Tag: Gold Prices

Gold claws higher on soft dollar, renewed trade tensions

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

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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 eases as dollar gains ahead of Fed meeting minutes

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

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Gold fell on Wednesday as the US dollar rose against a basket of currencies while investors awaited minutes from the US Federal Reserve’s latest policy meeting for clues on the pace of interest rate hikes.

Spot gold lost 0.1 percent at $1,289.89 per ounce by 1:34 p.m. EDT (1734 GMT), after touching its highest since May 15 at $1,297.84. US gold futures for June delivery settled down $2.40, or 0.2 percent, at $1,289.60 per ounce.

The dollar, in which gold and other commodities are priced, rose versus a basket of currencies before the 2 p.m. EDT (1800 GMT) release of the Fed meeting’s minutes.

“We’re down on the stronger dollar,” said Bob Haberkorn, senior market strategist at RJO Futures. “The market’s waiting to see what the language is … but expecting a confirmation of the rate hike in June.”

At its previous meeting in May, the US central bank expressed confidence in the economy and global growth, and kept its benchmark lending rate unchanged. It said inflation was near the bank’s target, leaving it on track to raise borrowing costs in June.

Gold is highly sensitive to rising US rates, as these tend to boost the dollar and make bullion, a non-interest-bearing asset, less attractive to investors.

“Any strong data that confirms a trend of global growth at the very least maintaining and we will continue to see gold prices suffer,” said Tyler Ritchey, analyst at the Sevens Report.

Often used to store wealth in times of political or economic uncertainty, gold was underpinned by safe-haven support after US President Donald Trump said he was not pleased about recent talks with China.

Trump also cited a “substantial chance” his summit with North Korean leader Kim Jong Un will not take place as planned on June 12 amid concerns that Kim is resistant to giving up his nuclear weapons.

Prices remained in a narrow range, just below $1,300 per ounce, as investors awaited more clues on the path of US interest rates.

Gold has shown reduced volatility in the last few trading sessions as it attempted a break above $1,300 and prices are “waiting for a new, clear direction,” said ActivTrades chief analyst Carlo Alberto De Casa.

Silver fell 0.8 percent to $16.39 an ounce and platinum was 0.4 percent lower at $899.40 an ounce.

Palladium eased 1.7 percent to $973.22 an ounce.

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 hits five-month low as US trade war with China ‘on hold’

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

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Gold slid to a near five-month low on Monday, as the dollar rose and demand for safe-haven assets eased after US Treasury Secretary Steven Mnuchin said a trade war between China and the United States was “on hold”.

Spot gold was down 0.6 percent at $1,283.30 per ounce at 0658 GMT, after earlier hitting $1,281.76, its lowest since Dec. 27.

US gold futures for June delivery were 0.7 percent lower at $1,282.50.

“Gold price is under pressure as the dollar maintains its strength,” said Naeem Aslam, chief markets analyst at Think Markets.

“‘On Hold’ is a risk-on term…The absence of trade tariffs and hostile tone between the two countries has also impacted the gold price more adversely,” Aslam said.

The dollar rose versus the yen and hit a five month-high against a basket of currencies, after Mnuchin’s comments downplaying a trade dispute with China, boosting risk sentiment amid hopes for an easing of trade tensions between the world’s two biggest economies.

Chinese state media on Monday praised a significant dialing back of trade tension with the US, saying China had stood its ground and the two countries had huge potential for win-win business cooperation.

“You have this combination of technical factors which is at the moment un-supportive (for gold). As long as the dollar is on the firm side, gold is under pressure,” said Dominic Schnider at UBS Wealth Management in Hong Kong.

The price of gold fell below the psychologically important $1,300 per ounce level last week for the first time since late December and has since continued to trade below its 200-day moving average.

A stronger dollar makes dollar-denominated gold more expensive for holders using other currencies. Furthermore, rising US interest rates, and the expectation that U.S. Federal Reserve will raise rates again next month, limits investor demand for non-yielding bullion.

