Gold Prices Inch Up as Traders Weigh Trade Deal Impact on Markets By Investing.com


© Reuters.

By Alex Ho

Investing.com – Gold prices inched up on Monday in Asia amid speculation of the potential success of the U.S.-China trade deal that was signed last week.

for February delivery on New York’s COMEX traded 0.1% higher at $1,562.05 by 1:27 AM ET (05:27 GMT).

The yellow metal initially fell China agreed to purchase at least $200 billion worth of US goods over the next two yearslast week, but recovered some of its losses as analysts began to question the potential success of the deal, and the chances of the trade war recurring with both nations keeping much of the tariffs they had imposed on each other prior to the agreement.

Elsewhere, the U.S. Commerce Department reported strong U.S. housing starts and retail sales figure last Friday, reducing chances that the Federal Reserve would cut rates later this month.

The Fed slashed rates by a quarter percent point for three months back to back in 2019, before bringing that easing cycle to a halt in December. With U.S. economic data mostly upbeat now, analysts do not expect the central bank to embark on a new round of cuts unless the trade war recurs.

“Following a noteworthy positioning squeeze, the yellow metal is creeping higher once again,” TD Securities said in a note. “Along with positive expectations for growth comes the potential for inflation to creep higher, and without a commensurate Fed response, this would translate into lower real rates.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Gold Rebounds as China Deal Doubts Grow; Palladium Smashes Record    By Investing.com


© Reuters.

By Barani Krishnan

Investing.com – It seems difficult to keep down gold more than a day with the back-and-forth speculation of the success of the U.S.-China deal. More interestingly, it’s seems impossible to push down palladium, which hit record highs again Friday on supply concerns.

for February delivery on New York’s COMEX settled up $3.10, or 0.6%, at $1,560.30 per ounce. For the week, it was flat.

, which tracks live trades in bullion, was up $7.91, or 0.5%, at $1,560.45. For the week, it was down 0.1%.

Gold prices initially fell after China agreed to purchase at least $200 billion worth of U.S. goods over the next two years under the phase one deal signed on Wednesday between Chinese Vice Premier Liu He and U.S. President Donald Trump.

But as the days progressed, analysts have questioned the potential success of the deal and the chances of the trade war recurring with both nations keeping much of the tariffs they had imposed on each other prior to the agreement.

“Following a noteworthy positioning squeeze, the yellow metal is creeping higher once again,” TD Securities said in a note. “Along with positive expectations for growth comes the potential for inflation to creep higher, and without a commensurate Fed response, this would translate into lower real rates.”

The Federal Reserve cut rates by a quarter percent point for three months back to back in 2019, before bringing that easing cycle to a halt in December. With U.S. economic data mostly upbeat now, analysts do not expect the central bank to embark on a new round of cuts unless the trade war recurs.

jumped a whopping $177, or 7.7%, to $2,490 per ounce. It earlier hit an all-time high of $2,539.31.

were up up $77.45, or 3.6%, at $2,255.25, after touching a record high of $2,298.35.

Palladium led gains across commodities in 2019, with a 55% gain. It is up more than 28% year to date.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Gold Prices Rebound After Two-Day Fall; U.S.-China Deal Signing Eyed By Investing.com


© Reuters.

By Alex Ho

Investing.com – Gold prices rebounded on Wednesday, snapping its recent declining streak amid fresh uncertainties surrounding the U.S.-China trade front.

U.S. gained 0.6% to $1,553.15 by 12:47 AM ET (04:47 GMT).

Traders remained cautious ahead of the phase one trade deal signing later today, as U.S. Treasury Secretary Steven Mnuchin said tariffs on Chinese goods will be in place until the completion of a phase two agreement. Citing people familiar with the matter, Bloomberg reported that the phase two negotiations is not likely to start until after the American presidential election in November.

The yellow metal surged earlier this week as U.S.-Iran tensions drew safe-haven demand. However, risk sentiment recovered after the two nations said they did not seek an escalation of war.

“A week ago Iran-US news caused a pretty significant rally in gold; and now that has subsided.” SMC Global said in a note.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Gold prices down amid easing U.S.-Iran tensions By Investing.com


© Reuters.

Investing.com – Gold prices continued to fall on Friday in Asia as U.S.-Iran tensions deescalated, sending relief to market.

traded 0.44% lower to $1,547.45 per ounce by 11:00 PM ET (04:00 GMT). Prices of the precious metal dropped nearly 4% from this week’s peak.

On Wednesday, gold prices soared to $1,611, a seven-year high, after Iran fired ballistic missiles at two Iraqi air bases housing U.S. forces.

