Gold Ends Week in $1,600 Zone After Epic U.S. Job Losses By Investing.com


© Reuters.

By Barani Krishnan 

Investing.com – Gold dug its heels into the $1,600 territory on Friday, ending its second week there, as investors turned again to the comfort of safe havens after epic U.S. job losses for March from the Covid-19 pandemic.

The United States lost 701,000 jobs in March as the pandemic bumped up the nation’s unemployment rate by the most in a month since 1975, the Labor Department said in its monthly employment report on Friday. 

The report came on the heels of Thursday’s weekly jobless claims by the department that showed a record 6.6 million Americans filed for unemployment insurance for the week ended March 28.

on New York’s COMEX settled up $8, or 0.5%, at $1,633.70 per ounce. For the week, the futures contract also gained about 0.5%.

, which tracks live trades in bullion, was up $7.48, or 0.5% at $1,621.76 by 4:00 PM ET (20:00 GMT). For the week, bullion dipped 0.1%.

“Gold volatility will remain high over the coming weeks, and despite this down week, prices should be supported in the long term as the impact of Covid-19 intensifies across the world,” said Edward Moya, analyst at online trading platform OANDA. 

”Fiscal and monetary stimulus will likely need to remain in place a lot longer and that should ultimately be the backbone of gold’s bullish stance.”

 

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 Joins ‘Everything Rally’ After Trump’s Oil Tweets By Investing.com


© Reuters.

By Geoffrey Smith 

Investing.com –Gold returned to trading like a risk asset on Thursday, rising over 2% in line with U.S. stocks as President Donald Trump called an end to the global price war in markets – albeit without any immediate corroboration from Saudi Arabia and Russia.

By 12:35 PM ET (1635 GMT), for delivery on the Comex exchange were up 2.4% at $1,629.40 a troy ounce.

was up 1.2% at $1,609.55 an ounce.

also rose 4.2% to $14.57 an ounce while rose 1.1% to $725.75.

Gold has tended to rise in recent weeks even when confidence has returned to risk assets, something that reduces the risk of forced selling of other holdings.

However, portfolio buyers have been constantly supporting prices for over a week, even without Trump’s intervention, convinced that the Covid-19 pandemic will require a prolonged period of low or negative real interest rates to support the global economy.

Bloomberg reported earlier Thursday that gold-backed ETFs have enjoyed eight-straight sessions of inflows, with just under 160,000 oz of inflows on Wednesday alone. So far this year, they’ve added a net 90.7 million ounces to their holdings.

Economic data continue to support expectations of loose monetary and fiscal policy. A further 6.6 million Americans filed initial claims for jobless benefits last week, double the previous week’s tally. That means that 6% of the U.S. workforce has filed initial claims in the last two weeks.

Analysts at Scope Ratings in Berlin argued that the looming recession will create additional risks for almost all kind of assets that are simultaneously someone else’s liability, including government bonds.

“The pandemic-linked recession will have a double impact on sovereign credit ratings,” Giacomo Barisone, head of public finance at Scope, said in a research note to clients. The “extraordinary mobilisation of monetary and fiscal policies to respond to the economic impact of the health crisis…will raise debt ratios longer-term and structurally weaken private-sector as well as government balance sheets.”

In addition, he argued, there will be cyclical pressures arising from more non-performing loans, unemployment and corporate defaults.

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 Crawl Above $1,600 as Risk Aversion Dominates By Investing.com


© Reuters.

By Geoffrey Smith 

Investing.com — Gold prices recovered fractionally on Wednesday after a sharp end-of-quarter selloff by portfolio investors drove it briefly below $1,600 an ounce.

Prices were lifted by a broad risk-off sentiment after U.S. President Donald Trump warned that up to 240,000 Americans could die in the Covid-19 pandemic and warned the public to brace for a painful next three weeks.

That, combined with other news detailing the global spread of the virus and the continued struggles of Europe in particular, helped demand for all haven assets, with the dollar rising across the board and long-dated Treasury yields falling by more than 10 basis points.

By 12:15 PM ET (1615 GMT), for delivery on the Comex were up 0.2% at $1,600.10 a troy ounce, while was up 0.7% at $1,588.44.

The rush for havens could have been worse, had the day’s U.S. data lived down to expectations. As it was, ADP’s private payrolls report for March didn’t include developments after March 12, while the ISM’s purchasing managers index for the month also fell by less than expected, to 49.1.  Even so, the sub-indices for new orders and employment fell to their lowest since 2009, ING’s chief international economist James Knightley noted.

