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· Gold slid nearly 3% on Thursday and silver lost over 5% as strong U.S. retail sales data boosted the dollar and gave ammunition to bets that the Federal Reserve may hasten its tapering.

· Spot gold slid 2.1% to $1,755.75 per ounce by 13:52 p.m. EDT, after hitting an over one-month low of $1,744.30. U.S. gold futures settled down 2.1% at $1,756.70.

· Caught in gold’s slipstream, silver was last down 4.3% at $22.79.

· Hammering gold’s appeal to holders of other currencies, the dollar jumped after data showed an unexpected increase in U.S. retail sales in August.

· “Gold has taken a pretty big hit,” with the upside in the dollar and Treasury yields and the stronger data, “you have longs running for the exit,” said Bob Haberkorn, senior market strategist at RJO Futures.

Unless there is some geopolitical event or a Fed surprise, gold’s trajectory is unlikely to change going into the FOMC meeting, Haberkorn added.

· Gold also found little respite from labour market sluggishness, with initial jobless claims coming slightly higher than expected last week.

· The strong retail sales figures show “consumer sentiment is starting to come back, a good indicator for the Fed to bring in those expectations on the next rate hike,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

· SPDR GOLD HOLDINGS:

NET BUY 1.46 Tonnes on Thursday

· Focus now turns to the Fed’s Sept. 21-22 meeting.

· Investors also note that prices for precious metals are expected to be choppy as investors await clarity from the U.S. Federal Reserve next week on its plans for tapering bond purchases that provided liquidity to markets during the worst of the pandemic back in the spring of 2020.

· “Despite a lower inflation reading, investors reduced their exposure to gold due to the expectation that the [U.S. Federal Reserve] will begin tapering this year,” wrote Naeem Aslam, chief market analyst at AvaTrade, in a daily note.

“Traders should note that the price of gold is likely to be volatile in the run-up to next week’s Fed meeting,” Aslam said

· “There are a lot of members in the FOMC in favour of commencing tapering this year, and therefore the outlook for gold is not positive,” said Quantitative Commodity Research analyst Peter Fertig.

· Unwinding of economic support measures not only dim gold’s status as a safe haven -- burnished by the pandemic -- but a subsequent hike in interest rates translates to the increased opportunity cost of holding non-yielding assets like bullion.

· Platinum fell 1.7% to $930.52 per ounce

· Palladium was the sole gainer, rising 1.5% to $2,032.50.

· COVID-19 UPDATES:

· Jobless Claims Rebound; Retail Sales, Philly Fed Surprise Up

· Retail Sales Surprise to upside in strong boost to economy

Sales increased 0.7% for the month against the Dow Jones estimate of a decline of 0.8%.

· Philly Fed Factory Index jumps in September as price pressures ease slightly

The Philadelphia Federal Reserve reported that its manufacturing activity index rose 11 points to 30.7, representing the percentage difference between firms reporting expanding activity against those seeing contraction. That number was well ahead of the Dow Jones estimate of 18.7.

· U.S. Jobless Claims shoot higher after Hurricane Ida but still near pandemic low

A separate economic report showed that weekly jobless claims increased to 332,000 for the week ended Sept. 11, according to the Labor Department. The Dow Jones estimate was for 320,000.

· Delta darkens U.S. Q3 growth views, Fed taper announcement expected in Nov

The U.S. economic rebound has been dented in Q3, partly on the spread of the Delta coronavirus variant, with economists in a Reuters poll also pushing their expectations back to November for when the Federal Reserve announces an impending policy shift.

· Fed's Powell orders sweeping ethics review after officials' trading prompts outcry

Federal Reserve Chair Jerome Powell has ordered a sweeping review of the ethics rules governing financial holdings and dealings by senior officials at the U.S. central bank, a Fed spokesperson said on Thursday.

· Biden expects Congress to approve spending, infrastructure bills

U.S. President Joe Biden on Thursday expressed confidence that Congress will pass both a bill funding infrastructure investments and a supplementary spending bill as Democrats seek to infuse trillions of dollars into the U.S. economy.

Democrats in Congress are writing a $3.5 trillion spending bill that funds child care, community college and other social programs with an increase in taxes on companies and the very wealthy. The party seeks to pass the massive package as a companion to a $1 trillion infrastructure bill that has bipartisan support.

· Standard Chartered chairman still sees opportunity in China even as regulations tighten

· Singapore government announces $1 billion new fund to boost local stock market

· Singapore's August exports rise 2.7% y/y, miss forecast

· Covid restrictions force some retailers to rethink Vietnam as a manufacturing hub

· U.S., Australia and UK unveil new security partnership as China expands its military and influence

· ‘A stab in the back’: France rebukes Australia, Biden after ditched submarine deal

France is not holding back showing its disappointment with Australia after it abruptly ended a submarine contract in order to sign a new deal with the U.S. and U.K.

· China, France denounce U.S. nuclear sub pact with Britain, Australia

China on Thursday denounced a new Indo-Pacific security alliance between the United States, Britain and Australia, saying such partnerships should not target third countries and warning of an intensified arms race in the region.

· Oil prices steady as U.S. storm threat wanes

Oil prices steadied on Thursday after hitting a multi-week high a day earlier as the threat to U.S. Gulf crude production from Hurricane Nicholas receded.

Brent crude ended the session up 21 cents, or 0.3%, at $75.67 a barrel. On Wednesday Brent touched $76.13, its highest since July 30.

U.S. West Texas Intermediate (WTI) ended the session unchanged at $72.61 a barrel after climbing to the highest since Aug. 2 on Wednesday.