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Gold prices rose on Tuesday as a drop in U.S. Treasury yields lifted the non-yielding precious metal’s appeal.

·         Spot gold rose 0.5% to $1,777.43 per ounce by 2:01 p.m. EDT (1801 GMT). U.S. gold futures settled up 0.4% to $1,778.40.

·         “Gold’s recent upward momentum has been driven by the fact that bonds are well bid and the USD is under pressure,” said Tai Wong, head of base and precious metals derivatives trading at BMO.

 

 “Gold is likely to hold in the new range of $1,760-$1,810 until we get another clear market driver. We may need to wait for the FOMC (Federal Open Market Committee) and see if there’s a change in tone as well as how the next round of Treasury auctions go, but overall bonds feel in demand,” Wong said.

 

·         U.S. Treasury yields eased, while the dollar index was up 0.2% but hit its lowest level in about seven weeks earlier in the session.

 

·         The U.S. central bank’s rate-setting FOMC will hold its next policy meeting April 27-28.

 

·         Gold, considered a hedge against inflation given the unprecedented stimulus doled out by central banks, has been in a tussle with yields, since higher yields translate into a higher opportunity cost of holding the non-interest bearing bullion.

 

·         Gold can still move higher as “there is too much liquidity in the market and it is going to stay that way for quite some time, even though we have got the green shoots of recovery looking quite strong in certain regions,” StoneX analyst Rhona O’Connell said

 

·         On a technical note, gold’s failure to break resistance at $1,785 may drive it back to a range of $1,744 to $1,758, Reuters technical analyst Wang Tao said.

 

·         Silver fell 0.1% to $25.78 an ounce, palladium dropped 1.7% to $2,763.19 and platinum slipped fell 1.5%, to $1,188.01.

 

·         Economist tells investors to ‘keep the faith’ that U.S. yields will continue to rise

Sailesh Jha of RHB Bank says it’s now an “opportune time” for investors to switch away from Asia currencies into the U.S. dollar.

·         Fed will limit any overshoot of inflation target, Powell says

The U.S. economy is going to temporarily see “a little higher” inflation this year as the recovery strengthens and supply constraints push up prices in some sectors, but the Federal Reserve is committed to limiting any overshoot, Fed Chair Jerome Powell said in an April 8 letter to Senator Rick Scott.

“We do not seek inflation that substantially exceeds 2 percent, nor do we seek inflation above 2 percent for a prolonged period,” Powell said in a five-page response to a March 24 letter in which the Florida Republican raised concerns about rising inflation and the U.S. central bank’s bond-buying program.

 

·         Biden’s recovery plan for families set to cost more than $1 trillion, extend enhanced child tax credit

President Joe Biden’s next economic recovery package will cost at least $1 trillion and extend the beefed-up child tax credit, a source familiar with the proposal confirmed Tuesday.

 

·         Dogecoin cryptocurrency slumps after hashtag-fueled surge to record high

Meme-based cryptocurrency Dogecoin fell on Tuesday after hitting an all-time high in a wild session that saw supporters of the token once considered a parody use hashtags to fuel a rally until it lost steam.

Dogecoin ultimately fell 15.4% to US$0.33, but during the session when it hit a record peak, its market capitalization soared to more than $50 billion. After the slump, its market cap dropped roughly $45 billion, according to coinmarketcap.com.

Dogecoin fans used the hashtags #DogeDay and #DogeDay420 to post memes, messages and videos on Twitter, Reddit and TikTok, referring to the informal April 20 holiday to celebrate cannabis which is marked by smoke-ins and street parties.

 

·         CORONAVIRUS UPDATES:

COVID-19 infections are still rising in 59 countries.

