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

Apr 12, 2019

Gold Price Report |Gold steadies as dollar retreats, on way to best week in three

Weizhen Tan

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 steadied on Friday en route to its first weekly gain in three weeks as the dollar weakened although the metal’s advances were capped by stronger equities.
Spot gold rose 0.2 percent to $1,294.36 per ounce as of 10:20 a.m. The metal broke below $1,300 and hit a one-week low on Thursday, but prices have gained 0.3 percent so far this week.
U.S. gold futures settled $1.90 higher at $1,295.20.
“We’re recovering a little bit after yesterday’s big sell-off. The dollar strength really hurt precious metals and we’re seeing some of that reverse with most currencies running a little higher versus the dollar this morning,” said Chris Gaffney, president of world markets at TIAA Bank.
“We’ve got tame inflation, the trade situation is getting resolved and Brexit looks like it’s going to be pushed down the road. So right now investors don’t have any incentive to buy gold.”
The dollar fell to its lowest in two weeks against key rivals and was headed for its first weekly decline in four weeks.
However, the stronger U.S. stock market, boosted by better-than-expected results from JPMorgan Chase & Co, a $33 billion energy deal and signs of stability in the Chinese economy, dented bullion’s appeal.
A further dovish tone from the U.S. Federal Reserve and weaker global growth data could propel gold higher, Gaffney said, “but for now, it’s going to struggle to get back above that $1,300 level.
Early in the week, bullion received support from increased buying by central banks and a dovish view from the European Central Bank as well as minutes from the U.S. Fed. However strong U.S. economic data on Thursday boosted the dollar and triggered a sell-off in gold.
Data showed weekly U.S. jobless claims fell to the lowest in nearly half a century and producer prices increased the most in five months in March.
“Given the marked decline we expect in U.S. equities this year, we suspect that safe-haven assets will soon surge,” Capital Economics analysts said in a note.
“We think gold investment should be strong, particularly in the form of exchange-traded fund buying. As a result, we expect the price of gold to rally to $1,400 per ounce by end-2019.”
Silver was up 1 percent at $15.10 an ounce.
Spot platinum rose 1.3 percent to $899.08 per ounce, heading for its fifth straight weekly gain.
Palladium was up 0.8 percent at $1,376.88 per ounce.

Source: CNBC

Mar 26, 2019

Gold Price Report | Gold dips as dollar rebounds, risk appetite improves

Jeff Daniels

RT: Gold Bullions 170616
Gold on Tuesday retreated from the more than 3-week highs touched in the previous session after the dollar rebounded and risk appetite and bond yields recovered, easing nerves over recession worries.
Spot gold was down 0.5 percent at $1,315.30 per ounce, after hitting its highest since Feb. 28 at $1,324.33 on Monday.
U.S. gold futures were down 0.6 percent at $1,315 an ounce.
“The trend of the U.S. dollar has reversed a little bit and at the same time there was a bounce back from the lows across yield curves,” said Bart Melek, head of commodity strategies at TD Securities in Toronto.
Benchmark bond yields ticked higher on Tuesday after a few days dominated by recession worries, which prompted investors to seek safe-haven assets such as gold. An inverted yield curve is widely seen as indicating an economic recession.
“The firm U.S. dollar remains a big impediment (for gold),” Melek added. “Even with a very dovish U.S. Federal Reserve, the market is still looking at other asset classes such as equities. Until that turns a little sour, we should probably not see huge inflows into gold.”
The dollar index was up 0.2 percent. A higher greenback makes gold expensive for buyers holding other currencies.
Gold has gained about 14 percent since touching more than 1-1/2-year lows last August, on the back of a dovish U.S. Fed and global growth concerns.
Calm returned to global markets on Tuesday, with gains on European and Asian bourses and higher benchmark bond yields.
The 10-year U.S. Treasury yield edged up, having fallen below the yield for three-month bills on Friday for the first time since 2007, inverting the yield curve.
“Overall, though, conditions remain supportive for both gold and to a lesser degree, silver to stage a rally. We need to see further price action and some technical confirmation to increase our conviction that gold and silver are indeed headed higher,” Fawad Razaqzada market analyst with wrote in a note.
“The fact that gold has held key support around the $1,275-$1,285 area is bullish, as the move below the long-term pivotal $1,300 hurdles proved to be temporary.”
Investors are also watching for the latest round of China-U.S. trade negotiations, scheduled to start on Thursday in Beijing, and British lawmakers’ bid to find a way through a deadlock over Britain’s plans to leave the European Union. The lawmakers will vote on a range of Brexit options on Wednesday.
Palladium slipped 1.9 percent to $1,546.16 per ounce, after touching its lowest in about two weeks at $1,532.56 in the previous session.
Silver was down 0.6 percent at $15.45, while platinum rose 0.4 percent to $858.60 an ounce.

Source: CNBC

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