Gold edges higher as traders weigh record Covid-19 infections
Gold has turned rangebound near $1, 810 an ounce.
JOHANNESBURG – Gold edged higher as investors assessed the resilience of the global economic recovery with Covid-19 cases hitting a pandemic record.
More than 1.44 million infections worldwide on Monday smashed the previous high. While the highly-transmissible omicron is spreading rapidly around the world, studies suggest the new strain isn’t as virulent as previous variants.
Bullion is heading for its first annual loss in three years as central banks dial back pandemic-era stimulus to contain inflation.
The S&P 500 notched its 69th record close of 2021 on Monday, suggesting investors remain relatively sanguine about risks from omicron.
The UK said it won’t introduce stricter Covid-19 restrictions in England before the end of the year despite a surge in cases, while the US cut the recommended isolation time for Americans with the virus to five days from 10 days.
“Gold has turned rangebound near $1, 810 an ounce, reflecting the relative stability in the US dollar index and bond yields amid a lack of fresh triggers,” said Madhavi Mehta, a senior analyst at Kotak Securities Ltd.
“Virus concerns have subsided, however rising cases and restrictions to limit the spread is a cause of concern.”
Gold futures for February delivery rose 0.3 percent to $1, 813.40 an ounce at 09:56 in New York. Spot gold advanced 0.1 percent to $1, 813.51 in London, gaining for a fifth day. Bullion is still down more than four percent this year. The Bloomberg Dollar Spot Index was little changed. Silver, platinum and palladium gained.
“The sideways trend will continue in the $1, 750 to $1, 820 range,” said Victor Foo, chief executive officer of Singapore Precious Metals Exchange.
“Gold will face some resistance above $1,815 and moving forwards will continue to struggle at these levels unless the dollar moves sharply lower.”
Copper futures for March were little changed on the Comex, after closing at a two-month high on Monday. Aluminum and copper for three-month delivery fell on the London Metal Exchange, while lead, nickel and tin rose. – BLOOMBERG NEWS.
France bans plastic packaging for fruit and vegetables
France has banned the use of plastic packaging for fruit and vegetables.
PARIS – A ban on the use of plastic to package a range of fruit and vegetables came into force in France on Saturday, to the dismay of the sector’s packaging industry.
Environmentalists have long campaigned against single-use plastics as pollution worsens globally while President Emmanuel Macron has backed the move defending a “pragmatic” approach.
The October decree covers for example the sale of under 1.5 kilos of apples.
However, the full legislation will not be applied until 2026, allowing firms to adapt, including on the sale of red fruits considered fragile.
Six months has also been granted to use up existing plastic packaging stocks.
“We were never consulted,” complained Laurent Grandin, head of the fruit and vegetable sector’s Interfel association.
He said the costs were “insurmountable” for small companies who would have to keep using plastic to protect exports, notably to Britain, a major client for apples.
Pomanjou produces up to 40, 000 tonnes of apples annually in the Loire valley and has over the last three years introduced 100 percent cardboard packing.
However packing costs have as a result soared 20 percent to 30 percent, said company representative Arnaud de Puineuf.
Big supermarket group Casino said it will now sell tomatoes in cardboard packaging and provide customers with paper or cellulose bags.
The packaging companies say the October 8 decree caught them by surprise, particularly the ban on recycled plastics.
“We have client firms … who will have to stop their fruit and vegetable packing activity, even though they have been working on alternatives using less plastic or recycled plastic for several years,” said a statement from the Elipso association that represents manufacturers. – AFP.
