· Gold prices held steady on Thursday as investors were largely on the sidelines awaiting the U.S. non-farm payrolls print that is considered crucial for the Federal Reserve's tapering timeline.
· Spot gold was little changed at $1,814.58 per ounce by 0646 GMT, while U.S. gold futures traded flat at $1,816.50.
· "Market is waiting for the payrolls data to be released to get a bit of a guide on how ultimately inflation expectations will be set," ANZ analyst Daniel Hynes said.
· While U.S. jobless claim figures are due at 1230 GMT later in the day, the Labour Department will release the non-farm payrolls report for August on Friday.
· The median payrolls forecast of 80 economists polled by Reuters is for 728,000 jobs to have been created in August.
· Fed chief Jerome Powell said last week the labour market recovery would determine when the U.S. central bank would start cutting its asset purchase.
· Gold is often considered a hedge against inflation and currency debasement, caused by massive stimulus measures.
· "We're still expecting to see CPI remain relatively high, so for the remainder of the year, that will slowly drag up inflation expectations... That's likely to see gold push higher," Hynes said.
· pressured by a private payrolls report that missed expectations. read more
· On the technical front, spot gold may test a resistance at $1,826 per ounce, a break above which could lead to a gain at $1,841, according to Reuters technical analyst Wang Tao.
· Gold Price Forecast: XAU/USD to see subdued movements awaiting NFP on Friday
Gold price continues to enjoy good two-way price movements while holding at the higher end of this week’s trading range. In the view of FXStreet’s Haresh Menghani, XAU/USD is going nowhere as investors seem reluctant ahead of Friday’s release of the US monthly jobs report.
"Dovish Fed expectations continue to act as a tailwind for XAU/USD"
“The closely-watched NFP report might provide fresh clues on when the Fed could begin rolling back its massive pandemic-era stimulus. This, in turn, will play a key role in determining the next leg of a directional move for the non-yielding yellow metal.”
“It is prudent to wait for a sustained move beyond the weekly trading range hurdle, around the $1,823 area, before positioning for any further appreciating move. The momentum could then lift XAU/USD towards a key barrier near the $1,832-34 region, which if cleared decisively will reaffirm the bullish breakout and pave the way for additional gains. Gold might then accelerate the momentum towards the next relevant resistance, around the $1,853-55 zone.”
“The weekly swing lows, around the $1,800 figure, now seems to protect the immediate downside. A sustained break below might prompt some technical selling and drag XAU/USD back towards the $1,778-74 zone. Some follow-through weakness will shift the bias in favour of bearish traders and expose the $1,762 support zone, which is followed by the $1,751-50 region. The downward trajectory could further get extended towards the $1,730 area en-route the $1,700 mark and multi-month swing lows, around the $1,687-86 region.”
· Gold steady as investors await US jobs data to gauge Fed's taper path
Gold prices were flat on Thursday as investors were largely on the sidelines awaiting the US non-farm payrolls print that is crucial for Federal Reserve's tapering timeline.
· Among other precious metals, silver fell 0.1% to $24.15 per ounce and platinum eased 0.5% to $997.27.
· Palladium shed 0.1% to $2,439.18 per ounce.
· The Fed will ease into tapering, which could take ‘about a year’: S&P
Paul Gruenwald of S&P Global Ratings explains what the U.S. infrastructure package means for economic and labor growth in the medium term, and why it should be viewed separately from what the Federal Reserve could do in relation to tapering.
· Schumer says infrastructure bills edge U.S. close to Biden climate goals
Senate Majority Leader Chuck Schumer said on Wednesday that the United States would be on track to meet its climate goals in the next decade, with measures introduced in two infrastructure bills along with efforts by states and the federal government.
President Joe Biden in April hiked the U.S. target for slashing economy-wide greenhouse gas emissions to 50%-52% from 2005 levels by 2030.
· Delta poses a downside job risk
Steve Liesman and Kristina Partsinevelos join The Exchange with data from consumer surveys and banks about the labor shortage and consumer confidence.
· Australia trade surplus hits record in July as resources boom
Australia's trade surplus widened to a record in July as exports of iron ore, coal and liquefied natural gas all rose strongly, a surprisingly upbeat result that bodes well for mining profits and tax receipts.
Figures from the Australian Bureau of Statistics out on Thursday showed the trade surplus climbed to A$12.1 billion ($8.91 billion) in July, from an already high A$11.1 billion in June, beating forecasts of A$10.2 billion.
· Morgan Stanley thinks Chinese education companies have a way forward despite the crackdown
· Chinese regulators summon 11 ride-hailing firms, including Didi, over ‘illegal behavior’
· Japan lays out growth strategy priorities ahead of elections
Japan announced on Thursday a list of initiatives it will focus on to promote green technology and digitalisation, as part of efforts to boost the economy's long-term growth.
The outline, drawn up by a panel to debate Japan's growth strategy, will likely serve as a backbone for any new stimulus package the government may compile later this year.
· BOJ policymaker warns of growing risks to Japan's economic recovery
Bank of Japan board member Goushi Kataoka said on Thursday the coronavirus pandemic may weigh on the economy longer than initially expected, warning of heightened risks to the central bank's forecast of a moderate, export-driven recovery.
Kataoka also stressed the BOJ's readiness to ramp up stimulus if needed, reinforcing market expectations Japan would lag other countries in exiting crisis-mode policies.
"Risks to consumption are heightening," with a spike in Delta variant cases forcing Japan to maintain curbs on economic activity, he said. "There's a good chance the impact of the pandemic may last longer than expected."
· Reopening of Japan’s economy is taking than longer than expected: UBS
Hartmut Issel from UBS Global Wealth Management says although Covid vaccination rates are rising in Japan, the reopening of its economy may be postponed by another quarter.
· S.Korea inflation at 9-year peak fuels rate hike expectations
South Korea's August consumer inflation stayed at a nine-year peak, raising the chances the central bank will hike rates again this year as strong demand adds to price pressures.
Consumer prices in August rose 2.6% from a year earlier, Statistics Korea said on Thursday, matching the rate in July, driven by a spike in fresh food prices due to a heat wave and high cost of oil products, housing rental and other services.
· Chaotic U.S. exit likely to crush Afghan economy - Fitch
Fitch Solutions has forecast a collapse in the Afghan economy and cut its real gross domestic product estimate for growth of 0.4% this financial year to project contraction of 9.7%, with a further drop of 5.2% in the following financial year.
· Taliban preparing to reveal new Afghan government amid economic turmoil
· Covid-19: UK records 200 deaths in 24 hours, the highest toll in six months
· Covid vaccine: Immunosuppressed people in the UK to receive third dose
Around half a million people in the UK whose immune systems are severely weakened will be offered a third primary vaccine dose, following a new recommendation announced by the Joint Committee on Vaccination and Immunisation (JCVI) today.
Reference: Business Recorder, FXStreet, CNBC, Reuters, CityAM, STUFF, Channel News Asia
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