“Investors are looking towards the biggest event of this week- the FOMC minutes and if the Fed doesn’t tame its hawkish stance, we would expect more weakness in the gold price,” Aslam said.

Hedge funds and money managers cut their net long position in COMEX gold contracts by 21,294 contracts to 31,327 in the week to May 15, data showed on Friday.

In other precious metals, silver fell 0.8 percent to $16.30 an ounce.

Platinum was 0.4 percent lower at $879 an ounce, after marking an over five-month low at $874 earlier.

Palladium rose 0.5 percent at $968.30 per ounce, after hitting a two-week low at $960.22 on Friday.

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 slip as surging US Treasury yields lift dollar

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

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Gold prices edged down on Friday to near their lowest levels this year, pressured by a firm US dollar amid surging US Treasury yields.

Spot gold was down about 0.1% at $1,289.35 per ounce at 0657 GMT, after hitting its lowest since Dec. 27 in the previous session at $1,285.41.

The metal was heading for its biggest weekly decline since early December.

US gold futures for June delivery were 0.1% lower at $1,288.60 per ounce.

The dollar held near a five-month peak against a basket of currencies on Friday thanks to the benchmark US Treasury yield topping a seven-year high.

“The 10-year US yields put the dollar on a firm foot and put pressure on metals and gold,” said a Hong Kong-based trader, adding that some “risk-on” sentiment in markets today was also adding pressure.

A stronger greenback makes dollar-denominated gold more expensive for users of other currencies, while higher US yields dampen the appeal of non-yielding bullion.

“$1,285 has been good support for the past couple of days, so that’s the first support we’ll see if it (spot gold) can hold,” the trader said. He declined to be identified as he was not authorised to speak with media.

Meanwhile, Asian stocks were treading water on Friday as investors kept a cautious watch on developments in US-China trade negotiations.

US President Donald Trump said on Thursday that China had become “very spoiled” on trade with the United States and cast doubt on the success of his efforts to rebalance the relationship with Beijing as high-stakes US-China negotiations opened in Washington.

Trump sought on Thursday to placate North Korea’s leader Kim Jong Un after Pyongyang threatened to scrap an unprecedented summit.

“Failure of the US to reach any trade deal with China, as Trump has already indicated that there may not be a favourable outcome, could stimulate some demand for gold,” said Naeem Aslam, chief markets analyst at Think Markets.

Spot gold still targets $1,302 per ounce as it has stabilized around a support at $1,287, Reuters technical analyst Wang Tao said.

In other metals, silver was little changed at $16.43 an ounce.

Palladium rose 0.1% to $979.15, while platinum was 0.4% lower at $885.24 per ounce after hitting a five-month low at $879 on Thursday.

However, all three of those metals were heading for weekly losses.

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 up after hitting fresh 2018 low

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

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Gold prices recovered slightly early on Wednesday, after sliding to the lowest level this year in the previous session on surging US bond yields and a stronger dollar.

FUNDAMENTALS

* Spot gold rose 0.2 percent to $1,292.73 per ounce at 0048 GMT, after shedding 1.7 percent and marking the lowest this year at $1,288.31 in the previous session.

* This was also the lowest price level for the yellow metal since Dec. 28.

* US gold futures for June delivery were up 0.1 percent at $1,292.10 per ounce.

* The dollar hovered near a five-month high against a group of major currencies on Wednesday, as a surge in the benchmark 10-year Treasury yield above 3 percent reignited a rally that had lost steam last week.

* The yield on the benchmark US 10-year Treasury note hit its highest in about seven years on Tuesday on the heels of a report that indicated a pick-up in consumer spending, lifting the dollar to its strongest level this year.

* US retail sales increased marginally in April as rising gasoline prices cut into discretionary spending, but consumer spending appeared on track to accelerate after slowing sharply in the first quarter.]

