Gold eases off 4-1/2-month peak as dollar, yields rebound
· Gold prices eased on Thursday after hitting a 4-1/2-month high in the previous session, hurt by an uptick in the U.S. dollar and bond yields, while investors awaited key economic readings out of the United States.
· Spot gold fell 0.2% to $1,892.42 per ounce by 0100 GMT, after hitting its highest since Jan.8 at $1,912.50 on Wednesday.
· U.S. gold futures declined 0.4% to $1,894 per ounce.
· The dollar index was up 0.1% against rivals, moving further away from a 4-1/2-month low hit earlier this week and making gold more expensive for other currency holders.
· Benchmark U.S. Treasury yields rose to 1.58%, increasing the opportunity cost of holding non-interest bearing gold.
· On Wednesday, Fed vice chair for supervision Randal Quarles said he was prepared to open talks on reducing the central bank’s emergency support measures, only to also stress the need to remain patient.
· Federal Reserve officials have downplayed rising price pressures and affirmed their support to keep monetary policy accommodative for some time.
· Market participants now await key U.S. economic data, including gross domestic product, jobless claims and consumer spending.
· South Korea’s central bank kept monetary policy unchanged on Thursday as a surge in coronavirus cases threatened an export-led economic recovery.
· The European Central Bank should not reduce the pace of asset purchases from next month, ECB board member Fabio Panetta said on Wednesday, joining a growing chorus of policymakers calling for continued stimulus.
· SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 1,044.08 tonnes on Wednesday from 1,046.12 tonnes on Tuesday.
· Corn futures drop 6% on larger supply in latest speculative unraveling in the commodities markets
Corn futures for July delivery fell 6% to $6.18 a bushel, a one-month low.
Corn futures dropped on Tuesday as concerns about abundant supply whacked America’s biggest cash crop. It’s the latest trading volatility in the commodities sector as the pandemic and the economic reopening distorted markets and led to big speculation in areas like lumber.
· Palladium fell 0.2% to $2,739.71 per ounce, silver slipped 0.4% to $27.59 and platinum dipped 0.7% to $1,183.59.
· U.S. trade chief Tai says U.S. faces ‘very large challenges’ on China
U.S. Trade Representative Katherine Tai said on Wednesday that the United States still faces “very large challenges” in its trade and economic relationship with China that require the Biden administration’s attention across the board.
Tai spoke with Reuters in an interview before her first virtual call with Chinese Vice Premier Liu He, a meeting in which she raised "issues of concern," according to her office.
· EU starting work on economic sanctions on Belarus, Borrell says
European Union foreign ministers will begin discussing on Thursday which parts of Belarus' economy to target with sanctions following the forced landing of a plane there and the detention of a dissident journalist, the EU's top diplomat said.
· German consumer morale improves less than expected heading into June - GfK
German consumer morale improved less than expected heading into June as shoppers remained cautious despite falling COVID-19 infections and an improving growth outlook for Europe's largest economy, a survey showed on Thursday.
The GfK institute said its consumer sentiment index, based on a survey of around 2,000 Germans, edged up to -7.0 from a revised -8.6 in the previous month. The reading missed a Reuters forecast for a bigger rise to -5.2.
· U.S. senators want review of Chinese donations to U.S. universities
U.S. senators offered legislation on Wednesday that would require national security reviews of major Chinese gifts and contracts to U.S. universities. They hope limiting such reviews to China alone would ease concerns in academia that reviews of foreign funding could threaten research.
The measure, an amendment to a broad bill seeking to boost U.S. competitiveness with China, would require the federal government's Committee on Foreign Investment in the United States (CFIUS) to review grants and contracts from China whose value exceeds $1 million.
· U.S. and China trade representatives hold first phone call under Biden
The leaders of trade talks between the U.S. and China held their first call Thursday under U.S. President Joe Biden’s administration, China’s Ministry of Commerce said.
U.S. Trade Representative Katherine Tai and Chinese Vice Premier Liu He had a “candid, pragmatic and constructive” conversation, the ministry said in a Chinese-language online statement, translated by CNBC.
The statement did not share any details on developments for trade, or whether tariffs applied under the Trump administration would be rolled back.
· China says it hopes France will push for Sino-EU investment deal
China has told France it hopes Paris will push for the early ratification of the China-EU investment deal, the commerce ministry said on Wednesday.
Commerce minister Wang Wentao gave the message to France's minister delegate for trade, Franck Riester, in a video conference on Tuesday, the ministry added.
The European Parliament last week halted ratification of a new investment pact with China until Beijing lifts sanctions on EU politicians, deepening a dispute in Sino-European relations and denying EU companies greater access to China.
· Chinese embassy in U.S. says politicising COVID-19 origins hampers investigations
Politicising the origins of COVID-19 would hamper further investigations and undermine global efforts to curb the pandemic, China’s U.S. embassy said after President Joe Biden ordered a review of intelligence about where the virus emerged.
The embassy in Washington said in a statement on its website on Wednesday evening "some political forces have been fixated on political manipulation and (the) blame game".
· S.Korea's business sentiment remains low in May
The sentiment among South Korean businesses over the economic situation remained low in May owing to the shortage of semiconductors and the higher raw materials price, central bank data showed Wednesday.
The business sentiment index (BSI) stood at 88 in May, unchanged from the previous month, according to the Bank of Korea (BOK).
The index hovered below 100, indicating pessimists outnumbering optimists. The result was based on a survey of 1,647 manufacturers and 1,148 non-manufacturers conducted from May 10 to 17.
· Taiwan sees 'political warfare' in dispute with China over vaccines
· Australia's Victoria state to enter COVID-19 lockdown after 'highly-infectious' outbreak
Australia’s second most populous state of Victoria will enter a one-week COVID-19 lockdown forcing its near seven million residents to remain home except for essential business as authorities struggle to contain a highly-infectious outbreak.
· Indian economy not as hard hit as first wave but uncertainties remain, says RBI
Reference: CNBC, Reuters
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