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Gold gains on U.S. election uncertainty, economic worries

Gold gains on U.S. election uncertainty, economic worries

An employee arranges gold bars for a photograph at the YLG Bullion International headquarters in Bangkok, Thailand.

Dario Pignatelli | Bloomberg | Getty Images

Gold firmed on Wednesday after last session’s sharp drop spurred demand for the safe-haven metal from investors worried about global economic recovery and uncertainty surrounding next month’s U.S. presidential election.

Spot gold was up 0.2% to $1,895.41 per ounce by 0947 GMT, after shedding as much as 1.9% on Tuesday in reaction to the dollar’s jump. U.S. gold futures gained 0.2% to $1,899.20.

“We’re seeing some price recovery as lower prices generated buying interest by investors since the general backdrop of gold is still positive,” said Commerzbank analyst Carsten Fritsch. “Low interest rates, expansion of monetary policy, ballooning public debt, uncertainty regarding U.S. elections; all these factors are supportive for gold prices,” he added.

Gold is considered a hedge against inflation and currency debasement amid the unprecedented levels of global stimulus to ease the economic blow from the pandemic. But investors who trim risk assets also tend to shift into the dollar and fading hopes for a new coronavirus relief package in the United States and a pause in key COVID-19 vaccine trials boosted the U.S. currency’s appeal, limiting gold’s advance.

The dollar hit a near one-week high against major currencies.

“In the near term, the dollar could continue to rise both because of risk aversion because stimulus seems to be stuck and also because of (company) earnings forward guidance,” said DailyFx currency strategist Ilya Spivak.

Investors also kept an eye on the U.S. presidential campaign, with polls showing Democrat rival Joe Biden leading the race.

On the technical side, “bullion will need to break through $1,920 to have the chance to once again challenge the psychological threshold of $2,000,” ActivTrades chief analyst Carlo Alberto De

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PRECIOUS-Gold gains on U.S. election uncertainty, economic worries

PRECIOUS-Gold gains on U.S. election uncertainty, economic worries

* Dollar hits near one-week high

* Equities hit by halted vaccine trials, stimulus talks
impasse

* Interactive graphic tracking global spread of coronavirus:
https://graphics.reuters.com/world-coronavirus-tracker-and-maps/

(Recasts, adds comments, updates prices)

By Brijesh Patel

Oct 14 (Reuters) – Gold firmed on Wednesday after last
session’s sharp drop spurred demand for the safe-haven metal
from investors worried about global economic recovery and
uncertainty surrounding next month’s U.S. presidential election.

Spot gold was up 0.2% to $1,895.41 per ounce by 0947
GMT, after shedding as much as 1.9% on Tuesday in reaction to
the dollar’s jump. U.S. gold futures gained 0.2% to
$1,899.20.

“We’re seeing some price recovery as lower prices generated
buying interest by investors since the general backdrop of gold
is still positive,” said Commerzbank analyst Carsten Fritsch.

“Low interest rates, expansion of monetary policy,
ballooning public debt, uncertainty regarding U.S. elections;
all these factors are supportive for gold prices,” he added.

Gold is considered a hedge against inflation and currency
debasement amid the unprecedented levels of global stimulus to
ease the economic blow from the pandemic.

But investors who trim risk assets also tend to shift into
the dollar and fading hopes for a new coronavirus relief package
in the United States and a pause in key COVID-19 vaccine trials
boosted the U.S. currency’s appeal, limiting gold’s advance.

The dollar hit a near one-week high against major
currencies. [USD/]

“In the near term, the dollar could continue to rise both
because of risk aversion because stimulus seems to be stuck and
also because of (company) earnings forward guidance,” said
DailyFx currency strategist Ilya Spivak.

Investors also kept an eye on the U.S. presidential
campaign, with polls showing Democrat rival Joe Biden leading
the race.

On the technical side, “bullion will need to break through
$1,920 to have the chance to

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Dollar holds gains as uncertainty weighs on market sentiment

Dollar holds gains as uncertainty weighs on market sentiment

TOKYO (Reuters) – The U.S. dollar held on to gains against most currencies on Wednesday as renewed questions about a coronavirus vaccine and lack of an agreement on additional U.S. fiscal stimulus prompted a shift to safer assets.