Global Cases: 143.53M (+821,499)
Global Deaths: 3.05M (+13,835)

 

No. 1 – 3
U.S. Cases: 32.53M (+60,276)
U.S. Deaths: 582,456 (+883)

India Cases: 15.60M (+294,290)
India Deaths: 182,570 (+2,020)

Brazil Cases: 14.05M (+73,172)
Brazil Deaths: 378,530 (+3,481)

 

No.107
Thailand Cases: 45,185 (+1,443)
Thailand Deaths: 108 (+4)

 

New infections reported by region

Of every 100 infections last reported around the world, more than 59 were reported from countries in Asia and the Middle East

 

Global Vaccination

So far, at least 171 countries have begun vaccinating people for the coronavirus and have administered at least 917,476,000 doses of the vaccine.

Gibraltar leads the world and has administered enough vaccine doses for 99% of its population, assuming every person needs two doses.

 

·         Coronavirus: Hong Kong’s first local case of strain confirmed as South African variant with transmission likely to have occurred at hotel

Transmission of virus likely to have taken place at quarantine hotel via door hooks used by staff to deliver meal boxes to guests, probe finds.

Local health authorities also confirm eight new coronavirus cases, including two people who recently arrived from mainland China.

 

·         India's 'double mutation' covid virus variant is worrying the world

The new variant, which has a so-called double mutation, is thought to be fueling India’s deadlier new wave of cases that has made it the world’s second worst-hit country, surpassing Brazil again, and has already begun to overwhelm its hospitals and crematoriums.

 

·         More than 33 million Britons have received first COVID vaccine dose

 

·         Indian capital running out of medical oxygen as pandemic surges

 

·         Israel logs Indian COVID-19 variant, sees some vaccine efficacy against it

Israel has registered eight cases of a coronavirus variant first identified in India and believes that the Pfizer/BioNTech (PFE.N), (22UAy.DE) vaccine is at least partially effective against it, an Israeli health official said on Tuesday.

 

·         J&J to cooperate in study of rare clots linked to COVID-19 vaccine, German scientist says

 

·         EU regulator finds possible blood clot link with J&J vaccine, but says benefits outweigh risks

The European Medicines Agency said Tuesday the Johnson & Johnson Covid-19 vaccine has possible links to rare blood clot incidents, but reiterated that its benefits still outweighed the risks.

″(The) EMA’s safety committee (PRAC) concluded that a warning about unusual blood clots with low blood platelets should be added to the product information for COVID-19 Vaccine Janssen,” the agency said in a press release.

 

·         J&J to resume rollout of COVID-19 vaccine in Europe with safety warning

 

·         Sinovac supplied 260 mln COVID-19 vaccine doses globally

 

·         BOJ warns of risks to Japan banks from Archegos-type overseas funds

Japanese financial institutions have become more exposed to market risks triggered by non-bank and overseas funds, the central bank warned on Tuesday, in the wake of losses caused by the collapse of family office Archegos Capital Management.

 

·         Nuclear talks are progressing, Iran and U.S. say, despite Tehran’s enrichment threats

Talks on the Iranian nuclear deal in Vienna hit more positive notes on Monday, officials said, as Tehran and Washington continue indirect negotiations in the hope of reviving the 2015 accord that lifted economic sanctions on Iran in exchange for curbs to its nuclear program.

“We are on the right track and some progress has been made, but this does not mean that the talks in Vienna have reached the final stage,” Iranian Foreign Ministry spokesman Saeed Khatibzadeh told a news conference in Tehran.

 

·         Much more work needed in Iran nuclear talks despite progress, EU says

Iran and world powers have made headway in talks to save the 2015 nuclear accord, although much more work is needed, a senior European Union official said on Tuesday, with meetings to resume next week after consultations in their respective capitals.

"Progress made over the last two weeks," European External Action Service Deputy Secretary General Enrique Mora said on Twitter. "But much more hard work needed. Third expert group was created to address sequencing issues."

 

·         EU sets out Indo-Pacific plan, says it's not 'anti-China'

The European Union resolved on Monday to step up its influence in the Indo-Pacific region, using areas from security to health to protect its interests and counter China's rising power, although the bloc insists its strategy is not against Beijing.

 

·         Czechs urge allies to expel Russian intelligence officers in act of solidarity

 

Reference: CNBC, Reuters, Worldometers, South China Morning Post