MTS Help Center

Gold edges up after Trump offers larger U.S. stimulus

· Gold prices edged up on Thursday after U.S. President Donald Trump reignited hopes of a coronavirus stimulus package before the Nov. 3 elections, but a strong dollar kept the metal’s gains in check.

· Spot gold rose 0.3% at $1,906.15 per ounce. U.S. gold futures settled up 0.1% at $1,908.90.

· Trump said he would agree to go higher than the $1.8 trillion that the White House has offered in coronavirus stimulus to strike a deal.

· “The focus is on renewed hopes for stimulus talks as the U.S. president keeps pushing to get a deal done and gold is ignoring the strength in the dollar,” ED&F Man Capital Markets analyst Edward Meir said.

“But with the dollar as strong as it is, the upside in gold will likely be limited.” The dollar held gains against rivals, supported by U.S. Treasury Secretary Steve Mnuchin’s remarks on Wednesday that a stimulus deal would be hard to reach before the election.

· Further supporting gold, U.S. weekly jobless claims unexpectedly rose last week.

· “The jobless numbers showed that we’re not out of the woods yet, we still have a lot of headwinds to contend with, which points to the likelihood of more government intervention through stimulus and suppressed interest rates,” said Jeffrey Sica, president and chief investment officer of Sica Wealth Management.

· Gold, considered a hedge against inflation, currency debasement and uncertainty, has gained 25% this year, driven by massive global stimulus to cushion economies from the pandemic-induced slump.

· “Ultimately the macro factors that have driven investors to seek the yellow metal’s warm embrace will keep investment capital flowing into gold well into next year,” TD Securities analysts said in a note.

· Elsewhere, silver fell 0.4% to $24.19 per ounce, platinum rose 0.5% to $860.92 and palladium climbed 0.2% to $2,349.04.

· Trump would go higher than $1.8 trillion on coronavirus stimulus deal

U.S. President Donald Trump said on Thursday he would agree to go higher than the $1.8 trillion that the White House has offered in coronavirus stimulus funding to strike a deal with House Democrats, who are seeking$2.2 trillion.

In an interview with Fox Business Network, Trump said there was a chance of getting a COVID-19 stimulus package passed before the November 3 presidential elections, though hopes for a deal have dimmed.

· Mnuchin says Trump told him 'keep at this' on effort for coronavirus aid deal

U.S. Treasury Secretary Steve Mnuchin said on Wednesday that President Donald Trump had told him to keep negotiating with Democrats to try to get a fresh coronavirus relief package.

“The president has said to me, keep at this until you get this done,” Mnuchin said on Fox Business network. He said a deal could be reached quickly if House of Representatives Speaker Nancy Pelosi compromises. “If we don’t get it now, when the president wins the election we’ll get it passed quickly afterwards.”

Treasury Secretary Steven Mnuchin said Thursday that the White House won’t let differences over funding targets for Covid-19 testing derail stimulus talks with top Democrats.

· U.S. House's McCarthy doesn't expect covid-19 aid deal before election if Pelosi involved.

· McConnell pushes back on 'higher amount' for COVID-19 stimulus

U.S. Senate Majority Leader Mitch McConnell rejected the idea of a coronavirus relief package exceeding $1.8 trillion on Thursday, calling his plan for a smaller $500 billion bill an appropriate response to the COVID-19pandemic.

· Fed's Kashkari: Recovery will be grinding and slow without more stimulus

The U.S. economic recovery will slow down if unemployed Americans and struggling businesses do not receive more assistance, Minneapolis Federal Reserve President Neel Kashkari said on Thursday.

Without further stimulus, “we will end up having a much slower - what I would call a grinding - recovery,” Kashkari said during a virtual discussion organized by New York University Stern Center for Global Economy and Business.

· Fed Chair Powell to speak next week at IMF on digital currencies

U.S. Federal Reserve Chair Jerome Powell will speak Oct. 19 at the International Monetary Fund’s annual meeting, the central bank said on Thursday.

· No doubt’ that crucial U.S. fiscal stimulus is coming, IMF managing director says

Kristalina Georgieva, the managing director of the International Monetary Fund, told CNBC Thursday that she has “no doubt” the U.S. will implement a new economic stimulus package that will help reduce the current uncertainties for the global economy.

· IMF's Georgieva says U.S., China need to keep up coronavirus stimulus

The United States and China needed to keep up strong stimulus to help speed the global economy’s recovery from the novel coronavirus pandemic, International Monetary Fund Managing Director Kristalina Georgieva said on Thursday.

A faster recovery also depends on strong cooperation to develop and distribute COVID-19 vaccines evenly worldwide, but could add nearly $9 trillion to global income by 2025, Georgieva told a news conference after an IMF steering committee meeting.

“That in turn could help narrow the income gap between richer and poorer nations,” she said.

· CORONAVIRUS UPDATES:

Total confirmed cases: More than 39,151,142

Total deaths: At least 1.102,417

US cases: At least 8,215,197 (+65,011), and deaths: 222,711 (+868)

· U.S. coronavirus cases surpass eight million as infections spike nationwide

U.S. cases of the novel coronavirus crossed 8 million on Thursday, rising by 1 million in less than a month, as another surge in cases hits the nation at the onset of cooler weather.

