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Gold jumps 2% as U.S. dollar, bond yields retreat

Gold prices rose 2% to a near one-month peak on Wednesday, as a pullback in the dollar and U.S. Treasury yields lifted demand for the safe-haven metal.

·         Spot gold was up 1.8% at $1,791.41 per ounce by 2:13 p.m. ET (1813 GMT).

·         U.S. gold futures settled 2% higher at $1,794.70.

·         Other precious metals also rose, with spot silver rising 2.5% to $23.09 per ounce, platinum gaining 1.2% to $1,019.54 and palladium adding 3.5% to $2,116.68.

 ·         SPDR GOLD HOLDINGS:

Back to SELL More 2.33 Tonnes!

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 2.33 Tonnes to 982.72 tons on Wednesday from 985.05 tons on previous session.

Overall, the holdings of SPDR decline 7.31 tonnes in this month, but this year net sell 188.02 tonnes.

·         “Gold is just following yields at the moment. The initial reaction after CPI (consumer price index) data was a big spike in yields, which is now starting to fade away,” said Daniel Pavilonis, senior market strategist at RJO Futures.

Gold initially pared gains as benchmark U.S. 10-year Treasury yields rose above 1.6% following data showing U.S. consumer prices increased solidly in September and were poised for a further rise in coming months.

But a subsequent pullback in yields, which reduced the opportunity cost of holding non-interest bearing gold, drove a strong rally in precious metals.

·         The metal also drew support from a slide in the dollar and worries that high inflation would hit global economic growth.

·         “Inflation expectations mixed with global growth concerns have made many investors nervous that the business and the consumer will be much weaker in the second half of 2022. Safe-haven flows are starting to come gold’s way,” Edward Moya, senior market analyst at brokerage OANDA, said in a note.

 

·         U.S. central bankers signaled they could start reducing their crisis-era support for the economy in mid-November, though they remain divided over how much of a threat high inflation poses and how soon they may need to raise interest rates in response, minutes from their Sept. 21-22 policy meeting showed.

 

·         Meanwhile, a group of banks that partnered with the London Metal Exchange to launch gold and silver futures in 2017 is preparing to abandon the project after hoped-for volumes did not materialise.

 

·         Fed lays out plan to reduce bond purchases, flags inflation worries

 

·         Fed says it could begin ‘gradual tapering process’ by mid-November

Federal Reserve officials could begin reducing the extraordinary help they’ve been providing to the economy by as soon as mid-November, according to minutes from the central bank’s September meeting released Wednesday.

 

·         Fed's Bowman says she is 'very comfortable' with November taper

Federal Reserve Governor Michelle Bowman on Wednesday said she would be “very comfortable” with beginning to withdraw some of the U.S. central bank’s crisis-era support for the economy as soon as next month, citing her worries about inflation and asset bubbles.

 

·         U.S. central bank governor calls for better access to credit for Native Americans

Federal Reserve Governor Lael Brainard said Wednesday that U.S. financial regulators will seek to improve Native American communities’ access to credit.

“We will continue to focus on and seek feedback on how to best encourage impactful CRA (Community Reinvestment Act) activities in Indian Country, including for building climate resilience where needed,” Brainard said in prepared remarks.

 

·         Jim Cramer says the Fed doesn’t need to ‘destroy the economy’ to beat inflation

·         Senate Banking Committee Chair Brown urges Fed to stop deregulation until Biden picks nominees

The Senate’s top Democrat in charge of bank oversight wants Federal Reserve Chairman Jerome Powell to pause any financial deregulation until President Joe Biden nominates new members to the central bank.

Sen. Sherrod Brown, chair of the Senate Banking Committee, urged Powell to stop rolling back industry regulations until the president has a chance to select a replacement for outgoing Fed Vice Chair for Supervision Randal Quarles.

 

·         $100 oil is ‘quite possible,’ Russia’s Putin says

Russian President Vladimir Putin said Wednesday that oil prices could well reach $100 per barrel as demand for all energy commodities grows.

 

·         Putin says Russia is not using gas as a weapon, claims U.S. added to energy crisis

 

·         G20 finance chiefs back tax deal, pledge to sustain recovery, watch inflation

Finance leaders from the G20 major economies on Wednesday endorsed a global deal to revamp corporate taxation and pledged to sustain fiscal support for their economies while keeping a close eye on inflation.

 

·         Singapore’s economy grows 6.5% on year in the third quarter, missing estimates

 

·         Singapore central bank tightens policy in surprise move

Singapore’s central bank unexpectedly tightened its monetary policy on Thursday, saying the move will ensure price stability over the medium-term.

 

·         China markets rise as investors react to trade data for September

Shares in mainland China closed higher on Wednesday as investors reacted to the release of Chinese trade data for September.

China’s imports rose 17.6% from a year earlier in September, customs data showed Wednesday, missing expectations for a 20% expansion in a Reuters poll. Exports in September rose 28.1% from a year earlier in September, the data showed, exceeding forecasts by analysts in a Reuters poll for a 21% year-on-year rise.

Trading in Hong Kong was cancelled all day on Wednesday because of a typhoon warning alert, the Hong Kong exchange said in a release at noon.

 

·         Turkey's Erdogan overhauls cenbank MPC, lira hits record low

Turkey's President Tayyip Erdogan dismissed three central bank monetary policy committee (MPC) members on Thursday, appointing two new members in their place, the country's Official Gazette said, sending the lira to fresh record lows.

It said those dismissed were deputy governors Semih Tumen and Ugur Namik Kucuk, along with another MPC member, Abdullah Yavas.

The lira weakened to a record low of 9.1900 against the dollar after the announcement, a loss of 1% on the day. It has weakened about 19% so far this year, driven by concerns about monetary policy.

 

·         U.S., EU, Israel adopt tough tone on Iran, mull options

U.S., Israeli and EU officials took a tough line toward Iran on Wednesday, with U.S. officials saying they would consider all options if Tehran failed to revive the 2015 nuclear deal and Israel saying it reserved the right to act.

 

·         COVID-19 UPDATES:

 

 

·         COVID-19 cases in Australia's Victoria hit record daily high

The surge in daily cases comes as Victoria nears the 70% threshold for double-dose vaccinations among eligible adults, when authorities have promised to end a months-long lockdown, against the original Oct. 26 forecast.

 

·         J&J Covid vaccine recipients are better off getting Pfizer or Moderna booster, NIH study suggests