Gold inches up on weaker dollar, stimulus hopes
· Gold prices gained for a fourth straight session on Wednesday, propelled by a softer dollar, while hopes a U.S. stimulus package will be passed bolstered the metal’s appeal as an inflation hedge.
· Platinum prices, meanwhile, hit their highest since February 2015 at $1,213.10 an ounce, and the auto-catalyst metal was last up 3.1% at $1,211.68 on expectations of a demand recovery.
· Spot gold was up 0.2% to $1,840.96 per ounce. U.S. gold futures traded 0.4% higher at $1,842.7. The dollar slipped to a two-week low against rivals.
· “Inflation fears are emerging, especially in the U.S.. With the stimulus intended to pass ... (fears are) that this would be too much and spark inflation going forward,” said Quantitative Commodity Research analyst Peter Fertig.
· The U.S. Congress is expected to pass a $1.9 trillion coronavirus relief bill, with President Joe Biden saying he had been in touch with Republican leaders who opposed the size of the package.
· Stimulus prospects were further aided by a budget outline approved by the Democrats last week allowing them to pass the package without Republican support.
· “U.S. inflation numbers are (a) key risk,” said Jeffrey Halley, a senior market analyst at OANDA, adding a higher figure could cause a short-term spike in the U.S. dollar and push gold lower.
· Elsewhere, platinum is profiting from developments in the car industry as demand for cars with diesel engines recovers after being hammered in the last five years due to Volkswagen’s emissions scandal, Fertig said.
“Good automotive sales figures in China are certainly a factor supporting higher demand for platinum.”
· Gold production in Canada rebounded strong in Q3 2020; Canadian Malartic was the biggest gold mine - report - Kitco
Canada produced approximately 1,500 koz of gold in Q3 2020, a 29% increase over Q2 2020 that was hit hard by Covid-19 suspensions. Canadian Malartic was the biggest gold mine in Canada.
Based on corporate reports, Kitco estimates that in Q3 2020, gold output in Canada amounted to 1,500 koz, which was 29% more than in pandemic-impacted Q2 2020 and 3% more than in corresponding period of 2019.
· Spot silver gained 0.4% to $27.31 an ounce.
· Palladium climbed 0.8% to $2,337.16.
· Powell's Valentine to the Fed: 'I love my job'
Federal Reserve Chairman Jerome Powell on Wednesday painted a dour picture on the state of U.S. employment, saying continued aggressive policy support is needed to fix the myriad issues still facing workers.
· U.S. consumer prices increase steadily in January
U.S. consumer prices rose moderately in January and underlying inflation remained benign as the pandemic continues to be a drag on the labor market and services industry.
The Labor Department said on Wednesday its consumer price index increased 0.3% last month after climbing a revised 0.2% in December. In the 12 months through January the CPI rose 1.4% after gaining a revised 1.3% December. Economists polled by Reuters had forecast the CPI rising 0.3% and increasing 1.5% year-on-year.
Prior to the revision, the CPI was previously reported to have increased 0.4% in December and advanced 1.4% year-on-year.
· U.S. January budget deficit hits record $163 billion as new aid checks sent out
The U.S. government posted a budget deficit of $163 billion in January, a record high for the month and a $130 billion jump from the deficit in the same month last year, as a new round of direct payments to individuals were distributed, the Treasury said on Wednesday.
· U.S. business formation surges in January
Applications to start new U.S. businesses jumped in January, suggesting economic activity was steadily picking again, although the coronavirus pandemic continues to pose a risk to growth.
The Commerce Department said on Wednesday business applications surged 42.6% to a seasonally adjusted 492,133 last month. The data is derived from business applications for tax identifications.
· U.S. December wholesale inventories revised higher
U.S. wholesale inventories increased more than initially thought in December, even as sales accelerated, government data showed on Wednesday.
The Commerce Department said wholesale inventories rose 0.3% in December instead of gaining 0.1% as reported last month.
