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·         Gold prices firmed on Monday, propped up by a subdued dollar and slight retreat in the U.S. Treasury yields, with investors gearing up for speeches from U.S. Federal Reserve policymakers this week for cues on the central bank’s rate hike timeline.

 

·         Spot gold was up 0.4% at $1,757.00 per ounce, as of 0656 GMT, while U.S. gold futures were up 0.4% at $1,758.50.

 

·         The dollar index softened, making bullion cheaper for holders of other currencies. Meanwhile the benchmark 10-year Treasury yields eased after hitting their highest since early-July.

 

·         “Gold is still looking slightly precarious where it is right now, and it’s probably bouncing off key technical level around $1,750,” IG Market analyst Kyle Rodda said.

 

·         A slew of Fed officials are due to speak this week including Chairman Jerome Powell, who will testify this week before Congress on the central bank’s policy response to the pandemic.

 

·         “There’ll be a lot of questions being put to Fed speakers about what the dot plots implied last week and whether there is higher risk of heightened inflation going forward and that rate hikes could be coming in the first half of 2022,” Rodda added.

 

·         Gold is often considered a hedge against higher inflation, but a Fed rate hike would increase the opportunity cost of holding gold, which pays no interest.

 

·         Investors also kept a close watch on developments in debt-laden property giant China Evergrande saga as the firm missed a payment on offshore bonds last week, with further payment due this week.

 

·         The People’s Bank of China continues to inject liquidity into markets indicating some systemic risks in the market and supported the bullion, Stephen Innes, managing partner at SPI Asset Management, said.

 

·         Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, increased 0.1% to 993.52 tonnes on Friday.

 

·         Silver rose 0.9% to $22.62 per ounce.

 

·         Platinum climbed 0.8% to $990.04, while palladium gained 0.6% to $1,983.89.

 

·         Panic buying leaves up to 90% of fuel pumps dry in major British cities

 

·    The People’s Bank of China injected a net 100 billion yuan ($15.47 billion) into the financial system on Monday, adding to the net 320 billion yuan last week, the most since January.

 

·         Cryptocurrency exchanges rush to cut ties with Chinese users after fresh crackdown

 

 

·         China's power crunch begins to weigh on economic outlook

China's power crunch, caused by tight coal supplies and toughening emissions standards, has triggered a contraction in heavy industry across several regions and is dragging on the country's economic growth rate, analysts said.

China has vowed to cut energy intensity by around 3% in 2021 to meet its climate goals and provincial authorities have stepped up the enforcement of emissions curbs in recent months after only 10 of 30 mainland regions managed to achieve their energy goals in the first half of the year.

 

·         Kuroda vows to keep BOJ's focus on COVID-19 response amid weak inflation

The Bank of Japan would continue to focus on cushioning the economic blow from the coronavirus pandemic, given lingering uncertainty over the outlook and subdued inflation, Governor Haruhiko Kuroda said on Monday.

Sluggish domestic demand and companies' reluctance to pass on higher raw material costs to consumers will likely keep any rebound in inflation moderate, Kuroda said.

Export and output growth will also slow in the near term as Southeast Asian factory shutdowns blamed on the pandemic hit Japanese manufacturers, he added.

 

Reference: Reuters, CNBC