Gold holds above $1,800 mark on inflation worries

Gold holds above $1,800 mark on inflation worries
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Updated 25 October 2021

Gold holds above $1,800 mark on inflation worries

Gold holds above $1,800 mark on inflation worries

BENGALURU: Gold prices reclaimed the $1,800 mark on Monday, supported by persisting worries over inflation, as investors looked ahead to the next Federal Reserve meeting for its outlook on monetary policy.

Spot gold rose 0.5% to $1,801.22 per ounce by 1203 GMT. US gold futures rose 0.4 percent to $1,802.50.

While there is a perception inflation will be transitory, there is a persistent element of pressure, said Michael Hewson, chief market analyst at CMC Markets UK.

Federal Reserve Chair Jerome Powell on Friday reiterated his view that high inflation will likely abate next year, which led gold prices to ease from their September highs in the previous session.

He also said the US central bank should start the process of reducing its support of the economy by cutting back on its asset purchases, but not yet touch the interest rate dial.

“Powell’s recent comments may have amplified concerns of inflation sticking around for longer, which is apparently further eroding support for team ‘transitory’ and fueling a stronger bid for gold as an inflation hedge,” said Han Tan, chief market analyst at Exinity.

“And with Powell seeing a longer runway before the Fed starts hiking rates, such a view is encouraging gold bulls to reclaim the $1,800 handle at the onset of the week,” Tan said.

The next FOMC meeting is due on Nov. 2-3.

Investors will also be watching for the meetings of the Bank of Japan and European Central Bank due on Thursday.

The markets are pricing higher inflation and many participants clearly believe that the current high level of inflation is no longer merely temporary, Commerzbank analyst Daniel Briesemann said in a note.

“Gold should profit from this in its role as a store of value," he added.

Meanwhile, yields on the benchmark 10-year notes and the U.S. dollar ticked higher, dimming the appeal of the precious metal.

Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost for non-yielding bullion.

Spot silver rose 0.4 percent to $24.40 per ounce.

Platinum inched 0.1 percent higher to $1,041.06, and palladium gained 0.9 percent to $2,039.87.


Saudi Space Commission signs agreement with French counterpart 

Saudi Space Commission signs agreement with French counterpart 
Updated 24 sec ago

Saudi Space Commission signs agreement with French counterpart 

Saudi Space Commission signs agreement with French counterpart 
  • The agreement outlines different cooperative activities between the two firms, the Saudi firm said in a statement

RIYADH: The Saudi Space Commission has signed a cooperative agreement with its French counterpart, National Center for Space Studies, in the field of the peaceful use of outer space.

The agreement outlines different cooperative activities between the two firms, the Saudi firm said in a statement. It comes amid French President Emmanuel Macron’s visit in Saudi Arabia. 

It provides a framework for cooperation in space activities, including exchanging information and technologies, capacity building, organizing mutual visits and meetings, holding workshops and training courses. 

Both firms will also develop a mechanism for space-based climate monitoring, and create an attractive environment for investments in the sector. 

Mohammed Al-Tamaimi, CEO of the Saudi Space Commission, said he is pleased to sign the cooperation agreement, as well as to benefit from the French experience in the space sector.


Saudi Chemical, Sanofi sign deal to localize manufacturing of thrombosis drug 

Saudi Chemical, Sanofi sign deal to localize manufacturing of thrombosis drug 
Updated 35 min 59 sec ago

Saudi Chemical, Sanofi sign deal to localize manufacturing of thrombosis drug 

Saudi Chemical, Sanofi sign deal to localize manufacturing of thrombosis drug 
  • Clexane is a therapeutic solution that prevents and treats thrombosis

DUBAI: The Saudi Chemical Company Holding has signed an initial agreement with French pharmaceutical giant Sanofi to explore manufacturing Clexane in Saudi Arabia. 

Clexane is a therapeutic solution that prevents and treats thrombosis, which may also “affect a significant percentage of COVID-19 patients with severe symptoms,” the Saudi firm said in a bourse filing. 

Thrombosis is the formation of blood clot within a blood vessel which can lead to life-threatening complications such as stroke and heart attack. 

The MoU outlines Aja Pharma’s, a unit of SCCH, role to provide manufacturing facilities and systems to produce Clexane prefilled syringes in the Kingdom.