But the day after, U.S. President Donald Trump said he opted to impose new economic sanctions on Iran rather than calling for military action against the country.

Investors’ appetite for riskier assets improved as the move cooled down the tensions between the two countries and a war in the Middle East became more unlikely.

Most Asian markets continued to climb on Friday morning as well, as trade negotiations between the U.S. and China continued to move forward.

China’s Vice Premier Liu He, head of the country’s negotiation team in China-U.S. trade talks, is set to visit Washington next week to sign a trade deal with the U.S.

“We will have a symbolic event of Sino-U.S. dialogue. Given the current strength of the market, it is hard not to expect this rally to continue for the time being,” Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo, told Reuters.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Gold Holds Onto Gains to Settle Higher By Investing.com


© Reuters.

Investing.com – So long as Wall Street hits record highs investors can expect gold to show some resilience.

8830|Gold futures}} for February delivery on New York’s COMEX settled up $5.80, or 0.4%, at $1,560.10 per ounce.

, which tracks live trades in bullion, was up $6.11, or 0.4%, at $1,558.34 by 2:30 PM ET (19:30 GMT).

Gold rallied as the three major U.S. indexes hit record highs in early trading – with the topping 29,000 for the first time – and managed to hold onto those gains into settlement.

The yellow metal got some support later in the day as bond prices firmed on weaker-than-expected December payroll growth. That pushed interest lower, making non-yielding gold more attractive.

While gold typically takes the opposite route to stocks, since last year the correlation appears to have changed as investors seek insurance against the possibility of a sudden reversal on Wall Street after a streak of record highs in stocks since the start of the fourth quarter.

closed last year up 18% while gained 16%. Both are up almost 3% since the start of 2020.

“Gold continues its new higher trading range along with better stocks and dollar firmness,” said George Gero, precious metals analyst at RBC Wealth Management in New York. “As we see, you can’t count out gold with higher stocks and a firm dollar.”

The , another normally contrarian trade to gold, hit a one-week high of 97.303 on Friday before turning flat at 97.07.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



New Data Suggests Bitcoin and Gold Aren’t as Correlated as You Think By Cointelegraph


© Reuters. New Data Suggests Bitcoin and Gold Aren’t as Correlated as You Think

Bitcoin’s (BTC) classification has been a controversial and difficult topic for crypto-enthusiasts, investors, and regulators to reach a consensus on. The digital asset has been compared to a currency, a commodity, an investment asset or even said to have no underlying value. However, from the perspective of regulators, has been mostly associated and studied as a commodity, especially in relation to gold. In fact, many times Bitcoin is referred to as the “new gold” or “digital gold.”

This week, as tensions between the United States and Iran ramped up, gold reached a 6-year high while BTC price rose about 20%. Thus, analysts are attempting to re-evaluate to what extent commodities and other traditional assets are linked to Bitcoin’s long and short-term price action.

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Sudan opens up gold market in bid to raise revenue By Reuters



By By Ali Mirghani and Khalid Abdelaziz

KHARTOUM (Reuters) – Sudan has begun allowing private traders to export gold, a measure designed to crack down on smuggling and attract foreign currency into the country’s cash-strapped treasury.

Until now Sudan’s central bank has been the sole body legally allowed to buy and export gold and set up centers to buy the metal from small-scale miners.

Acting central bank governor Badr al-Din Abdel Rahim Ibrahim said on Jan. 1 the bank would end its gold purchases entirely.

Last week, a little-known private company founded in 2015, al-Fakher, became the first to take advantage of the new regulations, exporting an initial 155 kg.

Any added revenue from the new system would help Sudan’s government cope with severe economic pressure as it tries to navigate a three-year political transition. The government is serving under a military-civilian power-sharing deal struck after president Omar al-Bashir was ousted last year.

Sudan produced an estimated 93 tons of gold in 2018, Energy and Mining Minister Adil Ibrahim told Reuters in November, which would make it Africa’s third biggest producer after South Africa and Ghana, according to the U.S. Geological Survey.

In new regulations circulated on Jan. 1, the central bank said private mining companies could now export up to 70% of their production provided they deposited proceeds in local banks. They had to sell the other 30% to the central bank.

The companies would also have to sell any foreign currency they earned, unless used for their mining business, directly to the central bank at the official exchange rate, now 45 Sudanese pounds to the dollar. The black market rate is 88 pounds to the dollar.

Gold traders in Sudan welcomed the central bank’s move to open up exports but said the government-set exchange rate and the requirement to turn production over to the bank make the trade unattractive.

“We traders ask to be allowed to export the entire quantity of gold and refuse to give 30% to the Central Bank of Sudan,” said Mohamed Tabidi, a prominent jeweler and one of Khartoum’s main gold dealers.

