Tag: Gold Prices

Gold slides to seven-month lows as dollar climbs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold prices slid to seven-month lows on Friday as the dollar rose due to easing trade tensions and weak demand for the precious metal on expectations of higher US interest rates.

Spot gold was 0.5% lower at $1,240.11 an ounce at 1358 GMT from an earlier $1,236.58, its lowest since Dec. 12. US gold futures slipped 0.5% to $1,240.9 an ounce.

Gold prices are down about 9% since mid-April.

Tensions between the United States and China eased after US Treasury Secretary Steven Mnuchin said on Thursday talks between the world’s two largest economies could be reopened if Beijing was willing to make significant changes.

A rising US currency makes dollar-denominated gold more expensive for holders of other currencies, which potentially weighs on demand.

“When the dollar rises we see gold falling, but when the dollar falls we don’t see gold recovering because there is very little appetite for gold at this time,” said ActivTrades analyst Carlo Alberto De Casa. “Higher interest rates in the US means holding gold costs money.”

Gold does not earn any interest or dividends and costs money to store and insure.

The Federal Reserve last month raised its benchmark overnight lending rate 25 basis points to 1.75-2.0%. Expectations are for another two rate rises this year and three in 2019.

Investors retreating from gold can be seen in the largest gold-backed exchange-traded-fund (ETF), New York’s SPDR Gold Trust GLD, which has seen its holdings fall more than 8% since late April to below 26 million ounces.

On the technical front, any attempts on the upside will meet resistance at the 21-day moving average, currently around $1,258, while support is at $1,237.32, the low on July 3 followed by the December trough at $1,352.92.

Silver fell 0.9 percent to $15.75 an ounce, platinum lost 1.6% to $825.80 an ounce and palladium was 1.0% lower at $940.10.

“The global trade dispute is threatening to disrupt auto sales, placing a question mark over platinum and palladium demand,” ANZ analysts said in a note.

“While auto sales numbers suggest steady demand growth for palladium, expect a moderate decline in auto catalyst demand for platinum this year.”

More platinum than palladium is used in diesel engines, whose sales have fallen since Volkswagen was found in 2015 to have cheated in emissions tests.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Gold slides to 1-week low as dollar climbs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold prices slid on Friday to their lowest in more than a week as the dollar rose due to easing trade tensions and weak demand for the precious metal due to expectations of higher interest rates in the United States.

Spot gold was down 0.5% at $1,240.3 an ounce, at 1031 GMT from an earlier $1,238.90, its lowest since July 3. It has fallen about 9% since the middle of April. US gold futures slipped 0.5 percent to $1,240.9 an ounce.

Tensions between the United States and China eased after US Treasury Secretary Steven Mnuchin said on Thursday talks between the world’s two largest economies could be reopened if Beijing is willing to make significant changes.

A rising US-currency makes dollar-denominated gold more expensive for holders of other currencies, which potentially weighs on demand.

“When the dollar rises we see gold falling, but when the dollar falls we don’t see gold recovering because there is very little appetite for gold at this time,” said ActivTrades analyst Carlo Alberto De Casa. “Higher interest rates in the US means holding gold costs money.”

Gold does not earn any interest or dividends and costs money to store and insure.

The Federal Reserve last month raised its benchmark overnight lending rate 25 basis points to 1.75-2.0 percent. Expectations are for another two rate rises this year and three in 2019.

Investors retreating from gold can be seen in the largest gold-backed exchange-traded-fund (ETF), New York’s SPDR Gold Trust GLD, which has seen its holdings fall more than 8 percent since late April to below 26 million ounces.

On the technical front, any attempts on the upside will meet resistance at the 21-day moving average currently around $1,258, while support is at $1,237.32 the low on July 3 followed by the December trough at $1,352.92.

Silver fell 0.6% to $15.80 an ounce, platinum lost 1.1% to $829.64 an ounce and palladium was 0.9% lower at $940.9.

“The global trade dispute is threatening to disrupt auto sales, placing a question mark over platinum and palladium demand,” ANZ analysts said in a note.

“While auto sales numbers suggest steady demand growth for palladium, expect a moderate decline in auto catalyst demand for platinum this year.”

More platinum than palladium is used in diesel engines, whose sales have fallen since Volkswagen was found in 2015 to have cheated in emissions tests.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Gold prices subdued as dollar extends rally

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold prices were muted early Friday as the dollar extended gains from the previous session when strong US inflation data and trade war concerns boosted demand for the greenback.

FUNDAMENTALS

* Spot gold was down about 0.1 percent at $1,246.11 an ounce at 0050 GMT.

* US gold futures for August delivery were little changed at $1,246.30 an ounce.

