· Gold prices rose on Monday after the U.S. dollar retreated from multi-month highs, while investor concerns that the Delta coronavirus variant could dampen the pace of global economic recovery also lifted bullion’s safe-haven appeal.
· Spot gold rose 0.2% to $1,785.00 per ounce by 0657 GMT, while U.S. gold futures were up 0.2% at $1,786.50.
· The dollar index was down 0.1%, easing off the 9-1/2-month high hit last week, lifting gold’s allure for holders of other currencies. [USD/]
· “The Delta variant is throwing sort of a spanner into the works on how likely and how soon we could see a tapering announcement,” ING analyst Warren Patterson said.
· Dallas Federal Reserve President Robert Kaplan, a strong supporter for tapering stimulus, said on Friday he might need to adjust that view if the Delta variant slows economic growth materially.
· In the clearest sign yet of the impact of the Delta variant on the Fed’s plans, COVID-19 restrictions have prompted the U.S. central bank to schedule its annual economic symposium in Jackson Hole, Wyoming on Aug. 27 virtually and not in person as planned.
· Chair Jerome Powell is expected to give a speech at the event on the economic outlook.
· “I don’t think Powell will give a clear timeline for stimulus withdrawals. So the dollar will fall and gold could rise beyond $1,800,” said Jigar Trivedi, commodities analyst at Mumbai-based broker Anand Rathi Shares.
· Highlighting the toll from the recent surge in infections, Japan’s factory activity growth slowed in August, while that of the services sector shrank at the fastest pace since May last year.
· Spot gold may test a resistance at $1,795, having stabilized around a support at $1,775, according to Reuters technical analyst Wang Tao.
· Silver rose 1% to $23.23, while platinum firmed 1.5% to $1,010.53.
· Palladium rose 1.6% to $2,311.32, bouncing off a more than five-month low hit earlier.
· U.S. labor market powers ahead with strong job gains, lower unemployment rate
U.S. employers hired the most workers in nearly a year in July and continued to raise wages, giving the economy a powerful boost as it started the second half of what many economists believe will be the best year for growth in almost four decades.
The Labor Department's closely watched employment report on Friday also showed the unemployment rate dropped to a 16-month low of 5.4% and more people waded back into the labor force. The report followed on the heels of news last week that the economy fully recovered in the second quarter the sharp loss in output suffered during the very brief pandemic recession.
Nonfarm payrolls increased by 943,000 jobs last month, the largest gain since August 2020, the survey of establishments showed. Data for May and June were revised to show 119,000 more jobs created than previously reported. Economists polled by Reuters had forecast payrolls would increase by 870,000 jobs.
The economy has created 4.3 million jobs this year, leaving employment 5.7 million jobs below its peak in February 2020.
President Joe Biden cheered the strong employment report. "More than 4 million jobs created since we took office," Biden wrote on Twitter. "It's historic - and proof our economic plan is working."
· Republican senator calls on Biden to reappoint Powell to top Fed job
· Euro zone business activity remains robust in August as jobs boom
The euro zone economy lost some momentum in August but is still on track for solid growth in the third quarter of this year, according to preliminary data released Monday.
IHS Markit’s flash composite PMI for the euro zone, which looks at activity across both manufacturing and services, hit a two-month low of 59.5 in August versus 60.2 in July. A reading above 50 represents an expansion in economic activity.
· NZ cenbank under no pressure to act as Delta outbreak not 'game changer' yet- RBNZ economist
· China says foreign trade may face more complicated situation next year
China’s foreign trade may face a more complicated situation next year given base effects and receding positive factors associated with the global COVID-19 pandemic, Wang Wentao, the country’s Commerce Minister said on Monday.
· Japan's private-sector activity hit by COVID-19 surge - PMI
The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) fell to a seasonally adjusted 52.4 in August from a final 53.0 in the prior month.
· Germany says firefight involving Western forces erupts at Kabul Airport
A firefight broke out between unidentified gunmen, Western security forces and Afghan guards at Kabul airport on Monday, Germany's armed forces said, as thousands of Afghans and foreigners thronged the airport, seeking to flee Taliban rule.
· UK's Johnson to push Biden for Afghan deadline extension
British Prime Minister Boris Johnson will ask U.S. President Joe Biden to extend the evacuation deadline from Afghanistan when Group of Seven leaders discuss the crisis on Tuesday, two UK ministers said.
· Kamala Harris says the U.S. is ‘singularly focused’ on evacuating Americans and Afghan allies
- Israel finds COVID-19 vaccine booster significantly lowers infection risk
- New Zealand's COVID-19 lockdown extended as outbreak tops 100 cases
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