“The headline index is being artificially boosted by a surge in the supplier delivery times component of the report,” Knightley said. “Normally, when delivery times are longer this reflects demand outstripping supply – a good situation. However today delivery times are extended because of the supply shock relating to Covid-19 with firms struggling to get inputs from China and increasingly from domestic suppliers because of company shutdowns, which is clearly a bad situation.”

The market also continued to digest the implications of Russia’s central bank selling gold after years of being a big net buyer. The CBR’s foreign reserves fell by some $30 billion, or over 5%, in the week to March 20 as it scrambled to prop up the ruble. As those interventions take place in the foreign exchange markets, the bank subsequently sells gold to keep its overall asset allocation stable.

Figures for last week are due to be released on Thursday.

Elsewhere in metals markets on Wednesday, were flat at $14.15 an ounce, while were down 0.8% at $723.49.

futures, which may one day be the herald of a revival in industrial activity, continue to struggle, losing 2.2% to $2.18 a pound.

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 Falls as Central Banks Drift Away From the Bid Side By Investing.com


© Reuters.

By Geoffrey Smith 

Investing.com — Gold prices retreated again on Tuesday under pressure from end-of-quarter repositioning, but also from the awareness that emerging market central banks, having been keen buyers of gold in recent years, are now having to push more out into the market to defend their currencies.

At the weekend, the Central Bank of Ecuador said it had raised $300 million through a one-month gold swap which involved pledging 240 thousand ounces of its reserves.

On Monday, the central bank of Russia confirmed widely-held expectations in saying it would stop buying gold from domestic producers on April 1, a move that will bolster its reserves as it fights to stop the ruble depreciating too fast against the dollar and euro. The CBR had already cut its purchases by around 40% last year as gold prices rallied to multiyear highs.

By 11:40 PM ET (1540 GMT), for delivery on the Comex exchange were down 1.2% at $1,624.20 an ounce, while was down 0.7% at $1,609.69. Arbitrage opportunities persisted amid reports that gold refiners are still struggling to ship gold to warehouses recognized by key exchanges.  

A further factor weighing on gold Tuesday was a second-straight day of gains for the dollar as it recovered its poise from last week’s selloff. A strong dollar drives up the price of gold in local currencies worldwide.

Elsewhere, rose 0.2% to $14.35 an ounce, while rose 1.4% to $733.70.

Other havens were mixed. Long-dated Treasury yields rising in response to President Donald Trump’s announcement via Twitter of plans for $2 trillion in infrastructure spending, an idea that, if ever agreed with Congress, would further embolden gold bulls who believe in the ultimate debasement of all fiat currency.

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 Drift Lower but Data, Central Banks Remain Supportive By Investing.com


© Reuters.

By Geoffrey Smith 

Investing.com — Gold prices were moderately lower on Monday as equities opened the week in positive tone, shrugging off President Donald Trump’s decision to keep the existing advice again non-essential business and movement in place until the end of April.

Trump had earlier hoped to lift the restrictions by Easter, which falls on April 12, hoping to sustain the economy ahead of the election in November. The Dallas Fed manufacturing index, which is heavily influenced by conditions in the oil and gas sector, fell to an unprecedented -70 in March, according to figures released on Monday.

However, with over 143,000 confirmed Covid-19 cases in the U.S., and with the number of new infections still rising rapidly, the President appears to have yielded to counsel from his scientific advisors.

By 11:25 AM ET (1525 GMT), for delivery on the Comex exchange were down 0.7% at $1,643.00 a troy ounce, while was down 0.8% at $1,618.80 – again opening up the arbitrage between physical and financial gold that was visible for most of last week.

were down 2.2% at $14.22 an ounce, while were down 2.5% at $722.95.

According to Commodity Futures Trading Commission data, positions on gold fell for a fourth straight week last week to their lowest so far this year. Nicholas Frappell, general manager at ABC Bullion in Sydney, said the move appeared to represent the liquidation of long positions, given that open interest in the contract had fallen smartly in recent weeks.

In theory, that should make it easier for gold to rally from the current level, as the overhang of speculative longs diminishes.  However, markets remain choppy as the medical emergency continues to play itself out.

Other havens, meanwhile, are starting to enjoy the tailwind of central bank support that does not blow for gold to the same extent, even if it does improve the relative yield position for the yellow metal. Long-dated U.S. Treasury yields fell by over 12 basis points Monday on the prospect of Federal Reserve buying, while the European Central Bank said it bought 15.6 billion euros of government bonds on Thursday and Friday alone as it opened its 750 billion-euro ($825 billion) Pandemic Emergency Purchase Program.

The ECB’s purchases still weren’t enough to hide the euro zone’s differences over joint debt issuance at the weekend, however, as European Commissioner Ursula von der Leyen raised hackles in Italy by calling the so-called ‘coronabonds’ “a buzzword” and deferring to resistance in Germany and elsewhere.

