Gold gains as dollar rally stalls, virus cases mount
· Gold prices rose on Friday as the dollar rally paused, with worries over rising COVID-19 cases and uncertainty surrounding next week’s U.S. presidential election offering support to the safe-haven metal.
· Spot gold was up 0.6% at $1,879.01 following two straight sessions of sharp declines. Bullion is down 0.3% this month. U.S. gold futures settled up 0.6% to $1,879.90.
· Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.58 tonnes to 1,257.67 tonnes on Friday.
· “Gold rebounded as the dollar partially reversed its surprising two-day rally,” said Tai Wong, head of base and precious metals derivatives trading at BMO. “Investors are finding the bottom of the recent range a good level at which to add to gold holdings ahead of the hotly contested election next week, which seems likely to return a one-party government that means much bigger and faster stimulus.”
· The dollar index was steady against its rivals after climbing to its highest in a month in the previous session.
· Ahead of the Nov. 3 U.S. election day, Democrat challenger Joe Biden leads President Donald Trump nationally in the polls, but most competitive states have shown a closer race.
· “There’s a lot of structural pieces in place for gold to continue to rise after the election, regardless of the outcome,” said Kevin Rich, Global Gold Market Advisor for The Perth Mint.
· “Based on the amount of fiscal stimulus that is gone in from here in the United States and globally ... (and) the enormous amount of government debt taken on ... that’s going to put a lot of currencies under pressure, including the U.S. dollar.”
· Gold, which has risen 24% so far this year, tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.
· Concerns about a surge in coronavirus cases in the United States and in Europe dented investors’ appetite for riskier assets.
· Silver rose 1.3% to $23.57 per ounce, platinum fell 0.6% to $842.09 and palladium gained 0.9% to $2,210.67.
· CORONAVIRUS UPDATES:
· U.S. reports record 99,321 new coronavirus cases as scientists warn latest surge just beginning
“We’re at a point where the epidemic is accelerating across the country. We’re right at the beginning of the steep part of the epidemic curve,” Dr. Scott Gottlieb, the former U.S. Food and Drug Administration commissioner, told CNBC’s “The News with Shepard Smith” on Friday evening.
“You’ll see cases start to accelerate in the coming weeks,” he said, predicting the height of the country’s recent surge will be reached around Thanksgiving. Gottlieb said that “December’s probably going to be the toughest month.”
The U.S. is continuing its upward climb on what’s now the pandemic’s third peak, with cases growing by 5% or more in 43 states as of Friday, according to a CNBC analysis of data compiled by Johns Hopkins University. There are now more than 9 million reported Covid-19 cases in the United States, which added an additional 1 million cases in only two weeks, according to Hopkins.
· Prime Minister Boris Johnson imposes stay-at-home order in England as coronavirus cases surge
England will adopt a second national lockdown as coronavirus cases run rampant in the United Kingdom, closing all nonessential businesses but leaving schools open for the next four weeks as it tries to suppress the virus, Prime Minister Boris Johnson announced on Saturday.
People will be ordered to stay at home unless it’s for essential purposes, including education, medical reasons, or to shop for groceries, Johnson said during a press conference in London. Pubs, bars and restaurants must close except for takeaway and delivery.
Some industries that can’t work from home, like construction and manufacturing, will continue. The lockdown will take effect starting Thursday and will end on Dec. 2, he said.
· Lockdown in England could be extended, UK minister warns
· COVID deaths in England during winter could be twice as bad as first wave - adviser
· Britain starts accelerated review for AstraZeneca's potential COVID-19 vaccine
AstraZeneca Plc said on Sunday Britain’s health regulator had started an accelerated review of its potential coronavirus vaccine.
“We confirm the MHRA’s (Medicines and Healthcare Products Regulatory Agency) rolling review of our potential COVID-19 vaccine,” an AstraZeneca spokesman said.
In rolling reviews, regulators are able to see clinical data in real time and have dialogue with drug makers on manufacturing processes and trials to accelerate the approval process.
· Vaccine prospects to give reason for optimism by spring 2021: UK PM Johnson
· Austria orders curfew and shuts restaurants to fight 'exploding' COVID
· Iran imposes new restrictions to stem coronavirus spread: Rouhani
· Israel starts human trials on COVID-19 vaccine as schools slowly reopen
Israel began human trials on Sunday for its COVID-19 vaccine candidate which, if successful, could be ready for the general public by the end of next summer.
· Biden nears finish line with lead in polls, but Trump still close in swing states: Reuters/Ipsos poll
Biden’s national lead over the Republican president has stayed relatively steady in recent months as the public health crisis has persisted. He is ahead 51% to 43% in the latest Reuters/Ipsos poll taken Oct. 27-29.
But Trump is still close to Biden in enough state battlegrounds to give him the 270 state Electoral College votes needed to win a second term. Reuters/Ipsos polls show that the race remains a toss up in Florida, North Carolina and Arizona.
Trump also trails by five points in Pennsylvania and nine points in Michigan and Wisconsin, three other battleground states that helped give him an Electoral College win in 2016 over Democrat Hillary Clinton, who won the popular vote.
But even without Michigan and Wisconsin, Trump can win again if he holds all of the other states he won in 2016.
· Biden leads Trump by 10 points in final days before election: NBC/WSJ poll
Former Vice President Joe Biden holds a substantial national lead over President Donald Trump in the closing days before Election Day, a final NBC News/Wall Street Journal poll has found.
A majority of voters say they’re unhappy with how the president has dealt with the coronavirus pandemic and where the country is going.
In the closing days of the campaign, Biden takes a 10-point lead over Trump, garnering support of 52% of registered voters nationally versus 42% for Trump. That’s slightly down from Biden’s 11-point lead in the NBC News/WSJ poll from two weeks ago.
· Nomura says buy these Asian stocks if Democrats sweep the U.S. election
Reference: CNBC, Reuters, Worldometers
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