· Gold falls as dollar inches higher, caution ahead of Jackson Hole
Gold prices fell on Thursday, as the dollar ticked higher ahead of US Federal Reserve Chair Jerome Powell's speech this week, with investors awaiting cues on tapering of economic stimulus.
· Spot gold fell 0.3% to $1,784.82 per ounce by 0705 GMT, while US gold futures fell 0.3% to $1,785.00.
· The dollar index inched 0.1% higher, weighing on the greenback-denominated bullion.
· "Some investors want to have a little bit of protection in the event that we have a hawkish surprise from Jackson Hole," said Edward Moya, senior market analyst at OANDA, adding that gold could consolidate on the downside till the symposium.
· Powell is scheduled to speak at the Fed's annual economic symposium at Jackson Hole, Wyoming, on Friday.
While a growing number of Fed officials have been actively discussing the likelihood of dialling back bond-buying program, the rise in coronavirus' Delta variant has cast a shade of uncertainty over that view.
· "For gold, any signs that they could be more patient amid the ongoing pandemic should see prices well supported. However, any gains in real yields could dampen investor demand," ANZ Research said in a note.
· Gold is viewed as a hedge against inflation and currency debasement. The Fed's tapering would tackle both those conditions thereby diminishing gold's appeal.
· "Few more corrections are in the cards for gold prices," said Hareesh V., head of commodity research at Geojit Financial Services.
The situation with coronavirus is not as critical as last year and safe haven demand is likely to be lacklustre in the near term, with investors focusing on riskier assets, he added.
· Elsewhere, silver and platinum fell 0.9% to $23.64 and $987.65 per ounce, respectively.
· Palladium slipped 1.1% to $2,402.86.
· Dollar soft as traders look to Jackson Hole for taper clues
The dollar held near a one-week low on Thursday with investors eyeing the Fed’s Jackson Hole symposium for clues on the timing of a tapering of monetary stimulus.
The dollar index, which measures the currency against six rivals, edged up 0.08% to 92.891, but still close to Thursday’s low of 92.801, a level not seen since Aug. 17.
U.S. yields rose overnight, with that on the benchmark 10-year Treasury note hitting 1.352% for the first time since Aug. 13.
The dollar ticked up 0.15% to 110.16 yen, another safe haven currency, meandering near the centre of its trading range since early July.
Against the euro, the dollar was little changed at $1.1771, after touching a one-week low of $1.1775 the previous day.
· UK warns of ‘highly credible’ terror threat at Kabul airport as U.S. urges people to stay away
· Australia urges people to leave Kabul airport area on terrorism threat
· Afghans told to leave Kabul airport over 'very credible' Islamic State threat
The United States and allies urged people to move away from Kabul airport on Thursday due to the threat of a terror attack by Islamic State (IS) militants as Western troops hurry to evacuate as many people as possible before an Aug. 31 deadline.
· Oil prices fall first day in four as virus concerns return
Oil fell on Thursday for the first session in four amid renewed concerns about demand recovery as more restrictions are imposed to curb Covid-19 infections.
Brent crude was down 45 cents, or 0.6%, at $71.80 a barrel by 0222 GMT, having risen 1.7% on Wednesday.
U.S. oil was down 55 cents, or 0.8%, at $67.81 a barrel, after gaining 1.2% in the previous session.
Fresh outbreaks fueled by the delta variant of the coronavirus are raising concerns about the strength of the economic recovery globally, hitting demand for oil and other commodities.
· German consumer morale drops heading into September- GfK
The mood among German consumers darkened heading into September as accelerating inflation and rising COVID-19 cases made them more hesitant to buy, a survey showed on Thursday.
The GfK institute said its consumer sentiment index, based on a survey of around 2,000 Germans, dropped to -1.2 points for September, from a revised -0.4 points a month earlier. The reading compared with a Reuters forecast for -0.7.
· China's push for common prosperity does not mean 'killing the rich' - official
China's push for "common prosperity", as President Xi Jinping aims to decrease inequality in the world's second-largest economy, does not mean "killing the rich to help the poor", a ruling Communist Party official said on Thursday.
· Japan keeps economic view intact, bleaker on outlook due to COVID
Japan's government maintained its economic assessment for a fourth straight month in August but offered a slightly bleaker view on the outlook than in July, as a resurgence in COVID-19 infections weighted on consumer spending.
· S.Korea lifts interest rates from record low as debt threats grow
The Bank of Korea raised its policy rate for the first time in almost three years on Thursday, becoming the first major Asian central bank to shift away from pandemic-era monetary settings as ballooning consumer debt created new threats for the economy.
Joo Sang-yong, a known dove on the BOK's board, was the only one of the six board members who voted to keep rates steady as the bank raised the benchmark interest rate (KROCRT=ECI) 25 basis points to 0.75%, as expected by most analysts.
· India's GDP growth likely touched a record in April-June
Indian economic growth likely touched a record high in the quarter through June, reflecting a very weak base last year and a rebound in consumer spending, a Reuters poll found.
The Aug. 20-25 Reuters poll of 41 economists showed gross domestic product rose 20.0% in the three-month period, compared with a record contraction of 24.4% in the same quarter a year earlier.
· Vietnam expects 50,000 new virus cases in major manufacturing hub
Vietnam will deploy troops to industrial Binh Duong province, a major manufacturing hub in the Southeast Asian country, to help contain an expected 50,000 additional coronavirus infections there over the next two weeks, the government said on Thursday.
· S.Korea reports highest daily COVID-19 deaths for 2021, as severe cases rise
· Japan suspends 1.6 mln doses of Moderna shot days after contamination reports
Japan suspended the use of 1.63 million doses of Moderna Inc's (MRNA.O) COVID-19 vaccine on Thursday, more than a week after the domestic distributor received reports of contaminants in some vials.
· New Zealand's Ardern says lockdown working to limit Delta spread
· Biden, Israeli PM seek to reset relations, narrow differences on Iran
President Joe Biden and Israeli Prime Minister Naftali Bennett on Thursday will seek to reset the tone of U.S.-Israeli relations in their first White House meeting and find common ground on Iran despite differences on how to deal with its nuclear program.
Reference: CNBC, Reuters
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