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·         Gold prices were flat on Thursday as the dollar held firm, as investors moved to the sidelines ahead of a U.S. payrolls report that is expected to provide clues on the Federal Reserve’s tapering timeline.

 

·         Spot gold was flat at $1,761.36 per ounce by 0118 GMT, while U.S. gold futures were little changed at $1,763.10.

 

·         The dollar held close to a one-year high, touched last week, making gold less appealing to those holding other currencies.

 

·         Overnight, the yield on 10-year U.S. Treasuries eased off a more than three-month high, but remained above 1.5%.

 

·         U.S. nonfarm payrolls data, due on Friday, is expected to show an improvement in the labor market, important criteria for the Federal Reserve to start withdrawing pandemic-era support for the economy.

 

·         Reduced stimulus and higher interest rates lift bond yields, translating into increased opportunity costs of holding bullion that pays no interest.

 

·         Data on Wednesday showed that U.S. private payrolls increased more than expected in September as Covid-19 infections started subsiding, boosting hiring at restaurants and other high-contact businesses.

 

·         The U.S. Senate appeared near to a temporary deal to avert a federal debt default in the next two weeks, after Democrats said they might accept a Republican proposal to defuse the partisan standoff that threatens the broader economy.

 

·         Gold Price Forecast: XAU/USD remains resilient near $1,760 amid softer USD

Gold prices continue to trade in a broader range of $1,770 and $1,750. The prices recovered from the lower levels as bullish bargain buyers stepped in to buy earlier dip in prices. On the other side, a higher US dollar index, rising US Treasury bond yields limit the gains.

 

Technical levels

 

The Moving Average Convergence Divergence (MACD) holds onto the oversold zone. Any downtick in the MACD indicator would amplify the selling pressure and the prices would approach the previous day’s low at $1,746. A daily close below the $1,740 horizontal support level would entice the bears to test the low made on September 30 at $1,722. Next,  XAU/USD  could meet the key $1,700 level on the downside.

 

Alternatively, if the prices sustain an intraday high, it could retrace back to the $1,770 horizontal and the $1,785 horizontal resistance zones. Next, the market participant could test the high made on September 15 at $1806.

 

·         China Sept forex reserves fall to $3.201 trln - central bank

China’s foreign exchange reserves fell to $3.201 trillion at the end of September, down from $3.232 trillion at the end of August, official data showed on Thursday.

China held $109.18 billion of gold reserves at the end of last month, down from $113.69 billion at the end of August, data from the central bank’s State Administration of Foreign Exchange showed.

 

·         Spot silver was unchanged at $22.59 per ounce, platinum fell 0.2% to $982.01, and palladium rose 0.6% to $1,899.73.

 

·         UK house prices jump by most since 2007 - Halifax

Prices rose by 1.7% from August, the biggest monthly increase since February 2007.

 

·         German industrial output slumps in August on supply chain woes

The Federal Statistics Office said industrial output fell by 4.0% on the month after an increase of 1.3% in July. A Reuters poll had pointed to a decline in August of 0.4%.

 

·         Biden, Xi plan U.S.-China virtual summit before year's end, U.S. says

 

·         Taiwan seeks international support after Chinese incursions

Taiwan will ensure regional peace and stability and seeks to work with other like-minded democracies, President Tsai Ing-wen told senior French and Australian dignitaries on Thursday, days after a dramatic spike in tensions with China.

 

·         BOJ gloomier on regional economies due to auto output disruptions

 

·         New Japan leader likely to stick to economic policy -Fitch

Japan's new Prime Minister Fumio Kishida is likely to continue the broad economic policies of predecessors Shinzo Abe and Yoshihide Suga, including support for the central bank's massive stimulus programme, ratings agency Fitch said on Thursday.

"The economy should benefit in the near term from an ebbing of the threat from the COVID-19 pandemic, regardless of the impact of policy reforms" proposed by Kishida, it said.

 

·         Sydney to exit lockdown next week

·         Myanmar central bank sees currency stabilising on new measures

 

·         Infections dropping throughout the Americas, says PAHO