* Federal Reserve Chair Jerome Powell’s top deputies are edging toward a clash that could shape the pace of interest-rate hikes in coming months, as well as how the Fed should prepare for and combat the next economic downturn.

* Bank of England Deputy Governor Ben Broadbent said in an interview on Tuesday with the Telegraph that the central bank will not “spoon feed” markets with meeting-by-meeting interest rate hikes.

* The United States is seeking to make a trade deal with China, White House economic adviser Larry Kudlow said on Tuesday.

* North Korea on Wednesday threw into question an unprecedented summit between its leader Kim Jong Un and US President Donald Trump scheduled for next month, denouncing military exercises between South Korea and the United States as a provocation and calling off high-level talks with Seoul.

* Palestinians buried the dead on Tuesday from the bloodiest day in Gaza in years, after Israeli forces killed 60 Palestinians near the Gaza-Israel border during demonstrations against the opening of the US embassy in Jerusalem.

* European powers vowed to keep the 2015 nuclear deal alive without the United States by trying to keep Iran’s oil and investment flowing, but admitted they would struggle to provide the guarantees Tehran seeks.

* The London Bullion Market Association said on Tuesday it had suspended the Ekaterinburg Non-Ferrous Metals Processing Plant from its gold and silver good delivery lists due to “ownership related issues”.

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 hits fresh 2018 low as rising yields lift dollar

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

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Gold slid more than 1% on Tuesday, falling for a third day to hit its lowest this year as a rise in US borrowing costs pushed up the dollar and overshadowed the impact of strife in Gaza.

Downward momentum in gold picked up after the metal broke below support at its 200-day moving average at $1,306 an ounce. That firmly underpinned prices earlier this month.

Spot gold lost 1.6% at $1,290.91 an ounce by 1:35 p.m. EDT (1735 GMT), earlier hitting its lowest since late December at $1,289.40. US gold futures for June delivery settled down $27.90, or 2.12%, at $1,290.30 per ounce.

Israeli troops shot dead dozens of Palestinian protesters on the Gaza border Monday when the high-profile opening of the US embassy to Israel in Jerusalem by the Trump administration raised tension to a boiling point.

But gold investors were fixated on the US dollar, which rose versus a currency basket as 10-year US bond yields shot above 3%, sending borrowing costs higher in a number of other countries.

“It’s a risk-off play across the board. The downward slide in pretty much all commodities and equities, you can refer that to a stronger dollar and higher yields,” said David Meger, director of metals trading at High Ridge Futures.

A Federal Reserve official backed the case for further US interest rate hikes, saying inflation had not yet reached the US central bank’s 2% goal in a sustained way.

Higher US interest rates tend to boost the dollar and bond yields, making greenback-denominated gold more expensive for holders of other currencies and denting the appeal of non-yielding assets such as bullion.

“The market’s been waiting for the next rate hike by the Fed … and I think gold prices are going to remain under pressure till we get through that hike,” ANZ analyst Daniel Hynes said in a note.

However if yields were to ease, bullion could recover lost ground over the coming days, Forex.com market analyst Fawad Razaqzada said. “Otherwise the only hope for dollar-denominated gold is a potential correction in the greenback now.”

Silver declined 1.5% at $16.26 an ounce, earlier hitting its lowest in nearly two weeks at $16.18 an ounce.

Platinum lost 1.2% at $893.99 per ounce, falling to a 1-1/2-week low of $892.24 per ounce.

Palladium dropped 1% at $986 an ounce, earlier dipping to a one-week low of $964. It broke support at its 200-day moving average at $988 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

Gold crawls up on safe-haven support; dollar limits gains

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

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Gold prices inched higher on Tuesday on safe-haven buying, but upside potential for the metal was capped by a firm dollar and outlook for further interest rate hikes in the United States.

Spot gold rose 0.1 percent to $1,313.54 per ounce at 0325 GMT.

US gold futures for June delivery were, however, down 0.4 percent at $1,313.40 per ounce.

