Gold has gained more than 24 per cent this year, largely driven by its safe-haven status and a series of stimulus measures to mitigate the impact of the Covid-19 pandemic. Reuters
Gold has gained more than 24 per cent this year, largely driven by its safe-haven status and a series of stimulus measures to mitigate the impact of the Covid-19 pandemic. Reuters
Gold has gained more than 24 per cent this year, largely driven by its safe-haven status and a series of stimulus measures to mitigate the impact of the Covid-19 pandemic. Reuters
Gold has gained more than 24 per cent this year, largely driven by its safe-haven status and a series of stimulus measures to mitigate the impact of the Covid-19 pandemic. Reuters

Precious metals rise as Trump signs $900bn fiscal stimulus bill


Deepthi Nair
  • English
  • Arabic

Silver prices soared on Monday but gold prices gave up early gains after US President Donald Trump signed into law the long-awaited pandemic aid bill.

A weaker US dollar also lent further support to bullion and silver prices.

Spot gold was trading 0.38 per cent lower at $1,876.22 per ounce at 3.35pm UAE time, after climbing more than 1 per cent to hit a one-week high of $1,900.26 earlier in the day.

US gold futures traded flat at $1,882.70. In August, gold hit an all-time high of $2,084 an ounce. Silver futures were trading 2.1 per cent higher at $26.46 per ounce, having risen 3.2 per cent earlier in the day.

The US Dollar Index was down 0.3 per cent against rivals, slipping to a one-week low and lifting bullion's appeal for other currency holders.

“Gold prices could yet reclaim the $2,000 handle in 2021, depending on the US inflation outlook,” said Han Tan, a market analyst with FXTM.

“Bullion got a slight lift from President Trump’s signing of the US fiscal stimulus package, based on that same idea that more government spending could boost US inflationary pressures. Fresh rounds of fiscal stimulus under the Biden administration should also translate into more upside for the yellow metal.”

Gold, considered a hedge against inflation, has gained more than 24 per cent this year, largely driven by its safe-haven status and a series of central bank stimulus measures to mitigate the impact of the Covid-19 pandemic.

Mr Trump on Sunday signed into law a $900 billion pandemic aid and spending package, restoring unemployment benefits to millions of Americans and averting a partial federal government shutdown.

With central banks and governments around the world expected to provide additional stimulus into a vaccine-led recovery next year, there seems to be more upside left for the yellow metal.

Too much stimulus could raise the risk of inflation and result in a stampede into commodities for protection, Ole Hansen, head of commodity strategy at Saxo Bank, said. In such a scenario, he estimates that gold will rise by 15 per cent to a 2021 peak above $2,175 an ounce.

"Vaccine-related optimism, Joe Biden's victory, massive stimulus from the US and the Federal Reserve's commitment to maintain its unprecedented accommodative monetary policy stance have all generated expectations for reflation trade in 2021, pointing out to further downside momentum for the dollar, indirectly favouring the metal," said Vijay Valecha, chief investment officer at Century Financial.

With US real yields likely to remain well below zero per cent, the “subdued real rate environment will continue to buoy the attractiveness of gold in 2021 as an alternative investment to fixed income”, Mr Valecha said.

However, he said investors should not expect the 2020 rally to be repeated next year as economies continue to recover with the distribution of Covid-19 vaccines.

Gold prices could yet reclaim the $2,000 handle in 2021, depending on the US inflation outlook

Silver prices have risen by more than 46 per cent since the start of the year, and have more than doubled since slumping below $12 per ounce at the height of the pandemic-induced slowdown.

Apart from low interest rates and a weaker dollar, another factor working in favour of silver is the expected pick-up in industrial demand in 2021.

“Silver should enjoy support from the overall demand for precious metals, coupled with tailwinds from the global economic recovery in light of silver’s virtues for industrial use,” said Mr Tan.

“With spot silver’s multi-year uptrend still intact, a sustained presence above the psychologically important $20 mark seems to be a reasonable expectation for the year ahead, while a new record high above $30 may be in the offing.”

Silver could also benefit from the prospect of a new administration in the White House, which is pushing further development of renewable energy technology, Mr Valecha said.

“There are plans for the construction of 500 million solar panels over the next five years.”

A customer buys a silver coin from a jewellery shop in Dubai. A major factor working in favour of silver is the expected pick-up in industrial demand in 2021. Pawan Singh / The National
A customer buys a silver coin from a jewellery shop in Dubai. A major factor working in favour of silver is the expected pick-up in industrial demand in 2021. Pawan Singh / The National

However, other analysts believe 2021 could be a quieter year for silver.

