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·         Gold prices rose on Thursday, as demand for the safe-haven asset was lifted by a softer dollar and data showing the U.S. economy grew at its slowest pace in more than a year.

·         Spot gold rose 0.3% to $1,801.43 per ounce.

·         U.S. gold futures settled up 0.2% at $1,802.6.

 

·         “Economic growth slowed in the U.S. and that would support the gold market in the perspective that the Federal Reserve would be less likely to either taper asset purchases at a quicker pace or the outlook for higher interest rates would be curtailed,” said David Meger, director of metals trading at High Ridge Futures.

“Gold being considered one of the quintessential hedges against inflationary pressures is an underlying supportive factor for the bullion market moving forward, and we see both gold and silver prices moving higher in the weeks ahead,” Meger said.

 

·         U.S. gross domestic product increased at a 2.0% annualized rate last quarter, as a resurgence in COVID-19 cases further stretched global supply chains, leading to shortages of goods like automobiles that slammed the brakes on consumer spending.

 

·         The U.S. dollar fell 0.6% against a basket of currencies, a one-month low, making gold cheaper to overseas buyers.

The dollar index of major currencies lost nearly 0.6% to 93.3580.

 

·         SPDR GOLD HOLDINGS:

Heavy Sell Nearly 8 Tonnes in October

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.87 Tonnes to 982.14 tons on Thursday.

Overall, the holdings of SPDR decline 7.89 tonnes in this month, but this year net sell 188.6 tonnes.

 

·         Spot silver rose 0.1% to $24.07 per ounce.

·         The European Central Bank left its policy unchanged, as widely expected, on Thursday.

 

·         Markets are now focused on the U.S. Federal Reserve’s meeting on Nov. 2-3, which would be more crucial for gold after chief Jerome Powell’s recent comments on tapering asset purchases.

 

·         “Tapering should already be well and truly discounted, although there is bound to be a short-lived knee-jerk reaction to the Fed’s statement next Wednesday – there always is,” StoneX analyst Rhona O’Connell said.

 

·         Platinum rose 1% to $1,020.97 per ounce. Palladium jumped 1.5% to $1,992.81 per ounce.

 

·         COVID-19 UPDATES:

 

·         Global numbers of Covid cases and deaths rise for the first time in 2 months, WHO says

After weeks of decline, the number of infections in Europe has risen over the last three consecutive weeks, even as cases fall in every other region across the world, according to the WHO.

Nearly 3 million new Covid cases were reported worldwide for the week ended Sunday, an increase of 4% from the previous seven days, according to the WHO’s most recent epidemiological update.

 

·         Delta variant, shortages severely restrict U.S. economic growth in third quarter

The U.S. economy grew at its slowest pace in more than a year in the third quarter as a resurgence in COVID-19 cases further stretched global supply chains, leading to shortages of goods like automobiles that slammed the brakes on consumer spending.

The weaker-than-expected growth reported by the Commerce Department on Thursday also reflected decreasing pandemic relief money from the government to businesses, state and local governments as well as households. Hurricane Ida, which devastated U.S. offshore energy production at the end of August also restrained economic growth.

Gross domestic product increased at a 2.0% annualized rate last quarter, the government said in its advance GDP estimate. That was the slowest since the second quarter of 2020, when the economy suffered a historic contraction in the wake of stringent mandatory measures to contain the first wave of coronavirus cases. The economy grew at a 6.7% rate in the second quarter.

 

·         U.S. jobless claims drop to pandemic low of 281,000

Jobless claims dropped by 10,000 to 281,000, lowest since mid-March 2020, the Labor Department said Thursday. Since topping 900,000 in early January, weekly applications have steadily dropped, moving ever closer to pre-pandemic levels just above 200,000.

 

·         U.S. yields climb as weak GDP largely ignored, curve flattens again

·         ECB’s Lagarde seeks to cool rate hike predictions for next year

European Central Bank President Christine Lagarde on Thursday tried to play down the chances of a rate hike for 2022, hinting that market players might be getting ahead of themselves with their predictions.

The euro zone’s central bank decided to keep interest rates and its monetary policy stance unchanged despite ongoing inflationary pressures.

·         Biden, pushing $1.75 trillion spending bill, dealt setback on infrastructure

U.S. President Joe Biden was dealt a setback on Thursday as the House of Representatives abandoned plans for a vote on an infrastructure bill with progressives seeking more time to consider his call for a separate $1.75 trillion plan for climate measures, preschool and other social initiatives.

·         Treasury Secretary says spending packages will change U.S. economy for the better

 

·         U.S. trade chief Tai says she aims to reduce U.S.-China tensions

U.S. Trade Representative Katherine Tai said on Thursday that her engagement with China is aimed at reducing the temperature of a trading relationship between the world’s two largest economies that has become dangerously heated.

 

·         Evergrande makes coupon payment ahead of Friday deadline -sources

Cash-strapped China Evergrande Group has made payments for an offshore bond coupon ahead of the expiry of a grace period on Friday, two people with direct knowledge of the matter said, meeting its second U.S. dollar repayment obligation this month.

Evergrande (3333.HK), once China's top-selling developer, is reeling under more than $300 billion in liabilities, fuelling worries about the impact of its fate on the world's second-largest economy and global markets.

 

·         Bank of Canada 'exactly right' now on inflation, rates, former governor says

 

·         Japan's factories extend output declines in Sept as supply disruptions weigh

Factory production slumped 5.4% in September from the previous month, official data showed on Friday, hurt by falling output of cars as well as general-purpose machinery.

 

·         S.Korea Sept factory output contracts as auto chip shortage bites

Industrial production last month fell 1.8% year-on-year, Statistics Korea data showed on Friday, missing forecasts for 1.4% growth and down from a 9.7% expansion in August. On a seasonally adjusted monthly basis, output fell 0.8%, missing a median 0.3% decline forecast and following a 0.7% drop in August.

A breakdown of data showed production of cars shrank 9.8% from a month earlier, while that of semiconductors and electrical equipments also slumped 1.6% and 5.2%, respectively.