· Gold prices hovered on Monday below a 2-1/2-month peak after a disappointing U.S. jobs data signaled that the Federal Reserve could push back the timeline for tapering stimulus measures, bolstering bullion’s appeal as an inflation hedge.
· Spot gold was steady at $1,826.65 per ounce, as of 0048 GMT. In the previous session, prices hit a peak since June 16 at $1,833.80.
· U.S. gold futures eased 0.3% to $1,828.60.
· Labor Department data showed on Friday U.S. nonfarm payrolls increased by 235,000 jobs last month, below economists’ expectations of 728,000, as hiring in the leisure and hospitality sector stalled amid a resurgence in Covid-19 infections.
· The data on Friday pushed the dollar index to its lowest level since Aug. 4.
· Fed Chair Jerome Powell had hinted last month that reaching full employment was a pre-requisite for the central bank to start paring back its asset purchases.
· Gold is considered a hedge against inflation and currency debasement, caused by massive amounts of stimulus measures.
· Euro zone business activity remained strong last month, despite fears about the delta variant of the coronavirus and widespread supply chain issues, IHS Markit’s survey showed, suggesting the bloc’s economy could be back to pre-Covid levels by the year-end.
· Physical gold demand across top Asian hubs was largely muted last week as a rebound in domestic prices kept buyers at bay, while dealers in India pinned their hopes on an upcoming festival season to bring in more customers.
· Speculators raised their net long positions in COMEX gold and silver in the week ended Aug. 31, data from the U.S. Commodity Futures Trading Commission showed.
· Gold Price Forecast: XAU/USD points to more upside towards $1850
Starting out a fresh week on Monday, gold is easing from two-month tops, posting small losses so far, as the bulls take a breather in the aftermath of the NFP shocker. Why $1850 appear to be the next bullish target for XAU/USD? FXStreet’s Dhwani Mehta gives her reasons.
Investors cheer an extended period of monetary support amid the Chinese economic slowdown and faltering US labor market recovery, lifting Asian stocks at gold’s expense.”
“The downside appears limited, as dip-buyers could emerge amid a potentially bullish structure on the technical graph. Also, it's worth noting that Labor Day holiday in the US and Canada could exaggerate the moves in gold price.”
“Gold needs a sustained break above the July 15 high of $1834.17 to unleash the additional upside towards the June 16 highs of $1865.”
“The $1850 psychological barrier could test the bearish commitments on its way up.”
“XAU/USD could pull back towards the 100-DMA at $1815 before resuming the next upswing. The 200-DMA at $1809 is the last line of defense for gold bulls.”
· Silver was steady at $24.69 per ounce. Prices rose 3.4% in the previous session, its biggest one-day percentage gain since early May.
· Platinum fell 0.6% to $1,018.89, while palladium rose 0.2% to $2,428.68.
· UK new car sales fell 22% in August, preliminary data shows
British new car registrations in August fell 22% year on year, preliminary industry data showed on Monday, with the sector still battling pandemic-related supply difficulties.
· German industrial orders surge on robust foreign demand
German industrial orders unexpectedly surged in July, official figures showed on Monday, hitting a post-reunification high and pointing to a solid start to the second half in the engine room of Europe’s largest economy.
The figures published by the Federal Statistics Office showed orders for goods ‘Made in Germany’ rose by 3.4% on the month in seasonally adjusted terms. A Reuters poll of analysts had pointed to a fall of 1.0% on the month.
A breakdown of the data showed that domestic orders fell 2.5% on the month and foreign orders rose by 8.0%.
· Australia's treasurer says economy must diversify from China reliance
Australia must diversify its economy to rely less on China, its largest trading partner, Treasurer Josh Frydenberg said on Monday, as he warned businesses to brace for new tensions with Beijing.
· China's export, import growth likely eased in Aug on COVID-19 cases, supply bottlenecks: Reuters poll
China's export growth is expected to have moderated in August amid port congestion caused by fresh COVID-19 cases, a Reuters poll showed, while the pace of imports also slowed, highlighting the growing pressure on the world's second-largest economy.
· China's export growth is expected to have moderated in August amid port congestion caused by fresh COVID-19 cases, a Reuters poll showed, while the pace of imports also slowed.
· China's Liu He says support for private business has not changed
China’s Vice Premier Liu He said on Monday policies supporting the private sector would not change, state media reported, amid growing concern a crackdown on a wide range of industries was hurting businesses.
· Japan's COVID-19 vaccine minister has public support in PM race
Japanese voters strongly support Taro Kono, minister in charge of fighting COVID-19, as the next prime minister according to a second opinion poll, as potential candidates prepare to join what has become a wide-open contest for ruling party leader.
· Taliban claim control of Panjshir as evacuation flights await clearance
· Taliban stop planes with hundreds of evacuees from leaving but it’s unclear why
· After messy pullout, Blinken to intensify Afghanistan diplomacy in Qatar, Germany
· Myanmar junta agrees to ASEAN call for ceasefire to distribute aid -Kyodo
· Sydney COVID-19 cases seen topping 2,000 a day as Australia ramps up vaccinations
· Covid vaccination rates have slumped in some parts of the world, and experts are worried
· Britain's vaccines minister said a decision had not yet been taken on whether healthy children aged 12- to 15-years-old should be vaccinated, following reports that a roll-out could begin in the coming days.
· Several thousand people protested across France for an eighth consecutive weekend on Saturday against the country's COVID-19 health pass.
· Vietnam's capital ramps up testing after extending COVID-19 curbs
Reference: Reuters, CNBC, FXStreet
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