Gold gains on weak dollar as focus turns to Georgia runoffs
· Gold hit a two-month high on Tuesday, buoyed by a weaker dollar and growing concerns about COVID-19 as investors awaited the outcome of U.S. Senate runoff elections in Georgia that could impact prospects for more fiscal stimulus.
· Spot gold was up 0.4% at $1,949.59 an ounce by 01:41 p.m. EST (1841 GMT), having earlier scaled its highest level since Nov. 9, at $1,952.36.
· U.S. gold futures settled up 0.4% at $1,954.40.
· "With more risks associated with the virus, short term, we're seeing people moving money into the safe havens," said Chris Gaffney, president of world markets at TIAA Bank, adding that the dollar's weakness has been one of the main supports for bullion in the first few days of 2021.
· Britain went into a new national lockdown amid rising COVID-19 cases, while New York found its first case of a more contagious coronavirus variant.
· The dollar index hovered close to April 2018 lows, making gold an attractive bet for other currency holders.
But caution prevailed as investors awaited the outcome of a pair of run-off elections in Georgia as control of the U.S. Senate - and with it the ability to block or advance Democratic President-elect Joe Biden's agenda - was on the ballot.
· "There is not one central bank talking about raising rates across the globe. So that's going to keep a bid on gold," said Michael Matousek, head trader at U.S. Global Investors.
· Many investors view non-yielding bullion as a hedge against inflation and currency debasement they fear could result from large stimulus measures.
· Silver rose 1.1% to $27.50 and palladium gained 3.9% to $2,465.18, after rising as much as 6% earlier in the session.
· Platinum was up 3.5% at $1,107.25, having risen as much as 4.1% earlier.
· "Thoughts about global growth are really going to drive the industrial precious metals which are platinum and palladium," TIAA Bank's Gaffney said.
· Georgia’s critical Senate runoffs are too close to call as polls close
· Exit poll suggests tight races in Georgia with Biden's agenda, Senate control at stake
Exit poll data on Tuesday suggested extremely tight contests were unfolding in two U.S. Senate races in Georgia that will decide which party controls the chamber and the possible fate of Democratic President-elect Joe Biden’s legislative agenda.
· Tight elections unfolding in Georgia with Biden's agenda, Senate control at stake
Early vote totals suggested close contests were unfolding in two U.S. Senate races in Georgia that will decide which party controls the chamber and the possible fate of Democratic President-elect Joe Biden’s legislative agenda.
Republican incumbents David Perdue and Kelly Loeffler faced Democratic challengers Jon Ossoff, a documentary filmmaker, and the Rev. Raphael Warnock, a pastor at a historic Black church in Atlanta.
About an hour after polls closed at 7 p.m. (0000 GMT), Warnock led Loeffler by 6.2 percentage points, while Ossoff was ahead of Perdue by 5.6 percentage points, with 20% of the estimated vote counted, according to Edison Research.
· Fed's Evans calls for possible revamp of U.S. financial regulation
Chicago Federal Reserve President Charles Evans on Tuesday raised the possibility that U.S. financial regulation and supervision may be due for an overhaul, given the new reality that interest rates are likely to be low for a long time.
Fed's Evans says 3% inflation wouldn't be bad
“Frankly if we got 3% inflation that would not be so bad,” Evans told a virtual meeting of the American Economic Association, as long as it is not accelerating uncontrollably.
With structurally low interest rates pulling down on inflation, however, “it is very difficult to imagine out of control inflation, even with the large debt that fiscal authorities have been running up.”
· CORONAVIRUS UPDATES:
Global Cases: 86.80M (+667,394)
Global Deaths: 1.87M (+13,004)
U.S. Cases: 21.57M (+222,009)
U.S. Deaths: 365,584 (+3,461)
India Cases: 10.37M (+17,908)
India Deaths: 150,151 (+265)
U.K. Cases: 2.77M (+60,916)
U.K. Deaths: 76,305 (+830)
TH Cases: 8,966 (+527)
TH Deaths: 65
Myanmar Cases: 127,584 (+59)
Myanmar Deaths: 2,766 (+22)
· UK vaccine rollout may not hit target pace for two weeks: The Guardian
· Why the U.S. Covid vaccine rollout is going more slowly than planned: CNBC After Hours
After warning that the U.K. had “tough, tough weeks to come,” British Prime Minister Boris Johnson on Monday announced a national lockdown for England to help contain a new, highly contagious variant of Covid-19. Scotland’s leader, Nicola Sturgeon, also announced a new stay-at-home order for the country’s citizens starting at midnight.
