· Gold prices fell on Tuesday as the dollar benefited from subdued risk sentiment, with bullion likely to see choppy trade in the run up to Friday’s U.S. jobs numbers that could dictate the Federal Reserve’s tapering plans.
· Spot gold fell 0.6% to $1,758.27 per ounce by 0643 GMT, after hitting $1,770.41 on Monday, its highest since Sept. 23. U.S. gold futures shed 0.6% to $1,757.30.
· The dollar index rose, making gold more expensive for buyers holding other currencies, while equity markets slid on concerns that soaring energy prices could dampen economic growth.
· Subdued shares are prompting Asian investors to buy the dollar, pressuring gold, said Jeffrey Halley, a senior market analyst for Asia-Pacific at OANDA, adding the metal would be in a $1,750-$1,785.00 range ahead of the U.S. jobs report.
· Apart from inflation, fragile U.S.-China trade ties, China Evergrande’s debt crisis and a stalemate over the U.S. debt ceiling prompted some safe-haven inflows into gold as well, providing a floor to bullion prices.
· “Gold could find support on dips to $1,750.00 this week, as inflation and U.S. fiscal fears increase,” Halley said.
· While the uncertainties will support gold to an extent, the U.S. monetary policy direction will be the winner in the end, Halley added.
· Nonfarm payrolls are expected to show continued improvement in the labor market, likely allowing the Fed to begin tapering stimulus before year-end.
· Reduced stimulus and higher interest rates lift bond yields, pressuring gold as it translates into increased opportunity cost of holding non-interest-bearing bullion.
· “What’s moving (gold) markets at this point is how much and over what time frame (the rates will be hiked),” DailyFX currency strategist Ilya Spivak said.
· Some analysts said the impact on gold may be limited since tapering has been priced in.
· Gold Price Forecast: XAU/USD awaits acceptance below $1750 to resume the downside
As explained here, gold price tested the bearish 21-Daily Moving Average (DMA) at 1.1771 and now turns south towards the $1750 psychological level.
The Relative Strength Index (RSI) is pointing lower while sitting just beneath the midline, adding credence to the latest leg down.
The September 27 highs of $1745 remain on the sellers’ radars if the $1750 barrier gives way. The downside will then open up towards the rising trendline support of $1726.
If the bulls manage to find acceptance above that short-term critical 21-DMA, then a fresh advance towards the downward-sloping 50-DMA at $1784 would be inevitable. Gold bulls will then look to recapture the $1800 round number.
· Gold Price Forecast: XAU/USD eyes deeper losses below $1750
Gold price snaps three-day uptrend as China worries and inflation fears revive the dollar’s safe-haven demand. In addition, gold’s daily technical setup remains in favor of bearish traders, as FXStreet’s Dhwani Mehta notes.
“The risk sentiment improved slightly but investors continue to remain cautious amid default by another Chinese property developer Fantasia Limited. Meanwhile, rising inflation risks amid the ongoing surge in commodity prices raise global economic growth concerns, weighing on the market mood.”
· Spot silver fell 0.8% to $22.48 per ounce, platinum shed 0.9% to $958.83, while palladium rose 0.1% to $1,906.45.
· Copper eases on firm dollar in subdued trade on China holiday
Copper prices fell on Tuesday in London on a firmer dollar, but trade was tepid as markets in top consumer China were closed for a public holiday and ahead of key U.S. jobs data this weekend.
Three-month copper on the London Metal Exchange edged down 0.2% to $9,235 a tonne by 0325 GMT, while aluminium was almost unchanged at $2,915 a tonne, nickel rose 0.4% to $18,000 a tonne, zinc advanced 0.6% to $3,034 a tonne.
· UK new car registrations slide in weakest September for over 23 years
British new car registrations fell last month by 35% year on year to 214,000 units, according to preliminary industry data on Tuesday that marked the weakest September for at least 23 years.
· Explainer: Germany's next government faces three big economic challenges
Chancellor Angela Merkel has steered Germany through many crises over the past 16 years, but she has also left behind a mixed legacy and failed to tackle some deep structural problems in Europe's largest economy.
Despite a "golden decade" of uninterrupted growth and budget surpluses, most economists agree Germany has neglected its public infrastructure and invested too little in digitisation.
The Ifo institute forecasts the economy will grow by a stellar 5.1% in 2022, the strongest rate since the economic boom of the early 1990s following Germany's reunification.
The unusually strong growth outlook is mainly due to the recovery and catch-up effects from the COVID-19 pandemic. But under the shiny surface, things look less bright.
· Biden pushes Congress to raise debt limit this week, urging GOP to ‘just get out of the way’
· Australia's central bank holds cash rate at 0.1%
Australia’s central bank left its cash rate at a record low of 0.1% on Tuesday, a well flagged decision given it currently expects to keep policy super easy out to 2024.
· New U.S. China trade plan leaves industry hungry for specifics
· China property sector default woes deepen amid Evergrande uncertainty
Worries about rising debt defaults by Chinese property developers sapped investor sentiment on Tuesday amid fresh credit rating downgrades and uncertainty about the fate of China Evergrande Group as it scrambles to raise cash by selling assets.
· Taiwan says it needs to be alert to 'over the top' military activities by China
Taiwan needs to be on alert for China's "over the top" military activities, the premier said on Tuesday, after a record 56 Chinese aircraft flew into Taiwan's air defence zone, while the president said the island would do what it took to defend itself.
· Taiwan slams China’s ‘over the top’ military activity after 56 aircraft flew into its airspace
· U.S. will use all steps necessary to defend its economic interests against China, top trade official says
· Japan defence minister hopes China-Taiwan tension can be resolved through talks
Japan hopes tension between China and Taiwan will be resolved peacefully through dialogue, Defence Minister Nobuo Kishi said on Tuesday, adding that his ministry would keep an eye on the widening military imbalance between Beijing and Taipei.
· New Japan PM Kishida affirms US alliance amid concern over China
· New Japan Prime Minister Fumio Kishida confirms strong alliance with U.S. in talks with Biden
· French senators to visit Taiwan amid soaring China tensions
· Global airline industry is expected to cut losses in 2022 by 78% to $12 billion in slow pandemic recovery
Thai
Eng