“We ask that the central bank deal with us according to the market price and via direct negotiations.” The official exchange rate was unrealistic, he said.

SMUGGLING

Before the new regulations, the central bank bought gold at a discount to the international price. As a result, an estimated 70-80% of it was smuggled abroad, according to government officials.

The smuggling has hurt. The government lost its main source of foreign exchange when South Sudan seceded from Sudan in 2011, taking most of the country’s oil with it.

Gold production in the north began soaring just as oil income fell off, but because so much was smuggled abroad, the state was deprived of foreign exchange.

The central bank has been printing Sudanese pounds equivalent to $200 million a month to buy and export gold to finance subsidized commodities, mainly fuel and wheat, the finance ministry said in a 2020 budget statement last week.

“This has led to the loss of control of the economy and the transformation of the economy into a state of explosive inflation and near freefall of the exchange rate in the parallel market,” it said.

Any company can export gold under the same conditions al-Fakher followed, finance minister Ibrahim Elbadawi told the Sudanese News Agency.

One banker said the new system could ultimately succeed. “If they stick to it without changing the rules every now and then, and the players are truly private sector, then yes, it will work.”



Gold Pares Gains as Iran Jitters Ease; Palladium Tops $2,100 By Bloomberg



(Bloomberg) — pared most of its earlier gains amid indications that Iran’s retaliation over the killing of a top general had a limited effect. rose to a fresh record above $2,100 an ounce.

Earlier, gold spiked above $1,600 for the first time in nearly seven years after Iran attacked military facilities hosting U.S. troops. There were no American casualties in the strikes, a U.S. official said, asking not to be named because the information hasn’t yet been made public.

Read the latest news and updates on Iran here

Earlier, U.S. President Donald Trump tweeted: “All is well! and “So far, so good!” He intends to make a statement later Wednesday.

While gold’s blistering start to the year has been driven by the rising hostilities in the Middle East, the metal was already rallying last year as the Federal Reserve eased policy, governments added gold to reserves, and holdings in exchange-traded funds rose.

Spot gold jumped as much as 2.4% to $1,611.42 an ounce on Wednesday, the highest since March 2013. Prices had retreated to $1,577.73 by 12:51 p.m. in London.

In other precious metals, spot palladium climbed as much as 2.3% to hit a record $2,102.02 an ounce. and were little changed.

“The Iranian missile attack has resulted in significantly higher risk aversion among market participants, prompting them to seek refuge in gold as a safe haven,” Daniel Briesemann, an analyst at Commerzbank AG.

Gold hasn’t been this overbought since 1999, with the 14-day relative strength index moving deeper into territory that typically suggests securities could see a pull-back soon.

Still, most analysts expect the metal would rise further if the crisis escalated.

“We’ve seen tactical positioning moving higher, but we haven’t seen some of that longer-term investment demand coming into play yet,” Suki Cooper, precious metals analyst at Standard Chartered Bank, said in an interview with Bloomberg TV earlier Wednesday. “There’s more likelihood that we’ll see prices continuing to rise.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Stocks, gold and oil whipsawed as Iran strikes pushes Mideast to brink


SHANGHAI (Reuters) – Financial markets were roiled on Wednesday after Iran fired missiles at U.S. forces in Iraq, sending Asian stocks and U.S. Treasury yields sliding and sharply lifting oil prices as investors feared a wider conflict in the Middle East.

FILE PHOTO: Gold bars are displayed at the headquarters of Mitsubishi Materials Corporation in Tokyo January 9, 2008. REUTERS/Toru Hanai/File Photo

Iran’s missile attacks on the Ain Al-Asad air base and another in Erbil, Iraq, early Wednesday came hours after the funeral of an Iranian commander whose killing in a U.S. drone strike has intensified tensions in the region.

By late morning in Asia, however, equities had trimmed losses, the yen had stabilized somewhat and U.S. bonds tempered their rally as investors paused for breath, and as a U.S. official said the United States was not aware of any casualties from the strikes.

“We are getting exaggerated moves but that’s of course volatility playing. Markets simply hate uncertainty. It’s an old adage but it definitely holds true in the current situation – markets can price risks but they can’t price uncertainty,” said James McGlew, executive director of corporate stockbroking at Argonaut in Perth.

U.S. President Donald Trump said in a tweet late on Tuesday that an assessment of casualties and damage from the strikes was under way and that he would make a statement on Wednesday morning.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.47% around 0400 GMT, having dropped more than 1% earlier in the day. China’s blue-chip CSI300 index was 0.48% lower.

