2023-11-20 06:00

SPDR Gold Trust holdings rise 1.5% on Friday Dollar hits over 2-1/2-month low Focus shifts to U.S. Fed minutes this week Speculators cut net long position in COMEX gold - CFTC Nov 20 (Reuters) - Gold prices edged lower on Monday, with a weaker dollar putting a floor under prices as investors awaited minutes of the Federal Reserve's last meeting for cues on the central bank's interest rate path. Spot gold was down 0.1% at $1,977.49 per ounce by 3:33 p.m. ET (2033 GMT), after rising to as high as $1,993.29 on Friday. U.S. gold futures settled 0.2% down at $1,980.30. "Technically we've seen gold hit resistance and is back to range-bound trading with somewhat higher rates as a catalyst here," said Bart Melek, head of commodity strategies at TD Securities. The Fed was expected to maintain its narrative that monetary policy will depend on inflation and that it will keep rates elevated for as long as necessary, he added. The minutes of the Fed meeting will be released on Tuesday. Last week's data reignited hopes that the Fed could begin easing monetary conditions sooner than expected after a slowing jobs market and a weaker-than-expected consumer inflation report. Lower interest rates exert downward pressure on the dollar and bond yields, enhancing the appeal of non-yielding bullion. Precious metals bulls have lost momentum and need fresh, fundamental impetus, analysts at Kitco Metals wrote in a note. Rising U.S. Treasury yields are trumping a lower U.S. dollar and higher crude oil prices to keep gold and silver buyers skittish, Kitco said. The dollar slipped 0.5% to a more than 2-1/2-month low against a basket of its rivals, limiting gold's losses. Holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, rose 1.5% on Friday. Elsewhere, spot silver rose 1.3% to $23.43 per ounce. Platinum jumped 2.2% to $918.95 and palladium gained 2.4% to $1,077.83 per ounce, both touching their highest in about two weeks. https://www.reuters.com/markets/commodities/gold-ticks-higher-dollar-slips-fed-pause-bets-2023-11-20/

2023-11-20 05:34

RIYADH, Nov 20 (Reuters) - Kuwait-based Gulf Investment Corporation (GIC) said on Monday it has acquired a significant minority stake in Pipecare Group Holding, a major provider of pipeline inspection services. A joint statement from GIC and UAE-based Pipecare Group said the transaction was completed in Abu Dhabi on Nov. 15. It did not give details of the size of the stake, nor the value of the investment. GIC is a financial institution equally owned by the six member states of the Gulf Cooperation Council (GCC) which was established to promote cooperation and growth across the region. Pipecare, which inspects gas and oil pipelines with a large fleet of tools and predictive AI software solutions, said it will leverage GIC’s capital injection for its international expansion, especially in the American market. "We are excited to enter a new phase in our company's growth in partnership with GIC to further develop our technology and play a critical role in supporting our customers in the safe delivery of energy," said Khaled El-Shami, Pipecare Group's chairman, according to the statement. https://www.reuters.com/markets/deals/gulf-investment-corp-buys-stake-pipecare-group-statement-2023-11-20/

2023-11-20 05:27

MUMBAI, Nov 20 (Reuters) - The Indian rupee was little changed on Monday as sustained dollar demand from importers kept the local unit sticky even as the dollar index slumped to its lowest level in over 2 months. The rupee was at 83.2675 against the U.S. dollar as of 10:40 a.m. IST. It closed at 83.27 in the previous session. Asian currencies rallied, led by the offshore Chinese yuan and the Indonesian rupiah, both up by over 0.5%. The dollar index fell to 103.6, its lowest level since early September. The dollar has weakened as market participants price out the risk of further tightening from the U.S. Federal Reserve following weaker-than-expected economic data released last week. While the rupee may benefit marginally from the weaker dollar, traders broadly expect the local currency to continue holding in narrow range. The rupee has remained in a 82.70-83.40 range since early September. Weaker dollar, lower oil prices and equity-related inflows give the rupee "a chance to appreciate," a foreign exchange trader at a state-run bank said. But unless local demand abates, the rupee won't gain much, the trader added. Initial public offerings (IPO) worth about $900 million are expected to hit Indian markets this week. MSCI index changes effective November 30 are also likely to draw $1.5 billion in inflows. "We continue to be in the frustrating range of 83-83.30. If 83.3 continue to resist, expect slippage to 83.19," Anand James, chief market strategist at Geojit Financial Services said. Investors now await the minutes of the the Fed's October meeting, due on Tuesday, which could provide cues on the central bank's future rates trajectory. https://www.reuters.com/markets/currencies/rupee-flat-even-dollar-slumps-over-2-month-low-2023-11-20/

