· Gold slipped 1% on Thursday, retreating from a two-month peak, as the U.S. dollar gained some ground, while palladium lingered below an all-time high.
· Spot gold was down 0.7% to $1,781.46 per ounce by 1:44 p.m. EDT (1744 GMT), after hitting its highest level since Feb. 25 at $1,797.67.
· U.S. gold futures settled 0.6% lower at $1,782.
· "$1,800 was a bit of a psychological resistance, so we've come back with tests ... The dollar and the 10-year (yields) are both a little bit higher and that's pressuring gold as well," said ED&F Man Capital Markets analyst Edward Meir.
· The dollar (.DXY) was up 0.2% versus a basket of other major currencies, making gold more expensive for holders of other currencies. Meanwhile, the yield on the 10-year Treasury note rose to a session high of 1.587%, though it held in a tight range.
· Gold has dropped 6% so far this year, mostly pressured by rising yields.
· The downside in gold is likely to be short-lived amid central bank buying and increasing demand for physical gold from China and India, said Bob Haberkorn, senior market strategist at RJO Futures.
· Switzerland in March recorded its biggest monthly gold exports in 10 months as shipments to India jumped.
But clouding that outlook was a record COVID-19 surge in the country.
· Bullion's appeal also was dimmed by data showing a drop in claims for unemployment benefits last week, strengthening expectations for another month of job growth in April.
· Palladium eased off a record high of $2,891.50 per ounce and was last down 1.5% at $2,833.28.
· "If you are long palladium and platinum right now, it's the perfect storm for price increases, because there's a very tight supply and the demand is increasing, especially from the auto sector," said Kevin Rich, global gold market advisor for The Perth Mint.
· Many analysts expect a further run towards $3,000.
· Silver slipped 1.8% to $26.10 per ounce.
· Platinum fell 1% to $1,202.12.
· ECB dismisses tapering talk as recovery ‘has a long way to go’
ECB Keeps Stimulus Settings in Place to Await Economic Rebound
The European Central Bank left its crisis-fighting tools unchanged, asserting that its current stimulus settings are powerful enough to put the economy on track for a rebound later this year.
The Governing Council kept the size of its pandemic-bond buying program at 1.85 trillion euros ($2.2 trillion), confirming that purchases will run at an elevated pace in the current quarter.
Officials also held the deposit rate at -0.5% and said they will continue to provide long-term loans to banks to keep credit flowing to businesses and households.
Officials have spent an average net 17 billion euros per week under their pandemic program since then, up from about 14 billion per week in the first weeks of 2021. The aim is to keep borrowing costs for companies, households and governments across the euro area favorable during the pandemic. Net purchases are currently set to last until the end of March 2022.
· EU economy 'on crutches,' warns ECB chief Christine Lagarde
Christine Lagarde has said Europe's monetary authority plans to keep interest rates and coronavirus stimulus unchanged. She urged EU members to get their coronavirus recovery fund operational with haste.
"We still have a long way to go before we cross the bridge of the pandemic," Lagarde said. "I have referred to the economy as being on crutches, one fiscal crutch and one monetary crutch." She added that the bloc wasn't ready to stand on its own.
· Biden to propose capital gains tax of 39.6% to fund education and child care, reports say
President Joe Biden will seek to raise taxes on millionaire investors to fund education and other spending priorities as part of the administration’s effort to overhaul the U.S. economy.
As part of the plan, Biden will seek an increase in the tax on capital gains to 39.6% from 20% for those Americans earning more than $1 million, according to multiple outlets, including Bloomberg News and The New York Times.
That proposal would be separate from the $2.3 trillion infrastructure package known as the American Jobs Plan, which would be funded by an increase in the corporate tax rate to 28%. The White House and Democratic lawmakers passed a $1.9 trillion Covid-19 relief package in March.
· Republicans unveil $568 bln infrastructure package to counter Biden
· CORONAVIRUS UPDATES:
Global Cases: 145,314,945 (882,557)
Global Deaths: 3,084,429 (13,350)
No.1 - 3
U.S. Cases: 32,668,847 (+66,796)
U.S. Deaths: 584,214 (+884)
India Cases: 16,257,309 (+332,503)
India Deaths: 186,928 (+2,256)
Brazil Cases: 14,172,139 (+49,344)
Brazil Deaths: 383,757 (+2,070)
No. 38
Japan Cases: 546,425 (+5,291)
Japan Deaths: 9,764 (+54)
No. 105
Thailand Cases: 48,113 (+1,470)
thailand Deaths: 117 (+7)
· India posts world record COVID cases with oxygen running out
· Three prefectures around Tokyo to request COVID state of emergency -Nikkei
· Fauci says people who get Covid between vaccine shots can get second dose soon after recovery
People who get infected with the coronavirus between Covid-19 vaccine shots can get their second dose after they’ve recovered from the illness and are no longer considered contagious, White House chief medical advisor Dr. Anthony Fauci said Thursday.
Pfizer’s and Moderna’s Covid vaccines require two doses given three to four weeks apart. Both vaccines are about 95% effective against the virus, but that strong protection doesn’t kick in until two weeks after the second dose, officials say.
· China rebukes Australia for “Cold War mentality” after Belt and Road accords cancelled
· Iran cuts number of centrifuges enriching uranium to 60% purity, IAEA report says
· Russia orders troops back to base after buildup near Ukraine
· Saudi-led coalition intercepted two Houthi explosives-laden drones -state TV
The Saudi-led coalition intercepted two Houthi explosives-laden drones fired at the kingdom's southern region and the city of Khamis Mushait, state TV reported early on Friday.
Reference: CNBC, Reuters, Worldometers, Bloomberg
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