The between Italian and German borrowing costs, a rough indicator of eurozone breakup risk that is usually positive for gold, rose back above 200 basis points as a result.

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 Dips as Some Cash out, but Still Best Week in 12 Years By Investing.com



By Barani Krishnan 

Gold prices dipped Friday, but still ended with their best week in almost 12 years after investors cashed in on part of the yellow metal’s supercharged gains on the back of the gigantic U.S. fiscal response to the coronavirus crisis.

Gold was also pressured somewhat by the first rebound this week after the passage of the $2 trillion Covid-19 stimulus package in the House of Representatives.

on New York’s COMEX settled down $26.20, or 1.6%, at $1,625 per ounce. For the week, April gold finished with a 9.5% gain — the best week for a front-month gold futures contract on COMEX since the 13% gain recorded during the week to Sept. 12, 2008.

April gold also raced to as high as $1,699.15 on Tuesday, strengthening its chart position to take on the $1,700 resistance. That rally came as U.S. lawmakers and the White House reached broad agreement on the $2 trillion stimulus pending further negotiations.

, which tracks live trades in bullion, was down $31, or 1.9%, at $1,620.20 by 2:37 PM ET (18:37 GMT). For the week, bullion was up 8.2%.

“I usually say let’s look at the daily gold chart, but this is NOT a technically driven market currently,” Nicholas Degeorge, precious metals strategist at RJO Futures in Chicago, said. “However, let‘s keep it simple and note that this week’s low is $1,608, which could act as support, and if it breaks the $1,700 an ounce levels, hold onto your longs and enjoy the ride!”

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 on Course for Solid Weekly Gain Despite Pullback By Investing.com


© Reuters.

By Geoffrey Smith 

Investing.com — Gold prices fell on Friday as the yellow metal again reverted to trading like a risk asset as the “everything rally” of the last two days came to an abrupt end.

The steady stream of news depicting a further spread of the Covid-19 virus brought caution back to financial markets on Friday, with the U.S. outstripping China in numbers of confirmed cases. The record leap in U.S. joblessness last week continued to support belief in a long period of low or negative interest rates on other safe assets. 

Shrill tweets from President Donald Trump demanding faster production of medical ventilators from the auto industry did little to calm nerves, and appeared to contradict Trump’s assertions to Fox News the night before that the number of ventilators needed wouldn’t be as high as others, including New York Governor Andrew Cuomo, suggest.

By 12:10 PM ET (1610 GMT), for delivery on the Comex exchange were down 1.6% at $1,625.60 a troy ounce, on course for a gain of some 9% for the week. was down 0.2% at $1,625.12, having largely closed the arbitrage that opened vis-à-vis the futures contract earlier in the week.

Haven assets, however, were well bid in general. Medium- and long-term U.S. government bond yields fell by between five and seven basis points, flattening the curve as shorter-dated yields edged higher. Bloomberg reported earlier that ETFs bought gold for a fourth straight day on Thursday, bringing net purchases so far this year to 6.15 million ounces.

European government bonds, meanwhile, also fell – although spreads between core and periphery names widened as the euro zone’s fight over common debt issuance grew increasingly heated. Portugal’s Prime Minister Antonio Costa accused Dutch finance minister Wopke Hoekstra of advancing “repugnant” arguments in rejecting jointly-guaranteed “coronabonds” at this week’s Eurogroup meeting, illustrating the tension felt by some of the bloc’s weaker members as they face huge increases in borrowing to deal with the costs of the crisis.

Elsewhere, fell 0.8% to $14.55 an ounce, but were still on course for a weekly gain of some 16%, while were up 0.2% at $738.90 an ounce, a weekly gain of 20%.

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 Drops from Two-Week Highs to Stay Below $1,650 Level By Investing.com


© Reuters.

By Alex Ho 

 

Investing.com – Gold prices dropped on Friday in Asia as equities rebounded.

for April delivery on the Comex exchange slid 0.7% to $1,640.05 by 12:55 AM ET (04:55 GMT). 

Despite the losses today, gold prices still traded sharply higher this week, gaining over 8% and heading for its biggest weekly gain in over a decade as the total number of coronavirus cases across the world continued to rise. 

The U.S. has now overtaken China for the most confirmed cases worldwide, as infections in New York surged. 

Prior to the fall today, the yellow metal attracted some safe-haven demand overnight and gained about 1% after the Labor Department reported a record 3.28 million Americans filed for first-time unemployment benefits, signalling that the labor market could take a lot longer than anything afforded by the stimulus.

Separately, the Senate approved a stimulus package on Wednesday, the biggest of its kind ever. It’s expected to pass through the House and be signed into law by the end of the week.

