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Gold slips off 1-week peak as bond yields bounce back

Gold eased off a one-week high on Thursday after U.S. Treasury yields rose after better-than-expected jobless claims data.

Spot gold fell 0.1% to $1,725.00 per ounce by 1:57 p.m EST (1856 GMT), after hitting its highest since March 3 at $1,739.63 earlier.

U.S. gold futures settled little changed at $1,722.60.

·         “10-year Treasury yields have now bounced again, which has stabilized the dollar and is taking some air out of gold,” said Tai Wong, a trader at investment bank BMO in New York.

“We may have seen short-term lows at $1,680 per ounce, but a higher-yield environment is likely to prevent a significant rally; Perhaps a $1,700-$1,800 range in the near term as market tries to find equilibrium in yields.”

·         Data showed the number of Americans filing new claims for jobless benefits dropped to a four-month low last week.

·         Better-than-expected economic numbers lifted 10-year Treasury yields above 1.5%, while the dollar index moved away from a one-week low.

·         “Bond yields have been rising in recent weeks on worries about problematic inflation surfacing as the major economies of the world have turned on their money spigots wide open over the past year,” said Kitco Metals senior analyst Jim Wyckoff in a note.

 

While gold is considered a hedge against inflation from widespread stimulus, higher bond yields this year have threatened that status as they translate into a higher opportunity cost of holding bullion.

·         The European Central Bank said it would use its 1.85 trillion Pandemic Emergency Purchase Programme more generously over coming months to stop any unwarranted rise in debt financing costs.

·         A $1.9 trillion U.S. COVID-19 relief bill was also approved on Wednesday.

·         Silver fell 0.2% to $26.12 per ounce. Palladium eased 0.2% to $1,200.11 per ounce, while platinum gained 1.6% to $2,343.95.

·         Biden signs $1.9 trillion Covid relief bill, clearing way for stimulus checks, vaccine aid

The plan will send direct payments of up to $1,400 to most Americans. Direct deposits will start hitting Americans’ bank accounts as soon as this weekend, White House press secretary Jen Psaki said Thursday.

 

·         Biden delivers his first primetime address on next steps in fight against Covid

President Joe Biden is set to deliver his first primetime address Thursday evening hours after signing into law a $1.9 trillion Covid-19 relief bill.

Biden is expected to announce that he will direct states to make all adults eligible for a Covid vaccine by May 1.

The address marks the president’s 50th day in office and comes exactly a year after state and local government began imposing lockdowns in an effort to curb the spread of Covid-19 and limit the fallout from the pandemic.

 

·         U.S. vice president, WTO chief agree on need to reform global trade body

 

·         U.S. weekly jobless claims at four-month low; labor market regaining footing

The number of Americans filing new claims for jobless benefits dropped to a four-month low last week as an improving public health environment allows more segments of the economy to reopen, putting the labor market recovery back on track.

Still, a full recovery from the deep scars inflicted by the COVID-19 pandemic will probably take years, with the weekly unemployment claims report from the Labor Department on Thursday also showing a whopping 20.1 million Americans collecting unemployment checks in late February.

Initial claims for state unemployment benefits decreased 42,000 to a seasonally adjusted 712,000 for the week ended March 6, the lowest level since early November. Data for the prior week was revised to show 9,000 more applications received than previously reported. Economists polled by Reuters had forecast 725,000 applications in the latest week.

 

·         CORONAVIRUS UPDATES:

COVID-19 infections are still rising in 59 countries.

Global Cases: 119.09 (+471,790)

Global Deaths: 2.64M (+9,466)

 

No. 1

U.S. Cases: 29.92M (+59,176)

U.S. Deaths: 543,585 (+1,392)

 

No. 2

India Cases: 11.30M (+21,668)

India Deaths: 158,326(+113)

No.3

Brazil Cases: 11.28M (+78,297)

Brazil Deaths: 273,124 (+2,207)

 

No.4

Russia Cases: 4.36M (+9,270)

Russia Deaths: 90,734 (+459)

 

No.5

UK Cases: 4.24M (+6,753)

 

No.116

Thailand Cases: 26,598 (+58)

Thailand Deaths: 85

 

·         Brazil hospitals pushed to limit as COVID-19 death toll soars

 

·         COVID-19 situation in Paris region very worrying, minister says

The COVID-19 situation in greater Paris is “especially worrying” and the government will take extra restrictive measures there if the pandemic continues at its current pace, France’s health minister said on Thursday.