· Midwest states, new COVID-19 infections rise to record highs

More than 22,000 new cases of the novel coronavirus were reported on Wednesday across the Midwest, compared with a previous record of more than 20,000 on Oct. 9. Hospitalizations in those states reached a record high for a 10th day in a row as some hospitals began feeling the strain.

· ECB chief says arsenal of economic stimulus on standby amid upsurge of coronavirus cases in Europe

“The many weapons that we have available, ranging from interest rates to forward guidance and asset purchase programs, we stand ready. We have done a lot, and if more is needed because the situation deteriorates, then we will do what is necessary.” Lagarde said, adding that an increase in fiscal spending was “being considered” by many member states as they present their budgets.

· France promises one billion euros for curfew-hit companies

Finance Minister Bruno Le Maire promised 1 billion euros ($1.17 billion) of additional support to help French companies cushion the impact of a nightly curfew in Paris and eight other big cities where the coronavirus is running rampant.

· 'Things will get worse': London goes into stricter lockdown

Anger, though, is rising over the economic, social and health costs of the biggest curtailment of freedoms since World War Two. One former government adviser warned some people would have trouble clothing their children soon.

Health Secretary Matt Hancock said London, which has a population of 9 million, as well as the adjacent, heavily populated county of Essex, would be put on “high” alert level, up from “medium”, at one minute past midnight

· Oxford scientists develop 5-minute Covid-19 antigen test

· Coronavirus vaccine candidate from China's CNBG shows promise in human test, study shows

One of China’s front-running coronavirus vaccine candidates was shown to be safe and triggered immune responses in a combined early and mid-stage test in humans, researchers said.

The potential vaccine, dubbed BBIBP-CorV, is being developed by the Beijing Institute of Biological Products, a subsidiary of China National Biotec Group (CNBG).

It has already been approved for an emergency inoculation programme in China targeting essential workers and other limited groups of people facing high infection risk.

· Trump threatens to 'strike back' if EU imposes tariffs over Boeing

· EU parliament chief asks leaders for more money to unlock EU recovery package

European Parliament President David Sassoli asked EU leaders on Thursday to increase the bloc’s next seven-year budget by 39 billion euros to revive stalled negotiations on a recovery package for the bloc’s recession-torn economies.

Speaking to the European Union’s 27 leaders, Sassoli pointed out the extra money, which parliament wants spent on research and development, health, education and security, would be a drop in the bucket compared to the combined 1.8 trillion euro size of the long-term budget and the recovery plan.

EU leaders agreed at a marathon summit in July on the seven-year budget and the recovery plan to help lift Europe’s economy from its deepest-ever recession caused by the COVID-19 pandemic.

But the deal must still be approved by EU lawmakers and ratified by member states’ national parliaments.

· Post-Brexit trade talks expected to drag on despite Boris Johnson’s deadline

Boris Johnson will soon decide what to do with stalled Brexit trade talks, with negotiators failing to reach an agreement ahead of the U.K. prime minister’s self-imposed deadline of Oct. 15.

There has been “some progress” over competition rules, according to an EU diplomat who didn’t want to be named due to the sensitivity of the talks, but both sides claim they have not yet bridged all their differences.

The 27 heads of state for the EU are gathering in Brussels on Thursday afternoon for their regular October meeting. They are likely to ask for Brexit negotiations to continue.

The EU source suggested that a compromise over competition rules could be feasible if both sides were to agree to a resolute dispute settlement system, which in the future could rule on potential trade issues in a matter of “days,” not months.

· Frustrated EU to keep pressing for British trade deal

European Union leaders will agree on Thursday to extend talks with Britain on a trade deal in coming weeks to seek concessions on fisheries, fair competition and dispute resolution in an effort to preserve a trillion euros worth of annual commerce.

The European Council invites the Unionʼs chief negotiator to continue negotiations in the coming weeks, and calls on the UK to make the necessary moves to make an agreement possible,” the latest draft of the EU summit conclusions said.

Many on financial markets expect a thin deal by early November, though after several more weeks of drama.

· Japan set to tap emergency reserve for domestic manufacturing, jobs subsidy, official says

Japan’s government is ready to tap a coronavirus emergency reserve on Friday to strengthen domestic manufacturing and subsidise employment, a government official told Reuters on Thursday.

The cabinet is likely to allocate about 90 billion yen ($855 million) in extra spending for a 220 billion-yen subsidy programme to bring production back to Japan from overseas, according to the official.

· Democrats urge early voting, massive turnout as Trump stokes fears of contested election

Joe Biden supporter Cindy Kalogeropoulos took no chances when her absentee ballot arrived on Sept. 29. The Michigan retiree filled it out, drove 7 miles to the nearest drop box and hung around to make sure election officials picked it up - all within 48 hours of receiving it.

Democratic leaders have been urging Biden supporters to show up in huge numbers and vote early amid concerns that nothing short of a decisive victory will prevent Republican President Donald Trump from contesting the results, potentially opening the way for state legislatures, the courts or Congress to decide the outcome.

· Trump has not spoken with Chinese President Xi in a while, does not want to

U.S. President Donald Trump, citing his concerns about China’s handling of the coronavirus pandemic, said he has not spoken with Chinese President Xi Jinping in a while and does not want to.

· UAE, Israel working on double tax treaty to encourage investment

The United Arab Emirates and Israel have reached a preliminary agreement on avoiding double taxation, as part of moves to encourage investments between the two countries, the UAE finance ministry said on Thursday.

Reference: CNBC, Reuters