Holdings dipped 0.2 percent to 747.87 tonnes on Wednesday, the lowest since Oct. 19.
Spot gold may bounce towards resistance at $1,284, as it has found support at $1,264, Reuters technical analyst Wang Tao said.
Elsewhere, silver was steady at $14.91 an ounce, while platinum too was firm at $878.84.
Palladium dipped 0.1 percent to $1,416 an ounce.

Source: CNBC

Apr 22, 2019

Gold Price Report | Gold holds steady on weaker dollar, US-Iran tensions

Tom DiChristopher

Reusable Gold Bullion
Gold steadied on Monday, holding above a near four-month low touched the previous session on support from a weaker dollar and expectations the United States would further restrict Iranian oil exports.
Spot gold was little changed at $1,275.26 per ounce. On Thursday, it touched $1,270.63, its lowest since Dec. 27. The market was closed on Friday.
U.S. gold futures for June delivery rose 0.1 percent to $1,277.20 an ounce.
“They (U.S.) have taken an aggressive move by not extending the waivers. There are some geo-political risks and a bit of safe-haven demand” for gold, said Bob Haberkorn, senior market strategist at RJO Futures.
He said a weaker dollar and lower equities were also supporting bullion.
Oil topped $74 a barrel on Monday, the highest since November, as the United States was set to announce a further clampdown on Iranian oil exports.
Wall Street equities were trading lower, weighed down by technology shares, which helped bullion accumulate safe-heaven bids.
“There is some risk aversion in the marketplace to start the trading week, as the U.S. is ratcheting up its economic sanctions on Iran,” said Jim Wyckoff, senior analyst with Kitco Metals in a note.
The dollar was down 0.2 percent, making bullion cheaper for investors holding other currencies.
On the technical front, gold’s break below key support levels, including the 100- and 50-day moving averages last week, signalled a further downside to prices, analysts and traders said.
“Technically, the gold bears have the overall near-term technical advantage,” Wyckoff said.
Meanwhile, speculators switched to a net short position in COMEX gold in the week to April 16, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, dropped to 751.68 tonnes on Thursday, the lowest levels seen since Oct. 26.
Among other metals, silver rose 0.6 percent to $15.01 per ounce.
Platinum fell 0.1 percent, to $899.81 per ounce and Palladium was down 0.7 percent to $1,412.61, having earlier climbed to its highest in more than two weeks at $1,429.91 an ounce.

Source: CNBC

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