Gold steadies near one-month high buoyed by softer dollar, yields
· Gold prices hovered near a one-month peak on Thursday as the dollar and longer-dated Treasury yields retreated from recent highs following hotter-than-expected U.S. inflation data.
· Spot gold was little changed at $1,793.72 per ounce by 0100 GMT. Prices hit their highest level since Sept. 16 at $1,795.81 on Wednesday.
· U.S. gold futures slipped 0.1% to $1,792.20.
· Making the precious metal cheaper for holders of other currencies, the dollar index fell 0.5% overnight, retreating from a more than one-year high.
· Benchmark U.S. 10-year Treasury yields pulled back from a more than four-month high, reducing the opportunity cost of holding non-interest bearing gold.
· U.S. consumer prices increased solidly in September as Americans paid more for food, rent and a range of other goods, putting pressure on the Biden administration to urgently resolve strained supply chains, which are hampering economic growth.
· Minutes from the Federal Reserve’s September meeting showed the central banks could start reducing its crisis-era support for the U.S. economy by mid-November, but policymakers remained split over how big of a threat high inflation represents and how soon they may need to raise rates in response.
· 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 materialize, three sources with direct knowledge of the matter said.
· Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.2% to 982.72 tons on Wednesday from 985.05 tons on Tuesday.
· Gold Price Forecast: XAU/USD to see further gains on a daily close above 200-DMA
Gold price eases from monthly tops amid bets of earlier Fed rate hike. According to FXStreet’s Dhwani Mehta, XAU/USD’s additional upside hinges on a daily close above the 200-Daily Moving Average (DMA) at $1797.
“Gold bulls now remain wary amid increasing calls for an earlier Fed rate hike. Traders look forward to a fresh batch of the US economic releases and Fedspeak for fresh trading opportunities in gold price while the Fed sentiment will continue to lead the way.”
“Going forward, any retracements will meet initial demand at the $1777 50-DMA resistance-turned-support, below which the 21-DMA at $1760 will come into play.”
“Daily closing above the critical resistance around $1796-$1799 is needed to unleash additional upside in gold price. That price zone is the confluence of the bearish 100 and 200-DMAs. The next relevant bullish target is envisioned near $1807-$1809, mid-September highs. If the latter gives way, then a fresh upswing towards the September highs of $1834 will be inevitable.”
· Spot silver rose 0.1% to $23.09 per ounce, having hit a near one-month high in the previous session.
· Platinum was flat at $1,019.68 and palladium eased 0.1% to $2,103.81, having jumped as much as 5.2% on Wednesday.
· Dollar pauses after rallying to one-year high earlier in week
The dollar touched its lowest this week against major peers on Thursday, taking a breather from a rally that had lifted it to a one-year high powered by expectations for quicker Federal Reserve interest rate hikes.
The dollar index, which measures the currency against six rivals, was about flat at 94.016, after dropping 0.53% on Wednesday, the most since Aug. 23.
The index reached 94.563 on Tuesday, its highest since late September 2020, after surging nearly 3% since early last month.
· White House weighs broader oversight of cryptocurrency market
· The ‘real danger’ is in rate hikes, BofA head of global economics says
Ethan Harris, Bank of America Securities head of global economics, joins a panel with Steve Liesman, Bob Pisani and Mike Santoli to discuss the newly-released Fed minutes amid concerns about a rising inflation rate.
· China's record factory gate inflation stokes policy dilemma
China’s September factory gate inflation rose to a record on soaring commodity prices, but weak demand capped consumer inflation, forcing policymakers to walk a tight rope between supporting the economy and further stoking producer prices.
The producer price index (PPI) rose 10.7% from a year earlier in September, the National Bureau of Statistics (NBS) said on Thursday, the biggest rise since the bureau started compiling the data in 1996. Economists in a Reuters poll had expected a 10.5% rise, after a 9.5% increase in August.
· Cold keeps China coal prices high, power crunch stokes factory inflation
China coal prices held near record highs on Thursday as cold weather swept into the country’s north and power plants stocked up on the fuel to ease an energy crunch that is fuelling unprecedented factory gate inflation.
· Australia open to China investors but security issues crucial - FIRB
Australia is not shut to Chinese investors but national security concerns and the protection of critical infrastructure are now key factors determining deal approvals, the head of its Foreign Investment and Review Board (FIRB) said on Thursday.
· Japan ruling party executive calls for $290 billion stimulus package
· Japan dissolves parliament, setting stage for general election
Japan dissolved its parliament on Thursday, setting the stage for an election at the end of the month that will pit new Prime Minister Fumio Kishida against unpopular opposition in a battle over who can better fix the pandemic-battered economy.
· Japan’s Yamamoto: A weak yen is beneficial for the economy, boosts competitiveness
“A weak yen is beneficial for the economy, as it boosts competitiveness,” Kozo Yamamoto, a senior member of new Prime Minister Fumio Kishida's government party, said on Thursday.
· BOJ policymaker rules out stimulus withdrawal even after economy recovers
The Bank of Japan must maintain its massive stimulus even when the economy rebounds from the pandemic’s hit, board member Asahi Noguchi said, reinforcing exectations the country will lag behind in withdrawing crisis-mode policy measures.
· BOJ's Noguchi: Japan's economy is picking up, led by overseas economies
Further comments are flowing in from the Bank of Japan (BOJ) monetary policy board member Asahi Noguchi, as he now touches upon the economic outlook.
· BOJ policymaker rules out stimulus withdrawal even after economy recovers
· Taiwan won’t start a war with China but will defend itself ‘full on,’ say defense minister
Taiwan will not start a war with China but will defend itself “full on”, Defence Minister Chiu Kuo-cheng said on Thursday, amid a spike in tensions across the Taiwan Strait that has raised concern internationally. Taiwan, a major semiconductor producer, has repeatedly said it will defend itself if attacked, but that it will not “advance rashly” and wants to maintain the status quo with China.
· ASEAN to meet to discuss possible exclusion of Myanmar leader from summit - sources
· Myanmar military won't allow ASEAN envoy to meet Suu Kyi
· Mexico warns migration will not slow without more U.S. investment in Central America
· WHO says it may be 'last chance' to find COVID origins
· India resumes vaccine exports as domestic stocks build up, officials say
· U.S. to ship 2.4 million doses of COVID-19 vaccine to Pakistan
· New Zealand reports biggest rise in COVID-19 cases in six weeks
Reference: Reuters, CNBC, FXStreet
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