The move comes amid France’s President Emmanuel Macron’s state visit in the Kingdom, where a number of deals between Saudi and French companies were signed. 

The agreement is also in line with the Kingdom’s push to localize critical industries, and drive economic growth with more local content. 


Here is what you need to know before Tadawul opens: Pre-Market

Here is what you need to know before Tadawul opens: Pre-Market
Updated 47 min 40 sec ago

Here is what you need to know before Tadawul opens: Pre-Market

Here is what you need to know before Tadawul opens: Pre-Market

RIYADH: The new coronavirus variant, Omicron, will be one of the driving forces for the Saudi stock market in the near-term, as fears over its economic impact continue to burden investor sentiment.

Saudi Economic and Development Securities Co. announced the approval of raising its Capital REIT fund’s assets value by SR701 million ($186.87 million) and the approval of the addendum of the fund’s terms and conditions.

Arabian Pipes Co. submitted an application for approval to cut capital and increase the company’s capital by offering a rights issue to the Capital Market Authority.

With reference to Allied Cooperative Insurance Group’s previous development recommendation, the company received the Saudi Central Bank’s approval to expand its capital from SR141 million to SR291 million through a rights issue for an additional six months.

Exploring the possibility of manufacturing Clexane prefilled syringes from the Kingdom, the global pharmaceutical giant Sanofi and Saudi Chemical Company Holding signed a memorandum of understanding.

AlJazira Capital Market declared the final dividend distribution of its REIT funds to shareholders – standing at 3.38 percent for 12 months.

Arabian Shield Cooperative Insurance Co. announced that e-voting on the Extraordinary General Assembly Meeting agenda items, including a rise in share capital, will commence today, Dec.21, at 10:00 a.m Saudi time.


Saudi non-oil sector maintains growth as PMI drops in November: IHS Markit

Saudi non-oil sector maintains growth as PMI drops in November: IHS Markit
Updated 05 December 2021

Saudi non-oil sector maintains growth as PMI drops in November: IHS Markit

Saudi non-oil sector maintains growth as PMI drops in November: IHS Markit
  • The new report business activity rose “at one of the fastest rates since the start of the COVID-19 pandemic”

DUBAI: Strong demand and modest price pressures are pushing business activity to rise Saudi Arabia, a latest IHS Market report showed, indicating a “strong growth momentum” for the Kingdom’s non-oil sector. 

The new Purchasing Managers’ Index (PMI) report said business activity rose “at one of the fastest rates since the start of the COVID-19 pandemic.”

This is despite the index dropping from 57.7 in October to 56.9 in November, which the report still said was “in line with the average recorded over the 12-year series.”

“Despite slipping to a three-month low, new business growth was rapid overall, whilst activity expanded at one of the quickest rates since the start of the pandemic,” David Owen, an economist at the IHS Markit said. 

The fall was due to a slowdown in new orders, which fell for the second month in a row from September’s seven-year high. 


IMF likely to lower its global economic growth estimates due to omicron threat

IMF likely to lower its global economic growth estimates due to omicron threat
Updated 05 December 2021

IMF likely to lower its global economic growth estimates due to omicron threat

IMF likely to lower its global economic growth estimates due to omicron threat



WASHINGTON: The International Monetary Fund is likely to lower its global economic growth estimates due to the new omicron variant of the coronavirus, the global lender’s chief said at the Reuters Next conference on Friday in another sign of the turmoil unleashed by the ever-changing pandemic.
Omicron has spread rapidly to at least 40 countries since it was first reported in South Africa last week, officials say, and many governments have tightened travel rules to try to keep it out.
“A new variant that may spread very rapidly can dent confidence, and in that sense, we are likely to see some downgrades of our October projections for global growth,” IMF Managing Director Kristalina Georgieva told the conference.
Much remains unknown about omicron. Researchers said it could have picked up genetic material from another virus, perhaps one that causes the common cold, which would allow it to more easily evade human immune system defenses.
Georgieva said the fund is also looking at all of its research processes in order to ensure the its data integrity in the wake of a data-rigging scandal at the World Bank.
“Is there something more that can be done, and we are looking at all the processes — are they sufficiently up to date with what others are doing?” Georgieva said.