FILE PHOTO: U.S. dollar notes are seen in this picture illustration taken at the Bank of Taiwan in Taipei November 11, 2010. REUTERS/Nicky Loh

The yuan was little changed versus the dollar after the central bank’s daily fixing of the yuan’s mid-point was largely in line with estimates, suggesting authorities have paused their attempts to rein in the currency.

The euro and British pound are likely to extend declines, analysts said, as a return of restrictions on economic activity in Europe and Britain to battle a second wave of coronavirus infections unnerves investors.

Currency moves, however, are likely to be subdued as the U.S. presidential election looms on Nov. 3, but analysts said sentiment is leaning against riskier bets, which should support the dollar in the coming days.

“Many factors are pointing to more upside for the dollar,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.

“U.S. stimulus may not come until after the election. The People’s Bank of China is halting the yuan’s rise. There’s no reason to buy the euro, and there are a lot of euro longs that need to be unwound.”

The dollar last stood at $1.1744 per euro EUR=D3, holding on to a 0.6% gain from the previous session.

The pound GBP=D3 traded at $1.2932, nursing a 1% loss from Tuesday.

Sterling also took a hit due to worries about little progress in trade talks between Britain and the European Union and the chance the Bank of England will adopt negative interest rates.

Risk appetite has weakened after Johnson & Johnson JNJ.N said on Tuesday

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China Stock Market May Add To Friday’s Gains

China Stock Market May Add To Friday’s Gains

(RTTNews) – The China stock market returned from its long National Day holiday to the upside on Friday, after finishing lower in four of five sessions before the break. The Shanghai Composite Index now sits just above the 3,270-point plateau and it’s got a positive lead again for Monday’s trade.

The global forecast for the Asian markets is cautiously optimistic, with optimism for stimulus tempered by weakness from the oil markets. The European and U.S. bourses were up and the Asian markets are tipped to open in similar fashion.

The SCI finished sharply higher on Friday following gains from the properties and oil and insurance companies, while the financials were mixed.

For the day, the index spiked 54.02 points or 1.68 percent to finish at 3,272.08 after trading between 3,260.19 and 3,280.51. The Shenzhen Composite Index surged 66.42 points or 3.09 percent to end at 2,215.96.

Among the actives, Industrial and Commercial Bank of China fell 0.20 percent, while Bank of China collected 0.31 percent, China Construction Bank eased 0.16 percent, China Merchants Bank added 0.50 percent, Bank of Communications rose 0.22 percent, China Life Insurance advanced 0.95 percent, Ping An Insurance surged 2.15 percent, PetroChina gained 0.49 percent, China Petroleum and Chemical (Sinopec) increased 0.51 percent, China Shenhua Energy climbed 0.61 percent, Gemdale was up 0.21 percent, Poly Developments jumped 1.07 percent, China Vanke improved 0.04 percent and Beijing Capital Development spiked 1.64 percent.

The lead from Wall Street is solid as stocks opened higher on Friday and remained in the green throughout the session to finish higher for the third straight day.

The Dow climbed 161.40 points or 0.57 percent to finish at 28,586.90, while the NASDAQ spiked 158.94 points or 1.39 percent to end at 11,579.94 and the S&P 500 jumped 30.30 points or 0.88 percent to

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Sorrento Therapeutics (SRNE) Outpaces Stock Market Gains: What You Should Know

Sorrento Therapeutics (SRNE) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Sorrento Therapeutics (SRNE) closed at $11.29, marking a +0.98% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.88%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 1.39%.

Heading into today, shares of the biopharmaceutical company had gained 81.12% over the past month, outpacing the Medical sector’s gain of 3.5% and the S&P 500’s gain of 3.54% in that time.

SRNE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.21, up 50% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.32 million, up 78.46% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.96 per share and revenue of $2.05 billion, which would represent changes of +333.96% and +6411.95%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for SRNE. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SRNE is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note SRNE’s current valuation metrics, including its Forward P/E ratio

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