The U.K. began its rollout of the Oxford-AstraZeneca vaccine on Monday, after starting to deploy the Pfizer-BioNTech shot in December. To protect as much of its population as possible, the U.K. government has decided to implement a 12-week delay between the first and second doses of both the Pfizer-BioNTech and Oxford-AstraZeneca vaccines. The delay was criticized by the British Medical Association.
· UK lockdown causes biggest drop in new car sales since World War Two
British new car sales fell nearly 30% last year in their biggest annual drop since 1943 as lockdown measures to curb the spread of the coronavirus hit the sector, a trade industry body said on Wednesday.
· WHO's Tedros 'very disappointed' China hasn't granted entry to coronavirus experts
· Israel to tighten COVID-19 lockdown in "final effort" amid vaccine rollout
Israel will tighten an ongoing nationwide lockdown to curb a sharp rise in new COVID-19 cases, a statement from Prime Minister Benjamin Netanyahu’s office said on Tuesday.
The stricter lockdown - to take effect at midnight between Thursday and Friday and last 14 days - will constitute “one final effort” as the country presses ahead with its rapid vaccine rollout, Netanyahu said.
· Increased new-car demand during pandemic has U.S. industry optimistic about 2021
Increased demand for new vehicles during the COVID-19 pandemic helped General Motors Co and other automakers report strong fourth-quarter U.S. sales on Tuesday, and executives voiced optimism the rebound from low sales during the April-May production shutdown will continue in 2021.
· NYSE's U-turn on China telco delistings may reverse again, amid tension and confusion over policy
The New York Stock Exchange could do a second U-turn in the flip-flop saga that saw them decide to delist three Chinese telecom giants, the latest twist amid confusion about rules set by the Trump administration and a backdrop of tension within Washington on China policy.
· Mnuchin tells NYSE chief he disagrees with reversal of Chinese delisting plans -source
· U.S.-China rivalry could spill into new areas in 2021, says Eurasia Group
Competition between the U.S. and China could spill into new areas this year — further complicating a tense relationship that has threatened the global economy over the last few years, according to risk consultancy Eurasia Group.
One potential new source of friction is in “green” technologies, said Leon Levy, a senior analyst in the firm’s global macro practice.
That’s especially so since President-elect Joe Biden — who will be sworn in on Jan. 20 — has listed tackling climate change as one of his priorities, Levy told CNBC’s “Squawk Box Asia” on Tuesday.
“What we’re likely to see is more competition in green energy between the U.S. and China. And that’s just gonna open up a whole new front that we just haven’t really seen in the last four years under Trump,” he said.
· Despite pressure from Trump, Pence won't interfere in election count Wednesday: advisers
· North Korea's Kim says economic plan failed as rare party congress begins
North Korean leader Kim Jong Un said his five-year economic plan had failed to meet its goals “on almost every sector” as he kicked off the ruling Workers’ Party congress on Tuesday, state media KCNA reported on Wednesday.
· South Korean-flagged tanker seized by Iran, Seoul demands release
Iran’s Revolutionary Guards Corps seized a South Korean-flagged tanker in Gulf waters and detained its crew, Iranian media said on Monday, amid tensions between Tehran and Seoul over Iranian funds frozen in South Korean banks due to U.S. sanctions.
· U.S. feds say Russians likely behind SolarWinds hack that breached government networks
Russians were likely behind the SolarWinds hack that breached U.S. government networks, according to a joint statement issued by several U.S. agencies on Tuesday.
Until now, the breach appeared to have been Russian, according to Reuters, which first reported on it in December, but this is the first time the government has publicly supported that. President Trump on Dec. 19 said he had been briefed on the hack but suggested he did not believe it was Russia and that it “may be China.”
Reference: CNBC, Reuters, Worldometers
Thai
Eng