Gold dips, heads for second weekly loss

Gold slipped on Friday, under pressure from tumbling equity markets, a firmer dollar and worries about rising global interest rates.
Updated 09 February 2018
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Gold dips, heads for second weekly loss

LONDON: Gold slipped on Friday, under pressure from tumbling equity markets, a firmer dollar and worries about rising global interest rates, but still found some support as a safe haven asset in times of market turmoil.
The dollar rose against a currency basket, heading for its best week since late October, while a 4 percent drop in Chinese shares dealt a fresh blow to world markets that have been reeling on worries about rising borrowing costs and soaring volatility.
“Just like any other commodity gold is getting caught up in risk reduction, but overall the stock market gyrations have most certainly provided underlying support,” said Ole Hansen, head of commodity strategy at Saxo Bank. Although the dollar had strengthened, he said investors were watching to see if the US administration’s planned tax cuts boosted the economy.
“If it doesn’t, it could have a negative growth impact, that’s not going to be dollar-positive,” he said.
A strong dollar makes dollar-priced gold costlier for non-US investors. Spot gold fell 0.2 percent to $1,316.61 an ounce at 1300 GMT. Prices touched their lowest since Jan. 4 at $1,306.81 on Thursday, and the precious metal is down 1 percent for the week so far, heading for a second straight weekly drop.
US gold futures were flat at $1,318.90 per ounce. The yield on benchmark 10-year US Treasuries , which tends to be the driver of global borrowing costs, was hovering at 2.86 percent, just short of both its Thursday peak and Monday’s four-year high of 2.885 percent.
“The threat of rising interest rates will have some downside pressure on gold,” said Argonaut Securities analyst Helen Lau. “However, in the near-term gold will gain due to volatile markets.”
Rising yields increase the opportunity cost of holding non-yielding bullion. Holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, have fallen over the last three sessions, and declined 1.7 percent so far this week, the worst since the week ended July 30, 2017.
Silver fell 0.4 percent to $16.36 an ounce, after touching its lowest since Dec. 22, 2017 at $16.22 on Thursday. Platinum rose 0.1 percent to $970.20 an ounce. It hit its lowest since Jan. 10 at $965 in the previous session. Palladium rose 0.9 percent to $971.47.
It marked its lowest since Oct. 25, 2017 at $958.95 on Thursday. “Following the recent declines, platinum and palladium are back to parity. Given our outlook for a slowdown in global car sales, we do not see the recent sell-off in palladium as a buying opportunity and maintain a bearish view,” said Julius Baer in a note.


In airline-business rarity, Air France picks a woman CEO

In this file photo taken on March 26, 2018, Air France's Executive Vice President Customer Division Anne Rigail speaks during a press conference to announce the re-opening of direct flight between Paris and Nairobi, in Nairobi on March 26, 2018. (AFP)
Updated 13 December 2018
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In airline-business rarity, Air France picks a woman CEO

  • As of June, there were just 18 women holding down jobs of CEO, president or managing director at airlines around the world, according to the Center for Aviation, an Australia-based airline industry research group

PARIS: When the leaders of global airlines posed for a photo in June, there were 25 men in dark suits and a lone woman in the last seat on the far right.
That could be changing, but very slowly.
Air France announced Wednesday that Anne Rigail will take over as CEO next week. Rigail, a 27-year company veteran and currently an executive vice president, will be the first woman to lead the French carrier, which was formed in 1933. Parent company Air France-KLM Group will continue to be led by a man, however.
Few women have run large airlines. Carolyn McCall was CEO of British low-cost carrier EasyJet for seven years until leaving this year to run British broadcaster ITV. Christine Ourmieres-Widener, the woman in the June photo of CEOs, leads Flybe, a European regional airline that has fewer than 100 planes.
In the United States, Air Wisconsin, a regional airline that operates United Express flights, is led by CEO Christine Deister, and another regional, Cape Air, has a female president, Linda Markham.
But no major US carrier has ever had a female CEO, and only a few women hold other top jobs. In May, JetBlue Airways named Joanna Geraghty president and chief operating officer — the No. 2 job. Tammy Romo has been chief financial officer at Southwest Airlines since 2012, succeeding another woman. Elize Eberwein is an executive vice president at American Airlines.
As of June, there were just 18 women holding down jobs of CEO, president or managing director at airlines around the world, according to the Center for Aviation, an Australia-based airline industry research group. That is unchanged from a 2010 survey.
Women in the industry have said airlines need to do more to recruit and promote women, provide better mentoring, and encourage those who take maternity leave to return to their careers.
The International Air Transport Association — that’s the group whose leaders were pictured in June — has declared gender equality a priority. The group reported in March that only 3 percent of aviation CEOs are women, compared with 12 percent in other industries.
It didn’t help, however, that the association’s new president, Akbar Al Baker, the CEO of Qatar Airways, suggested that women aren’t up to the job of running an airline.
“Of course it has to be led by a man, because it is a very challenging position,” he said at a news conference. He later apologized.
As the new CEO at Air France, Rigail will certainly have her challenges. The airline faces contentious wage negotiations with pilots and flight attendants and has been hit by a series of damaging strikes. The last CEO quit after union employees rejected his offer of small pay raises for the next four years.
In a statement issued by Air France, Rigail said she is extremely honored by the promotion. Benjamin Smith, the CEO of parent Air France-KLM Group, said Rigail has always paid special attention to employees, and he expressed confidence that the airline can meet its challenges.