 

·         Denmark, Norway and Iceland suspend use of AstraZeneca Covid vaccine over reports of blood clots

 

·         Hungary publishes Chinese, Russian vaccine contracts amid COVID-19 surge

 

·         COVID-19 Vaccination

So far 119 countries have begun vaccinating people for the coronavirus and have administered at least 328,694,000 doses of the vaccine.

·         Novavax vaccine 96% effective against original coronavirus, 86% vs British variant in UK trial

Novavax Inc’s COVID-19 vaccine was 96% effective in preventing cases caused by the original version of the coronavirus in a late-stage trial conducted in the United Kingdom, the company said on Thursday, moving it a step closer to regulatory approval.

 

·         Pfizer vaccine production on the rise as pandemic hits one-year mark

Pfizer Inc and German partner BioNTech SE will exceed their original global production target for COVID-19 vaccines by as much as 20% this year, as they ramp up production a year into the global pandemic, Pfizer Chief Executive Albert Bourla said on Thursday.

 

·         J&J to make up to three billion COVID-19 vaccines in 2022: chief scientist

Johnson & Johnson’s chief scientist said the company expects to produce up to 3 billion doses of its COVID-19 vaccine next year, after the European Union approved the one-shot immunization on Thursday.

 

·         Johnson & Johnson’s one-shot Covid vaccine cleared for use in the EU

The European Union on Thursday authorized the use of the one-dose coronavirus vaccine created by Johnson & Johnson, adding another weapon in the armory being used to fight Covid-19.

Europe’s drug regulator gave its recommendation earlier on Thursday with the EU Commission giving formal approval later in the day.

The vaccine has the added benefit of only requiring a single dose and can be stored in most standard refrigerators at temperatures of 2 to 8 degrees Celsius (or roughly 36 to 46 degrees Fahrenheit), making it easier and cheaper to transport and store.

 

·         AstraZeneca further cuts target for supply to EU in first quarter to 30 million vaccines: document

AstraZeneca cut its supply forecast of COVID-19 vaccines to the European Union in the first quarter to about 30 million doses, a third of its contractual obligations and a 25% drop from pledges made last month, a document seen by Reuters shows.

 

·         WHO investigators say Covid origins could be known ‘within the next few years’

 

·         Covid variant first found in the U.K. appears to be 64% more deadly than earlier strains, study finds

Researchers at the University of Exeter and the University of Bristol analyzed data from more than 100,000 patients in the U.K. between Oct. 1 and Jan. 28. They compared death rates among people infected with B.1.1.7, the variant first found in the U.K., and those infected with other previously circulating strains.

The researchers, who published their findings Wednesday, said people infected with B.1.1.7 were between 32% and 104% more likely to die. That translates to a central estimate of 64%, they said, adding the “absolute risk of death in this largely unvaccinated population remains low.”

 

·         Coronavirus variants could cause third wave in Ontario: expert panel

 

·         BOC suggests Canadian rate hikes could come sooner if people spend pandemic savings

 

·         China’s premier talks up education in the country’s bid to boost innovation

 

·         Chinese tech giant Baidu could raise $3.6 billion in Hong Kong listing this month

Baidu will raise $3.6 billion in an upcoming Hong Kong secondary listing if it prices shares at the upper end of their range.

 

·         U.S. slams China's Hong Kong move, to raise Xinjiang genocide charge in talks

 

·         China, Iran, North Korea seek support at U.N. to push back against unilateral force, sanctions

 

·         Western nations condemn Houthi attack on Yemeni city Marib

Reference: CNBC, Worldometers, Reuters