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Gold price jumps as Fed announces open-ended QE – Kitco NEWS

Published

5 years ago

March 23, 2020

(Kitco News) – The gold market appears to be finally reacting to massive central-bank liquidity after the Federal Reserve made is third emergency announcement in as many weeks.

On Monday morning, the Federal Reserve announced an open-edited quantitative-easing program. The U.S. central bank said that it will purchase Treasury securities and agency mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.

“The coronavirus pandemic is causing tremendous hardship across the United States and around the world,” the Federal Reserve said in its statement. “While great uncertainty remains, it has become clear that our economy will face severe disruptions. Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.”

Gold prices are up more than 2% in reaction to the Federal Reserve’s latest emergency action to support the U.S. economy, which many economists expect will fall into a recession later this year.

April gold futures last traded at $1,523.50 an ounce, up 2.62% on the day.

Analysts at Blue Line Futures said that that not only is the latest Fed announcement inflationary, but it could help reduce some market volatility, supporting gold prices on two fronts.

“It assures liquidity in financial markets for the foreseeable future and reduces the volatility we’ve become accustomed to, one that gold has become a casualty of,” the analysts said.

Adam Button, managing director at Forexlive.com, equated the move to a nuclear bomb of monetary policy.

“Today’s announcement is unprecedented in both size and scope. It is a complete perversion of market functioning,” he said.

Button has said that he is bullish on gold in the long term as the market reacts to all the liquidity government and central banks around the world pumping money into global financial markets.

Looking at the Economic risks, analysts at CIBC are expecting U.S. Gross Domestic Product to fall by 4% or 5% in the second quarter.

“Roughly 1 in 5 Americans are now under orders to stay home, and while more can work from home these days, that’s still a huge loss of activity,” said Avery Shenfeld, senior economist at CIBC.

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Business

Suncor Energy pleads guilty to charges for 2019 injury on oil vessel off Newfoundland

Published

13 hours ago

September 27, 2024

Anne Joseph

ST. JOHN’S, N.L. – Suncor Energy has been fined $90,000 after pleading guilty to two charges stemming from a worker injury in 2019 aboard its production vessel in an oilfield off the coast of Newfoundland.

In a news release Thursday, the province’s offshore oil regular said the company must also give $20,000 to the College of the North Atlantic’s health and safety management program.

The Canada-Newfoundland and Labrador Offshore Petroleum Board says Calgary-based Suncor pleaded guilty on Sept. 5 for failing to ensure the safety of its employees and failing to ensure its employees wore a safety harness attached to a lifeline while inside a confined space.

The board says a worker fell 7.6 metres from a safety ladder while testing for hydrogen sulfide in a ballast tank on the floating production and storage vessel in the Terra Nova offshore oilfield.

An agreed statement of facts says two emergency response workers then went into the tank to tend to the fallen man, and they were not wearing gas masks.

Suncor Energy is the majority owner of the Terra Nova oilfield, and it reported net earnings of $1.57 billion in the second quarter of this year.

This report by The Canadian Press was first published Sept. 17, 2024.

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Business

TD Bank announces new co-heads of U.S. commercial banking business

Published

2 days ago

September 26, 2024

Anne Joseph

Toronto-Dominion Bank has named new co-heads of its U.S. commercial banking business.

TD says Andy Bregenzer and Jill Gateman will jointly lead the operations.

The bank says the appointments follow the announcement earlier this year of Chris Giamo’s retirement.

Bregenzer will focus on leading all aspects of the regional commercial bank, including small business.

Gateman will lead TD’s national commercial banking effort in the U.S., including middle market, sponsor-backed finance and TD’s other specialty lending lines of business.

TD, which is working to resolve investigations into failures in its anti-money laundering program in the U.S., announced last week that chief executive Bharat Masrani would retire next year and be replaced by Raymond Chun.

This report by The Canadian Press was first published Sept. 26, 2024.

Companies in this story: (TSX:TD)

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Payments tech company Lightspeed Commerce conducting strategic review of business

Published

2 days ago

September 26, 2024

Anne Joseph

MONTREAL – Lightspeed Commerce Inc. says it is conducting a review of its business and operations including talks relating to a range of potential strategic alternatives.

The Montreal-based payments technology company made the comments after reports concerning a potential transaction involving the company.

Lightspeed says it periodically undertakes a review of its business and operations with a view of realizing its full potential.

A strategic review is often seen by investors as a prelude to a sale by a company.

Lightspeed says its board of directors is committed to acting in the best interests of the company and its stakeholders.

Company founder Dax Dasilva returned to the role of chief executive officer earlier this year and has been working to return the company to profitability.

This report by The Canadian Press was first published Sept. 26, 2024.

Companies in this story: (TSX:LSPD)

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