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Gold firms near more than 1-month high as yields retreat

·         Gold scaled a more than one-month peak on Thursday as U.S. Treasury yields slipped despite better-than-expected U.S. economic data, pushing investors to bullion as a refuge against possible inflation ahead.

 

·         Spot gold rose 1.8% to $1,766.50 per ounce, having earlier risen to $1,769.37, its highest since Feb. 26.

 

·         U.S. gold futures settled 1.8% higher at $1,766.80.

 

·         “A massive amount of inflation is certainly on the horizon and gold is just the best asset to own as we start to see what I would consider some historic levels of inflation,” said Jeffrey Sica, founder of Circle Squared Alternative Investments.

 

·         Making gold more appealing for holders of other currencies, the dollar was subdued, having earlier slumped to a four-week low. Retreating benchmark 10-year U.S. Treasury yields boosted non-yielding bullion’s appeal further.

 

 

·         Gold briefly pared gains after robust U.S. data showed a better-than-expected rebound in retail sales in March, while weekly initial claims for state unemployment benefits dropped to the lowest level since mid-March 2020.

 

·         Federal Reserve Chair Jerome Powell said on Wednesday the U.S. economy picked up speed going into the spring. Powell and other Fed officials, however, say the brighter economic forecasts and a brief period of higher inflation will not affect monetary policy and the central bank will keep its support in place until the crisis is over.

 

 

·         “The market is betting that there will be large requirements to fund some higher inflation and a Federal Reserve that’s not particularly worried about inflation being a serious issue for now,” said Bart Melek, head of commodity strategies at TD Securities.

 

·         Silver rose 1.8% to $25.86 per ounce.

·         Palladium climbed 2.1% to $2,733.75, having earlier hit its highest since Feb. 28, 2020 at $2,760.53.

·         Platinum gained 2.3% to $1,197.91.

·         U.S. retail sales post largest gain in 10 months; weekly jobless claims fall

U.S. retail sales rose by the most in 10 months in March as Americans received additional pandemic relief checks from the government and increased COVID-19 vaccinations allowed broader economic re-engagement, cementing expectations for robust growth in the first quarter.

The brightening economic prospects were underscored by other data on Thursday showing first-time claims for unemployment benefits tumbled last week to the lowest level since March 2020, when mandatory closures of nonessential businesses were enforced to slow the spread of the first COVID-19 wave.

Retail sales rebounded 9.8% last month, the largest increase since May 2020, the Commerce Department said. Data for February was revised higher to show sales dropping 2.7% instead of 3.0% as previously reported. March's rise pushed the level of sales 17.1% above its pre-pandemic level and to a record high.

 

·         U.S. unemployment claims sink 193,000 to pandemic low of 576,000

U.S. unemployment claims sank by 193,000 in early April to a fresh pandemic low, an unusually large decline that reflects an improving economy but also ongoing problems in processing applications for jobless benefits.

Initial jobless claims filed traditionally through the states fell to a seasonally adjusted 576,000 from 769,000 in the prior week, the government said Thursday. That’s the largest decline since August.

The number of new claims dropped below 600,000 for the first time since the pandemic began 13 months ago and touched a new low.

 

·         CORONAVIRUS UPDATES:

Global Cases: 139.66 (+836,294)
Global Deaths: 2.99M (+13,839)

 

No.1 - 3

U.S. Cases: 32.22M (+74,479)
U.S. Deaths: 578,993 (+895)

 

India Cases: 14.28M (+216,850)
India Deaths: 174,335 (+1,183)

 

Brazil Cases: 13.75M (+80,529)
Brazil Deaths: 365,954 (+3,774)

 

No.112

Thailand Cases: 37,453 (+1,543)
Thailand Deaths: 97

  

·         India’s second wave of Covid shows no signs of slowing as country reports over 200,000 new cases

 

·         Pfizer CEO says third Covid vaccine dose likely needed within 12 months

 

·         Fauci says he believes J&J vaccine will ‘get back on track soon’

 

·         Supply chain slowdown hits at key pillars of economy and will likely get worse: Dan Yergin, vice chairman of IHS Markit

 

·         Biden seeks closer ties with Japan as the U.S. prepares to challenge China

U.S. President Joe Biden will meet with Japanese Prime Minister Yoshihide Suga on Friday — and political analysts say China’s growing influence will likely be high on the agenda.

 

·         Biden administration slaps new sanctions on Russia for cyberattacks, election interference

 

·         Biden says he is ready to ‘take further actions’ if Russia escalates against U.S., opens door to cooperation

President Joe Biden on Thursday addressed the sweeping sanctions his administration imposed on Russia, a move that seeks to address a litany of malign behaviors and is expected to peeve Moscow.

“If Russia continues to interfere with our democracy, I’m prepared to take further actions to respond. It is my responsibility as president of the United States to do so,” Biden said from the White House.

 

·         Turkey’s new central bank chief holds interest rates, sparking concern among investors

Turkey’s Monetary Policy Committee on Thursday chose to keep its key interest rate unchanged at 19%, in a move widely anticipated by markets.

While unsurprising to investors watching the central bank, the dovish signal nonetheless risks more volatility for the country’s currency as it all but eviscerates the likelihood of higher rates in the future to curb Turkey’s double-digit inflation.

 

Reference: CNBC, Reuters, Worldometers, Market Watch