Gold slips as dollar rebounds; set for second weekly decline
· Gold fell as much as 1.6% on Friday as the dollar bounced back, denting bullion's appeal and setting it on track for a second straight weekly decline.
· Spot gold fell 0.3% to $1,937.81 per ounce by 1322 GMT, after declining over 1% to $1,910.99. While U.S. gold futures rose $0.5 to $1,947.00 per ounce.
For the week, gold is down 0.3%, having slumped more than 3% earlier this week.
· “The dollar has made a lot ground over the past few days and it really has taken the edge off gold," said OANDA analyst Craig Erlam, adding that while on the upside $2,000 is now a big barrier and $1,860 could be a bit of test prior to that.
· Against a basket of currencies, the dollar gained 0.6%, making gold more expensive for holders of other currencies.
· "For the time being we have seen the high in gold... until something happens either on the U.S. stimulus front in terms of the relief package or the U.S.-China tensions take a very positive or negative turn," said David Madden, market analyst at CMC Markets UK.
Bullion's fall came despite data signalling the euro zone's economic recovery from its deepest downturn on record stalled this month.
Data also showed that activity, notably in the service sector, slowed in Germany this month.
Adding to doubts over a swift economic rebound, U.S. Federal Reserve officials on Wednesday warned the recovery faced a highly uncertain path.
"We are above $1,900 so I wouldn't be too fearful. I think this is going to be the end of the dollar rally and it's just going to be a correction in the wider upper trend which is still intact," Madden added.
· Elsewhere, silver fell 2.3% to $26.60 per ounce, but was poised for a weekly rise of nearly 1%.
Platinum 1.7%, to $902.62 per ounce, while palladium fell 0.4% to $2,173.50 per ounce.
· House passes bill to put $25 billion into USPS and reverse changes amid uproar
The House passed a bill Saturday to inject emergency funding into the U.S. Postal Service and reverse changes that have hampered mail delivery.
The measure passed in a 257-150 vote. Twenty-six House Republicans supported the bill.
The legislation approved by the Democratic-held chamber would put $25 billion into the cash-crunched post office. It would also roll back recent overhauls under Postmaster General Louis DeJoy, such as limits on overtime and reductions of facility hours, that Democrats worry will hinder the processing of an unprecedented number of mail-in ballots during the coronavirus pandemic.
As Republicans oppose the proposal, it has little chance of getting through the GOP-controlled Senate. However, a group of Republican and Democratic senators have proposed a plan to put $25 billion into the postal service. It is unclear if or when the chamber will try to pass the measure.
· Trump reportedly considers fast tracking AstraZeneca vaccine before election
The Trump administration is considering fast tracking an experimental coronavirus vaccine developed in the U.K. for use in the United States ahead of the nation’s upcoming presidential election, according to a Financial Times report, which cited three people briefed on the plan.
One option, according to the FT report, would involve the U.S. Food and Drug Administration awarding “emergency use authorization” for the vaccine, which was developed by Oxford University and AstraZeneca.
· CORONAVIRUS UPDATE: Global coronavirus deaths exceed 800,000
Global cases: More than 23.57 million
Global deaths: At least 812,157
U.S. cases: More than 5.87 million
U.S. deaths: At least 180,580
Ø India coronavirus cases cross 3 million mark as economy opens up
Ø Australia's Victoria reports lowest rise in COVID-19 cases in seven weeks
Ø Brazil coronavirus cases pass 3.6 million, death toll at 114,744
Ø Brazil's coronavirus spread on 'stable or downwards' trend, WHO says
Ø Coronavirus dampens celebrations in China's wedding gown city
Ø The coronavirus pandemic has made it harder for digital banks in Asia to thrive, Fitch says
Those looking to enter the digital banking space in Asia may find it harder to do so now as some opportunities may have been lost in the coronavirus pandemic, according to Fitch Ratings.
The pandemic has hit the global economy hard and is disproportionately affecting people and businesses with a “weaker” borrower profile — the customer segment targeted by many aspiring digital banks, said Tamma Febrian, associate director for financial institutions at the ratings agency.
· Survey finds most Britons reject COVD-19 'vaccine nationalism'
Most Britons reject COVID-19 “vaccine nationalism”, and say they would be willing to wait until health workers in other countries have had vaccines if that would help end the pandemic sooner, according to poll findings released on Monday.
· Chinese banks to post first first-half profit drop in over a decade amid pandemic pain
Some of China’s largest banks are set to post their first drop in first-half profits since the global financial crisis, hit by a surge in bad debt and higher loan-loss provisions due to the coronavirus pandemic, analysts and official data indicate.
Chinese commercial banks overall posted a 9.4% fall in first half net profit, while the six biggest posted a 12% profit fall from a year ago, according to China Banking and Insurance Regulatory Commission (CBIRC) data.
China’s cabinet said in June that authorities would push financial institutions to sacrifice 1.5 trillion yuan ($212 billion) in profit this year to support companies of all kinds by lowering lending rates and fees, and deferring loan payments.
· With China tensions rising, U.S. joins Taiwan to mark battle anniversary
Amid rising tensions with Beijing, the de facto U.S. ambassador in Chinese-claimed Taiwan took part on Sunday for the first time in commemorations of a key military clash and the last time Taiwanese forces joined battle with China on a large scale.
China has stepped up military activity around the democratic island, moves denounced by Taiwan’s government as an attempt at intimidation to force them to accept Chinese rule.
· South Korea, China hold highest-level talks since COVID-19 outbreak
South Korea said on Saturday it held talks with China’s top diplomat over trade, denuclearisation and the coronavirus response, in the first visit by a high-level Beijing official since the COVID-19 pandemic erupted late last year.
Yang Jiechi, a member of the Communist Party Politburo, met with South Korea’s new national security adviser, Suh Hoon, in the southern port city of Busan, the South Korean government said.
The two sides discussed topics such as accelerating free-trade agreement negotiations, expanding cultural exchanges as well as the election of the World Trade Organization (WTO) Director General, South Korea’s presidential Blue House spokesman Kang Min-seok said in a statement.
· Chinese premier says economy could grow this year: state radio
Chinese Premier Li Keqiang said the country’s economy could grow this year, state radio reported on Sunday, despite the impact of the COVID-19 pandemic.
The world’s second-biggest economy grew 3.2% year on year in the second quarter, recovering from a record contraction as coronavirus lockdown measures ended and policymakers stepped up stimulus to combat the shock from the crisis.
Li also said the government expects more than 9 million new urban jobs to be created this year.
Reference: CNBC, Reuters
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