2023-11-20 05:06

ISTANBUL, Nov 20 (Reuters) - A Turkish cargo ship with 12 crew onboard sank off Turkey's Black Sea coast during a storm on Sunday and authorities have been unable to make contact with the crew, Interior Minister Ali Yerlikaya said on Monday. The captain of the Turkish-flagged Kafkametler had reported on Sunday morning that the ship was drifting toward a breakwater off Eregli, in northwest Turkey's Zonguldak province, the provincial governor's office said earlier. Yerlikaya said the ship sunk after hitting the breakwater. The region was hit by powerful storms on Sunday and the governor's office said the bad weather prevented air and sea vessels from carrying out searches. "When the adverse weather conditions improve, search and rescue activities will start immediately," Yerlikaya told reporters. https://www.reuters.com/world/middle-east/turkish-cargo-ship-with-12-crew-sinks-black-sea-2023-11-20/

2023-11-20 03:06

Investors cheer Milei's budget-cutting plans U.S.-listed shares of energy firm YPF close up 40% Attention turns to cabinet, speed of reforms BUENOS AIRES/LONDON, Nov 20 (Reuters) - Far-right libertarian Javier Milei's strong win in Argentina's presidential election is boosting bonds and equities but putting downward pressure on the peso currency, investors said on Monday. The outsider radical, who has pledged to take a chainsaw to public spending, "burn down" the central bank and dollarize the economy, beat Peronist economy chief Sergio Massa in Sunday's vote, though he struck a measured tone in his first speech as president-elect. The South American country's markets were closed on Monday for a local holiday. But its overseas dollar bonds, which trade deep in distressed territory, rose Monday 1.7-2 cents each to 29-34 cents on the dollar, according to LSEG Workspace data. David Austerweil, deputy portfolio manager at VanEck, said Milei has a mandate to implement "meaningful change in economic policy," and a lot will hinge on his cabinet. "He will need to announce an experienced economic team and present a realistic and credible economic plan quickly," said Austerweil, or there could be a run on the peso "that would become increasingly costly to stop." Credit markets could rally if the announcements were "strong and credible," he noted, but "if nothing is announced quickly any gains will turn to losses." JPMorgan, in a note to clients late on Sunday, said it would not change its recommendation on Argentina's international bonds from its measured "market weight" stance while it awaited clarity on Milei's policy path and ability to enact his plans. Equities were less measured, with U.S.-listed shares of Argentine energy company YPF rallying 40% to close at $15.01 after Milei said he would look to privatize it. Banks Grupo Supervielle, Banco Macro, Banco BBVA Argentina and Grupo Financiero Galicia closed up between 17.2% and 23.9%, while the $50.8 million Global X MSCI Argentina ETF added 11.6% to close at $46.98, its highest since early September. Milei, who will take office on Dec. 10, did not refer to "dollarization" in his first speech, raising questions about how quickly he might pursue scrapping the peso entirely. He pledged rapid reforms to fix an economy mired in crisis. Inflation is at 143%, foreign currency reserves are more than $10 billion in the red and a recession is looming. He also signaled moderation and thanked his mainstream conservative backers Mauricio Macri and Patricia Bullrich. "It is indisputable that a swift change from the failed economic policies of the past is imperative. The accumulated imbalances in the economy have grown too large and must be addressed promptly," economist Sergio Armella of Goldman Sachs said in a note. Bruno Gennari, Argentina expert at KNG Securities, said the precarious international reserves would likely force a quick devaluation. Morgan Stanley said it expected at least an 80% adjustment of Argentina's official exchange in December. The gap between the official exchange, close to 354 pesos, and the black market one at 920, suggests a devaluation near 60%. "Unifying exchange rates and allowing this new rate to float and find equilibrium level is not feasible while the Treasury runs a large deficit funded by printing money," said Tara Hariharan, managing director of global macro research at NWI Management. "Therefore, the top priority for Milei is to close the fiscal gap, and once that is achieved, unify exchange rates." Milei, a TV pundit-turned lawmaker with little political experience, rode a wave of voter anger, pledging aggressive plans to slash state spending and the size of government. Investors said they would be watching for him to stick to spending cut promises - and quickly - to buoy markets, despite fear of austerity with two-fifths of the population already in poverty. "They cannot afford to kick the can down the road any longer," said Riccardo Grassi of Mangart Advisors, which holds Argentine bonds. He added that Milei also needed to immediately initiate talks to get the $44 billion loan programme from the International Monetary Fund back on track. "The IMF cannot fail this time." Milei will be buoyed by his larger-than-expected vote take of 56% in the run-off after he got 30% in the first round vote last month. But he still faces a divided Congress where his Liberty Advances bloc only has a small share of seats. "Having a resounding outcome like he did yesterday ... gives him a strong public mandate, particularly given his position of weakness in congress," Jimena Blanco, head of Americas with Verisk Maplecroft, said. https://www.reuters.com/markets/mileis-argentina-win-expected-pressure-peso-buoy-bonds-2023-11-20/