The rising tensions in Gaza induced some safe-haven buying for gold earlier in the session, ANZ analysts said in a note.

Israeli troops shot dead dozens of Palestinian protesters on the Gaza border on Monday when the high-profile opening of the US embassy to Israel in Jerusalem by the Trump administration raised tension to boiling point after weeks of demonstrations.

“We’re seeing little sparks of interests on the back of these issues but at the moment it doesn’t look significant enough to raise concerns over the medium-term which support a more sustained level of safe-haven buying,” ANZ analyst Daniel Hynes said.

Meanwhile, a firmer dollar and stronger US bond yields on Tuesday, after a Federal Reserve official backed the case for further interest rate hikes in United States, were limiting upside for gold.

“The market’s been waiting for the next rate hike by the Fed… and I think gold prices are going to remain under pressure till we get through that hike,” Hynes said.

The US central bank is widely expected to raise benchmark interest rates at its next policy meeting in June.

Higher interest rates tend to boost the dollar and push bond yields up, making greenback-denominated gold more expensive for other holders and denting its non-yielding appeal.

The US yield curve could invert later this year or early 2019, St. Louis Federal Reserve James Bullard said on Monday, a scenario which has preceded recent U.S. recessions.

Elsewhere, three European Central Bank policymakers stuck with an upbeat assessment of the euro zone economy on Monday, shrugging off signs of a slowdown in inflation and activity.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.17 percent to 856.17 tonnes on Monday.

Spot gold may retest a support at $1,302 per ounce, Reuters technical analyst Wang Tao said.

In other precious metals, silver was unchanged at $16.50 per ounce. Platinum rose 0.2 percent to $906.50 per ounce, while palladium was 0.1 percent lower at $994.50.

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 firms as dollar rally pauses, geopolitical tensions simmer

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

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Gold rose on Thursday as the dollar edged away from 2018 highs after weaker than forecast U.S. inflation data and as simmering tensions between the United States and Iran lent the precious metal further support.

The dollar slipped from a 4-1/2 month peak after U.S. data showed the consumer price index rose 0.2 percent in April versus forecasts for a 0.3 percent increase. A weaker dollar makes dollar-priced gold cheaper for non-U.S. investors.

Also helping gold, viewed as a safe-haven investment, was U.S. President Donald Trump’s move on Tuesday to withdraw from a nuclear accord with Iran, raising the risk of conlfict in the Middle East.

Israel said on Thursday that it had attacked nearly all of Iran’s military infrastructure in Syria after Tehran fired rockets at Israeli-held territory for the first time.

“We’ve seen a (dollar rally) in the last few weeks, but actually gold hasn’t gone down as far as you might think, so political tensions are helping,” said Macquarie commodities strategist Matthew Turner.

Turner added, however, that the dollar was the main driver for gold and he expects the precious metal to come under pressure in the near term, with the dollar extending its rally.

Spot gold rose by 0.6 percent to $1,319.66 an ounce by 1237 GMT. U.S. gold futures for June delivery were also up 0.6 percent at $1,321.40.

Capping the precious metal’s gains was evidence of risk appetite, with global equities hitting a three-week high as rising oil prices gave energy companies a shot in the arm that countered the effects of increased political uncertainty.

North American gold-backed exchange-traded funds registered inflows in April at their highest level since September 2017, with safe-haven purchases ushered in by a trade stand-off between the United States and China, Syria tensions and worries about possible U.S. sanctions on Russia.

Spot gold looks neutral in a range of $1,302-$1,317 an ounce, said Reuters technical analyst Wang Tao.

In other precious metals, silver gained 0.6 percent to $16.59 an ounce after hitting a two-week high at $16.62 in the previous session.

Platinum rose 0.9 percent to $918.20 while palladium edged up by 0.1 percent to $975.72.

