· Gold prices were subdued on Monday as the dollar held firm, while cautious investors awaited readings on U.S. consumer prices due this week that could be crucial to Federal Reserve’s decision on when to exit its super-supportive policy.
· Spot gold was flat at $1,787.40 per ounce, as of 0114 GMT, after having recorded a weekly decline of 2.1%.
· U.S. gold futures fell 0.3% to $1,786.90.
· The dollar index slightly strengthened in the Asian trade, having delivered a 0.6% weekly gain, making gold more expensive for holders of other currencies.
· Data on Friday showed U.S. producer prices increased solidly in August, leading to the biggest annual gain in nearly 11 years.
· The reading sent the benchmark U.S. 10-year Treasury yield higher.
· While some investors view gold as a hedge against higher inflation, higher yields translate into higher opportunity cost for holding non-interest bearing bullion.
· Cleveland Fed President Loretta Mester said on Friday that she would still like the central bank to begin tapering asset purchases this year, joining the chorus of policymakers making it clear that their plans to begin scaling back support were not derailed by weaker jobs growth in August.
· Physical gold demand in India was subdued last week despite a correction in bullion prices, while consumers in most other Asian hubs also stayed on the sidelines as they hoped for a clearer trend in global prices.
· Speculators cut their net long positions in COMEX gold by 15,324 contracts to 83,540 in week ended Sept. 7, data from the U.S. Commodity Futures Trading Commission showed.
· Gold rangebound as investors await US consumer price data
Bullion is stuck at $1,760-$1,830, which reflects indecision about Covid-19 and policy, analyst says
· Gold Price Forecast: XAU/USD consolidates losses below $1,800, US inflation eyed
Gold (XAU/USD) begins the key week on a positive note, on the bids near $1,793 while flashing 0.3% intraday gains at the latest. The yellow metal snapped a four-week uptrend the previous week as Fed tapering concerns escalate. Even so, recently easy US Treasury yields seem to join technical support to trigger the corrective pullback as European traders brace for Monday’s work.
Moving on, a light calendar on Monday allows gold prices to consolidate the last week’s losses. However, the US Consumer Price Index (CPI) and the Retail Sales for August will be crucial as any further strength of the headline data will bolster tapering concerns and weigh on gold prices.
Technical analysis
An upward sloping trend line from August 13 defends gold buyers even as 100-SMA challenges the upside momentum, portraying a range between $1,783 and $1,804.
Also acting as an upside barrier is the 50-SMA level surrounding $1,807.
In a case where the gold prices drop below $1,783, 50-SMA may print a bearish cross while slipping below 100-SMA, which in turn will magnify the downside momentum towards five-week-old horizontal support near $1,760-58.
The $1,724 and the $1,700 threshold also act as extra supports before directing gold sellers toward the yearly low near $1,687.
· Gold Price Analysis: XAU/USD to suffer a deeper fall to $1,750 on a break below $1,785
Gold is trading under $1,800. As FXStreet’s haresh Menghani notes, XAU/USD remains confined in a range while the market focus now shifts to this week’s key US macro data – CPI report and Retail Sales data.
“The market focus now shifts to this week's release of the latest US consumer inflation report, scheduled for release on Tuesday. Apart from this, the US monthly Retail Sales figures will also be looked upon for a fresh directional impetus.”
“The recent pullback from the $1,832-34 supply zone and repeated failures near the $1,800 mark favours bearish traders. Some follow-through selling below the $1,785-84 region will reaffirm the negative outlook and set the stage for a deeper retracement to the $1,750 level.”
“The $1,800 level now seems to have emerged as immediate strong resistance and is closely followed by the very important 200-day SMA, currently around the $1,810 region. A sustained move beyond might prompt some short-covering move and lift XAU/USD back towards the $1,832-34 strong barrier.”
· Platinum eased 0.1% to $955.01 per ounce and touched its lowest level since November 2020.
· Palladium hit its lowest level since August 2020, but recovered lost ground to trade up 0.3% at $2,145.03.
· Silver was flat at $23.72.
· Manchin urges more time for slimmer budget bill
U.S. Senator Joe Manchin on Sunday said lawmakers were unlikely to pass their massive budget package by Democrats' Sept. 27 deadline, adding that he could support a smaller $1.5 trillion bill. Gavino Garay reports.
· U.S. Congress Republicans attack Biden's vaccination mandates
U.S. President Joe Biden's plan to require COVID-19 vaccinations for all federal workers and vaccines or testing for employees of large companies drew protests on Thursday from congressional Republicans who accused him of overstepping his authority.
Under the plan, all employers with 100 or more workers would be required to ensure they either have been vaccinated or are tested weekly for the highly-contagious COVID-19. Healthcare workers also would be required to be vaccinated as would teachers.
· UK employers, stung by new levies, call for overhaul of tax system
· Japan's wholesale inflation hovers near 13-yr high as material costs rise
The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, rose 5.5% in August from a year earlier, slightly below a median market forecast for a 5.6% gain, Bank of Japan data showed.
It was the sixth straight month of increase and a tad below the 5.6% surge in July, which was the fastest pace of increase since September 2008.
The index, at 105.8, marked the highest level since 1982, when Japan’s economy was booming from an asset-inflated bubble.
· Japan's investors raise bets on Kono in leadership race
Japan’s stock investors have raised bets Taro Kono will become the country’s next prime minister, snatching up renewable energy and office technology shares that are expected to benefit under his economic policies.
· New Zealand PM Ardern extends lockdown in Auckland to Sept 21
· India's Jet Airways to resume domestic operations in first quarter of 2022
· India looking to tax cryptocurrency trades and ecosystem in the country -ET Now
· Saudi economy grows 1.8% in Q2 but non-oil sector loses steam
· N.Korea tests first 'strategic' cruise missile with possible nuclear capability
· Myanmar's Suu Kyi dizzy and drowsy, skips court appearance
Covid-19 Updates:
· Australia's NSW state says coronavirus vaccination pace slows
· Australia steps up COVID-19 vaccine rollout as bookings for children begin
Australia will expand its COVID-19 vaccination drive on Monday to include around one million children aged 12-15 as it secures additional supplies in a bid to step up the pace of its inoculation amid a surge in infections.
Reference: CNBC, Reuters, Business Live, FXStreet
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