Gold Prices Rebound as Havens Sought Ahead of Powell Testimony By Investing.com


© Reuters.

Investing.com — Gold and silver prices rebounded on Wednesday as the negative implications of President Donald Trump’s speech on Tuesday filtered through to markets – albeit with something of a delay.

In a keynote speech, Trump had again played down talk of a mutual roll-back of tariffs with China and threatened to raise import tariffs much higher. On the evidence of the year so far, such a step could quickly feed through into a further slowdown in the global economy, requiring yet more policy support from the world’s central banks.

Prices were held in relatively narrow ranges as the market awaited Congressional Testimony later in the day from Federal Reserve Chairman Jerome Powell. Markets have all but ruled out any action from the Fed at its December policy meeting, but many still expect it to cut U.S. interest rates again next year against the backdrop of stuttering economic growth.

Consumer inflation data released earlier did not, at first glance, strengthen the case for Fed action significantly. Although the rate of inflation ticked down to 2.3% from 2.4%, the headline number ticked up to 1.8% from 1.7%.

By 9:45 AM ET (1445 GMT), for delivery on the Comex exchange had rebounded to $1,464.85 a troy ounce, up 0.8% on the day, and up nearly 1% from Tuesday’s lows below $1,450.

was was up 0.4% at $1,463.45 an ounce.

Although the rally in gold and other haven assets has cooled in recent weeks, some point out that the longer-term strategic support to prices from global monetary policy hasn’t gone away.

“Don’t forget the fact that 70% of developed markets worldwide are in negative rate territory, and gold is global,” said World Gold Council managing director Joe Cavatoni in an interview with TD Ameritrade.

Analysts at ABN AMRO (AS:) said in a research note that they were keeping their year-end forecast for 2020 at $1,600/oz.

The U.K., a source of much portfolio buying of gold this year, inched closer to its next interest rate cut on Wednesday as the rate of fell to a three-year low of 1.5%, while annual produce price inflation fell to 0.8%, also a three-year low. The Bank of England had warned last week that it may have to cut interest rates in the new year if the prolonged uncertainty over Brexit – along with the global slowdown – continue to create spare capacity in the economy.

Elsewhere, rose 1.2% to $16.90 an ounce, while rebounded 0.4% to $873.90.

U.S. government bond yields fell by between 1 and three basis points, meanwhile.

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.



Oil is our gold and we aim to use all of it, ADNOC official says


ABU DHABI (Reuters) – Abu Dhabi National Oil Co aims to exhaust its vast oil and gas reserves even as many consumers switch to cleaner sources of energy, a senior executive in the Gulf oil company said.

FILE PHOTO: A general view of ADNOC headquarters in Abu Dhabi, United Arab Emirates May 29, 2019. REUTERS/Christopher Pike/File Photo

The world’s transition away from fossil fuel in an effort to slash greenhouse gas emissions is expected to accelerate in coming decades, leaving many oil companies and producing nations pondering their long-term future.

But for state-run ADNOC, the main oil-producing company in the United Arab Emirates, which supplies nearly 3% of global oil demand, crude is set to remain the revenue backbone, ADNOC’s upstream executive director Abdulmunim al-Kindy told Reuters.

“Our oil is our gold,” al-Kindy said in an interview during the ADIPEC oil and gas conference in Abu Dhabi, capital of the UAE.

“With the reserves we have, the challenge we have is monetizing it at the right time.”

To achieve that, ADNOC has undergone a drive to slash extraction costs to rival other major producers including OPEC heavyweights Saudi Arabia and Iraq.

ADNOC has embarked on a broader transformation strategy since 2016, expanding its oil and gas business, listing one of its subsidiaries and overhauling its trading operations.

This week it announced it was listing its flagship Murban crude grade and has partnered with Intercontinental Exchange Inc and oil majors including BP, Total and Shell in a new exchange to be launched in 2020.

“We are really the lowest-cost producers because of the efficiencies we drive,” al-Kindy said.

ADNOC is also seeking to diversify the sources of energy it can offer.

The company is in the midst of a vast expansion of its production of natural gas, the least polluting fossil fuel whose demand is forecast to rise sharply in the coming decades as Asian economies consume more power.

It has signed deals with oil majors to boost its gas output and has said it was seeking investment opportunities abroad in liquefied natural gas (LNG).

“Whatever resources we have, we are going to really drive the monetization of these resources. We are not going to leave anything in the ground if we can,” he said.

“That’s the bottom line. Be it gas, conventional or unconventional, oil, conventional or unconventional, it is going to come to the market and that’s our aim.”

ADNOC aims to reach 1 billion cubic feet per day of unconventional gas production before 2030.

The UAE wants to achieve gas self-sufficiency and possibly become a net gas exporter.