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 little changed amid firm dollar; Iran tensions support

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

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Gold traded sideways in a tight range on Thursday as the dollar held firm near its 2018 peak on strong U.S. bond yields, with investors also keeping an eye out for any further impact from U.S. President Donald Trump’s decision to pull out of a nuclear deal with Iran.

Spot gold was nearly unchanged at $1,311.82 per ounce by 0714 GMT.

U.S. gold futures for June delivery were 0.1 percent lower at $1,312 per ounce.

“This time around I think the rising geopolitical tensions in the Middle East added some safe-haven appeal to gold,” said Helen Lau, analyst at Argonaut Securities in Hong Kong.

“A lot of counteracting forces are playing against gold so that’s why it’s trading in a very tight range,” Lau said, adding that a firm dollar and rising U.S. Treasury yields were capping upside.

Asian stocks rose on Thursday with energy shares leading the way as crude oil prices bolted higher after U.S. President Donald Trump’s decision to scrap the nuclear deal with Iran.

Dismayed European allies sought on Wednesday to salvage the deal with Iran after Trump ordered sanctions be reimposed on Tehran.

The dollar held firm on Thursday after the 10-year U.S. bond yield rose back to the psychologically important 3 percent mark and investors looked to U.S. consumer price (CPI) data due later to show a acceleration in inflation.

The U.S. CPI data will also be scoured for outlook on the Federal Reserve’s interest rate hike path after weaker-than-expected data earlier this month did little to dampen expectations of a June interest rate hike.

Higher U.S. rates tend to boost the dollar and push bond yields up, adding pressure on greenback-denominated, non-yielding gold.

Elsewhere, investors are pushing back expectations for a rise in euro zone interest rates further into 2019 against a backdrop of soft economic data and disappointing inflation numbers, money market pricing suggested.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.14 percent to 862.95 tonnes on Wednesday.

Spot gold looks neutral in a range of $1,302-$1,317 per ounce, said Reuters technical analyst Wang Tao.

Meanwhile, in other precious metals, silver was 0.1 percent higher at $16.49 an ounce, after hitting a two-week high at $16.62 in the previous session.

Platinum rose 0.1 percent to $910.74 an ounce while palladium remained unchanged at $974.75.

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 dip as dollar regains footing

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

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Gold prices slipped in early trade on Wednesday, as the dollar regained ground after briefly dipping earlier following US President Donald Trump’s decision to pull out of the Iran nuclear deal.

FUNDAMENTALS

** Spot gold fell 0.2 percent to $1,311.81 per ounce at 0111 GMT.

** US gold futures for June delivery slipped 0.1 percent to $1,312.40 per ounce.

** The dollar index, which measures the greenback against a basket of six major currencies, was up 0.1 percent at 93.199.

** Trump on Tuesday pulled the United States out of an international nuclear deal with Iran, raising the risk of conflict in the Middle East, upsetting European allies and casting uncertainty over global oil supplies.

** Oil prices pushed higher in early trading on Wednesday after the Iran announcement, a move that may curb the OPEC-member’s crude exports in an already tight market.

** Trump and Chinese President Xi Jinping discussed ongoing trade issues on Tuesday, as both sides continue to position themselves amid a heated feud over tariffs between the world’s two largest economies.

** The US Federal Reserve is entering new terrain in its post-crisis planning: how to describe the conditions under which it would try to slow the economy and to do so without alarming financial markets.

** A stronger-than-expected rebound in German industrial output in March and an increase in exports in the same month helped to ease concern on Tuesday that growth in Europe’s biggest economy had come to a standstill at the start of the year.

** The slowdown in euro zone growth is not dramatic and the European Central Bank can still end its bond purchase scheme this year, ECB policymaker Vitas Vasiliauskas told German newspaper Boersen-Zeitung on Tuesday.

** Many Bank of Japan policymakers have set their sights on exiting from ultra-easy monetary policy and will favour raising interest rates if the economy continues to recover, former central bank board member Takahide Kiuchi told Reuters 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