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Gold Hovers Near 3-month Peak

Gold prices steadied near a three-month peak. Reuters
Gold prices steadied near a three-month peak. Reuters
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Gold Hovers Near 3-month Peak

Gold prices steadied near a three-month peak. Reuters
Gold prices steadied near a three-month peak. Reuters

Gold prices steadied near a three-month peak on Tuesday, supported by subdued US manufacturing and construction spending, as investors awaited testimony from Federal Reserve Chair Jerome Powell and key jobs data for policy cues.
Spot gold was flat at $2,114.99 per ounce, as of 0740 GMT, hovering around its highest since Dec. 4 of $2119.69 it hit on Monday. US gold futures dipped 0.1% to $2,123.90.
London's gold price benchmark hit a record high of $2,098.05 per troy ounce on Monday.
"This rally in gold was triggered by the softer-than-expected U.S. data and the pullback in real rates... but there has been a general bias to buy dips and a positive underlying investor sentiment towards gold that has also made the market vulnerable to the upside," UBS strategist Joni Teves said.
US manufacturing fell further in February, along with a gradual easing of inflation, while consumer sentiment remained weak.
Fed's Raphael Bostic said on Monday the bank is under no pressure to cut rates urgently, highlighting a "prospering" economy and job market.
Market focus now turns to Powell's two-day congressional testimony on Wednesday and Thursday, in a jobs data-heavy week, as investors seek more clues on the health of the US economy and potential timing of the Fed's rate cuts.
Lower rates boost the appeal of non-yielding bullion.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust's holdings dropped 10% from the previous year as of March 4.
"Even though gold ETFs have continued to sell, the pace of the selling has been reasonably measured, which suggests these are tweaks to the composition of the investor portfolio rather than investors losing faith in gold necessarily," Teves said.
Spot platinum fell 0.6% to $891.95 per ounce, and palladium dropped 1.3% to $947.80, and silver fell 0.3% to $23.83.

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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."