· USTR says it looks forward to resolving aircraft subsidies fight with EU
· CORONAVIRUS UPDATES:
Global Cases: 107.81 (+418,794)
Global Deaths: 2.36M (+13,263)
No. 1
U.S. Cases: 27.88M (+87,740)
U.S. Deaths: 482,728(+2,960)
No. 2 -7
India Cases: 10.87M (+12,760)
Brazil Cases: 9.66M (+60,271)
Russia Cases: 4.01M (+14,494)
UK Cases: 3.98M (+13,013)
France Cases: 3.38 (+25,387)
Asian Updates:
No. 37
Japan Cases: 408,186 (+1,420)
Japan Deaths: 6,557 (+81)
No. 73
Myanmar Cases: 141,487 (+39)
Myanmar Deaths: 3,181 (+1)
No. 83
China Cases: 89,734 (+14)
China Deaths: 4,636
No. 86
South Korea Cases: 81,930 (+443)
South Korea Deaths: 1,486 (+4)
No. 114
Thailand Cases: 23,903 (+157)
Thailand Deaths: 80 (+1)
· Germany set to extend lockdown on concerns over new coronavirus variants
Chancellor Angela Merkel is set to announce Germany will extend its lockdown until March 14 amid concerns over new strains of the coronavirus.
· Spain's recovering COVID-19 patients must wait six months for vaccine
· AstraZeneca vaccine could get WHO emergency approval by mid-Feb, says agency
· South Africa scraps AstraZeneca vaccine, will give J&J jabs
South Africa will give the unapproved Johnson & Johnson vaccine to its front-line health workers beginning next week as a study to see what protection it provides from Covid-19, particularly against the variant dominant there, the health minister said Wednesday.
Zweli Mkhize said South Africa has scrapped plans to use the Oxford-AstraZeneca vaccine because it “does not prevent mild to moderate disease” of the variant.
The J&J vaccine will be used to launch the first phase of South Africa’s campaign in which the country’s 1.25 million health workers will be inoculated.
Those shots will be followed by a campaign to vaccinate an estimated 40 million people in South Africa by the end of the year.
· Biden is 'interested in getting all the facts' about China and origins of COVID-19
· Biden says Pentagon to review strategy toward China
U.S. President Joe Biden said on Wednesday the Pentagon would review its strategy toward China, looking at pivotal areas including intelligence, technology and Washington’s military footprint in the region.
The review will be among several others the Pentagon is already carrying out, ranging from troops in the Middle East to policy toward NATO.
Both countries are at loggerheads over issues from technology and human rights to Chinese military activities in the disputed South China Sea, with each accusing the other of deliberately provocative behavior.
· Biden administration asks U.S. Supreme Court to uphold Obamacare law
President Joe Biden’s administration on Wednesday told the U.S. Supreme Court that the Obamacare healthcare law should be upheld, reversing the position taken by the government under his Republican predecessor Donald Trump.
The court in November held oral arguments in a bid by Republican-governed states led by Texas to invalidate the Affordable Care Act, as the 2010 law is formally known. Trump’s administration had sided with the states challenging Obamacare. A ruling is due by the end of June.
Biden’s administration notified the court of the government’s new position in a letter filed by Deputy Solicitor General Edwin Kneedler.
· White House COVID-19 official to meet with airline CEOs Friday: sources
· U.S. State Dept expects Blinken, Turkish foreign minister to chat, but says policy on S-400 unchanged
· Biden imposes sanctions on Myanmar military leaders who directed coup
· In Myanmar coup response, Biden approves order for sanctions on generals, businesses
U.S. President Joe Biden announced on Wednesday he had approved an executive order for new sanctions on those responsible for the military coup in Myanmar and he repeated demands for the generals to give up power and free civilian leaders.
· GOP senators call case against Trump ‘compelling’ after seeing new video of Capitol riot during impeachment trial
· EU to seek until April 30 to ratify Brexit deal
· French industrial output weaker than expected in December
· Russians who expect protests at highest since 1998: poll
· North Korea's Kim calls for increased party role in economic plans: KCNA
· Stocks in Australia little changed; multiple major markets in Asia closed for holidays
Shares in Australia were muted in Thursday morning trade as multiple major markets in Asia are closed for holidays.
In morning trade, the S&P/ASX 200 hovered above the flatline.
Markets in China, Japan, South Korea and Taiwan are closed for holidays.
Reference: CNBC, Reuters, Kitco, Worldometer
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