Gold gained little bit on a softer dollar yesterday as a mounting number of COVID-19 cases and their economic toll raised investor expectations of further fiscal and monetary support. Gold has found its floor and there’s some evidence of good buying at these lower levels. The lower price has stimulated good physical buying in the Asian markets.
Gold prices edged up yesterday helped by a weaker dollar, though a robust appetite for riskier assets kept the safe-haven metal near a more than four-month low hit. U.S. is gearing up for a vaccine roll out within weeks, an AstraZeneca vaccine that works better in small doses and can be stored at higher temperatures than those being produced by Pfizer and Moderna.
Gold market had been spooked by news that the U.S. is gearing up for a vaccine roll out within weeks, an AstraZeneca vaccine that works better in small doses and can be stored at higher temperatures than those being produced by Pfizer and Moderna. What eventually took it lower was the dollar knee-jerk reaction higher in response to much stronger than expected U.S. PMI data. While the dollar later turned lower, the damage to gold had already been done with the break below support attracting long liquidation and short-selling signals from algos.
Gold is viewed by many as the archetypal haven asset, inevitably driven higher in times of turmoil. By that logic, a beginning of the end of the crisis would signal a turning point for the rally. But the precious metal also serves as a hedge against inflation. And with the massive amounts of money being poured into the global economy this year, any signs of rising consumer prices could send investors diving back to bullion.
Spot gold headed for its longest slump since March, dropping for a fourth straight day as positive vaccine developments spurred investors to unwind holdings in exchange-traded funds backed by the metal. Holdings in gold-backed ETFs sold off for a fifth straight session on Wednesday, and have dropped more than 50 tons since Pfizer Inc. announced its coronavirus vaccine breakthrough last week as demand for bullion as a haven waned.
India’s gold imports declined 47.42% from the year ago to $9.28 billion during April-October 2020 due to lack of demand during the Covid-19 pandemic. Silver imports dipped as well, by 64.65% to $742 million. Gold prices dropped for a fourth day as investors weighed positive vaccine developments and a steady drawdown in holdings in bullion-backed exchange-traded funds with mounting restrictions to curb a jump in coronavirus cases.
Gold held steady as investors weighed a resurgence of cases in the U.S. and major European economies and the prospects for coronavirus vaccines. Even with the prospect of a Covid-19 vaccine, three of the world’s top central bankers, including Federal Reserve Chairman Jerome Powell, cautioned that a vaccine would not end the economic challenges.
Gold steadied as investors weighed signs of progress on the vaccine front even as many nations around the world experience a new wave of coronavirus infections. Thursday brings some events and data points that will be of interest to bullion investors: Federal Reserve Chairman Jerome Powell, European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey are among speakers at an online ECB Forum entitled “Central Banks in a Shifting World.
On Tuesday gold clawed back some of those losses as investors mulled uncertainties over the vaccine, and on expectations that more stimulus would be forthcoming. The Federal Reserve warned that asset prices in key markets could still take a hit if the impact worsens over the coming months.
Gold prices tumbled 4.5% on Monday as a coronavirus vaccine developed by Pfizer and BioNTech have shown a 90% effective rate in an interim analysis of its phase 3 clinical trial. Optimism faded quickly however, as traders reassessed the near-term implications, with the global economy facing an imminent threat of another pandemic wave and virus-related lockdown measures.
After the spectacular 4% rally last week, Gold has started out a fresh week on a strong footing, holding close to the highest levels in two-months above $1960 today. The yellow metal rises with risk-flows amid a split Congress and a Biden win while the US dollar is least favored amid stimulus hopes and policy continuity. Local spot prices are trading at a premium of up to $3 an ounce, further cementing the argument that demand is picking up. We believe this trend will continue through the fourth quarter of 2020
Bullion climbed at the start of a crucial week that brings the U.S. presidential election and a Federal Reserve policy meeting — events set to dictate the trajectory of the dollar, the precious metal and appetite for risk. Gold has formed an inverse Head and Shoulder pattern on daily charts, strong support is around Rs 50100 and neckline resistance around Rs 51100.
Bullion recovers from lows, trimming its monthly loss, as the dollar stabilized in the final days before this week’s pivotal U.S. presidential election. If the advanced polls are accurate – many show Biden leading in key states – an election victory for the former vice-president would lead to additional fiscal stimulus, which would also weaken the U.S. dollar and lead to higher gold prices. If Trump is elected, many of his policies on trade and the economy may reinforce the trends that have pushed gold higher in the past year. Everywhere we look, we see a weaker U.S. dollar, which bodes well for gold.