* The US dollar hit a six-month high against the Japanese yen on Friday. Against a basket of six major currencies, the dollar was up 0.1 percent at 94.899.

* US consumer prices recorded their largest increase in nearly 6-1/2 years in the year through June, while the monthly pace continued to suggest a steady buildup of inflation that could keep the Federal Reserve on a path of gradual interest rate increases.

* Fed Chairman Jerome Powell said he believes the US economy remains in a “good place,” with recent government tax and spending programs likely to boost gross domestic product for perhaps three years.

* Asian shares rose on Friday following gains on Wall Street overnight, as concerns over an escalating US trade war with China took a breather.

* The United States and China could reopen talks on trade but only if Beijing is willing to make significant changes, US Treasury Secretary Steven Mnuchin said on Thursday.

* Kim Jong Un told President Donald Trump he believed their efforts could open up a “new future” between North Korea and the United States and expressed hope for “practical actions” in the future, according to a letter from the North Korean leader released on Thursday.

* The European Central Bank will keep rates at a record low for as long as needed to raise inflation, and its interest rate guidance should be seen as “open-ended”, policymakers concluded in June, according to minutes of their meeting published on Thursday.

* The European Commission on Thursday cut its forecasts for the euro zone’s economic growth this year, citing among the top causes for its revision trade tensions with the United States and rising oil prices which push the bloc’s inflation higher.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.48 percent to 795.19 tonnes on Thursday.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Gold falls as threat of more tariffs on China boosts dollar

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold prices slipped on Wednesday as US threats of tariffs on an additional $200 billion of Chinese goods pushed safe-haven flows to the dollar and dashed hopes that Washington will eventually step back from the escalating row.

US President Donald Trump detailed overnight a list of Chinese products that could face 10% tariffs. The clock now starts ticking on a two-month period of public comment before the levies are imposed.

The news sent the US dollar to an 11-month high versus the yuan and hit the Australian dollar, but left the euro largely unmoved. A strong greenback makes US dollar-priced gold costlier for non-American investors.

“Gold options keep getting higher and higher, which means people are positioned for prices to rise. It tells us there is overhanging positive sentiment to gold but right now the money is sitting on the sidelines,” ING analyst Oliver Nugent said.

Spot gold was 0.4% lower at $1,249.04 an ounce at 1015 GMT. In the previous session, bullion hit a one-week low at $1,246.81.

U.S. gold futures for August delivery were 0.4% lower at $1,250.50 an ounce.

The news of more possible US tariffs on China comes days after Washington imposed 25% duties on $34 billion of Chinese imports, and Beijing responded immediately with matching levies on the same amount of US exports to China.

Spot gold may break support at $1,247 per ounce and fall more towards the next support at $1,237 as it has completed a bounce from the July 3 low of $1,237.32, Reuters technicals analyst Wang Tao said.

“When trade-war risk escalates, investors run for cover … I always have gold as a hedge but it’s been more challenging to have this view when the US dollar is attracting haven flows,” said Stephen Innes, APAC trading head at OANDA.

Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Shares, fell 0.22% to 799.02 tonnes on Tuesday.

In the wider markets, global stocks fell while metals slumped to their lowest in a year on fears of a trade war. Falling equities, seen as risky assets, usually help gold, a traditional safe haven.

Silver shed 1% to $15.89 an ounce and platinum was 0.7% lower at $832.70 per ounce. Earlier in the session, both metals fell to their lowest since July 3.

Palladium was down 1% at $932.22 per ounce, after falling to a two-week low at $931.80.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Gold prices edge lower on firmer dollar amid US-China trade worries

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold prices inched lower early on Wednesday as the US dollar firmed amid an escalating trade spat between the United States and China.

FUNDAMENTALS

* Spot gold was down 0.3 percent at $1,251.74 an ounce at 0102 GMT.

* US gold futures for August delivery were down 0.3 percent at $1,251.20 an ounce.

* The dollar index, which measures the greenback against a basket of six major currencies, was 0.1 percent higher at 94.209.

* The Trump administration raised the stakes in its trade war with China on Tuesday, saying it would slap 10 percent tariffs on an extra $200 billion worth of Chinese imports.

* Last week, Washington imposed 25 percent tariffs on $34 billion of Chinese imports, and Beijing responded immediately with matching tariffs on the same amount of US exports to China.

* More American workers voluntarily quit their jobs in May, government data showed on Tuesday, a sign of confidence in the labour market that economists say will soon boost wage growth.

* British Prime Minister Theresa May won the support of senior ministers and an endorsement from Europe’s most powerful leader, Angela Merkel, on Tuesday, surviving the explosive resignations of two top cabinet members in protest at her Brexit plans.