While the official price tag on the package is $2 trillion,White House Economic Adviser Larry Kudlowsaid overnight that the stimulus could be as high as $6 trillion. 

 

 

 

 

 

 

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 Caught up in a New ‘Everything Rally’ After Jobless Surge By Investing.com


© Reuters.

By Geoffrey Smith 

Investing.com — Gold prices rose again on Thursday as a record increase in U.S. jobless claims encouraged expectations of yet more stimulus, a process that many gold investors will ultimately lead to the debasement of fiat currencies.

By 12:10 PM ET (1610 GMT), for delivery on the Comex exchange were up 0.8% at $1,646.30 a troy ounce, while was at $1,628.38, up 0.7%.

Both were caught up in an “everything rally” after the news that 3.28 million Americans filed for first-time unemployment benefits strengthened belief that more government and monetary stimulus will be necessary to counter the economic impact of the Covid-19 pandemic.

The corollary of that is an even longer period of low or negative interest rates, factors that have tended to support gold in the past.

Stocks as well as bonds and gold rallied in response.

“We knew that today’s figure was going to be bad, just not quite this bad,” said ING’s chief international economist James Knightley. “The longer the crisis lasts the more likely that even good quality businesses will fail and unemployment will climb higher – hence the importance of the agreement on the fiscal package that can provide support for key industries and small businesses.”

The Senate approved a $2 trillion stimulus package on Wednesday, the biggest of its kind ever. It’s expected to pass through the House and be signed into law by the end of the week.

Elsewhere, the European Central Bank triggered a sharp rally in peripheral eurozone debt by stating clearly that it will abandon its self-imposed limits on which governments’ debt it buys under its new quantitative easing program.

The move is likely to be challenged by Germans and others who see it as a big step toward the mutualization of debt across the currency union. That in turn is also likely to underpin gold investment demand in those countries in anticipation of underperformance by German, Dutch or Austrian sovereign bonds.

Elsewhere in metals on Thursday, fell 0.8% to $14.75 an ounce, while fell 1.0% to $738.15. futures, a proxy for industrial activity, fell 0.7% to $2.19 a pound, after Chinese President Xi Jinping hinted at a slow economic rebound in China in a speech that warned of a big hit to global demand.

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 Retreats After Biggest Gain in a Decade; Physical Squeeze Eases By Investing.com


© Reuters.

By Geoffrey Smith 

Investing.com — Gold prices retraced on Wednesday after posting their largest one-day gain in a decade on Tuesday on a flood of new bets on a future of low or negative returns on alternative-haven assets.

By 12:10 PM ET (1610 GMT), for delivery on the Comex exchange were down 1.9% at $1,629.90 a troy ounce, while was down 0.4% at $1,610.88.

As such, the wide spread between futures and spot market that opened up earlier this week had largely closed.

A shortage of gold for settlement under Comex rules had led to the contract trading up to $40 above the spot product. However, CME Group (NASDAQ:) and the London Bullion Market Association moved late on Tuesday to address the problem by ensuring that the LBMA’s 400-ounce bars would also be acceptable for settling Comex contracts.

Analysts at BMO Capital Markets said the episode was short-term dislocation rather than anything structural.

However, the bottom line is that the episode didn’t arise out of a lack of demand for gold, which continues to attract heavy interest from portfolio investors as the unjamming of bond markets by central banks leads to sharp falls in haven yields. The has fallen from 1.27% to 0.81% in less than a week, while ultra-safe yields turned negative in early trading on Wednesday.

“The long-term implications of ballooning budget deficits, negative real rates, and debasement of currencies should support gold in future,” World Gold Council’s David Tait said in e-mailed comments.

Haven assets are bracing for what should be the biggest data release of the week on Thursday, the announcement of U.S. initial jobless claims for last week. Most forecasts predict an all-time high of over 2 million, reflecting the collapse in demand for most non-essential services. Markit purchasing manager indices released on Tuesday showed that services, which account for the lion’s share of employment, weakened much more sharply than manufacturing as the Covid-19 pandemic exploded.

That underlines the importance of income support measures for workers in the stimulus package currently going through Congress, inasmuch as they represent the best – perhaps the only – defense against the start of a deflationary spiral.

Capital Economics analyst Alexander Kozul-Wright argued in a note to clients on Wednesday that deflation is perhaps the biggest threat to gold prices right now. He kept his year-end forecast unchanged at $1,600.

Elsewhere in metals markets Wednesday, rose 2.3% to $14.59 an ounce, while the shutdown of South African mines helped to another 20% rise, and to a gain of 2.7% to $721.50 an ounce.

 

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.