· Gold set for weekly gain on U.S. Fed’s rate-hike stance
Gold prices advanced on Friday and were poised for a weekly gain, as bullion drew support from the U.S. Federal Reserve’s decision to not rush to raise interest rates.
Spot gold was up 0.2% at $1,795.64 per ounce, as of 0216 GMT, and set to mark its second weekly climb in three with a gain of 0.7%.
U.S. gold futures rose 0.2% to $1,796.50.
Adding to gold’s support, benchmark U.S. 10-year Treasury yields pulled back from a one-week peak.
Japan’s household spending fell in September, heightening the risk that the world’s third-largest economy contracted last quarter.
Spot silver rose 0.3% to $23.83 per ounce. Platinum gained 0.2% to $1,028.00, while palladium climbed 0.4% to $2,008.48.
· Spot gold may rise to $1,807; falling channel defines new range
SINGAPORE: Spot gold may test a resistance at $1,798 per ounce, a break above which could lead to a gain into $1,807-$1,814 range.
The metal has climbed above a falling channel, based on which, a duplicated channel suggests a target of $1,814. An immediate resistance at $1,798 temporarily stopped the fall and triggered a pullback towards the lower channel.
As long as gold holds above $1,788, it may rise towards the target zone.
A break below $1,788 could cause a fall into $1,776-$1,783. On the daily chart, a wedge is contracting to a point.
It may be confirmed as a bearish continuation pattern or a bullish pattern soon.
A break above $1,800 could lead to a gain to $1,827 while a a drop to $1,773 again will signal a continuation of the downtrend from $1,833.80.
· Dollar in driver's seat as payrolls loom; sterling staggers
The dollar was on course for a second straight week of gains against major peers on Friday, ahead of a key U.S. jobs report that could sway the timing of Federal Reserve interest rate increases.
Sterling headed for its worst week in 11 after the Bank of England caught the market off-guard by keeping rates steady on Thursday.
The dollar index, which measures the greenback against a basket of six rivals, was steady at 94.327 after rallying 0.51% overnight. That lifted it into the positive for the week, adding 0.20%.
The British pound was little changed on Friday following a 1.36% tumble in the previous session that set it up for a 1.39% slump for the week.
Investors have been forced to reset monetary policy expectations this week, after some of the biggest global central banks knocked back bets for early rate hikes.
European Central Bank President Christine Lagarde pushed back on Wednesday against market bets for a rate hike as soon as next October and said it was very unlikely such a move would occur in 2022.
The euro was little changed at $1.1556 after dropping 0.49% overnight, putting it on course for a 0.16% decline this week
The Fed has set a labour market recovery as a condition for rates lift-off. U.S. non-farm payrolls due later on Friday are forecast by economists to show a 450,000 surge in jobs in October, following a 194,000 rise in the prior month.
· China's Oct exports likely remain strong on robust global demand, imports surge
China's export growth likely moderated slightly in October but remained strong due to robust global demand, easing global supply chain disruptions and a mitigating power crunch, while imports surged on energy demand, a Reuters poll showed on Friday.
Exports are expected to have risen 24.5% in October from a year earlier, according to the median forecast of 22 economists in the poll, after growing 28.1% in September.
Imports likely rose 25% in October from a year ago, the poll showed, compared with 17.6% in September, as oil prices rose and China stepped up coal imports to secure power supplies ahead of the winter.
· Japan's economy likely shrank in Q3 on weak consumption, output
Japan's economy likely contracted in the third quarter as curbs to contain COVID-19 infections and supply constraints hit consumption and output, a Reuters poll showed, underscoring the slow pace of recovery from the pandemic's damage.
The government will release preliminary third-quarter GDP data at 8:50 a.m. on Nov. 15 (2350 GMT, Nov. 14).
· Oil rises after OPEC+ rejects call for more supply
Oil prices rose more than 1% on Friday, staging a partial recovery after OPEC+ producers rebuffed a U.S. call to raise supply and instead maintained plans for a gradual return of output halted by the pandemic.
Brent crude rose 82 cents or just over 1% to $81.36 a barrel by around 0146 GMT, after falling almost 2% on Thursday. U.S. oil gained 97 cents or 1.25 to $79.78 a barrel, having declined 2.5% in the previous session.
Reference: CNBC, Reuters, Business Recorder
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