Gold edges higher as dollar dwindles after U.S. inflation data
Gold prices inched higher on Wednesday, extending gains from the previous session after data showing a bigger-than-expected rise in U.S. inflation boosted bullion’s appeal as a hedge against it and weighed on the dollar and Treasury yields.
· Spot gold rose 0.2% to $1,747.49 per ounce by 0125 GMT.
· U.S. gold futures were steady at $1,747.40 per ounce.
· Consumer prices in the United States soared by the highest in more than 8-1/2 years in March, setting off what most economists expect to be a fleeting spell of higher inflation.
· The U.S. dollar fell to three-week lows, making gold cheaper for holders of other currencies, while benchmark 10-year Treasury yields also inched down.
· Concerns posed by a suggestion of U.S. health officials to delay the use of Johnson & Johnson’s COVID-19 vaccine also supported safe-haven gold.
· The U.S. economy could expand by 5% to 6% this year, boosted by increased vaccinations and solid fiscal assistance, but the Federal Reserve will not withdraw its funding just yet, Philadelphia Fed President Patrick Harker said.
· The European Central Bank should spell out its tolerance for overshooting its inflation target, ECB policymaker Francois Villeroy de Galhau said on Tuesday.
· China’s exports rose sharply in March while imports growth surged to the highest in four years.
· Bitcoin reached a new high of $62,741 on Tuesday, continuing its 2021 run to new heights just a day before the listing of Coinbase stock in the United States.
· Silver rose 0.4% to $25.42 and palladium was flat at $2,689.44.
· Platinum was up 0.8% at $1,165.72
· Dollar at three-week low on tamped down fears over inflation
The dollar stood near three-week lows against the euro and the yen on Wednesday, after a larger-than-expected uptick in a U.S. consumer price gauge did not spark wider fears about accelerating inflation and the Federal Reserve’s tapering.
The dollar traded at 109.03 yen, near its lowest since late March, while the euro popped up to $1.1948, hitting its highest level since late March, as it extended a rally from a five-month low of $1.1704 set on March 31.
While the dollar was stuck near its familiar ranges against most other currencies, the dollar’s index against a basket of six major units hit a three-week low of 91.791 and last stood at 91.831.
Still many investors are wary of risk of further acceleration in the U.S. economy as vaccination rollouts have moved fast, allowing economic activities to restart.
· The Russian ruble gained about 2% overnight after U.S. President Joe Biden called on Russian President Vladimir Putin to reduce tensions between Russia and Ukraine.
Biden phoned Putin to propose they meet in a third country, in a sign of concern about tensions spinning out of control in the Ukraine crisis.
· In crypto, bitcoin traded at $63,287 after hitting a record high of $63,769, ahead of the listing of shares in cryptocurrency platform Coinbase on Nasdaq.
· ETF investors say Coinbase listing will cause explosion in crypto investing
· UBS sees continued strengthening for the Singapore dollar
UBS Global Wealth’s Dominic Schnider foresees the USD/SGD pair to trade in the range of $1.30-$1.31 later in the year.
· Philadelphia Fed Bank President Patrick Harker said on Tuesday it is unlikely that inflation will run out of control this year.
· Biden to address U.S. Congress as lawmakers consider infrastructure plan
U.S. President Joe Biden will speak to a joint session of the U.S. Congress on April 28, accepting an invitation from House of Representatives Speaker Nancy Pelosi, a fellow Democrat.
· Biden ready to announce U.S. withdrawal, even as peace eludes Afghanistan
· India's new coronavirus infections hit record as Hindu devotees immerse in Ganges
India’s new coronavirus infections hit a record on Wednesday, as crowds of pilgrims gathered for a religious festival despite oxygen shortages and strict curbs in other areas.
The country reported 184,372 cases in the last 24 hours, health ministry data showed, taking total infections to 13.9 million. Deaths rose by 1,027, to a toll of 172,085.
· UK trial on switching COVID-19 vaccines adds Moderna and Novavax shots
A UK study into using different COVID-19 vaccines in two-dose inoculations is being expanded to include shots made by Moderna and Novavax, researchers said on Wednesday.
· EU Commission to end AstraZeneca and J&J vaccine contracts at expiry – paper
The EU Commission has decided not to renew COVID-19 vaccine contracts next year with companies such as Astrazeneca and Johnson & Johnson (J&J), Italian daily La Stampa reported on Wednesday citing a source from the Italian Health Ministry.
· Australia flags mass inoculation amid COVID-19 vaccine turmoil
· Senators push for reopening of international travel, lift of CDC’s sailing ban for cruise lines
· French Finance Minister reaffirms 5% growth forecast for France in 2021
· Seven European countries to halt export finance for fossil fuels
Spain, the Netherlands, Denmark and Sweden are the other four countries to back the initiative.
Britain, France and Sweden have already laid out plans to halt export guarantees for the fossil fuel sector while the other countries in the group have yet to decide how fast they will phase out their support.
· Singapore’s economy unexpectedly grows in the first quarter of 2021
Singapore’s economy grew for the first time since the outbreak of Covid-19.
The Southeast Asian economy expanded by 0.2% in the first quarter of 2021 from a year ago, official advance estimates showed on Wednesday. That’s the country’s first economic growth since the fourth quarter of 2019.
On a quarter-on-quarter seasonally adjusted basis, the economy expanded by 2%, Singapore’s Ministry for Trade and Industry said in a statement.
· Singapore keeps monetary policy on hold amid patchy recovery
Singapore’s central bank kept monetary policy settings unchanged on Wednesday and said the accommodative stance was appropriate due to a benign inflation outlook and global economic uncertainties caused by the pandemic.
· BOJ Kuroda offers cautiously optimistic view on economy
Bank of Japan Governor Haruhiko Kuroda offered a cautiously optimistic view of the economy, saying it would continue to improve as robust global demand lifts business sentiment.
Reference: CNBC, Reuters
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