· Spot gold fell 0.6% to $1,920.91 per ounce. U.S. gold futures settled down 0.8%, at 1,923.10.
· “We have a little optimism on U.S.-China relations, while there is some optimism regarding the coronavirus (treatment) ... so, little lesser need for safe havens,” said David Meger, director of metals trading at High Ridge Futures.
· Top U.S. and Chinese trade officials on Tuesday reaffirmed their commitment to a Phase 1 trade deal, adding to positive news over progress in developing a treatment for COVID-19.
· On Sunday, U.S. President Donald Trump hailed Food and Drug Administration authorization of a virus treatment that uses blood plasma from recovered patients.
· Data showed U.S. consumer confidence fell in August to a more than six-year low, as households worried about the labor market and incomes.
· “That was heavily priced in. Confidence is souring and that is just going to force Congress to deliver more stimulus,” said Edward Moya, senior market analyst at broker OANDA.
“Because of all the uncertainty ... they can’t let all the efforts go to waste, and that is going to cement the bullish outlook for gold.”
· Global central banks and governments have pumped in massive monetary and fiscal stimulus to prop up virus-hit economies, helping bullion gain over 25% so far this year.
· Powell will speak at a gathering of central bankers in Jackson Hole, Wyoming, on Thursday.
· The U.S. central bank has kept benchmark interest rates near zero which is positive for non-yielding gold.
· Silver fell 1% to $26.28 per ounce, platinum rose 0.7% to $922.08, while palladium gained 0.4% at $2,168.65.
· CORONAVIRUS UPDATE:
Global cases: More than 24 million
Global deaths: At least 822,508
U.S. cases: More than 5.95 million
U.S. deaths: At least 182,384
Turkey's new COVID-19 cases reach highest since mid-June, government imposes measures
Gaza in lockdown to contain its first COVID-19 outbreak
· 30 states approved to offer an extra $300 a week in federal unemployment benefits
Thirty states have received federal approval to offer “lost wages assistance,” under an executive measure that President Donald Trump signed Aug. 8, following the lapse of a $600-a-week federal supplement, reports CNBC’s Greg Iacurci.
Unemployed workers may soon get a bump of $300 or more in their weekly jobless benefits, and it seems they won’t have to apply for that extra pay — it will come automatically.
However, to be eligible for the assistance, many workers must take an additional step and self-certify in their online portals that they are unemployed or partially unemployed due to disruptions caused by Covid-19.
Workers must have also received at least $100 in unemployment benefits during the weeks covered by the lost-wages program. —Melodie Warner
· German coalition agrees to extend coronavirus relief for economy
German coalition parties agreed on Tuesday to extend measures to cushion the effects of the coronavirus crisis on Europe’s biggest economy, including prolonging a short-time work scheme and a freeze on insolvency rules.
The German economy contracted at its steepest rate on record in the second quarter and the government is desperate to mitigate the effects of the pandemic as much as possible, especially in the run-up to elections in the autumn of 2021.
· U.S., China reaffirm commitment to Phase 1 trade deal in phone call
Top U.S. and Chinese trade officials reaffirmed their commitment to a Phase 1 trade deal, which has seen China lagging on its obligations to buy American goods
, giving a boost to financial markets on Tuesday.
The pledge was made in a telephone call between U.S. Trade Representative Robert Lighthizer, U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He - their first formal dialogue since early May - amid concern the deal could be on shaky ground as U.S.-China ties weaken.
“Both sides see progress and are committed to taking the steps necessary to ensure the success of the agreement,” the U.S. Trade Representative’s office (USTR) said in a statement after what it described as a regularly scheduled call.
· U.S. consumer confidence at six-year low; underscores concerns about economic recovery
U.S. consumer confidence dropped to a more than six-year low in August as households worried about the labor market and incomes, casting doubts on the sustainability of the economy’s recovery from the COVID-19 recession.
The Conference Board said its consumer confidence index dropped to a reading of 84.8 this month, the lowest since May 2014, from 91.7 in July. Economists polled by Reuters had forecast the index edging up to a reading of 93 in August.
The second straight monthly decrease in consumer confidence reported by the Conference Board on Tuesday overshadowed an acceleration in new single-family home sales to a more than 13-1/2-year high in July. The housing market continues to show strong immunity to the coronavirus crisis.
The ebb in confidence followed the expiration of a $600 weekly unemployment benefit supplement on July 31 and a flare-up in new coronavirus infections across the country, which forced some jurisdictions to shut down businesses again or pause reopenings. Though new cases have subsided, hot spots remain.
· American Airlines to cut 19,000 jobs when federal aid expires in October
American Airlines will cut 19,000 employees in October when federal aid that protected those jobs expires and as the coronavirus pandemic continues to devastate travel demand, the carrier said Tuesday.
The Fort Worth, Texas-based airline, which employed more than 140,000 people in March, is prohibited from laying off workers through Sept. 30 under the terms of a $25 billion federal aid package set aside for carriers to weather the worst of the crisis. But demand has only modestly recovered, presenting a dire scenario for airlines. American said its fourth-quarter capacity will be half of the year-ago level and that international long-haul flights will be just 25% of its 2019 schedule.
· Melania Trump, Mike Pompeo in spotlight on Republicans' Day 2
First lady Melania Trump and U.S. Secretary of State Mike Pompeo lead an array of Americans making the case at the Republican National Convention on Tuesday for re-electing President Donald Trump over Democrat Joe Biden in November.
On the convention’s Day One on Monday, Republicans painted a dire portrait of an America led by former Vice President Biden with Trump campaign adviser Kimberly Guilfoyle asserting that Democrats want to “destroy this country.”
Democrats on Tuesday criticized their rivals’ tone, saying Trump was to blame for the severity of the coronavirus outbreak, which has killed more than 180,000 Americans - more than any other country in the world - and thrown millions out of work.
· North Korean leader Kim calls for prevention efforts against coronavirus, looming typhoon: KCNA
North Korean leader Kim Jong Un has called for prevention efforts against the novel coronavirus and a typhoon, state news agency KCNA said on Wednesday.
An enlarged meeting of the politburo of the Workers Party took place amid a pandemic that is putting additional pressure on the North Korean economy, battered by recent border closures and flood damage.
The meeting assessed “some defects in the state emergency anti-epidemic work for checking the inroads of the malignant virus”, KCNA said in a statement.
North Korea has not reported any confirmed cases of the novel coronavirus, but Kim said last month that the virus “could be said to have entered” the country and imposed a lockdown after a man was reported to have symptoms. Later test results on the man were inconclusive, according to the World Health Organisation.
Reference: CNBC, Reuters
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