As per WGC, purchases of gold jewelry, coins and bars in India have halved in January-September to about 252 tons from a year earlier and demand for the full year could be a “multi-year low. India’s demand was 690 tons in 2019. Imports slumped about 65% on-year in January-September to 180 tons. Gold demand in India may see a “very sharp spike” next year as consumers adjust to high prices and re-enter the market after staying away in 2020
Goldsteadied to trade near Rs 51000 and Silver around Rs 60000 as the dollar ticked higher, with investors awaiting next week’s U.S. presidential election and weighing the odds for more stimulus to cushion the impact of rising Covid-19 cases on economies in many parts of the world. Spot gold has been steady this month, moving largely on prospects for fresh fiscal stimulus from the U.S. Thoseplanswere put on hold after senators left the Capitol for a pre-election break
Gold premiums in India jumped to their highest in nearly three months this week, as jewellers continued to stock up on hopes of more customers visiting stores as the festive season gathers pace. Bullion held in a narrow range even as the dollar rose on Monday after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin again failed to close major differences on a fresh package for the U.S. economy facing a renewed surge in Covid-19 cases. The lack of a deal and concern over rising infections saw the S&P 500 Index log its biggest drop in a month.
Gold declined to trade near $1900 an ounce as investors weighed fading prospects for a U.S. stimulus deal, while the country reported record coronavirus infections for the second day in a row. This week is poised to be a busy one. US election polling and fiscal stimulus talks will remain in the spotlight. Treasury Secretary Steven Mnuchin said that Nancy Pelosi, the Speaker of the House, has ‘dug in’ and that there are still significant differences in stimulus talks. Gold premiums in India jumped to their highest in nearly three months this week as the festive season gathers pace. In anticipation of a pick-up in demand, jewellers continued to stock up. Gold dealers charged premiums of $5 an ounce this week over official domestic prices
Bullion trimmed yesterday’s slump after a relatively calm final presidential debate, and as investors eyed the latest twists on stimulus talks in Washington. House Speaker Nancy Pelosi said she was nearing a deal with Treasury Secretary Steven Mnuchin. But resistance to a near $2-trillion package is building among Senate Republicans whose support is needed for spending to be released. Gold prices have been still trading in an uptrend channel, falling yesterday, strong support is around Rs 50600 and resistance around Rs 51300. Silver prices are continuously taking support at uptrend channel on daily charts, strong support at 58500 and 61000.
Bullion prices fell as the dollar strengthened, with investors digesting a warning about foreign interference in the U.S. election along with dimming prospects for a stimulus deal before the November vote. A top U.S. intelligence official warned that Iran and Russia are trying to interfere in the election campaign by encouraging the spread of false information. Gold prices have been trading in uptrend channel, trading higher yesterday, strong support is around Rs 50300 and resistance around Rs 51300. Silver prices are continuously taking support at uptrend channel on daily charts, strong support at Rs 58500 and 61000
Goldrose on renewed optimism for a pre-election aid package in the U.S., while the dollar fell to a one-week low. House Speaker Nancy Pelosi said a bill for a compromise stimulus package is being written as she awaits a key phone call with Treasury Secretary Steven Mnuchin. Senate Majority Leader Mitch McConnell said his chamber would take up a comprehensive coronavirus package if anaccordis struck. Total Gold supplies from Europe’s key refining hub decreased to 105.9 tons last month, down from 112 tons in August. Exports to India dropped 75% to 5 tons.
Physical gold dealers in India charged a premium over official domestic prices for the second week in a row as jewellers stocked up ahead of the festive season. Demand from dealers has been improving slowly while a sharp drop in September imports also allowed dealers to charge a premium. The outlook for COMEX Gold is negative as it grinds lower toward its 100-day moving average, within a bearish descending pattern. That could turn into a more severe selloff if the hopes of a pre-election stimulus package are snuffed out within the next 24 hours when Nancy Pelosi’s time deadline passes.
Goldwas steady after a weekly drop as investors weighed a flurry of weekend developments that spurred some optimism that a U.S. stimulus package may be agreed as well as rising coronavirus casesIndian Gold imports, which have a bearing on the current account deficit (CAD), plunged 57 per cent to USD 6.8 billion (around Rs 50,658 crore) during the first half of this fiscal amid a slump in demand due to the COVID-19 pandemic.
Gold’s been trading in a narrow range so far in October amid uncertainty surrounding the prospects of a stimulus deal being passed before the Nov. 3 US presidential election. The International Monetary Fund has said that more public spending will beneededto complete the economic recovery from coronavirus.Gold prices have been trading in uptrend channel, trading indecisive yesterday, strong support is around Rs 50250 and resistance around Rs 50800.
Gold’s been doing nothing much for the past few weeks, yoyo-ing around between the 50-DMA and 100-DMA, with moves determined by the dollar.That may be about to change, courtesy of the U.S. election. A thumpingElectoral Collegewin for Joe Biden, plus the Dems capturing the Senate, would likely uncork a super-sized stimulus package, hurting the dollar. That could trigger a sharp rally in bullion (and stocks too). Indian Gold prices have been trading in an uptrend channel, having been recovered yesterday, strong support is around Rs 50250 and resistance around Rs 50800.