* Britain’s economy picked up a bit of speed in May after slowing in early 2018, according to official figures that will give the Bank of England more confidence about raising interest rates next month for only the second time in over a decade.

* The European Central Bank defended its 2.6 trillion-euro bond-buying programme before the European Union’s top court on Tuesday from accusations it was bankrolling governments and endangering taxpayer money.

* The NATO alliance holds a two-day summit from Wednesday looking stronger militarily than at any time since the Cold War and with plans to expand further to curb Russian power.

* Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.22 percent to 799.02 tonnes on Tuesday from 800.77 tonnes on Monday.

* The platinum market is expected to see its fourth consecutive surplus in 2018, led by a fall in demand in the automotive sector, yet supply is expected to drop and possibly support prices, CPM Group said on Tuesday.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Gold prices inch up amid Brexit uncertainty, subdued dollar

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold prices edged up in early Asian trade on Tuesday after hitting a two-week high in the previous session, amid political uncertainty over Brexit and as the US dollar remained subdued.

FUNDAMENTALS

* Spot gold was up 0.1 percent at $1,258.12 an ounce at 0057 GMT. The metal touched its highest since June 26 at $1,265.87 on Monday.

* US gold futures for August delivery were 0.1-percent lower at $1,258.70 an ounce.

* The dollar index, which measures the greenback against a basket of six major currencies, was steady at 94.028. It fell to its lowest since mid-June in the previous session.

* Prime Minister Theresa May’s foreign minister and Brexit negotiator quit on Monday in protest at her plans to keep close trade ties with the European Union after Britain leaves the bloc, stirring rebellion in her party’s ranks.

* Britain’s ramshackle exit from the EU could damage economic growth in the euro zone, European Central Bank policymaker Ewald Nowotny said.

* Germany and China signed a raft of commercial accords worth some 20 billion euros ($23.5 billion) on Monday, with their leaders reiterating commitments to a multilateral global trade order despite a looming trade war with the United States.

* President Donald Trump suggested on Monday that China might be seeking to derail US efforts aimed at denuclearizing North Korea, but said he was confident that North Korean leader Kim Jong Un would uphold a pact the two agreed on last month.

* The ECB will take a “wait and see” approach to any tightening of monetary policy after it keeps negative rates on hold through the summer of 2019, ECB Governing Council member Ewald Nowotny said on Monday.

* The Bank of Japan maintained its upbeat economic assessment for all nine regions of the country but some areas saw companies fret about rising costs from labour shortages, a sign that a tightening job market could constrain business activity.

* Speculators raised their net long position in COMEX gold contracts in the week to July 3, US Commodity Futures Trading Commission data showed on Monday.

* Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund fell 0.18 percent to 800.77 tonnes on Monday.

* Canadian miner Barrick Gold Corp and China’s Shandong Gold on Monday said they would deepen cooperation beyond their Argentinian joint venture, potentially working together on acquisitions.

DATA AHEAD (GMT)

0130 China Consumer prices June

0130 China Producer prices June

0645 France Industrial output May

0900 Germany ZEW economic sentiment July

1000 US NFIB business optimism June

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Gold up, touches 2-week peak but still near December lows

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold rose on Monday, touching its highest in two weeks as the dollar weakened and the Chinese yuan recovered from June’s lows, and gold stayed higher even as the dollar bounced up, as some investors bought bullion to cover short positions.

Some traders noted that gold was still mired near lows hit in December.

Spot gold increased 0.3%, to $1,258.52 per ounce by 1:36 p.m. EDT (1736 GMT). The session high of 1,265.87 was its highest since June 26.

US gold futures for August delivery settled up $3.80, or 0.3%, at $1,259.60 per ounce.

“Most likely the yuan will remain volatile but (I don’t expect …) aggressive weakness, so that means the only thing that is driving gold at the moment is the dollar, which is somewhat weaker,” said Georgette Boele, commodity strategist at ABN AMRO.

The yuan rose in offshore markets against the dollar, further off the lows hit in June when it notched its biggest ever monthly fall. The US dollar index weakened early and the euro gained, but the dollar bounced higher in later trading.

A weak dollar makes greenback-denominated gold cheaper for holders of other currencies, especially in Europe when the euro rises.

The euro hit a session high after European Central Bank Governing Council member Ewald Nowotny said the bank could decide this month to end bond buying by the end of this year.

Some investors had bought gold to cover their short positions, said OCBC analyst Barnabas Gan.

Additionally, Britain’s Brexit Secretary David Davis said he resigned to try to stop Prime Minister Theresa May from handing too much power to the European Union.

“A little buying could’ve also come from the North Korea meeting that didn’t exactly go great,” said RJO Futures’ Josh Graves.