A growing number of climate activists and investors have warned that to meet the 2015 Paris Agreement goal of limiting global warming to “well below” 2 degrees Celsius, many of the world’s oil and gas resources cannot be tapped.



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Gold Prices Test Lows Again as Market Awaits Trump Speech By Investing.com


© Reuters.

Investing.com — Gold prices edged lower on Tuesday ahead of a keynote speech by President Donald Trump at 12 PM ET (1700 GMT) that is widely expected to set the tone for risk appetite this week.

Trump is due to address the Economic Club of New York in a speech that should enlarge on his thoughts about the trade dispute with China and – more immediately – whether his administration will decide whether or not to impose import tariffs on European autos. The official deadline for that latter decision is Wednesday.

European Commission President Jean-Claude Juncker and Commerce Secretary Wilbur Ross both raised hopes that tariffs would be avoided with comments last week. As such, the reaction function of haven assets may be skewed to the upside, given that consensus is for an outcome that would be bullish for risk assets.

By 10:55 AM ET (1555 GMT), for delivery on the Comex exchange were down 0.4% at $1,451.35 a troy ounce, having earlier again tried and failed to break out below the $1,450 level.

was down 0.3% at $1,450.99 an ounce.

There was little support from the bond market. Short-dated Treasuries, the most liquid alternative haven, have all but priced any further interest rate cuts from the Federal Reserve in December out of the equation. U.S. yields were flat at 1.67%. A rise of nearly 30 basis points in two-year yields since early October has greatly enhanced bonds vis-à-vis non-yielding gold.

Silver also extended its recent losses, the contract falling 0.8% to $16.67 an ounce, while fell 1.2% to $869.80.

“The mood toward precious metals has darkened significantly in the last two weeks,” said Commerzbank (DE:) strategist Christoph Geyer in a research note. “Important support levels and trends have been broken. It’s no longer a question of when new highs will be made, but whether the next support level can be held.”

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 Fall Briefly Below $1,450 Despite Risk-Off Move By Investing.com


© Reuters.

Investing.com — Gold prices fell to a fresh three-month low on Monday, failing to get meaningful support from a general risk-off move in other markets on a day when hopes of a trade truce between the U.S. and China faded.

By 11:15 AM ET (1615 GMT), for delivery on the Comex exchange were down 1.0% at $1,454.65. a troy ounce, having fallen earlier through the $1,450 level for the first time in more than three months.

was down 0.3% at $1,453.66 an ounce.

The move was all the more striking for taking place when the U.S. bond market was shut for Veterans’ Day, restricting the choice of those who might have sought haven assets as stocks retreated from last week’s highs.

While there was no clear catalyst for the fall, most of which happened during U.S. hours, some U.K.-driven haven buying – a key prop of this year’s rally among portolio investors – may have unwound after the U.K. Brexit Party said it wouldn’t fight sitting Conservative lawmakers in the upcoming election on Dec. 12. That improves the chances of a Conservative majority in parliament and thus the completion of the U.K.’s withdrawal from the EU in the new year.

and were also battered, as the reversal that started last week shook out some of the weaker speculative long positions that have accumulated in recent weeks.

According to Commodity Futures Trading Commission data published on Friday, speculative long interest in hit their highest level in six weeks last week, while long silver positions also stayed at historically high levels despite a modest decline.

But the trend of recent months could be about to turn, according to cross-asset analysts at JPMorgan (NYSE:) led by John Normand.

“In our view, this fall marks the beginning of a bottoming out process in the global economy, judging from leading-edge indicators like inventory measures, manufacturing new orders indices and manufacturing output PMIs,” Normand’s team wrote in a weekly note to clients.

As such, it may be time to rotate out of defensive commodities such as gold and into cyclical ones such as oil and base metals, they said.

There wasn’t much sign of industrial commodities benefiting on Monday though. futures also fell 0.6% to $2.67 a pound, while aluminum futures fell 1.2% in London.

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 Suffers Worst Week in Three Years as Bulls Run for Cover By Bloomberg



(Bloomberg) — headed for the biggest weekly loss in three years as progress in U.S-China trade talks hammered demand for havens and sent miners’ shares tumbling.

The metal dropped 3.5% this week, the most since November 2016, as China and the U.S. indicated they are heading toward an interim deal to halt the trade war. Some signs of stabilization in the global economy have also dented gold’s allure, and JPMorgan Chase (NYSE:) & Co. and Citigroup Inc (NYSE:). closed out their bets on the traditional haven.

Other precious metals also plunged this week, with losing almost 7% of its value.

Gold prices got a lift this year from trade frictions, interest rate cuts from the Federal Reserve, and robust demand from investors and central banks.

