Gold eased in range-bound trading on Thursday as investors ignored a subdued dollar and squared positions with a focus still on Friday’s non-farm payrolls data that could determine the U.S. Federal Reserve’s tapering strategy.
· Spot gold eased 0.2% to $1,809.60 per ounce by 1:41 pm EDT.
· U.S. gold futures settled down 0.3% at $1,811.5.
· SPDR GOLD HOLDINGS:
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 1.74 Tonnes to 998.52 Tonnes on Thursday.
Overall, the holdings of SPDR decline 172.22 tonnes in this year.
· Jobless claims total 340,000, lowest level since early days of pandemic
· U.S. factory orders increase in July despite supply constraints
New orders for U.S.-made goods rose in July, while business spending on equipment remained strong, signs that manufacturing was holding up despite persistent supply constraints and spending rotating back to services from goods.
The Commerce Department said on Thursday that factory orders increased 0.4% in July after advancing 1.5% in June. Economists polled by Reuters had forecast factory orders gaining 0.3%.
Orders increased 18.0% on a year-on-year basis. Though demand is shifting back to services, appetite for goods remain strong. This, together with an urgency by businesses to restock after inventories were run down in the first half of the year, should underpin manufacturing, which accounts for 11.9% of the economy.
· Weaker Demand for Imports Narrowed U.S. Trade Deficit in July
Service surplus fell as Americans resumed overseas travel
· “The gold market right now is consolidating and does not care about anything else until the jobs number comes up,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
But “if there’s a larger breakdown in the dollar, gold might have some type of bid under it,” Streible added.
· Gold investors seemed to take little notice of a dip in the dollar. Bullion typically gains on a weaker dollar as it makes gold cheaper for those holding other currencies.
· Market participants also took stock of data showing fewer Americans filed new claims for jobless benefits last week, despite a new COVID-19 infections surge.
· The data comes on the heels of the Jackson Hole annual Economic Policy Symposium, where Fed Chair Jerome Powell said the recovery in the labour market would determine when the central bank starts slowing its asset purchases.
· Gold is highly sensitive to any reduction in interest rates, which decreases the opportunity cost of holding non-yielding bullion.
· “Gold prices need to try and push towards highs we saw in August, around $1,830, but for the time being, it’s probably not going to see much movement ahead of the payrolls numbers,” said Michael Hewson, chief market analyst at CMC Markets UK.
· The Labour Department’s non-farm payrolls report for August is expected to show 728,000 jobs were created, according to a Reuters poll.
· Silver fell 1.2% to $23.88 per ounce, palladium eased 1.8% to $2,398.58, and platinum dropped 0.5% to $996.23.
· Treasury yields remain lower after initial jobless claims hit pandemic low
The yield on the benchmark 10-year Treasury note moved 1 basis point lower to 1.29% and the yield on the 30-year Treasury bond also dipped 1 basis point to trade at 1.904%. Yields move inversely to prices.
· Dollar lower after initial jobless claims data with payrolls on tap
The dollar weakened on Thursday following strong labor market data, while the euro remained near a one-month high versus the greenback after European Central Bank policymakers made comments that kept inflation concerns in focus.
The dollar index fell 0.303% at 92.229, after falling as low as 92.219, its lowest level since Aug. 5. The euro was up 0.31% to $1.1874.
· The ECB is scheduled to hold a policy meeting on Sept. 9.
Recent comments from European Central Bank hawks including Austria’s Robert Holzman and Bundesbank boss Jens Weidman also supported the single currency. ECB President Lagarde said the region was recovering from the pandemic and only needed “surgical” support.
· Fed’s Bostic Warns Eviction Surge Could Weigh on Recovery
Atlanta Fed chief worries evictions could prolong Covid crisis
Federal Reserve Bank of Atlanta President Raphael Bostic said Wednesday that ending protections against evictions and a slow rollout of aid for renters owing money to landlords could create problems for the economic recovery.
· Australia, Malaysia, Singapore and South Africa launch cenbank digital currency scheme
Central banks in Australia, Singapore, Malaysia and South Africa will conduct a cross border payments trial using different central bank digital currencies (CBDC) to assess if this allows transactions to be settled more cheaply and easily, the banks said on Thursday.
· Hurricane Ida damage boosts calls to rebuild with the infrastructure bill: CNBC After Hours
· Fauci says the new mu Covid strain isn’t an immediate threat in the U.S.
The new Covid-19 variant “mu” is not an immediate threat to the United States, federal health officials said Thursday.
“We’re paying attention to it, we take everything like that seriously, but we don’t consider it an immediate threat right now,” White House chief medical advisor Dr. Anthony Fauci said at a press briefing.
· Fauci says he wouldn’t be surprised if Covid vaccines require three shots for full regimen, instead of two
White House chief medical advisor Dr. Anthony Fauci said Thursday he would not be surprised if the recommended full regimen for the Pfizer and Moderna Covid-19 vaccines in the U.S. becomes three doses, instead of two.
· Delta puts Australia's COVID-19 reopening schedule in doubt
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