Gold edges higher as inflation angst lifts appeal
· Gold prices edged higher on Tuesday, supported by simmering concerns over inflation, though gains were capped by a firm dollar and expectations that the U.S. Federal Reserve will announce a tapering of its bond purchases next month.
· Spot gold rose 0.3% to $1,758.25 per ounce by 353 GMT, while U.S. gold futures were up 0.1% at $1,758.20.
· “Gold is relatively resilient and all arrows are pointing back to stagflation versus economic growth (debate),” said Stephen Innes, managing partner at SPI Asset Management.
· However, investors are reluctant to chase the move higher ahead of the minutes of the Fed’s September meeting, he said.
· Limiting gold’s gains, the dollar hovered close to a one-year high touched last month amid surging energy prices and expectations the Fed would soon start normalizing policy.
· The benchmark U.S. 10-year Treasury yield hit a peak since early June.
· Gold is often viewed as an inflation hedge, but reduced central bank stimulus and interest rate hikes tend to push government bond yields up, translating into a higher opportunity cost for holding non-interest yielding bullion.
· “Risks around slower growth against higher inflation still see a sustained strategic allocation to gold amid prevailing low rates backdrop,” analysts at ANZ Research said in a note, adding they expect bullion prices to reach $1,850 before retreating through next year.
· Meanwhile, inflation fears triggered by global energy crunch, and debt troubles at China Evergrande weighed on Asian shares.
· Market participants now await the minutes of the Fed’s Sept. 21-22 policy meeting and the consumer price index, both due later this week.
· Spot silver rose 0.1% to $22.59 per ounce, while platinum was up 0.2% at $1,010.38.
· Palladium fell 0.4% to $2,104.01, having hit its highest since Sept. 10 at $2,182.67 on Monday.
· Yellen tells IMF's Georgieva data-rigging probe raised 'legitimate' concerns-Treasury
· IMF expresses ‘full confidence’ in the leadership of Kristalina Georgieva
· UK jobs hit record high ahead of September furlough expiry
British employers added 207,000 staff in September, taking their payrolls to a record high shortly before the end of the government's wage subsidies programme, figures showed on Tuesday.
Separate official data showed the unemployment rate was 4.5% in the three months to August.
Economists polled by Reuters had expected the unemployment rate to fall to 4.5% from 4.6% in the three months to July.
· UK shoppers, hit by fuel crisis, turn more cautious on spending
British shoppers increased their spending in September at the slowest pace since January, when the country was stuck in a coronavirus lockdown, as they worried about a shortage of fuel, according to a survey published on Tuesday.
The British Retail Consortium said retail spending lost more momentum last month, rising by just 0.6% compared with September 2020, much weaker than August's 3.0% increase.
· China isn’t the only huge Asian economy with a coal shortage now
China is not the only Asian giant grappling with an energy crunch — India is also teetering on the edge of a power crisis.
Most of India’s coal-fired power plants have critically low levels of coal inventory at a time when the economy is picking up and fueling electricity demand.
Coal accounts for around 70% of India’s electricity generation.
· China vehicle sales fall 20% in September - industry body
China’s auto sales slumped 19.6% in September from a year earlier, industry data showed on Tuesday, falling for a fifth consecutive month as a prolonged global shortage of semiconductors disrupts production.
· Tesla sold record 56,006 China-made vehicles in Sept - CPCA
U.S. electric vehicle (EV) maker Tesla Inc (TSLA.O) sold 56,006 China-made vehicles in September, the highest since it started production in Shanghai about two years ago, data from the China Passenger Car Association (CPCA) showed on Tuesday.
· China's export growth likely eased in Sept on electricity curbs: Reuters poll
China’s export growth likely slowed in September as electricity rationing hit production at home, while a shift in consumption towards services as developed economies reopened likely reduced global appetite for Chinese goods, a Reuters polll showed on Tuesday.
· Japan's ruling party to unveil platform for October election
apan's ruling Liberal Democratic Party (LDP) is due to unveil a platform on Tuesday for an Oct. 31 general election, with an expected focus on tough measures to end the coronavirus pandemic and a boost for defence spending.
· Japan confronts rising inequality after Abenomics
Japan's stock market has surged and luxury cars are selling fast in Tokyo after eight years of economic stimulus under Abenomics, but that new wealth is concentrated in a small slice of society rather than broadly distributed, data show.
· S.Korea c.bank holds rates, flags a hike in November
South Korea's central bank kept interest rates steady on Tuesday, taking a breather after its first rate hike in nearly three years in August, but flagged further tightening could come as soon as November to curb rising inflation and household debt.
The Bank of Korea held benchmark interest rates (KROCRT=ECI) steady at 0.75%, as widely expected in a Reuters poll, but increased its inflation forecastfor this year.
· Taiwan asks Australia to support regional trade bid
A Taiwan official has asked Australia to support its bid to join the CPTPP pan-Pacific trade pact, which China opposes, saying Taiwan can boost high technology trade flows and demand for Australian minerals.
· Malaysia hopes for ASEAN consensus on Australian nuclear sub pact
Malaysia is hoping for a clear consensus among Southeast Asian nations on a new Indo-Pacific security partnership between Australia, the United States and Britain, its defence minister said on Tuesday.
· Dr. Scott Gottlieb says Merck’s Covid pill ‘can make a real difference’
Dr. Scott Gottlieb explained why he’s optimistic about Merck’s Covid antiviral pill after the drugmaker asked the Food and Drug Administration Monday to authorize its pill to treat people with mild to moderate Covid symptoms.
If the agency signs off on the drug, it will be the first pill shown to work against Covid-19 and Americans could get it by the end of the year.
· Afghan minister wants good relations, needs more time on girls' education
· New Zealand seeks to ramp up COVID-19 vaccinations amid persistent cases
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