Gold edges up as weaker dollar offsets news on Trump’s progress
Gold inched up on Monday as the dollar weakened, although gains were limited as news that U.S. President Donald Trump, receiving treatment for COVID-19, could be released from hospital boosted risk sentiment.
Spot gold was up 0.1% at $1,900.46 per ounce. U.S. gold futures were down 0.2% at $1,904.50.
“There are two opposing forces at work in the gold market, on the one hand we’ve the perception that the U.S. president is doing better and that he may be released from the hospital today and that’s driving positive risk sentiment,” said UBS analyst Giovanni Staunovo.
And, on the other hand, “we see the dollar has started to weaken again and this is offsetting the losses from the risk-on sentiment,” he added.
Global stocks rose on Monday after news that Trump could be discharged from hospital as soon as Monday, although outside experts warned that his case may be severe.
The dollar was down 0.3% against rivals, making gold cheaper for holders of other currencies.
CNN Business/Chris Isidore
‘A devastating experience:’ Temporary layoffs just became permanent for millions of American workers
The number of unemployed who have lost a permanent job, or had a temporary job has come to an end, has soared in the past seven months, from 1.9 million in February, to 4.5 million in September.
That means the percentage rise over a six-month period has been the fastest on record going back more than 50 years. The doubling of those permanent job losses in such a short time frame has never happened before, not even during the Great Recession.
And permanent job losses are poised to keep climbing.
American (AAL)and United Airline (UAL)cut 32,000 jobs on Thursday alone. Disney (DIS) has announced plans to permanently cut 28,000 workers who has been on temporary furlough before now at its US theme parks. JCPenney (JCP) plans to cut 15,000 jobs as its closes 149 stores ahead of the holiday shopping season as part of its plan to emerge from bankruptcy. On Sunday, Cineworld, the owner of Regal Cinemas, said it may have to close more than 500 US theaters indefinitely.
None of those permanent job losses are reflected in the most recent numbers from the Labor Department.
Lorincz, said she had been out of work before, when a startup she worked for went out of business. But she was never scared about being able to find something new.
“I’m picking up odd jobs here and there, I’m Door Dashing, and doing everything to cover expenses,” she said. “I don’t know what I’d be doing if I was trying to support a family. I’m without insurance during a pandemic, which is terrifying.”
Bridgewater on gold: ‘It’s wise to hold some of what central banks can’t create more of’
According to the latest trade data from the London Bullion Market Association, trading activity in the precious metals market saw a sharp increase in August.
The increase in activity came as gold prices pushed to an all-time high above $2,000 an ounce. Silver prices rallied to a multi-year high above $30 an ounce.
Not only did the gold market see a lot of movement in August, but investors continued to pile into the precious metals as the LBMA said that gold and silver held in London vaults reached record levels for the fourth consecutive month.
“As of the end of August 2020, there were a record 8,955 tonnes of gold, valued at a record high of $563.5 billion,” the LBMA said in its latest clearing statistics report. “There were also 33,390 tonnes of silver, valued at a record high of $29.4 billion.”
Looking at trading activity, the LBMA releases clearing statistics each month, showing the net volume of gold and silver transferred between accounts of members, essentially providing a snapshot of the amount of trading activity.
According to the report, the volume of gold ounces transferred in August rose 15.2% month-on-month to 22.1 million ounces.
The value transferred fell 23% to $43.5 billion. There were 5,077 transfers in August, 24% higher m/m, with the clearers settling on average 4,354 ounces per transfer, 7.1% lower m/m.
Meanwhile, the number of silver ounces transferred in August was also up, rising
7.4% to 339.3 million ounces, the LBMA said.