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·         Spot gold was little changed at $1,756.56 per ounce by 0710 GMT. The metal was modestly up for the week.

·         U.S. gold futures were flat at $1,756.40 per ounce.

·         Sentiment was, however, supported by a dip in U.S. 10 year benchmark Treasury yields.

·         Gold competes with government bonds as an asset used to hedge against risk and uncertainty and decreased returns on bonds makes bullion, which pays no interest, more attractive.

·         “The gold market is starting to realise the Fed may not be as hawkish as priced in for the speed of tapering and subsequent rate hikes, especially with recent changes in the FOMC,” said Stephen Innes, managing partner at SPI Asset Management, referring to the recent retirement of two U.S. Federal Reserve policymakers.

·         But Innes said he was still cautious on the near-term outlook for gold, especially given the uncertain trajectory of the dollar.

·         Reduced central bank stimulus and interest rate hikes tend to push government bond yields up, in turn raising gold’s opportunity cost.

·         “While some investors are gripped with fear of lower gold prices, we are seeing many contrarian long term investors buying gold to hedge against inflation and economic risks,” said Vincent Tie, sales manager at Singapore dealer, Silver Bullion.

·         “We’ll probably see a reversal as we head into Q4, characterized by higher lows in gold prices.”

·         Gold Price Forecast: XAU/USD remains vulnerable near $1,750 amid renewed USD strength

Attention now turns towards the US PCE inflation, ISM Manufacturing PMI index and revised Michigan Consumer Sentiment, as the final quarter of this year kicks in.

From a short-term technical perspective, the bull flag breakout confirmed on gold’s hourly chart, suggests that the price remains on track to extend its recovery towards the measured target of $1797.

However, it could be a bumpy ride for gold bulls, as the investors remain cautious ahead of the critical US inflation data due later in the NA session on Friday.

Acceptance above Thursday’s high of $1764 could reinforce the renewed bullish interests.

The Relative Strength Index (RSI) holds firmer above the midline, allowing room for more upside.

Alternatively, immediate support awaits at the 200-Hourly Moving Average (HMA) at $1753, below which the daily lows could be retested.

Further south, the bullish 21-HMA at $1747 could offer strong support, below which the previous week’s low of $1738 will come into play.

 

·         Silver fell 0.3% to $22.14 per ounce. Platinum was down 0.7% at $957.06 and palladium slipped 1.9% to $1,873.18.

 

·         U.S. trade chief Tai to unveil Biden's China trade strategy on Monday

U.S. Trade Representative Katherine Tai will unveil the Biden administration’s long-awaited strategy for the troubled U.S.-China trade relationship in a speech on Monday at a Washington think tank, her office said.

Tai will deliver remarks on her review of China trade policy at the Center for Strategic Studies in Washington and participate in a question-and-answer session, USTR said in a statement on Thursday.

 

·         China gorges on American grain-fed beef amid shrinking supplies from Down Under

As Australian beef exports to China wither amid diplomatic tensions, demand there for U.S. grain-fed beef has soared, fuelled by the appetites of a growing Chinese middle class.

 

·         Taiwan questions China's suitability for Pacific trade pact, fears 'obstruction'

China's restrictive practices present fundamental problems for its application to join a major pan-Pacific free trade pact, and if it joins before Taiwan there is a risk it could block their application, the island's economy minister said.

·         Analysis: Japan may sell more bonds to fund next premier Kishida's stimulus package

Japan's next Prime Minister Fumio Kishida may have little choice but to sell more government bonds to fund his pandemic-relief package worth hundreds of billions of dollars, even if it scrapes together money left over from previous stimulus programmes.

·         S.Korea extends social distancing curbs as COVID-19 cases rise in Seoul

·         Australia to ease international border restrictions from November

·         Australia's NSW state premier resigns over corruption probe amid COVID-19 battle

 

·         Myanmar's economic crisis fuels underground currency trading

 

·         Merck says research shows its COVID-19 pill works against variants

 

Reference: Reuters, CNBC, FXStreet