Gold was up on Wednesday morning in Asia. Investors turned towards the safe-haven yellow metal as increasing concerns about the latest COVID-19 outbreaks decreased their risk appetite.
Gold futures edged up 0.19% to $1,791.15 by 12:30 AM ET (4:30 AM GMT).
“The elephant in the room is this COVID-19 Delta variant and whether it does materially affect the global recovery. In that situation, gold is likely to find more haven buying,” Jeffrey Halley, senior market analyst for Asia Pacific at OANDA, told Reuters.
In Asia Pacific, the Reserve Bank of New Zealand left its interest rate unchanged at 0.25% as it handed down its policy decision earlier in the day. New Zealand’s first local COVID-19 infection in six months forced the country into lockdown and put the brakes on the central bank’s plan to raise interest rates.
In other central bank news, the U.S. Federal Reserve will release the minutes from its July meeting later in the day. Investors will be searching for guidance on the Fed’s plans for asset tapering and interest rate hikes in the minutes.
Private equity firm Permira has mandated Goldman Sachs (NYSE:GS) to run a sale of business services company Tricor Group in a deal that could fetch up to $2 billion, three people with knowledge of the transaction told Reuters.
The sale process is expected to kick off soon after an initial gauge of market interest, said one of the sources.
Permira is targeting a $2 billion valuation for the asset, although the price tag could range from $1.5 billion to $2 billion, said the people, who declined to be named as the information is confidential.
Hong Kong-headquartered Tricor, Permira and Goldman declined to comment.
Permira, headquartered in London, in 2016 won a bid to buy Tricor from Bank of East Asia (OTC:BKEAY) and NWS Holdings Ltd for HK$6.5 billion ($837.9 million).
The dollar was down on Wednesday morning in Asia, while the New Zealand dollar (NZD) was up after the Reserve Bank of New Zealand (RBNZ) handed down its latest policy decision.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.08% to 93.073 by 11:51 PM ET (3:51 AM GMT).
The USD/JPY pair inched up 0.05% to 109.62.
The AUD/USD pair was up 0.23% to 0.7265 and the NZD/USD pair was up 0.28% to 0.6943.
The USD/CNY pair inched down 0.03% to 6.4835 while the GBP/USD pair edged up 0.12% to 1.3756.
RNBZ kept its interest rate unchanged at 0.25% earlier in the day as it handed down its policy decision.
The central bank was forced to postpone its plans to hike interest rates as New Zealand went into lockdown following the first local COVID-19 infection in six months.
The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.
It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services.