· Gold pulls back from 5-month peak on dollar strength
Gold prices eased on Monday, pulling back from a more than five-month peak hit in the last session, as a firm dollar dimmed its appeal.
Spot gold fell 0.3% to $1,857.96 per ounce by 0154 GMT, while U.S. gold futures dropped 0.4% to $1,860.50 per ounce.
Spot silver fell 1.1% to $25.00 per ounce. Platinum dropped 0.6% to $1,075.91 and palladium was down 0.9% at $2,088.96.
“Until it breaks above $1,875-$1,880, gold should be capped by a stronger dollar, higher short-term U.S. Treasury yields and a possible move higher in longer-term yields if the Fed starts to hint they’re going to raise rates sooner,” said Stephen Innes, managing partner at SPI Asset Management.
“Inflation numbers have provided a boost to gold. However, prices could trend lower towards $1,700 over the course of 2022 as rising inflation will likely mean that central banks speed up the pace of monetary tightening,” said Warren Patterson, head of commodities strategy at ING.
Hareesh V, head of commodity research at Geojit Financial Services in Kochi, India, said the Fed was unlikely to taper aggressively for the time being given only a gradual recovery in the labour market, supporting gold.
Market participants await Tuesday’s U.S. retail sales data, after consumer sentiment hit its lowest in a decade.
· Money markets were pricing a first rate increase by July and a high likelihood of another by November next year as of the end of last week.
· China’s retail sales beat forecasts in October, despite property market slump
China’s retail sales rose more than expected in October, even as fixed asset investment remained sluggish, according to data released Monday by the National Bureau of Statistics.
October retail sales grew by 4.9% from a year ago, beating a Reuters’ poll forecasting 3.5% growth, and faster than the 4.4% rise in September.
· China property hit by rare convergence of demand, supply declines
· China industrial output, retail sales accelerate but property clouds outlook
The industrial output growth beat expectations of a 3.0% year-on-year increase in a Reuters poll of analysts, but remained the second lowest print this year.
· Signs of stagflation in China's economy caused by short-term factors, official says
Signs of stagflation in China’s economy are being caused by some short-term factors, Fu Linghui, a spokesperson for the National Bureau of Statistics, told at a news briefing in Beijing on Monday.
China’s economy is expected to continue to recover and consumer inflation is expected to remain mild, said Fu. Employment is gradually improving, and infrastructure investment is expected to pick up, he added.
Slowing growth and soaring factory inflation have been fueling concerns over stagflation in the world’s second largest economy.
· China's Oct daily crude steel output plunges to nearly 4-year low
China’s daily crude steel output fell 6.1% from a month earlier to 2.3 million tonnes in October, its lowest since December 2017, according to Reuters calculations based on data released by the statistics bureau on Monday.
For the month, the world’s top steel producer made 71.58 million tonnes of the metal, falling for a fifth straight month and was down 23.3% from same month a year earlier, data from the National Bureau of Statistics (NBS) showed.
· China's monthly coal output rises to highest since March 2015
The world’s biggest producer and consumer of the dirty fossil fuel churned out 357.09 million tonnes of coal last month, up from 334.1 million tonnes in September, data from the National Bureau of Statistics showed on Monday.
Output over the first 10 months of 2021 was 3.3 billion tonnes, up 4% year-on-year.
· Top tech investor Paul Meeks won’t put new money to work in Apple and other FAANG names, blames chip shortage that could extend through 2023
· Pledging to retain stimulus, BOJ's Kuroda projects inflation near 1% mid-next yr
Bank of Japan Governor Haruhiko Kuroda expects inflation to accelerate to around 1% in the first half of next year as the economy recovers to pre-coronavirus levels, pledging to maintain ultra-easy policy in hopes of a consumption-driven recovery.
With inflation still short of its 2% target, the BOJ will maintain its "powerful" monetary easing and stand ready to ramp up stimulus, even as other central banks head for an exit from crisis-mode policies, Kuroda said on Monday.
· Japan, U.S. agree to start talks on extra tariffs on steel, aluminium
· Japan's economy shrinks more than expected as supply shortages hit
Japan’s economy contracted much faster than expected in the third quarter as global supply disruptions hit exports and business spending plans and fresh COVID-19 cases soured the consumer mood.
The economy shrank an annualised 3.0% in July-September after a revised 1.5% gain in the first quarter, preliminary gross domestic product (GDP) data showed on Monday, much worse than a median market forecast for a 0.8% contraction.
The weak GDP contrasts with more promising readings from other advanced nations such as the United States, where the economy expanded 2.0% in the third quarter on strong pent-up demand.
Reference: CNBC, Reuters
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