"Silver will probably be able to continue its rally and investor sentiment towards the metal will remain solid, although not recording exceptional peaks," Fabio D'Amico, chief executive of the Gulf Institute of Gemology, told The National.

Yemen's Bahais and the charges they often face

The Baha'i faith was made known in Yemen in the 19th century, first introduced by an Iranian man named Ali Muhammad Al Shirazi, considered the Herald of the Baha'i faith in 1844.

The Baha'i faith has had a growing number of followers in recent years despite persecution in Yemen and Iran. 

Today, some 2,000 Baha'is reside in Yemen, according to Insaf. 

"The 24 defendants represented by the House of Justice, which has intelligence outfits from the uS and the UK working to carry out an espionage scheme in Yemen under the guise of religion.. aimed to impant and found the Bahai sect on Yemeni soil by bringing foreign Bahais from abroad and homing them in Yemen," the charge sheet said. 

Baha'Ullah, the founder of the Bahai faith, was exiled by the Ottoman Empire in 1868 from Iran to what is now Israel. Now, the Bahai faith's highest governing body, known as the Universal House of Justice, is based in the Israeli city of Haifa, which the Bahais turn towards during prayer. 

The Houthis cite this as collective "evidence" of Bahai "links" to Israel - which the Houthis consider their enemy. 

 

2018 ICC World Twenty20 Asian Western Sub Regional Qualifier

Event info: The tournament in Kuwait is the first phase of the qualifying process for sides from Asia for the 2020 World T20 in Australia. The UAE must finish within the top three teams out of the six at the competition to advance to the Asia regional finals. Success at regional finals would mean progression to the World T20 Qualifier.

Teams: UAE, Bahrain, Saudi Arabia, Kuwait, Maldives, Qatar

Friday fixtures: 9.30am (UAE time) - Kuwait v Maldives, Qatar v UAE; 3pm - Saudi Arabia v Bahrain

The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

The specs: Lamborghini Aventador SVJ

Price, base: Dh1,731,672

Engine: 6.5-litre V12

Gearbox: Seven-speed automatic

Power: 770hp @ 8,500rpm

Torque: 720Nm @ 6,750rpm

Fuel economy: 19.6L / 100km

W.
Wael Kfoury
(Rotana)

UAE currency: the story behind the money in your pockets
Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

Story%20behind%20the%20UAE%20flag
%3Cp%3EThe%20UAE%20flag%20was%20first%20unveiled%20on%20December%202%2C%201971%2C%20the%20day%20the%20UAE%20was%20formed.%C2%A0%3C%2Fp%3E%0A%3Cp%3EIt%20was%20designed%20by%20Abdullah%20Mohammed%20Al%20Maainah%2C%2019%2C%20an%20Emirati%20from%20Abu%20Dhabi.%C2%A0%3C%2Fp%3E%0A%3Cp%3EMr%20Al%20Maainah%20said%20in%20an%20interview%20with%20%3Cem%3EThe%20National%3C%2Fem%3E%20in%202011%20he%20chose%20the%20colours%20for%20local%20reasons.%C2%A0%3C%2Fp%3E%0A%3Cp%3EThe%20black%20represents%20the%20oil%20riches%20that%20transformed%20the%20UAE%2C%20green%20stands%20for%20fertility%20and%20the%20red%20and%20white%20colours%20were%20drawn%20from%20those%20found%20in%20existing%20emirate%20flags.%3C%2Fp%3E%0A
Tightening the screw on rogue recruiters

The UAE overhauled the procedure to recruit housemaids and domestic workers with a law in 2017 to protect low-income labour from being exploited.

 Only recruitment companies authorised by the government are permitted as part of Tadbeer, a network of labour ministry-regulated centres.

A contract must be drawn up for domestic workers, the wages and job offer clearly stating the nature of work.

The contract stating the wages, work entailed and accommodation must be sent to the employee in their home country before they depart for the UAE.

The contract will be signed by the employer and employee when the domestic worker arrives in the UAE.

Only recruitment agencies registered with the ministry can undertake recruitment and employment applications for domestic workers.

Penalties for illegal recruitment in the UAE include fines of up to Dh100,000 and imprisonment

But agents not authorised by the government sidestep the law by illegally getting women into the country on visit visas.

MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

Dengue%20fever%20symptoms
%3Cp%3EHigh%20fever%20(40%C2%B0C%2F104%C2%B0F)%3Cbr%3ESevere%20headache%3Cbr%3EPain%20behind%20the%20eyes%3Cbr%3EMuscle%20and%20joint%20pains%3Cbr%3ENausea%3Cbr%3EVomiting%3Cbr%3ESwollen%20glands%3Cbr%3ERash%26nbsp%3B%3C%2Fp%3E%0A
if you go

The flights
Flydubai offers three daily direct flights to Sarajevo and, from June, a daily flight from Thessaloniki from Dubai. A return flight costs from Dhs1,905 including taxes.
The trip 
The Travel Scientists are the organisers of the Balkan Ride and several other rallies around the world. The 2018 running of this particular adventure will take place from August 3-11, once again starting in Sarajevo and ending a week later in Thessaloniki. If you’re driving your own vehicle, then entry start from €880 (Dhs 3,900) per person including all accommodation along the route. Contact the Travel Scientists if you wish to hire one of their vehicles. 

Auron Mein Kahan Dum Tha

Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar

Director: Neeraj Pandey

Rating: 2.5/5

European arms

Known EU weapons transfers to Ukraine since the war began: Germany 1,000 anti-tank weapons and 500 Stinger surface-to-air missiles. Luxembourg 100 NLAW anti-tank weapons, jeeps and 15 military tents as well as air transport capacity. Belgium 2,000 machine guns, 3,800 tons of fuel. Netherlands 200 Stinger missiles. Poland 100 mortars, 8 drones, Javelin anti-tank weapons, Grot assault rifles, munitions. Slovakia 12,000 pieces of artillery ammunition, 10 million litres of fuel, 2.4 million litres of aviation fuel and 2 Bozena de-mining systems. Estonia Javelin anti-tank weapons.  Latvia Stinger surface to air missiles. Czech Republic machine guns, assault rifles, other light weapons and ammunition worth $8.57 million.

Engine: 5.6-litre V8

Transmission: seven-speed automatic

Power: 400hp

Torque: 560Nm

Price: Dh234,000 - Dh329,000

On sale: now

WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

The story in numbers

18

This is how many recognised sects Lebanon is home to, along with about four million citizens

450,000

More than this many Palestinian refugees are registered with UNRWA in Lebanon, with about 45 per cent of them living in the country’s 12 refugee camps

1.5 million

There are just under 1 million Syrian refugees registered with the UN, although the government puts the figure upwards of 1.5m

73

The percentage of stateless people in Lebanon, who are not of Palestinian origin, born to a Lebanese mother, according to a 2012-2013 study by human rights organisation Frontiers Ruwad Association

18,000

The number of marriages recorded between Lebanese women and foreigners between the years 1995 and 2008, according to a 2009 study backed by the UN Development Programme

77,400

The number of people believed to be affected by the current nationality law, according to the 2009 UN study

4,926

This is how many Lebanese-Palestinian households there were in Lebanon in 2016, according to a census by the Lebanese-Palestinian dialogue committee

Specs%3A%202024%20McLaren%20Artura%20Spider
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%203.0-litre%20twin-turbo%20V6%20and%20electric%20motor%3Cbr%3E%3Cstrong%3EMax%20power%3A%3C%2Fstrong%3E%20700hp%20at%207%2C500rpm%3Cbr%3E%3Cstrong%3EMax%20torque%3A%3C%2Fstrong%3E%20720Nm%20at%202%2C250rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%3C%2Fstrong%3E%20Eight-speed%20dual-clutch%20auto%3Cbr%3E%3Cstrong%3E0-100km%2Fh%3A%3C%2Fstrong%3E%203.0sec%3Cbr%3E%3Cstrong%3ETop%20speed%3A%20%3C%2Fstrong%3E330kph%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh1.14%20million%20(%24311%2C000)%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
Soldier F

“I was in complete disgust at the fact that only one person was to be charged for Bloody Sunday.

“Somebody later said to me, 'you just watch - they'll drop the charge against him'. And sure enough, the charges against Soldier F would go on to be dropped.

“It's pretty hard to think that 50 years on, the State is still covering up for what happened on Bloody Sunday.”

Jimmy Duddy, nephew of John Johnson

The specs: 2018 BMW R nineT Scrambler

Price, base / as tested Dh57,000

Engine 1,170cc air/oil-cooled flat twin four-stroke engine

Transmission Six-speed gearbox

Power 110hp) @ 7,750rpm

Torque 116Nm @ 6,000rpm

Fuel economy, combined 5.3L / 100km