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.”


American Airlines ‘unaware’ of some Boeing 737 MAX functions until last week

Updated 15 November 2018
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American Airlines ‘unaware’ of some Boeing 737 MAX functions until last week

  • The FAA and Boeing are evaluating the need for software or design changes to 737 MAX jets
  • ‘Safety remains our top priority and is a core value for everyone at Boeing’

WASHINGTON: American Airlines Group Inc. said on Wednesday it was “unaware” of some functions of an anti-stall system on Boeing Co’s 737 MAX until last week.
Boeing and the US Federal Aviation Administration (FAA) issued guidance on the system last week after a Lion Air jet crashed in Indonesia on Oct. 29, killing all 189 people on board.
The FAA warned airlines last week that erroneous inputs from the system’s sensors could lead the jet to automatically pitch its nose down even when autopilot is turned off, making it difficult for pilots to control.
The system was designed to prevent the jet from stalling, according to information provided by Boeing to airlines.
“We value our partnership with Boeing, but were unaware of some of the functionality of the Maneuvering Characteristics Augmentation System (MCAS) installed on the MAX 8,” an American Airlines spokesman said.
“We must ensure that our pilots are fully trained on procedures and understand key systems on the aircraft they fly.”
Indonesian investigators said on Monday the situation the crew of a doomed Lion Air jet was believed to have faced was not contained in the aircraft’s flight manual. US pilot unions were also not aware of potential risks, pilot unions said.
The FAA and Boeing are evaluating the need for software or design changes to 737 MAX jets in the wake of the Lion Air crash, the regulator said on Tuesday.
The American Airlines spokesman said his airline was continuing to work with Boeing and the FAA and would keep pilots informed of any updates.
A Boeing spokeswoman said the manufacturer could not discuss specifics of an ongoing investigation but it had provided two updates for operators around the world that re-emphasize existing procedures to deal with situations relating to MCAS.
“We are confident in the safety of the 737 MAX,” she said. “Safety remains our top priority and is a core value for everyone at Boeing.”