That trio of drivers is now under attack as the two largest economies near an initial pact, with the sides agreeing to a tariff rollback as part of any deal. At the same time, the U.S. central bank recently indicated that, after three rate cuts, policy makers are now pausing.

Gold remained under pressure on Friday even as stocks took a breather after Thursday’s gains.

The large long positions in gold left the metal vulnerable to sharp drops, said Georgette Boele, an ABN Amro Bank NV strategist.

“If only a small amount of positions is closed, gold prices are back at $1,400,” she said. A profit-taking wave could turn into a “bearish vibe,” causing investors to doubt the positive outlook in gold prices, she said.

was down 0.5% on Friday at $1,460.99 an ounce, after tumbling 1.5% on Thursday. Australia’s Newcrest Mining Ltd (ASX:) hit a five-month low and AngloGold Ashanti Ltd (JO:) dropped to the lowest since Oct. 1.

“The principal driver behind the weakness in gold has been increasing optimism about the trade outlook,” John Sharma, an economist at National Australia Bank Ltd., said in an email. “However, it should be remembered that the trade deal is not done and dusted.”

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 Suffers Biggest Weekly Loss In 3 Years on U.S.-China Trade Drama By Investing.com


© Reuters.

By Barani Krishnan

Investing.com – Global markets can’t decide where the U.S.-China negotiations are going, yet hopes for a trade deal remained alive on Friday, prompting gold to fall again for its biggest weekly loss in three years.

for December delivery on New York’s COMEX settled down $3.50, or 0.2%, at $1,462.90 per ounce after plumbing three-month lows for a second-straight day at $1,457.10. For the week, it fell 3.2%, its most for a week since November 2016.

, which tracks live trades in bullion, was down $5.31, or 0.4%, at $1,462.51 per ounce by 2:15 PM ET (19:15 GMT). Its session low was $1,456.33, a bottom since August 5.

“It’s been a tough week for gold bugs,” TD Securities said in a note. “With algorithmic selling still the order of the day, which further saps liquidity from the market, the overextended long positions are in for more pain ahead.”

The Canadian bank-backed brokerage estimated that the weighted average breakeven entry price for longs on COMEX stood at $1,434 per ounce, suggesting more pain ahead.

“The fact that gold’s preliminary open interest appears to have actually crept up, suggesting fresh shorts and sticky length, supports our view that more long liquidations could be ahead,” it said.

Still, not all might be lost for those still hopeful for a gold comeback, TD Securities said.

“An interesting point of note, our analysis of the weekly positioning deltas highlights that a significant amount of length has been accumulated in the $1,425/oz – $1,450/oz range, with an estimate of net 54,000 plus lots built in that region in the last year.”

On the U.S.-China trade front, President Donald Trump poured cold water on remarks from Chinese commerce minister Gao Feng a day ago that Beijing and Washington have agreed to phase out their tit-for-tat tariffs.

“They’d like to have a rollback, I haven’t agreed to anything,” Trump told reporters. “China would like to get somewhat of a rollback — not a complete rollback, because they know I won’t do it.”

For added measure, White House economic adviser Larry Kudlow said after Gao’s remarks on Thursday that “if there’s a phase one trade deal, there are going to be tariff agreements and concessions.”

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.



$500K Bitcoin Price ‘Flippening’ of Gold Will Come by 2028 By Cointelegraph


© Reuters. Bobby Lee: $500K Bitcoin Price ‘Flippening’ of Gold Will Come by 2028

(BTC) will surpass the market cap of gold and could ultimately be worth $1 million, well-known industry figure Bobby Lee has said.

In a series of tweets on Nov. 10, Lee, who co-founded Chinese cryptocurrency exchange BTCC and now runs a Bitcoin wallet startup, became the latest voice in the expanding debate on Bitcoin versus gold.

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.



JPMorgan and Citigroup Get Out of Gold to Tilt Toward Risk By Bloomberg



(Bloomberg) — Strategists at two giant Wall Street banks closed out their bets on gold as the traditional haven gets a hammering from investors shifting to risk-on mode.

JPMorgan Chase (NYSE:) & Co.’s asset-allocation team including Marko Kolanovic, Nikolaos Panigirtzoglou and John Normand said it unwound its gold hedge, moving to an underweight recommendation from an overweight one. Citigroup Inc (NYSE:). strategists including Jeremy Hale abandoned a long position in gold, in their asset-allocation note Thursday.

The rejigging comes amid the worst week for gold since May 2017, when riskier assets were propelled by the story of synchronous global growth and havens were in little demand. Bonds have also been losers, and the two teams made adjustments there as well: Citigroup opened a short bet against German bunds, and JPMorgan went more deeply underweight on its government-bond position.

