Gold rebounds from low as dollar weakens

Gold bars. (Reuters)
Updated 18 January 2018
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Gold rebounds from low as dollar weakens

LONDON: Gold edged higher on Thursday after hitting its lowest in nearly a week as the dollar weakened, but analysts said bullion was vulnerable to more losses.
Spot gold was up 0.2 percent at $1,330.71 per ounce by 1500 GMT. Earlier in the session, it touched its lowest since Jan. 12 at $1,323.70.
US gold futures for February delivery slipped 0.6 percent to $1,331 per ounce. In the previous session, spot gold fell 0.8 percent, posting its worst one-day percentage decline since Dec. 7 as the dollar bounced from three-year lows.
“Gold continues to trade in lock-step with the US dollar,” said Carsten Menke, analyst at Julius Baer in Zurich. “We think the dollar has fallen too much. We see more upside for the dollar heading into the second quarter so that means that gold should move back below $1,300 and toward $1,250 by mid-year.”
The dollar index reversed direction and went into the red as global investors sought to diversify their dollar holdings into other currencies such as the euro. Spot gold is expected to fall to $1,311 per ounce, as it has broken a support at $1,329, according to Reuters technical analyst Wang Tao. Some analysts said a correction in digital currencies could support gold. “Brokers in Europe report investors have increasingly been asking about switching from cryptocurrencies into gold,” ANZ analysts said in a research note.
Bitcoin fell as much as 20 percent on Wednesday, dropping below $10,000 due to investor fears that regulators could clamp down.
In other precious metals, silver gained 0.6 percent to $17.11 per ounce and palladium shed 0.9 percent to $1,104.72 per ounce. Platinum added 1 percent to $1,006.60 per ounce, after touching its highest since Sept. 8 at $1,007.60 in the previous session.
Over the past 15 years, platinum has largely moved higher in January and February due to seasonally weaker supply from top producer South Africa, Menke said. “This seasonal rebound is playing out. And there is also some more room from short covering from the futures market.”


Saudi minister Al-Falih says Aramco IPO likely in 2019

Updated 25 May 2018
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Saudi minister Al-Falih says Aramco IPO likely in 2019

  • Energy Minister Khalid Al-Falih: “We are ready, the company (Saudi Aramco) essentially has ticked all the boxes. We’re simply waiting for a market readiness for the IPO.”
  • Khalid Al-Falih: “Most likely it will be in 2019 but we will not know until the announcement has been made. All I could say is stay tuned.”

RIYADH: Saudi Arabia is most likely to hold the initial public offering (IPO) of oil giant Aramco in 2019, Energy Minister Khalid Al-Falih said on Friday, confirming a delay from the initial plan to list the company this year.

“The timing I think will depend on the readiness of the market, rather than the readiness of the company or the readiness of Saudi Arabia,” Khalid Al-Falih, who’s also the company’s chairman, said at the St. Petersburg International Economic Forum in Russia on Friday.

“We are ready, the company essentially has ticked all the boxes,” he said. “We’re simply waiting for a market readiness for the IPO.”

For almost two years, Saudi officials said the IPO was “on track, on time” for the second half of 2018. But for the first time in March they suggested it could be delayed until 2019.

“Most likely it will be in 2019 but we will not know until the announcement has been made,” Al-Falih said. “All I could say is stay tuned.”

The Aramco IPO would be a once-in-a-generation event for financial markets. Saudi officials said they hope to raise a record $100 billion by selling a 5 percent stake, valuing the company at more than $2 trillion and dwarfing the $25 billion raised by Chinese retailer Alibaba Group Holding Ltd. in 2014.