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·         Gold prices edged lower on Tuesday, weighed down by an uptick in the dollar as investors eye upcoming key central bank meetings this week.

·         Spot gold fell 0.1% to $1,805.96 per ounce by 0116 GMT. U.S. gold futures was flat at $1,806.60.

·         On Monday, the metal rose nearly 1% to a high of $1,809.66, only about $4 shy of an over one-month peak scaled last week.

·         The dollar rose 0.1% on Tuesday, recovering from a near one-month trough hit during the previous session. A stronger greenback makes gold more expensive for buyers holding other currencies.

·         Benchmark 10-year U.S. Treasury yields were also a tad higher at 1.6431%, raising non-interest bearing gold’s opportunity cost.

·         Market participants eye meetings from the Bank of Japan and the European Central Bank (ECB) on Thursday. Neither of the central bank is likely to announce a change in policy, though the ECB might address how inflationary pressures could affect policy.

·         The U.S. Federal Reserve and the Bank of England are also set to meet next week.

·         Bank of England interest rate-setter Silvana Tenreyro said she needed more time to judge how the end of the government’s job-saving furlough scheme was affecting the labor market, adding to signs that she sees no urgency to raise rates.

·         Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost for holding bullion which pays no interest.

·         Gold Price Forecast: Acceptance above 100/200-day SMAs favours XAU/USD bulls

Technical outlook

From a technical perspective, acceptance above the 100/200-day SMAs confluence hurdle and a subsequent strength beyond the $1,800 mark favours bullish traders. However, repeated failures near the $1,812-14 intermediate hurdle warrant some caution before positioning for any further gains. Nevertheless, the bias remains tilted in favour of bullish traders and supports prospects for a move towards challenging the $1,832-34 heavy supply zone.

On the flip side, any meaningful pullback towards the technically significant moving averages confluence resistance breakpoint, around the $1,795-90 region, should be seen as a buying opportunity. This, in turn, should help limit the downside near the $1,782-81 horizontal support. Some follow-through selling will negate the positive outlook and drag gold prices back towards the $1,760 support zone. The downward trajectory could further get extended towards retesting monthly swing lows support, around the $1,750-45 region.

·         Spot silver fell 0.1% to $24.53 per ounce. Platinum edged 0.1% down to $1,056.35 and palladium gained 0.2% to $2,055.16.

·         Raw material supply problems hurt German industrial exports - Ifo

German October export expectations fell to the worst value since February 2021 as raw material supply bottlenecks have been affecting the industry sector, the Ifo economic institute said on Tuesday.

Export expectations fell to 13 points in October from 20.5 points a month before and the industries that are affected the most include electrical equipment, chemicals and car manufacturing, Ifo said.

·         China's Vice Premier Liu He speaks with U.S. Treasury Secretary Yellen

China's Vice Premier Liu He spoke with U.S. Treasury Secretary Janet Yellen on Oct. 26 via video call and talked about the macroeconomic situation and bilateral relations, according to a statement from China's commerce ministry.

·         BOJ to defy global rate hike trend, cut price outlook

The Bank of Japan is set to maintain its massive stimulus programme on Thursday and slash this year's inflation forecast in a sign it has no intention to follow other central banks eyeing exits from crisis-mode policies.

While rising raw material prices have pushed Japan's wholesale inflation to a 13-year high, consumer inflation is stuck around zero as weak domestic spending prevents firms from passing on higher costs to households.

·         Japan's services prices rise for 7th straight month on freight cost gains

The prices that Japanese companies charge each other for services rose 0.9% in September from a year earlier to mark a seventh straight month of gains, a sign inflationary pressure is building mostly on global supply constraints.

·         Taiwan seen growing 4% in Q3 on pandemic hit, but exports help

Taiwan's trade-reliant economy is expected to have expanded at a slower pace in the third quarter due to the island's COVID-19 outbreak, a Reuters poll showed, though supported by export growth and healthy global demand for semiconductors.

Gross domestic product (GDP) likely expanded 4% in the July-September period versus a year ago, the poll of 27 economists shows, after it grew 7.43% year-on-year in the second quarter.

·         Australia commits to net zero by 2050 target, but won’t legislate goal

·         Biden to attend ASEAN summit Trump skipped after 2017

·         Moderna says its COVID-19 vaccine protective, safe in young children

Reference: Reuters, CNBC, FXStreet