Gold after posting straight weekly gains, headed for a second straight daily loss on yesterday as the dollar’s advance sapped buying interest. Investors turned to the greenback as a haven after a setback in a Covid-19 vaccine trial and deadlocked talks on U.S. economic stimulus. In domestic markets, the seventh tranche of the Sovereign Gold Bond (SGB) Scheme 2020-21 is open for subscription till Friday, which enables investors to buy at comparatively less price. The issue price for the sovereign gold bond has been fixed at Rs 5,051 per gram of gold.
Goldretreated for a second straight day as investors weighed uncertainty surrounding U.S. stimulus, together with the looming presidential election and a rebound in the dollar. Goldimports by India slumped in September after a short-lived rebound as high prices prompted buyers to defer purchases. Inbound shipments into the world’s second-biggest bullion consumer fell 38% in September from a year earlier to 8.4 tons. India’s imports in the first nine months of the year are down about 70% to 158 tons.
Gold futures settled Friday at their highest in three weeks, up roughly 2% from a week ago as the U.S. dollar lost ground and investors tracked ongoing fiscal stimulus talks in Washington. The latest tranche of sovereign gold bonds has opened for subscription today. The Reserve Bank of India, on behalf of government of India, has fixed issue price at ₹5,051 per gram of gold. Investors who apply online and make payment against the application through digital mode get a discount of ₹50 per gram. For them the issue price is ₹5,001 per gram. TheSovereign Gold Bond Scheme2020-21-Series VII will close for subscription on October 16.
Bullion prices rebounded yesterday as the dollar slipped and U.S. President Donald Trump indicated he was willing to approve a limited virus relief package. Trump’s overnight tweets showed his support for $25 billion to hard-hit airlines and $135 billion for small businesses. According to AMFI, the Indian Gold ETF category received a net inflow of around ₹907.9 crores in August and a net inflow of ₹597.3 crores in September. This year so far, the category has received a net inflow of ₹5,957 crores.
Bullionprices in India traded lacklustre on lower demand and taking negative news from International prices. In global markets, gold prices were almost unchanged today on renewed hopes for US stimulus. The outlook for US stimulus improved after President Donald Trump wrote on Twitter that Congress should pass money for airlines, small businesses, and stimulus checks of $1,200 for individuals. Goldtends to benefit from widespread stimulus measures as it is widely viewed as a hedge against inflation and currency debasement.
Goldheld the biggest slump in almost two weeks after President Donald Trumpended talkswith Democrats on a new fiscal stimulus package until after the November presidential election, a move that roiled financial markets and boosted the dollar. Gold fell by Rs 500 and Silver by almost Rs 1000 in Indian markets. Bullion demand in Indiais likely to pick up ahead of the festive season, further supported by the recent correction in prices.
The sustained demand for the traditional safe haven suggests in western countries that some investors are taking the opportunity to build up positions, expecting the rally to be resumed amid low-interest rates and geopolitical risks. In places like India and China, however, demand for gold has been relatively soft. Buyers in the two biggest consumer markets have either been selling their holdings or borrowing against them. Gold has closed above Rs 50500 levels and is trying to give a breakout above the symmetrical triangle. If prices give a positive closing today, there could be a start of another rally.
Macroeconomic factors are pushing investments in precious metals, while bonds have lost their appeal. The weak economy has pushed investments in silver and gold. Investors now believe that the central bank could be expanding the stimulus programme which could make their currency lose value. Gold is not able to sustain above Rs 50500 levels and has formed Inverted Hammer formation of Daily charts which is the sign of reversal.
The House of Representatives on Thursday approved a $2.2 trillion coronavirus stimulus proposal put forward by House Democrats with no bipartisan deal in sight. Moreover, Risk-Off sentiment has emerged in financial markets today which is likely supporting bullion prices as US President Donald Trump and First Lady have been tested COVID positive.Gold is not able to give substantial breakout or breakdown from the symmetrical triangle. Prices need to sustain above Rs 50700 to resume a bull run again.
Gold was steady, heading for a weekly gain, as investors weighed the latest moves by U.S. lawmakers to negotiate a compromise pandemic relief package while also tracking a weakening dollar. While gold prices fell last month, assets in bullion-backed exchange-traded funds expanded. Worldwide Gold ETF holdings rose to about 3,442 tons on Wednesday, that’s close to a record. Silver prices are consolidating between Fibonacci retracement of 38.2% (Rs 61100) and 50% (Rs 55800). Prices need to sustain above 61100 to continue its uptrend.
Augmont is an integrated precious metals management company with operations in trading of gold and silver coin / bar through its online platform, gold refining and manufacturing of tamper proof packaged jewellery