Japan’s Nikkei was down 1.2%, also paring earlier losses of over 2%, while Australian shares clawed back from a more-than-1% drop to shed just 0.14%. U.S. S&P500 e-mini stock futures, which had earlier dropped nearly 1.7%, were down 0.26%.

Rob Carnell, Asia-Pacific chief economist at ING in Singapore, said possible further escalation of tensions between Iran and the United States could still provoke a prolonged negative market reaction.

“If you see U.S. treasuries rallying a bit this morning, expect them to rally quite a bit further should there be a forceful response from the United States, which I’d imagine there would be…from a market perspective I think this one could run and run,” he said.

The yield on benchmark 10-year U.S. Treasury notes last stood at 1.7899%, down from a U.S. close of 1.825% on Tuesday, but up from session lows. U.S. 10-year Treasury futures had earlier peaked at their highest level since November, and were last up 0.24%.

The two-year yield fell to 1.5223% compared with a U.S. close of 1.546%.

The yen, which had hit its strongest point against the greenback since October in morning trade, gave up nearly all its gains midday in Japan. The U.S. currency was last down just 0.06% against the yen at 108.35.

The euro was up 0.03% to buy $1.1154 and the dollar index, which measures the greenback against six major peers, was 0.10% lower at 96.909.

In commodity markets, global benchmark Brent crude futures shot back above $70 per dollar to their highest level since mid-September, but were last up 1.61% at $69.37 per barrel. U.S. crude added 1.5% to $63.64 a barrel.

Gold also fell below a key psychological level as initial fears eased. The precious metal was 1% higher on the spot market at $1,590.21 per ounce, having earlier blasted through $1,600. [GOL/] Analysts said markets will be closely watching for confirmation of any U.S. casualties from Iran’s strikes.

“If it does look like we’ve got U.S. casualties, then I don’t think Trump is going to just stand back and take that,” said Matt Simpson, a senior market analyst at Gain Capital in Singapore. “World War III has been thrown around. I don’t think we’re there yet. But it does look like Iraq II.”

Slideshow (2 Images)

Reports of the attack threw the market off balance after better-than-expected data in the U.S. non-manufacturing sector helped to lift the dollar overnight.

The Institute for Supply Management said its non-manufacturing activity index rose to 55.0 last month from 53.9 in November, indicating a faster rate of expansion.

Shares on Wall Street had nonetheless fallen on Tuesday amid worries over U.S.-Iran tensions. The Dow Jones Industrial Average fell 0.42%, the S&P 500 lost 0.28% and the Nasdaq Composite dropped 0.03%. [.N]

Reporting by Andrew Galbraith; Additional reporting by Tom Westbrook in Singapore & Swati Pandey in Sydney; Editing by Shri Navaratnam



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Gold Holds Near Six-Year High as Traders Await Iran’s Next Moves By Bloomberg



(Bloomberg) — Gold held near the highest level in more than six years as risk appetite crept back into equity markets, with investors on alert for Iran’s next move in the showdown with the U.S.

, which climbed 2.4% over the past two days to approach $1,600 an ounce, was little changed Tuesday as equities in Europe and Asia jumped.

Bullion investors have been in thrall to developments in the Middle East in the past few days after a U.S. drone strike killed General Qassem Soleimani. Iran is assessing 13 scenarios to respond and even the weakest of those options would be a “historic nightmare” for the U.S., the head of Iran’s national security council was cited as saying by the nation’s semi-official Fars news agency.

“Elevated geopolitical risks across the heart of the Middle East should support a stronger gold price environment this winter,” Citigroup Inc (NYSE:). analysts including Tracy Liao wrote in a note. The bank cautioned that it’s difficult to trade gold purely from the angle of heightened military tensions, but noted there are “bullish fundamental tailwinds” in place.

Spot prices edged higher to $1,568.40 an ounce at 11:40 a.m. in London. On Monday, gold hit $1,588.13, the highest since April 2013.

History suggests that gains driven by geopolitical tensions alone may be short-lived, Macquarie Group Ltd. strategists including Marcus Garvey said in a report.

“To illustrate this with the examples of Gulf War 1, the World Trade Center attack of 9/11 and last year’s strike on Saudi Aramco’s Abqaiq facility, gold prices initially jumped higher but were ultimately unable to sustain their newly elevated level,” they said.

Still, there are several other factors in place that are supportive for gold prices, Credit Suisse (SIX:) analysts including Fahad Tariq said in a note this week. Those include a weaker dollar, dovish central bank policies and uncertainty over a more comprehensive deal between Washington and Beijing.

In other precious metals, hit a fresh record, with spot prices reaching $2,042.91 an ounce Tuesday. was little changed and gained.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.