Gold rebounds as U.S. dollar, yields slip
· Gold prices rose on Tuesday, inching up from a more than eight-month low, as a retreat in the dollar and U.S. Treasury yields lifted demand for the safe-haven metal.
· Spot gold was up 0.8% at $1,736.46 per ounce by 1.52 p.m. ET (1852 GMT), after falling to $1,706.70 earlier in the session, its lowest since June 15.
· U.S. gold futures settled up 0.6% at $1,733.60 per ounce.
· "Gold surges near session highs as yields and USD dip," said Tai Wong, a trader at investment bank BMO in New York.
"Gold's $30 rally from the lows in Asia suggests that investors and short-term speculators are bargain-hunting and triggering short-covering as well. A close above $1,725 per ounce would be considered by many a key reversal day."
· The dollar index slipped 0.3% after hitting a nearly four-week high against its rivals, making gold less expensive for holders of other currencies.
· Further supporting gold, benchmark U.S. Treasury yields eased from a one-year high hit last week, while U.S. stocks dipped after strong gains on Monday.
· "The main dilemma right now for the gold bulls is the rising short-term U.S. Treasury yields," said Bob Haberkorn, senior market strategist at RJO Futures.
"Despite the U.S. Federal Reserve being very accommodative with stimulus, with low rates for the extended period of time, in the short term, we have to deal with these rising short-term rates."
· While gold is considered a shield against inflation, higher yields threaten that status as they increase the opportunity cost of holding bullion.
· Market participants kept a close watch on the $1.9 trillion stimulus bill, which will be debated in the U.S. Senate this week.
· Silver gained 1.4% to $26.84 an ounce, having earlier dipped to a more than one-month low.
· Palladium was up 0.8% at $2,369.26 an ounce, while platinum rose 2.1% to $1,209.58
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· Fed officials emphasize policy 'patience' as outlook improves
U.S. Federal Reserve officials, facing a potential bout of inflation this spring in an economy turbocharged by vaccines and government spending, on Tuesday said they will nevertheless keep their easy money plans in place in hopes of speeding displaced Americans back to work.
A recent rise in U.S. Treasury bond yields seemed to show investors betting the Fed will move sooner than expected to tighten monetary policy as the recovery gains steam and life returns to normal.
But “we are far from reaching our objectives,” Fed Governor Lael Brainard said, ticking off the litany of ways, from 10 million missing jobs to the pandemic-related drop in women’s labor force participation, in which the U.S. job market is still falling short.
· Democrats aim to send $1.9 trillion Covid relief bill to Biden by the end of next week
Democrats aim to pass their $1.9 trillion coronavirus relief plan next week and send it to President Joe Biden’s desk for his signature.
The Senate will start considering the House-passed version of the bill as soon as Wednesday, Majority Leader Chuck Schumer, D-N.Y., said Tuesday. After up to 20 hours of debate and a marathon vote on amendments, the Senate can pass its legislation.
Senate Democrats still have to keep all of their members on board to get the bill through the chamber this week. While the party plans to approve the package through the budget reconciliation process that does not require any Republican support, it also cannot lose any votes from within its own ranks.
The party decided to scrap a potential tax penalty designed to make corporations pay a $15 an hour wage, worrying including it would delay the bill’s final passage.
· 11 Senate Democrats push Biden to include recurring checks, jobless aid in next big bill
· Congress’ latest coronavirus relief proposal could help keep some seniors out of nursing homes
The House of Representatives’ $1.9 trillion coronavirus relief bill includes a proposal that could help keep some seniors out of nursing homes.
The bill calls for a 7.5% increase — or about $10 billion — in additional federal Medicaid matching funds for home- and community-based services.
The extra funding will allow states to provide additional home- and community-based care, which could help get more people off waiting lists and prevent them from going to nursing homes.
· Covid relief legislation may trigger higher student loan fees
The American Rescue Plan increases the child tax credit, provides $30 billion for emergency rental assistance, funds a third stimulus payment and extends boosted unemployment benefits. The bill also appropriates nearly $40 billion to extend the Higher Education Emergency Relief Fund, which provides support to struggling colleges and students, through September 2023. Many Americans say policies such as these are still desperately needed.
· CORONAVIRUS UPDATES: COVID-19 infections are still rising in 65 countries.
Global Deaths: 2.55M (+8,969)
No. 1
U.S. Cases: 29.36M (+53,392)
U.S. Deaths: 529,045 (+1,817)
No. 2 – 4
India Cases: 11.13M (+15,704)
Brazil Cases: 10.64M (+58,237)
Russia Cases: 4.26M (+10,565)
No. 84
South Korea Cases: 90,372 (+344)
South Korea Deaths: 1,606 (+1)
No.114
Thailand Cases: 26,073 (+42)
Thailand Deaths: 84 (+1)
· Economists see first signs in data that vaccine is working
Economists following the high-frequency data on virus infections are seeing initial signs that the vaccine is having positive effects on deaths and infection rates.
· Vaccination
So far 108 countries have begun vaccinating people for the coronavirus and have administered at least 249,196,000 doses of the vaccine.
· White House moves up vaccine supply timeline, says U.S. will have enough for every adult by end of May
· President Joe Biden said Tuesday that Merck will help make Johnson & Johnson’s single shot Covid vaccine as the country tries to ramp up supply.
· President Joe Biden urges states to vaccinate teachers, school staff this month
President Joe Biden on Tuesday urged states to prioritize vaccinating teachers and school staff against Covid-19, with the goal of administering at least one shot to every educator and staff member across the country by the end of March.
· Texas, Mississippi lift Covid restrictions and mask mandates, despite CDC warnings
· Pressured European officials are trying to drum up support for the AstraZeneca Covid vaccine
· Neera Tanden withdraws from nomination as Biden budget chief
· Japan's service sector shrinks for 13th month as emergency weighs – PMI
· OPEC sees positive oil market outlook, continued downside risks
OPEC sees a generally positive oil market outlook with last year’s uncertainty easing, but downside risks caused by the pandemic persist, the group’s secretary general and its experts said on Tuesday.
· Myanmar authorities charge six media members covering protests, AP and other groups call for their immediate release
Reference: CNBC, Reuters, Worldometers
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