Browsed by
Tag: worries

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

Read the rest
Stocks Tick Up After Goldman Earnings Soar, But Key Economic Indicator Shows Consumer Worries

Stocks Tick Up After Goldman Earnings Soar, But Key Economic Indicator Shows Consumer Worries

Topline

Stocks barely budged Wednesday morning after a mixed bag of pre-market earnings results revealed that the economic recovery is still suffering from weak fundamentals.

Key Facts

As of 9:35 a.m., the Dow Jones Industrial Average had edged up .1%, while the S&P 500 and the tech-heavy Nasdaq ticked up .2% and .5%, respectively.

Shares of Goldman Sachs climbed 1% after the New York-based investment banking giant reported $3.5 billion in profits and a 30% surge in revenue fueled by the mid-pandemic trading boom. 

Bank of America, on the other hand, failed to impress investors, posting mixed results for the third quarter that beat analysts expectations on profits, which totaled $4.9 billion, but fell behind on revenue expectations; its shares are down nearly 3%.

Wells Fargo shares are down 3% after reporting a 56% drop in quarterly earnings due to decreased interest income in light of historically low interest rates, the firm said.

Global markets were also fairly tepid on Wednesday: As of market open, the United Kingdom’s FTSE 100 had fallen .4%, and France’s CAC 40 was virtually flat, while Japan’s Nikkei 225 ended Wednesday up just .1%.

The consumer price index for September–a key measure of inflation–came in slightly below expectations, rising .19% during the month and leading to an unchanged year-over-year rate of 1.7%.

Key Background

The Covid-19 pandemic threw the economy into a deep recession, and Federal Reserve Vice Chairman Richard Clarida said Wednesday morning that the U.S. economy needs another year–or maybe more–until it fully recovers. The recovery thus far has been marked by slowed job growth, layoffs that remain high and a volatile stock market that’s been rocked in recent weeks by mounting uncertainty around

Read the rest
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

Read the rest