Donald Trump raised concerns that Beijing may be seeking to derail North Korea denuclearization efforts, though said he was confident Pyongyang leader Kim Jong Un will uphold his end of the deal.

Graves said Monday’s gold price increase will likely be temporary.

“It’s running into lows we saw in December–$1,275. Until we see some moves above there, I don’t think gold has the strength to get (higher),” Graves said.

Meanwhile, silver rose 0.6% at $16.10 an ounce and platinum gained 0.4% at $844. Both metals earlier hit their highest since June 27.

Palladium gained 0.5% to $958 an ounce, reaching $967.50, its highest since June 21.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Gold prices steady after Fed minutes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold prices were largely unchanged on Friday as the dollar inched down and after minutes of the US Federal Reserve June policy meeting were in line with market expectations for further interest rate increases this year.

Market participants were also keeping a close eye on festering trade conflict between the United States and China, ahead of a US deadline to impose tariffs on Chinese imports on Friday. US jobs data later in the day was in focus as well.

FUNDAMENTALS

* Spot gold was little changed at $1,257.24 an ounce at 0045 GMT. he metal was headed for its first weekly rise in four, up 0.3 percent for the week.

* US gold futures for August delivery were 0.04-percent lower at $1,258.30 an ounce.

* The dollar index, which measures the greenback against a basket of six major currencies, was down 0.1 percent at 94.371. In the previous session, it slipped to its lowest since June 26 at 94.177.

* US central bankers discussed whether recession lurked around the corner and expressed concerns global trade tensions could hit an economy that by most measures looked strong, minutes of the Federal Reserve’s last policy meeting on June 12-13 released on Thursday showed.

* The minutes, which described a meeting in which the Fed raised interest rates for the second time this year, also suggested policymakers might soon signal the central bank’s rate-hiking cycle was advanced enough that policy was no longer boosting or constraining the economy.

* President Donald Trump said on Thursday the United States may ultimately impose tariffs on more than a half-trillion dollars’ worth of Chinese goods as the world’s two largest economies hurtled toward the start of a trade war.

* The United States is due to begin collecting tariffs on $34 billion in Chinese goods at 0401 GMT on Friday.

* Investors watching the trade tit-for-tat between the US and China may well have reason to fear the havoc a full blown conflict between the world’s two biggest economies could wreak on the global economy.

* US services sector activity picked up in June amid strong growth in new orders, but trade tariffs and a shortage of workers were starting to strain the supply chain, which could slow momentum in the coming months.

* German Chancellor Angela Merkel said on Thursday she would back lowering European Union tariffs on US car imports, responding to an offer from Washington to abandon threatened levies on European cars in return for concessions.

* Japan’s banks should adapt to the challenges of a declining population and the rise of financial technology, with the discussion of these structural problems kept separate from monetary policy, a Bank of Japan board member said on Thursday.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Gold slips ahead of Fed minutes despite softer dollar

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold drifted lower on Thursday despite a weaker dollar as investors worried that US Federal Reserve minutes would highlight the prospect of further rate hikes.

Spot gold was down 0.3% at $1,252.15 an ounce by 0940 GMT. The metal touched a one-week high of $1,261.10 in the prior session and had gained over $20 from Tuesday’s low of $1,237.32, its weakest since Dec. 12.

US gold futures for August delivery were little changed, up 0.03% at $1,253.80 an ounce.

The dollar index fell to its lowest level in more than a week while the euro climbed half a percent to near three-week highs following strong German data.

“Gold is not making huge headway even though we’re in a slightly weaker dollar environment. The market is very much in a wait-and-see mode ahead of the Fed minutes,” said Jonathan Butler, commodities analyst at Mitsubishi in London.

The minutes of the US central bank’s June meeting are scheduled to be published at 2 p.m. EDT (1800 GMT). During the discussion, the Fed had projected two more rate hikes in 2018 for a total of four.

The minutes may point to concerns about inflation or that members want monetary policy to keep pace with fairly strong economic growth, Butler said.

“Those sorts of sentiments when they come out could weigh on gold and could give the dollar somewhat of a boost.”

Gold is highly sensitive to rising interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which the metal is priced.

Investors are also awaiting the US ADP labour market report on Thursday and non-farm payrolls and unemployment data on Friday.

“One would not like to have any bullish bets on gold when the labour market trend is strong,” ThinkMarkets chief market analyst Naeem Aslam said.

Spot gold may retrace to support at $1,248 per ounce as it has failed to break resistance at $1,258, Reuters technicals analyst Wang Tao said.

Among other precious metals, silver shed 0.8% to $15.92 an ounce.

Palladium dipped 0.1% to $945 an ounce, while platinum edged up 0.1% at $840.50 an ounce.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow