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Gold slides over 1% as dollar, yields advance

Gold slipped more than 1% to an over two-week low on Monday as a firm dollar and rising U.S. Treasury yields dented the safe-haven metal's appeal, also pressured by bets for a swift economic recovery in the United States.

 

·         Spot gold XAU= fell 1.1% to $1,713.36 per ounce by 1:47 p.m. EDT (1747 GMT). U.S. gold futures GCv1 settled down 1.2% at $1,712.20.

·         "The gold and silver market bulls need a fundamental spark," said Kitco Metals senior analyst Jim Wyckoff, adding a resurgence in U.S. dollar and elevated yields are limiting buying interest.

 

The dollar index .DXY firmed against rivals, hurting greenback-denominated gold's appeal for investors holding other currencies.

 

The rapid recovery of the U.S. economy, with vaccine numbers ramping up and U.S. President Joe Biden's announcement this week, is a near term negative for gold prices, Wyckoff added.

 

·         Biden will release details on a infrastructure spending package that could be between $3 and $4 trillion on Wednesday. yields have also challenged gold's status as an inflation hedge since they translate into higher opportunity costs of holding the non-yielding bullion. US/

 

·         "We see virtually no scope for noticeably higher prices until mid-year, though gold should be able to make significant gains in the second half of the year," Commerzbank (DE:CBKG) analysts wrote in a note.

 

·         Meanwhile, palladium XPD= slipped 5.1% to $2,537.92, having earlier dropped to an over one-week low of $2,515.

·         Russia's Nornickel Nickel GMKN.MM , the world's largest palladium producer, said it had stopped water flowing into its two major mines in the Siberian Arctic and both were on track to fully resume production in coming months. could outperform other precious metals given that a larger-than-anticipated disruption in the Arctic mines will further erode the global stockpile, TD Securities said in a note.

 

·         Platinum XPT= was down 0.5% at $1,179.00 per ounce.

 

·         Silver XAG= fell 1.3% to $24.71.

 

·         Global shares slip after hedge fund's default

 

·         Biden to explain funding of $3 trillion infrastructure plan Wednesday -White House

 

·         Yellen, France's Le Maire underscore importance of reaching deal in OECD tax talks

During their conversation, Yellen emphasized U.S. support for a strong economic recovery and explained the Biden administration’s broader plans to support jobs and investment in the United States, Treasury said.

·         CORONAVIRUS UPDATES:

COVID-19 infections are still rising in 89 countries.

Global Cases: 128.21 (+431,383)

Global Deaths: 2.80M (+7,254)

 

No. 1

U.S. Cases: 31.03M (+56,166)

U.S. Deaths: 563,194 (+627)

 

No.2

Brazil Cases: 12.57M (+42,666)

Brazil Deaths: 314,268 (+1,969)

 

No. 3

India Cases: 12.09M (+56,119)

India Deaths: 162,147(+266)

 

No.116

Thailand Cases: 28,773 (+39)

Thailand Deaths: 94

 

·         Global Vaccination

So far, at least 141 countries have begun vaccinating people for the coronavirus and have administered at least 551,411,000 doses of the vaccine.

·         Biden says 90% of adults in U.S. will be eligible for vaccination by April 19

 

·         Pfizer, Moderna COVID-19 vaccines highly effective after first shot in real-world use, -U.S. study

 

·         New U.S. COVID-19 cases rise for second week in a row

New cases of COVID-19 in the United States rose 9% to more than 431,000 last week, the first time since January that cases have increased for two weeks in a row, according to a Reuters analysis of state and county data.

Thirty-three out of 50 states reported more new infections in the week ended March 28 compared with the previous seven days, according to the Reuters analysis. New Jersey, Michigan and New York posted the biggest increases relative to the size of their populations. (Open tmsnrt.rs/2WTOZDR in an external browser to see a related graphic.)

Health officials said some state and local governments were prematurely dropping precautions, such as wearing masks, and pointed to more infectious variants of the virus circulating.

 

·         This CEO is giving $500 bonuses to workers who get a Covid vaccine: ‘Incenting people is the right thing to do’

Since Bolthouse Farms CEO Jeff Dunn announced his plans to give all of his 1,800 full-time hourly employees at the company’s California plant a $500 bonus for getting the Covid-19 vaccine, he’s been getting a lot of inquiries.

 

·         Brazil health minister seek deal for earlier delivery of 20 million U.S. vaccines

Brazilian Health Minister Marcelo Queiroga said on Monday that he was pushing Brazilian and U.S. diplomats to get an earlier delivery of 20 million doses of coronavirus vaccines from the United States to help slow the country’s raging pandemic.

 

·         Spain's rising COVID-19 rate gathers pace

 

·         Pakistan's president tests positive for COVID-19

 

·         USTR's Tai tells European officials she wants 'more positive' trade ties

 

U.S. Trade Representative Katherine Tai on Monday told European officials she wanted to develop “a more positive and productive” trade relationship with Europe, despite disputes over aircraft subsidies and digital services taxes, USTR said.

 

·         China's March factory activity growth expected to grow: Reuters poll

 

·         Kuroda vows to keep up BOJ's ETF purchases: Asahi newspaper

 

·         Hyundai Motor to suspend production in South Korea due to chip shortage: report

 

·         The ship that blocked the Suez Canal may be free, but experts warn the supply chain impact could last months

The Ever Given was pulled free from the Suez Canal on Monday after cutting off traffic in the vital waterway for six days, but experts say the disruptions to global trade will continue to reverberate.

 

·         North Korean leader's sister slams South Korea's Moon for criticism of recent missile test – KCNA

 

Kim Yo Jong, the sister of North Korean leader Kim Jong Un, slammed South Korea’s president for calling the North’s recent missile test “concerning” and suggesting Seoul, Pyongyang and Washington should not create hurdles for talks, state media KCNA reported on Tuesday.

 

·         Thailand denies forcing back Myanmar refugees blocked at border

Reference: CNBC, Reuters, Worldometers, Investing