Gold Inches Higher On Dollar Weakness

Gold prices traded higher on Thursday as the dollar slipped and Treasury yields held flat on optimism about the global economic outlook.

Spot gold rose 0.2 percent to $1,806.99 per ounce, while U.S. gold futures were up 0.3 percent at $1,807.65.

The safe-haven dollar languished near an almost one-week low against its major peers amid indications that the Omicron coronavirus variant is less severe than the delta version.

Research from Imperial College London indicated that the risk of hospitalization for patients infected with the Omicron variant is 40 percent to 45 percent lower than Delta cases.

A study in South Africa found that the omicron variant appeared to have a less severe impact than the earlier variants and there is a reduced risk of hospitalizations than in previous waves.

Meanwhile, the White House said that Democrats will continue negotiations with Senator Joe Manchin on the Build Back Better Act with a vote planned in early 2022.

President Joe Biden insisted that he wanted to “get something done” on the plan targeting social benefits and climate change.

A slew of U.S. economic data is scheduled to be released later in the day, including reports on weekly jobless claims, durable goods orders, personal income and spending, and new home sales as traders look to get a head start on the Christmas weekend.

Rupee jumps 30 paise to 75.24 against U.S. dollar

The rupee on Thursday extended its gains and jumped 30 paise to close at 75.24 (provisional) against the U.S. dollar amid a positive trend in domestic equities.

At the interbank forex market, the local unit opened at 75.43 against the greenback and witnessed an intra-day high of 75.22 and a low of 75.44.

On Wednesday, the rupee had appreciated by 5 paise to close at 75.54 against the U.S. dollar.

Meanwhile, the dollar index, which measures the greenback’s strength against the basket of six currencies, rose 0.03 % to 96.10.

Brent crude futures, the global oil benchmark, fell 0.20 % to $ 75.14 per barrel.

Foreign institutional investors remained net sellers in the capital market on Wednesday, as they offloaded shares worth ₹ 827.26 crore, as per stock exchange data.

On the domestic equity market front, the BSE Sensex ended 384.72 points or 0.68 % higher at 57,315.28, while the broader NSE Nifty advanced 117.15 points or 0.69 % to 17,072.60.

Angel Line Bunk Beds With Angled Ladders Recalled After Report Of Death

Pennsville, New Jersey – based Longwood Forest Products is recalling about 39,900 bunk beds with angled ladders following the death of a boy due to entrapment, the U.S. Consumer Product Safety Commission said.

The recall involves about 39,900 units of three models of Angel Line Bunk Beds. These include Fremont Twin over Twin Bunk Bed, Creston Twin over twin Bunk Bed, and Brandon Twin over Full Bunk Bed.

The bunk beds were made in Vietnam and sold online at www.amazon.com, www.ojcommerce.com, www.walmart.com and www.wayfair.com from March 2016 through June 2021 for between $180 to $330.

According to the agency, the recall was initiated due to a serious entrapment and strangulation hazards to children. The metal hook fastening the ladder to the top bunk bed frame can move away or detach from the bed frame when the ladder is lifted and create a gap of more than 3.5 inches between the ladder step and bed frame. Children can get entrapped in that gap and strangle to death.

The company received a report of the death of a 2-year-old boy from Columbus, Ohio, who died in May 2018 after he was found unresponsive in a gap in the bunk bed ladder.

Consumers are asked to immediately stop using the recalled bunk beds, and contact Angel Line to receive a free repair kit with reinforcement brackets for the ladder.

Oil Prices Pause Rally

Oil prices were subdued on Thursday after rising sharply the previous day amid easing concerns about Omicron coronavirus variant, the release of upbeat U.S. economic readings and data showing a larger-than-expected drawdown in U.S. inventories.

Benchmark Brent crude futures dipped 0.2 percent to $75.15 per barrel, after having risen 1.8 percent in the previous session.

West Texas Intermediate (WTI) crude futures were down 0.2 percent at $72.65 after a 2.3 percent gain the previous day.

Data released by the Energy Information Administration showed that crude inventories in the U.S. fell by 4.72 million barrels last week, nearly two times the expected drop,

Analysts said the drop was in part due to year-end tax considerations that encourage companies not to store crude barrels.

Meanwhile, Europe’s energy crunch shows little sign of easing as gas and power prices soar.

European utilities are switching their power source to heating oil from natural gas due to record-high prices on the continent.

On the Covid-19 front, Novavax Inc’s Covid-19 vaccine is effective in generating an immune response against the Omicron variant, early data published on Wednesday showed.

Other Covid-19 vaccine manufacturers, including Pfizer Inc. and Moderna Inc., also reported increased immune responses to Omicron.

Moderna CEO Stephane Bancel said earlier this week that the vaccine manufacturer does not expect any problems in developing a booster shot to protect against the Omicron variant.

U.S. Economic Growth Unexpectedly Upwardly Revised To 2.3% In Q3

U.S. gross domestic product increased by more than previously estimated in the third quarter of 2021, according to revised data released by the Commerce Department on Wednesday.

The report said real GDP surged by 2.3 percent in the third quarter, reflecting an upward revision from the previously estimated 2.1 percent jump. Economists had expected the pace of GDP growth to be unrevised.

The stronger than previously estimated growth primarily reflected upward revisions to consumer spending and private inventory investment. A downward revision to exports limited the upside.

Despite the upward revision, the GDP growth in the third quarter still reflects a significant slowdown from the 6.7 percent spike in the second quarter.

The Commerce Department said the slowdown in the pace of GDP growth came as consumer spending increased by 2.0 percent in the third quarter after soaring by 12.0 percent in the second quarter.

With regard to inflation, the annual rate of growth in core consumer prices, which exclude food and energy prices, was unchanged from the previous estimate of 3.6 percent.