Gold inches down as dollar steadies; platinum set for over 10% weekly gain
Gold eased on Friday with the dollar steadying, while platinum was headed for its biggest weekly rise since March 2020 on expectations for a revival in auto sector demand.
Spot gold was 0.2% lower at $1,822.15 per ounce by 2:04 p.m. (1904 GMT). U.S. gold futures settled down 0.2% at $1,823.20.
· The dollar held steady, but was set for its biggest weekly loss in eight.
· The macro backdrop remains supportive, with gold prices “likely to resume their uptrend in coming weeks given our expectations for the dollar to weaken further alongside real yields remaining low or negative,” said Standard Chartered analyst Suki Cooper.
“Market focus remains on the size and timing of the U.S. fiscal stimulus, inflation expectations and progress of the vaccine rollout,” she added.
· Gold was also headed for its first weekly gain in three, helped by expectations for a $1.9 trillion U.S. coronavirus relief package, given its status as a hedge against inflation likely spurred by widespread stimulus.
· Spot platinum rose 1% to $1,246.48 per ounce after jumping as high as $1,268.88 on Thursday, en route to an over 10% weekly rise. Palladium gained 1.8% to $2,386.94.
Both metals are used by automakers in catalytic converters to clean car exhaust fumes.
· “There’s a concern about a tight market for platinum. ... The trend is bullish, and people will be happy to keep buying the dip,” said Fawad Razaqzada, market analyst with ThinkMarkets.
· Silver rose 1.2% to $27.26 per ounce. Silver has seen an influx of fresh interest following a brief spike in spot prices triggered by a retail frenzy last week. Analysts are also betting on further gains this year from industrial demand.
· Gold Price Forecast: XAU/USD correction seems unstoppable as $1,780 beckons
- Gold continues to suffer under a stronger US dollar.
- XAU/USD has lost the 50 SMA crucial support, risking declines towards $1,780.
- Recovery will come into play if gold settles above the 23.6% Fibonacci level.
Gold has recently been rejected at $1,850, paving the way for the ongoing declines. Before that, the precious metal had rebounded from support established at $1,780. However, after losing critical support, declines are most likely to carry on in the week starting Monday.
A short-term compressive analysis shows the Moving Average Convergence Divergence (MACD) on the 4-hour chart reinforcing the breakdown. The indicator follows the direction of the asset’s trend while measuring its momentum.
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The MACD can also identify local selling positions to sell the top and buy the bottom. If the MACD line (blue) crosses below the signal line, the asset is likely to correct from the uptrend. On the other hand, a buy the bottom signal occurs when the MACD line crosses above the signal line.
For now, XAU/USD is still a sell zone, as observed with the MACD indicator. Moreover, the price closed the week under the 50 Simple Moving Average, which adds credibility to the downtrend.
· Biden to discuss pandemic, economy and China in Friday G7 meeting
The White House said Biden would focus his remarks on a global response to COVID-19 vaccine production and distribution as well as “continued efforts to mobilize and cooperate against the threat of emerging infectious diseases by building country capacity and establishing health security financing.”
· CORONAVIRUS UPDATES:
Global Cases: 109.38 (+289,209)
Global Deaths: 2.41M (+6,744)
No. 1
U.S. Cases: 28.26M (+63,446)
U.S. Deaths: 497,134(+1,071)
No. 2 -7
India Cases: 10.91M (+11,434)
Brazil Cases: 9.83M (+23,258)
Russia Cases: 4.07M (+14,185)
UK Cases: 4.03M (+10,972)
France Cases: 3.46 (+16,546)
Spain Cases : 3.05
Asian Updates:
No. 37
Japan Cases: 414,472 (+1,318)
Japan Deaths: 6,912 (+63)
No. 74
Myanmar Cases: 141,601 (+16)
Myanmar Deaths: 3,189 (+1)
No. 84
China Cases: 89,763 (+7)
China Deaths: 4,636
No. 86
South Korea Cases: 83,525 (+326)
South Korea Deaths: 1,522 (+8)
No. 114
Thailand Cases: 24,571 (+166)
Thailand Deaths: 80
· Brazil confirms UK variant in two coronavirus patients
· French hospitals to move into crisis mode from Thursday, report says
France’s Health Ministry has asked regional health agencies and hospitals to enter “crisis organisation” to prepare for a possible surge in coronavirus cases as a result of highly contagious variants, Le Journal Du Dimanche reported.
The move, which would echo measures taken in March and November when France went into lockdown, involves increasing the number of hospital beds available, delaying non-urgent surgery and mobilising all medical staff resources.
“This crisis organisation must be implemented in each region, regardless of the level of hospital stress and must be operational from Thursday Feb. 18,” the DGS health authority said in a memo cited by the newspaper on Sunday.
· Czech government agrees last-minute COVID-19 lockdown deal
The Czech government reached a last-minute deal with regional governors on Sunday to call a new state of emergency for 14 days and avert a chaotic end to coronavirus lockdown measures.
· New Zealand locks down Auckland after 3 new local COVID-19 cases
· Australia suspends travel 'bubble' with New Zealand as Auckland goes into lockdown
· Mexico gets AstraZeneca doses from India, expects more Pfizer, as it prepares for next phase
Mexico received a shipment of 870,000 doses of AstraZeneca’s COVID-19 vaccine from India on Sunday, the government said, as the country prepares to prioritize older adults in the next phase of its vaccination campaign.
