· Gold held steady on Friday as investors stayed away from making big bets ahead of the U.S. non-farm payrolls report that is considered key to the Federal Reserve’s stimulus taper timeline.
· Spot gold was steady at $1,755.83 per ounce by 0113 GMT, down about 0.3% so far in the week.
· U.S. gold futures fell 0.1% to $1,757.10 per ounce.
· The dollar index hovered below a one-year high. A stronger dollar makes gold more expensive for other currency holders.
· According to a Reuters survey of economists, non-farm payrolls likely rose by 500,000 jobs in September.
· Fed Chairman Jerome Powell had signaled last month there was broad agreement among policymakers to begin reducing the central bank’s monthly asset purchases as soon as November, as long as the September jobs report was “decent.”
· Reduced stimulus and higher interest rates lift bond yields, translating into increased opportunity costs of holding bullion that pays no interest.
· Data on Thursday showed the number of Americans filing new claims for jobless benefits dropped by the most in three months last week, suggesting the labor market recovery was regaining momentum after a recent slowdown.
· The Senate approved legislation to temporarily raise the federal government’s $28.4 trillion debt limit and avoid the risk of a historic default this month, but it put off until early December a decision on a longer-lasting remedy.
· China held 62.64 million fine troy ounces of gold at the end of September, unchanged from the previous month, official data showed on Thursday.
· Gold Price Forecast: XAU/USD trades in a familiar range above $1,750, NFP awaited
Looking at the technical picture, the XAU/USD has been oscillating in a familiar trading range since the beginning of this week. This makes it prudent to wait for a sustained break in either direction before placing aggressive bets. Hence, any subsequent move up might continue to face resistance near the $1,770 region, or one-and-half-week tops touched on Monday. The next relevant hurdle is pegged near the $1,774-75 region ahead of the $1,783-84 area, above which bulls are likely to aim back to reclaim the $1,800 round figure. The latter coincides with the very important 200-day SMA and should act as a key pivotal point for short-term traders.
On the flip side, the $1,750-48 region, or the lower boundary of the weekly trading range, now seems to have emerged as immediate strong support. A convincing break below will set the stage for a slide towards the $1,729 intermediate support en-route September monthly swing lows, around the $1,722-21 region. Some follow-through selling would turn gold vulnerable to accelerate the downward trajectory towards challenging the $1,700 mark before eventually dropping to multi-month lows, around the $1,687-86 region touched on August 9.
· Gold Price Forecast: XAU/USD to test $1720 on a break below $1750
“On a sustained break below the $1750-$1745 demand area, gold bears could tighten their grip, exposing the multi-week troughs near $1720.”
“Daily closing above the 21-Daily Moving Average (DMA) at $1763 is critical to reverse the near-term bearish momentum in XAU/USD. Further up, gold buyers will target the downward-sloping 50-DMA at $1780, above which a test of the $1800 round number will be inevitable. At that level, the crucial 200-DMA aligns.”
· Spot silver fell 0.4% to $22.48 per ounce, platinum rose 0.2% to $981.37 per ounce, and palladium eased 0.4% to $1,951.93.
· Fed ready to handle September jobs report with kid gloves
U.S. hiring probably accelerated last month, a range of high-frequency indicators suggests, as the effects of the latest COVID-19 surge began to subside, but even a second straight weak employment report would be unlikely to derail the Federal Reserve’s plans to begin reducing its support for the economy.
· The U.S. and China must manage ‘intense competition,’ top Biden advisor says
U.S. national security advisor Jake Sullivan said on Thursday his talks with China’s top diplomat Yang Jiechi in Switzerland on Wednesday avoided the acrimony of a meeting in March and that more were needed to avert conflict between the two countries.
“The talks were productive in the sense that it was a real opportunity, behind closed doors, to really lay out for one another our different perspectives and intentions,” Sullivan, who is President Joe Biden’s top security aide, told reporters in Brussels after meetings at NATO and the European Union.
· Analysis: China protest sets stage for U.N. plane emissions debate
Commercial aviation's key players are backing a target of net zero emissions by 2050, but high costs and opposition from China remain obstacles toward reaching a global climate goal at a United Nations aviation meeting next fall.
Major plane and engine makers joined airlines gathering in Boston earlier this week to commit to the goal, as aviation faces mounting pressure to reduce emissions from flights.
· China's Sept services activity returns to growth - Caixin PMI
Activity in China’s services sector returned to growth in September as a major COVID-19 outbreak in the eastern province of Jiangsu receded, a private-sector survey showed on Friday, offering some support to a slowing economy.
The Caixin/Markit services Purchasing Managers’ Index (PMI) rose to 53.4 from 46.7 in August, pulling away from the lowest level seen since the height of the pandemic last year. The 50-point mark separates growth from contraction on a monthly basis.
· Japan household spending falls as COVID-19 curbs sap economic recovery
Japan’s household spending fell more sharply than expected in August, as state of emergency curbs to combat the coronavirus pandemic weighed on consumption during the summer holiday season and risked undercutting the economy’s recovery.
· Japan wholesale inflation likely hit 13-year high in Sept on rising commodity costs
Japan's wholesale prices likely hit a 13-year high in September, buoyed by lofty commodity prices, while firms' machinery orders are expected to have risen for the second straight month in August, a Reuters poll showed on Friday.
The corporate goods price index (CGPI), which tracks the prices companies charge one another for their goods, likely rose 5.9% in September from a year ago, according to a poll of 17 economists. That would be its highest annual price gain since September 2008. The index grew 5.5% year-on-year in August.
· India's central bank keeps rates on hold to support economic recovery
· Pfizer asks FDA to authorize Covid vaccine for kids ages 5 to 11
· As Sydney readies to exit lockdown, doctors fret re-opening is moving too fast
Australian doctors warned a too-rapid easing of COVID-19 curbs in Sydney could put pressure on health systems and risk lives, as the city prepares for key restrictions to be relaxed next week after more than 100 days in lockdown.
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