Gold gains on overall dollar softness, markets eye Fed minutes - CNBC

Gold gains on overall dollar softness, markets eye Fed minutes - CNBC

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Gold prices edged up on Thursday, holding close to a three-month peak as the metal benefited from weakness in the dollar, with the market focus on minutes of the U.S. Federal Reserve's December policy meeting.

Spot gold rose 0.2% to $1,519.76 per ounce as of 1039 GMT, having touched the highest level since Sept. 25 at $1,525.20 on Tuesday. U.S. gold futures were down 0.1% at $1,522.30.

"We are seeing a bit of a bounce back in the dollar but if you look at the movements that we saw (in the past few days), it is probably supporting gold in the interim," said OANDA analyst Craig Erlam.

"There is a bit of a correlation between the two (dollar and bullion) right now, which is what really propelled gold from  $1,480 to $1,520," he said, adding a further upside in dollar could, however, add pressure to gold.

Against key rivals, the dollar inched up about 0.3% this session, but was trading not far from its July-2019 low touched on Tuesday. 

Beijing's decision to ease monetary policy further supported bullion, Erlam added.

China's central bank on Wednesday said it was cutting the amount of cash that all banks must hold as reserves, releasing  funds to shore up the slowing economy.  

Bullion prices posted their biggest annual rise in nearly a decade in 2019, boosted by the drawn-out trade war between the United States and China that dragged on global economic growth.

Many analysts said prices were likely to rise further in 2020, with shaky growth and global stock markets potentially looking unsustainable at record highs.

"A key thing to look out for is stock markets, which have been setting new highs and, in case there is some correction, we can see some capital flows into gold," said Brian Lan, managing director at dealer GoldSilver Central in Singapore.

Brexit, the U.S. presidential election, protests in Hong Kong and tensions with North Korea would be the other key factors for the market this year, he said.

Investor focus has now turned to the minutes of the Federal Reserve's Dec. 10-11 policy meeting, due at 1900 GMT on Friday.

"Friday's U.S. manufacturing ISM and the December Federal Open Market Committee (FOMC) minutes could provide an impulse," Stephen Innes, a market strategist at AxiTrader said in a note.

Lower interest rates encourage the buying of non-interest-paying bullion.

Among other precious metals, silver gained 0.3% to $17.88 per ounce, while platinum rose 1.5% to $977.48 and palladium edged up 0.5% to $1,949.40 per ounce.

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2020-01-02 11:28:00Z
https://www.cnbc.com/2020/01/02/gold-markets-dollar-us-china-trade-in-focus.html
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Gold prices today fall for second time in three days - Livemint

Gold prices today fall for second time in three days - Livemint

Gold prices edged lower today in Indian markets on the first day of the new year. On MCX, February gold futures prices today slipped 0.17% to ₹39,040 per 10 gram to log their second decline in three days. Tracking gold, silver prices also slipped today. MCX silver futures rates declined 0.42% to ₹46,515 a kg. In global markets, gold prices on Tuesday rose to a three-month high to clinch the best annual gains since 2010.

"Gold may may witness some profit booking at higher levels. US markets are closed today. Gold can dip lower to ₹38,900 while taking resistance near ₹39,100. Silver can dip towards ₹46,200 while taking resistance near ₹46,800," SMC Global Securities said in a note.

Gold prices in global markets rose 19% in a year marked by global economic jitters and trade frictions. Gold also got a boost as central banks globally embraced looser monetary policy to boost growth. Gold-buying from key central banks and exchange-traded funds have also helped support prices. Spot gold climbed as much as 0.7% to $1,525.38 an ounce on Tuesday. In other precious metals, silver rose 15% last year, platinum 22% while top-performer palladium surged 54%.

US President Donald Trump on Tuesday said the Phase 1 trade pact with China would be signed on January 15 at the White House, though confusion remains about details of the agreement.

Back in India, gold logged 25% gain last year, prices further boosted by an hike in import duty. Gold prices in India include 12.5% import duty and 3% GST.

Despite sharp gains last year, some analysts remain bullish on gold, citing global tensions,

"The year 2019 witnessed gold coming out of the six year trading range. Although it won’t match 2019 gains we expect a gain of 12% to 13% in 2020. Bullish factors include central banks buying as the low interest rate environment will push the bankers towards safety, weakness in dollar index and a surging global debt," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

On the other hand, JPMorgan Asset Management recently cautioned that bullion may not offer sound portfolio protection, making a case for a risk-on investment allocation for 2020 as the global economy gathers momentum in the wake of the recent slowdown.

"A lingering sense of caution over trade developments and lack of details on the Phase 1 deal may also stimulate appetite for gold during Q1 of 2020," SMC Global Securities said in a note. (With Agency Inputs)

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2020-01-01 06:02:42Z
https://www.livemint.com/market/commodities/gold-prices-today-fall-for-second-time-in-three-days-11577856169315.html
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