Mexico is also expecting shipments to resume of vaccine from Pfizer-BioNTech , with 494,000 doses due to arrive on Tuesday, Foreign Minister Marcelo Ebrard told a news conference.
· Japan Health Ministry says it has approved Pfizer’s COVID-19 vaccine
Japan’s Health Ministry said on Sunday it has officially approved Pfizer Inc’s COVID-19 vaccine, the first such approval in the country as it steps up efforts to tame a third wave of infections in the run-up to the Summer Olympic Games.
Prime Minister Yoshihide Suga has said vaccinations will begin from the middle of next week, starting with some 10,000 health workers. The government hopes to secure enough supplies for the whole populace - some 126 million people - by mid-year.
Much of Japan is still under a state of emergency after its third and most deadly wave of the virus hit late last year. Cases and fatalities have trended lower in the past couple of weeks and Tokyo logged just under 400 cases in the capital on Sunday.
Japan has so far recorded about 410,000 coronavirus cases nationally and 6,772 deaths. The Olympic Games are due to start July 23.
· CDC director warns states against dropping mask mandates amid concern about Covid mutations
· Recovered Covid patients have been reinfected with new virus strains, WHO says
Preliminary reports from South Africa suggest people with prior Covid infection could be reinfected with a new, more infectious variant of the virus, the World Health Organization said.
Initial findings also show Covid vaccines may be less effective in protecting against new strains of the virus, but vaccination may reduce the severity of infection, WHO said.
Vaccination may also decrease the spread of new Covid variants, according to WHO.
· Doctors warn that Covid will become endemic and people need to learn to live with it
· Oxford University to test COVID-19 vaccine response among children for first time
The new mid-stage trial will determine whether the vaccine is effective on people between the ages of 6 and 17, according to an emailed statement from the university.
· Israel plans to reopen restaurants in March, restart tourism with Cyprus
· Guinea declares new Ebola outbreak
Guinea declared a new Ebola outbreak on Sunday when tests came back positive for the virus after three people died and four fell ill in the southeast - the first resurgence of the disease there since the world’s worst outbreak in 2013-2016.
The patients fell ill with diarrhoea, vomiting and bleeding after attending a burial in Goueke sub-prefecture. Those still alive have been isolated in treatment centres, the health ministry said.
· Senate acquits Trump for inciting Capitol riot even as bipartisan majority votes to convict
The Senate on Saturday acquitted former President Donald Trump in a 57-43 vote on the charge of inciting insurrection for his role in the Jan. 6 U.S. Capitol riot, which left 5 people dead including a police officer.
· Acquitted again by Senate, Trump still a powerful force in Republican politics
· Italy’s Draghi takes office, faces daunting challenges
The Italian president swore in the former chief of the European Central Bank, Mario Draghi, as prime minister on Saturday at the head of a unity government called on to confront the coronavirus crisis and economic slump.
All but one of Italy’s major parties have rallied to his side and his cabinet includes lawmakers from across the political spectrum, as well as technocrats in key posts, including the finance ministry and a new green transition portfolio.
· Russia says it’s ready to end ties with the European Union
Russia has said it is ready to cut ties with the European Union, according to a fragment of an interview published on Russia’s foreign ministry website Friday morning. The comments mark yet another escalation in tensions between the two sides.
When asked if Russia was heading for a break with the European Union, Russia’s Foreign Affairs Minister Sergey Lavrov said: “We proceed from the fact that we are ready (for that). In the event that we again see sanctions imposed in some sectors that create risks for our economy, including in the most sensitive spheres,” according to a translation of the comments by Reuters.
“We don’t want to isolate ourselves from global life, but we have to be ready for that. If you want peace then prepare for war,” Lavrov added.
· Japan's Oct.-Dec. GDP grows annualized 12.7%
Japan's economy in the October-December period grew an annualized real 12.7 percent from the previous quarter, continuing to recover from a coronavirus pandemic-induced slump, government data showed Monday.
The expansion in real gross domestic product, the total value of goods and services produced in the country adjusted for inflation, corresponds to a 3.0 percent increase on a seasonally-adjusted quarterly basis, according to the preliminary data released by the Cabinet Office.
In 2020, the Japanese economy shrank 4.8 percent in real terms, logging the first contraction since a 5.7 percent decrease was marked in 2009.
· Tens of thousands protest Myanmar coup after night of fear, security patrols
Tens of thousands of protesters took to the streets in Myanmar’s major cities for a ninth day of anti-coup demonstrations on Sunday, after a fearful night as residents formed patrols and the army rolled back laws protecting freedoms.
· Armored vehicles deployed to major Myanmar cities after mass protests
· Thousands march in Tokyo to protest Myanmar coup, biggest Japan demonstration so far
· Myanmar junta leader asks Thai counterpart for help on democracy
Thai Prime Minister Prayuth Chan-ocha, who first seized power in a coup, said on Wednesday he had received a letter from Myanmar’s new junta leader asking for help to support democracy.
Reference: CNBC, Reuters, FXStreet, Nikkei, Worldometers
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