2023-11-20 02:58

MUMBAI, Nov 20 (Reuters) - The Indian rupee is likely to open slightly higher on Monday after the dollar declined to its lowest in over two months against a basket of major peers. Non-deliverable forwards indicate rupee will open at around 83.24-83.25 to the U.S. dollar, compared with 83.27 in the previous session. Brent crude rose in Asia trading, adding to the 4% rally on expectations of OPEC+ deepening supply cuts. The rupee last week was not able to take much advantage of the slump in the dollar and the fall in U.S. yields on bets of the Federal Reserve likely opting for interest rate cuts in May 2024. The dollar index fell 1.8% last week, the worst performance since mid-July. The index was down to 103.66 on Monday, the lowest since September. Asian currencies were mostly higher "It looks like it is setting up to be like last week.. rupee will do much in the face of the dollar's struggles," a forex trader at a bank said. "And let's say, for whatever reason, the dollar turns later this week, then too the rupee will not budge. It will be a quiet week, again." The dollar could not draw support from comments by Fed officials that were not compatible with the 100 basis points of rate cuts that investors are pricing in for next year. The Fed is not certain it has done enough to get inflation on track toward its 2% goal, but the full effect of its rapid rate increases to date may be yet ahead, San Francisco Fed President Mary Daly said on Friday. Meanwhile, Boston Fed President Susan Collins said the U.S. central bank must be "patient and resolute, and I wouldn't take additional firming off the table." "Fed speakers are currently gently pushing back against an early cut in rates next year," ANZ said in a note. KEY INDICATORS: ** One-month non-deliverable rupee forward at 83.28; onshore one-month forward premium at 5.25 paisa ** Dollar index down at 103.66 ** Brent crude futures up 0.7% at $81.2 per barrel ** Ten-year U.S. note yield at 4.45% ** As per NSDL data, foreign investors bought a net $159.2mln worth of Indian shares on Nov. 16 ** NSDL data shows foreign investors bought a net $195.7mln worth of Indian bonds on Nov. 16 https://www.reuters.com/markets/currencies/rupee-likely-inch-up-more-dollar-losses-eyes-oil-prices-2023-11-20/