“Signs of a cyclical recovery, easing geopolitical tensions, synchronized monetary easing, and defensive investor positioning across asset classes” spurred JPMorgan to tilt more toward risk, the bank’s strategists wrote in a note Thursday.

Indications that Washington and Beijing are heading toward an interim deal to halt the trade-war, and some signs of stabilization in the global economy’s slowdown have driven market shifts in the past month.

Citigroup isn’t going whole hog on the reflation trade, however. Its strategists still see an elevated risk of an American recession in the second half of 2020, and refrained from cutting their long position in Treasuries.

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 Hit 3-Month Low as Trade Deal Hopes Spur Risk Assets By Investing.com


© Reuters.

Investing.com — Gold prices tumbled to a three-month low on Thursday as growing confidence in a trade rapprochement between the U.S. and China drove bond yields and risk assets higher across the board.

The Chinese Ministry of Commerce said that the two countries had agreed to roll back import tariffs on each other goods in phases as part of a preliminary truce. While that wasn’t expressly confirmed by U.S. sources on Thursday, it gels with recent reports that have cited unnamed Washington sources indicating that the Trump administration is prepared to back down on the use of its favorite trade weapon.

By 11:13 AM ET (1613 GMT), for delivery on the Comex exchange were down 1.5% at $1,470.15 a troy ounce, having earlier fallen as far as $1,468.95, their lowest since the start of August, when President Donald Trump threatened his most dramatic increase in import tariffs yet on Chinese goods.

was down 1.4% at $1,469.62.

tumbled 2.3% to $17.19 an ounce, while fell 1% to $922.45.

Precious metals were struggling to keep their attractiveness as yields on U.S. Treasury bonds also broke out of recent ranges to the upside. The yield rose 11 basis points to 1.93%, also a three-month high, while the rose to a six-week high of 1.67% as hopes of any further interest rate cuts from the Federal Reserve faded. According to Investing.com’s , the chance of a further rate cut at the Fed’s policy meeting in December has now fallen to less than 5% from over 25% a week ago.

Flow data suggest that even without the turnaround in sentiment, portfolio investors had become more leery of piling into gold-backed ETF products in October as prices reached new highs. According to data compiled by the World Gold Council, ETF holdings of gold-backed products rose by only 1.42 million ounces, or 44 tons, in October – the smallest monthly increase since May.

Over two-thirds of that increase came from European funds, in an apparent response to the European Central Bank’s latest package of easing measures. Less than one-third came from North American investors, by contrast.

The differing regional dynamics were in evidence again on Thursday as the Bank of England indicated it may have to cut interest rates again if the prolonged economic uncertainty emanating from Brexit and the U.S.-China trade dispute continues.

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 Again as Risk Appetite Builds on Trade Hopes By Investing.com


© Reuters.

Investing.com — finally cracked Tuesday as growing hopes of a U.S.-China trade truce encouraged more and more market participants to move out of haven assets.

Yields on other haven assets such as government bonds rose to their highest in nearly a week, with the and U.S. Treasury yields both gaining six basis points to reach 1.85% and 2.34% respectively.

Rising yields make non-interest-bearing bullion unattractive by comparison, and for delivery on the Comex exchange were down over 1.3% by 10 AM ET (1500 GMT) at $1,490.35 a troy ounce, while was down 0.3% at $1,489.35.

were also hit, falling back below $18 an ounce to trade at $17.67, down 2.2% on the day. were down 0.5% at $934.35.

The chances of a rapprochement between the U.S. and China appeared to have increased on Tuesday after reports in both the Financial Times and the Wall Street Journal saying that the U.S. administration may be prepared to annul the September increase in tariffs on Chinese imports, which affected over $100 billion worth of annual imports.

Rising tariffs have been identified as a major brake on the global economy by many including the International Monetary Fund, and their reversal should logically support global growth and reduce the likelihood of any further cuts in interest rates, thereby removing one of the biggest factors behind this year’s rally in gold.

Ulrich Stephan, a strategist with Deutsche Bank (DE:), said in a morning note that further cuts will be conditional on “substantially worse economic data” – something that looks less likely in the wake of the strong U.S. employment report for October and an increase in export orders last month, as measured by the Institute of Supply Management’s business survey.

Tuesday’s data, meanwhile, kicked off with the research survey estimating that retail sales grew some 5.5% on the year in October, up from 4.5% in September.

All this is happening as a high historical price level appears to be discouraging traditionally important marginal buyers. The World Gold Council estimated (in an admittedly largely backward-looking report) that bar and coin investment halved in the third quarter to 150 tons, while jewellery demand fell 16% to 461 tons. At the same time, higher prices encouraged a 10% rise in recycling, meaning that overall supply rose by 4% to 1,222 tons despite stagnant mine output.

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.