· Gold consolidates as U.S. inflation surges
Spot gold was little changed at $1,850.00 per ounce by 0100 GMT, after hitting its highest since June 15 on Wednesday.
U.S. gold futures gained 0.2% to $1,852.00.
· Gold Price Forecast: XAU/USD to rise towards $1,880 if June 16 highs of $1,869 give way
Gold price surged to the highest levels since June 16 at $1,869 before pulling back sharply to settle at $1,853 after US inflation-led explosion. Although the yellow metal is off highs, XAU/USD remains on track for the additional upside, according to FXStreet’s Dhwani Mehta.
· XAU/USD has more room to rise
“XAU/USD is correcting slightly after the recent upsurge, with the US Treasury yields holding onto their recent recovery gains. However, the pause in the US dollar’s rally across the board is limiting the pullback in gold price.”
“The bright metal remains on track for additional upside if it takes out the June 16 highs of $1,869, above which the immediate hurdle is seen at the June 14 tops of $1,878. Further up, the $1,800 psychological level will be back in play.”
“A minor pullback cannot be ruled out towards $1,840 after Wednesday’s blistering rally. The previous critical resistance now support at $1,834 will challenge the bullish commitment, if the downside extends. The next stop for the sellers is seen at Wednesday’s low of $1,822.”
· Gold Price Forecast: XAU/USD to see further gains towards the $1917 May high once above $1835 – Commerzbank
Gold needs to go back on the radar as it is probing its downtrend at $1834/35. A break above here would clear the way for a deeper recovery to the $1917 May 2021 peak, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.
“Gold is probing key resistance at $1834/35, which represents the highs since July and the 2020-2021 downtrend. While this may prompt a small pullback, this is indicated to remain shallow and should ideally remain contained by the $1790/83 band of moving averages.”
“A close above $1835 should be enough to regenerate upside interest for a further recovery to $1856/57 4th June low and the $1917 May 2021 peak.”
“We have minor support at $1759 ahead of the $1721 September low. Below $1721, support is found at $1679/$1677, and is reinforced by the $1670 June 2020 low.”
· Gold Price Forecast: XAU/USD to enjoy a deeper recovery to $1917 on a breach of $1834/36 – Credit Suisse
Gold remains slightly below $1834/36 but has improved in the short-term as Real Yields fall. Still, the yellow metal needs to surpass this region to sustain a deeper recovery, according to strategists at Credit Suisse.
“Gold remains slightly beneath the July and August highs and downtrend from August 2020 at $1834/36 but has improved further in the short-term, especially helped by the sharp fall in Real Yields. However, only a break above $1834/36 would be seen to complete an in-range base and lessen the topping threat significantly, instead of clearing the way for a deeper recovery to $1917.”
“Near-term support moves higher to $1759, below which would ease the pressure off $1834/36.”
“Only below the now more distant $1691/77 level XAU/USD would mark a major top for an important change of trend lower, with support then seen at $1620/15 initially, before $1565/60.”
· Central banks must proceed cautiously when raising interest rates: Former RBI governor
Raghuram Rajan, former governor of the Reserve Bank of India, says if central banks move too fast in raising interest rates, there will be a huge “wealth shock” in the economy and that could lead to a recession.
· UK economy grows by 0.6% in September
Britain’s economy grew by 0.6% in September, leaving it 0.6% smaller than it was in February 2020, shortly before the country went into its first COVID-19 lockdown, the Office for National Statistics said on Thursday.
· Evergrande dodges default again but sector debt concerns remain
· Japan's economy seen back in decline on COVID-19, supply issues - Reuters poll
· Japan seeks good ties with China, calls for ‘responsible behavior,’ new foreign minister says
Reference: CNBC, FXStreet, Reuters
Thai
Eng