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Gold slips on profit taking; stimulus bets limit losses

·         Gold prices eased from a two-week high on Thursday as investors booked some profit following a rally in the previous session, while expectations for further stimulus and a weaker U.S. dollar limited losses.

·         Spot gold was down 0.2% to $1,867.56 per ounce at 01:57 p.m. EST (1857 GMT), after hitting its highest since Jan. 8 at $1,874.86 earlier in the day. Bullion had gained 1.7% on Wednesday.

·         U.S. gold futures settled little changed at $1,865.90 per ounce.

·         “It is nothing more than some simple profit taking after the recent rally prompted by expectations for further stimulus coming from the Biden (administration),” said David Meger, director of metals trading at High Ridge Futures.

 

“However, the prospect of further stimulus along with a weaker dollar continues to support gold in the bigger picture perspective.”

·         Joe Biden was sworn in as the president of the United States on Wednesday, with markets focusing on his proposed $1.9 trillion dollar coronavirus stimulus package, which will require approval from a divided Congress.

·         Gold is seen as a hedge against inflation and currency debasement, which can be caused by the massive stimulus measures.

·         It remained to be seen whether the stimulus would go through both houses of Congress as quickly as Biden’s expectations and “that’s probably one of the reasons why gold hasn’t been going huge”, said StoneX analyst Rhona O’Connell.

·         The dollar, on the other hand, slipped to a one-week low against key rivals, making greenback-denominated bullion cheaper for investors holding other currencies.

·         Meanwhile, the number of Americans filing new applications for unemployment benefits decreased modestly last week.

·         Spot silver edged 0.1% higher to $25.83 per ounce. Platinum rose 1% to $1,120.70, while palladium eased 0.2% to $2,366.45.

 

·         Biden signed 10 executive orders to combat the Covid pandemic

On his first two days in office, President Joe Biden signed 10 executive orders to combat the Covid-19 pandemic, mandating masks on public transportation and directing agencies to use wartime powers to require U.S. companies to make N95 masks, swabs and other equipment.

 

·         Joe Biden’s business allies discuss ways to pay for infrastructure plan, including a carbon tax

President Joe Biden’s allies in the business community have been meeting to craft a set of proposals, including a potential carbon tax, to help pay for an expected $2 trillion infrastructure plan.

 

·         Biden is already facing pressure to scale back his $1.9 trillion Covid relief plan

President Joe Biden’s $1.9 trillion coronavirus relief plan faces Republican opposition, complicating its path to passage by Congress.

Biden advisor Brian Deese is expected to meet with bipartisan senators about the plan, while House Democrats are preparing to craft legislation they can pass as soon as next month.

The push for another pandemic aid package comes as thousands of people die from the virus every day and jobless claims remain stubbornly high.

 

·         Bitcoin bull says long-term investors must have a ‘very strong stomach’ to cope with volatility

 

·         Bitcoin leads $100 billion crypto sell-off right as Biden becomes president: CNBC After Hours

 

·         Bitcoin extends slide, sheds 5% in Asia

Bitcoin fell to an almost three-week low on Friday as profit taking and worries about extra regulation drive the cryptocurrency toward a weekly loss of more than 15%.

Bitcoin fell nearly 5% to $29,300 early in the Asia session, its lowest since Jan. 4 and some 30% below its record high of $42,000 hit two weeks ago.

·         S&P 500 hits fresh highs as Biden takes office — how a new administration could impact markets

Wednesday saw the historic inauguration of Joe Biden as the 46th president, as well as a new high for the S&P 500. Stocks continued their climb Thursday, with the S&P and Nasdaq closing at records.

A new administration means lots of policy changes, which leaves questions about where the market will head this year. Three market analysts weighed in about the ways investors can navigate these upcoming moves.

 

 

·         CORONAVIRUS UPDATES

 

Global Cases: 98.03 (+637,713)

Global Deaths: 2.09M (+15,842)

 

No. 1

U.S. Cases: 25.17M (+176,200)
U.S. Deaths: 419,783 (+3,870)

 

No. 2 -6

India Cases: 10.62M (+13,701)

Brazil Cases: 8.69M (59,946)

Russia Cases: 3.65M (+21,887)

UK Cases: 3.54M (+37,892)

France Cases: 2.98 (+22,848)

Asian Updates:

No. 39

Japan Cases: 345,221 (+5,447)
Japan Deaths: 4,743 (+96)

 

No. 71

Myanmar Cases: 136,166 (+445)
Myanmar Deaths: 3,013 (+16)

 

No. 83

China Cases: 88,701 (+144)
China Deaths: 4,635

 

No. 86

South Korea Cases: 73,918 (+400)
South Korea Deaths: 1,316 (+16)

 

No. 128

Thailand Cases: 12,795 (+142)
Thailand Deaths: 71

 

·         Beijing plans to impose strict virus testing requirements during the Lunar New Year holiday season, when tens of millions of people are expected to travel, as it battles the worst wave of new infections since March 2020.

 

The commercial hub of Shanghai reported its first locally transmitted cases in two months on Thursday.

 

·         Americans grow more optimistic about Covid but blame feds for rocky vaccine rollout, NBC News poll says

 

·         Dr. Fauci says Covid vaccines appear to be less effective against some new strains

New data shows that the Covid-19 vaccines currently on the market may not be as effective in guarding against new, more contagious strains of the coronavirus, White House health advisor Dr. Anthony Fauci said on Thursday.

 

·         Fauci at his first Biden briefing: I took ‘no pleasure’ in contradicting Trump on Covid

 

·         Dr. Fauci says U.S. will remain a WHO member and join global Covid vaccine plan

 

·         Republican McConnell proposes Trump get two weeks to prepare for Senate impeachment trial

 

·         US jobless claims decline to a still-high 900,000

The loss of so many jobs has meant hardship for millions of American households. In December, employers cut 140,000 positions, the first loss since April and the sixth straight month in which hiring has weakened. The unemployment rate remained stuck at a still-high 6.7%.

 

·         Philly Fed Mfg Index: Continued Growth in January

 

·         US December housing starts up on month, year: Census Bureau

December US housing starts reached 1.669 million units, the highest monthly count in 2020, according to the data. December's level was up 5.8% from 1.578 million units in November and up 5.2% from 1.587 million units in December 2019.

 

·         BOJ keeps policy steady as virus bites, anticipating brighter fiscal 2021

 

·         The ECB, which kept interest rates steady on Thursday, also pledged to provide more support or the economy if needed.

European Central Bank President Christine Lagarde warned abouta renewed surge in COVID-19 infections and the prospect ofprolonged restrictions that could challenge the region’s economic outlook.

 

 

Reference: CNBC, Reuters, Worldometers, AP, JAPAN TIMES, Advisorperspectives, S&P Global, Macrotrends