Gold inches up on U.S. election uncertainty, stimulus hopes
· Gold edged up on Thursday as uncertainty about the U.S. presidential election and bets that fresh stimulus would drive inflation offset investors’ improved appetite for riskier assets.
· Spot gold was up 0.1% at $1,889.50 per ounce. U.S. gold futures settled 0.2% higher at $1,895.10.
· While there is a “pretty robust increase in risk appetite,” with a firm dollar also weighing, inflation expectations are keeping gold supported, said Bart Melek, head of commodity strategies at TD Securities.
“We’re not saying that there’s going to be an inflation problem right away, but the concern is that if the policies continue and are repeated post election, then we would likely see both a lower dollar and real rates that will likely move lower.”
· Capping bullion’s advance, Wall Street’s main indexes rose to a one-month high as U.S. President Donald Trump’s comments raised hopes for fresh fiscal stimulus, even as a recovery in the labor market struggled to gain momentum.
· U.S. data on Thursday showed fewer Americans filed new claims for jobless benefits last week, but the number remained stubbornly high. Gold is still up 24% so far this year, boosted by unprecedented government and central bank stimulus worldwide to revive economies as it is viewed as an inflation hedge and a safe refuge during economic and political uncertainty.
· “It’s (gold) going to move higher, it’s going to be volatile. That’s going to be true for the next month going into the election, it’s going to be true for the two months after the election,” said Jeffrey Christian, managing partner of CPM Group.
· Among other metals, silver eased 0.1% to $23.81 per ounce. Platinum shed 0.2% to $862.81 per ounce, while palladium gained 2% at $2,399.31 per ounce.
· U.S. weekly jobless claims inch lower, but remain stubbornly high
The number of Americans filing new claims for jobless benefits inched down last week, signaling the U.S. labor market is making little fresh headway in getting millions of people back on the job after being out of work due to COVID-19 disruptions.
Initial claims for state unemployment benefits totaled a seasonally adjusted 840,000 for the week ended Oct. 3, compared with an upwardly revised 849,000 in the prior week, the Labor Department said on Thursday. Economists polled by Reuters had forecast 820,000 applications in the latest week.
· Trump still interested in coronavirus aid bill: Pelosi's office
· U.S. airline aid up in the air as pandemic relief talks resume
· Kudlow says Trump backs separate bills for certain COVID-19 aid
· Pelosi, Mnuchin speak about broad stimulus bill as White House sends mixed signals
House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke about a broad coronavirus stimulus plan Thursday, capping another day of jumbled efforts in Washington to inject more aid into a floundering economy.
Pelosi and Mnuchin had a 40-minute afternoon phone conversation about “whether there is any prospect of an imminent agreement on a comprehensive bill,” the speaker’s spokesman Drew Hammill said in a tweet.
Hammill said Mnuchin “made clear” Trump had interest in finding agreement on a comprehensive relief package — generally considered one that would address a range of issues including jobless benefits, direct payments, state and local government relief, and aid to airlines to cover payrolls.
Pelosi pointed out comments from White House communications director Alyssa Farah, who on Thursday afternoon cast doubts on Trump’s desire to craft broad legislation. Farah told reporters the White House wants to address stimulus checks, small business loans and an “airline bailout,” but not as “part of a larger package.”
· With no expectation of fiscal stimulus soon, Fed's Rosengren sees recovery hampered
A likely absence of more federal aid for households and businesses this year and the extensive build up of corporate debt will weigh on the U.S. economic recovery from the recession triggered by the COVID-19 pandemic, the head of the Federal Reserve Bank of Boston said on Thursday.
· Wall Street firms see Fed tapering bond buys starting next year
Wall Street firms expect the Federal Reserve to start paring back its bond-buying next year, and phase it out completely by the second half of 2023, the New York Fed’s latest survey of primary dealers shows.
· Top J.P. Morgan advisor increases cash position, cites stimulus gridlock risks as major reason
· A second wave of layoffs looms as coronavirus stimulus talks stall: CNBC After Hours
· ECB more concerned about growth than earlier feared: minutes
The European Central Bank may be more concerned about the pandemic-hit economy than analysts had previously thought, based on its September policy meeting minutes issued on Thursday, suggesting it could roll out more stimulus later this year.
Arguing for a “free hand” to fight the economic malaise, policymakers fretted that a long list of risks ranging from a strong euro and higher coronavirus infection rates to the U.S. presidential election were all weighing on growth and consumer prices.
· CORONAVIRUS UPDATES:
Global cases: More than 36.73 million
Global deaths: At least 1.06
U.S. cases: More than 7.8 million
U.S. deaths: At least 217,656
· WHO reports record one-day rise in global coronavirus cases amid European outbreak
The World Health Organization reported a record one-day increase in global coronavirus cases on Thursday, with the total rising by 338,779 in 24 hours led by a surge of infections in Europe.
· Coronavirus could spread ‘uncontrollably’ over the next few weeks, German official warns
· Lock down or face state of emergency, Spanish government tells Madrid
· FDA grants emergency clearance for GenMark test that screens for the flu, coronavirus and other viruses
· Trump's handling of coronavirus pandemic hits record low approval: Reuters/Ipsos poll
· White House doctor says Trump coronavirus therapy completed, could return to public events Saturday
President Donald Trump’s physician said on Thursday that Trump had completed his course of therapy for the coronavirus, had remained stable since returning to the White House and could return to public engagements on Saturday.
· Trump refuses to participate in virtual debate on Oct. 15: ‘I’m not going to waste my time’
The second presidential debate between President Donald Trump and Democratic nominee Joe Biden, scheduled for Oct. 15, will be held virtually, the bipartisan Commission on Presidential Debates said Thursday.
Minutes after the announcement, however, Trump said he would not participate.
· Biden campaign says October 22 debate should be the last
Democratic presidential nominee Joe Biden’s campaign on Thursday rejected a proposal from President Donald Trump’s team for a debate on Oct. 29, saying the one already scheduled for a week earlier should be the last ahead of the November election.
Trump earlier on Thursday said he would not participate in a planned Oct. 15 debate after it was changed from an in-person event to a virtual one. His campaign later proposed to the nonpartisan commission that hosts debates that the Oct. 15 and Oct. 22 debates each be pushed back by one week.
· EU's Michel says Brexit talks facing moment of truth
Talks on a deal between Britain and the European Union on their future relationship face a moment of truth ahead of a meeting of EU leaders next week, European Council President Charles Michel said on Thursday.
“The coming days are crucial. This is the moment of truth. There is only one week to go before the European Council” meeting on Oct. 15-16, Michel told journalists.
Reference: CNBC, Reuters
Thai
Eng