· Gold prices rose on Thursday as concerns over the more infectious Delta variant of COVID-19 bolstered its safe-haven appeal, ahead of U.S. jobs data seen as crucial to the Federal Reserve’s policy outlook.
· Spot gold gained 0.4% to $1,776.40 per ounce by 0710 GMT and U.S. gold futures climbed 0.4% to $1,776.50.
· While the market is concerned about rate hikes going into the non-farm payrolls data, the spread of the Delta variant globally is supporting gold prices, said Stephen Innes, managing partner at SPI Asset Management.
· Rising cases of the Delta variant have prompted France to delay the easing of restrictions in the Landes region, while infections have also surged in Asia.
· Investors are now awaiting the U.S. non-farm payrolls (NFP) report due on Friday for clues on the Fed’s next step.
· “The Fed is keen on signs of continued strength in the jobs market as a guide to tapering. The ADP data was better than expected and if that feeds into the NFP data this week, then gold may weaken again as the case for ‘tapering’ is stronger,” said Nicholas Frappell, global general manager at ABC Bullion.
· “Gold has held well at current levels but has yet to break out of the ongoing consolidation.”
· Federal Reserve Bank of Dallas President Robert Kaplan said on Wednesday he would like the Fed to start reducing its support for the economy before the end of the year, in part to make an abrupt policy tightening less likely later on.
· A Fed rate hike will increase the opportunity cost of holding bullion, dulling its appeal.
· Silver rose 0.4% to $26.22 per ounce, palladium fell 1% to $2,751.5 and platinum gained 0.1% to $1,073.5.
· EU steers shipping towards carbon trading market to curb emissions
Ship owners could be forced to pay for pollution from their vessels or face bans from European Union ports under draft plans to add shipping emissions to the bloc's carbon market.
Under the draft EU plan, shipping would be added to the ETS gradually from 2023, when ship owners must surrender enough CO2 permits to cover 20% of their emissions.
This would rise to 45% in 2024 and 70% in 2025 and from 2026, ship owners would need to surrender enough permits to cover 100% of their ETS-covered emissions.
· Biden climate adviser says clean electricity standard needed in infrastructure bill
A clean electricity standard, or CES, and tax credits for renewable energy are "bottom lines" needed in a second infrastructure package that could be passed this year, Gina McCarthy, the White House climate adviser, said on Wednesday.
· China June factory growth slows on COVID-19, supply chain snags - Caixin PMI
China’s factory activity expanded at a softer pace in June, as the resurgence of COVID-19 cases in the export province of Guangdong and supply chain woes drove output growth to the lowest in 15 months, a private survey showed on Thursday.
The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 51.3 last month from May’s 52, marking the 14th month of expansion, but it came below analyst expectations for a only slight slowdown to 51.8.
· Japan business mood at 2.5-year high as COVID hit eases -Tankan
Japanese big manufacturers’ business confidence improved in the second quarter to hit a two-and-half-year high, a central bank survey showed, a sign solid global demand was helping the economy emerge from the coronavirus pandemic-induced doldrums.
Big companies expect capital expenditure to rise 9.6% in the current fiscal year ending in March, after a 8.3% drop in the previous year, the survey showed.
Some analysts, however, have questioned how quickly the economy can sustainably emerge from the pandemic with a resurgence in infections and slow a vaccination programme clouding the outlook for consumption.
· Japan's June factory activity posts slowest growth in 4 months, costs rise - PMI
The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) in June slipped to 52.4 on a seasonally adjusted basis from 53.0 in the previous month, coming in at its lowest since February.
· S.Korea unveils $29 bln extra budget to aid small businesses, create jobs
South Korea unveiled a 33 trillion won ($29.2 billion) supplementary budget on Thursday, the largest on record for extra spending outside its annual budget, to offer pandemic relief to households, aid small businesses and create jobs.
· S.Korea exports extend double-digit growth; Delta variant, China demand pose risks
Exports surged 39.7% in June versus the same month a year earlier, reaching the third-biggest value on record at $54.80 billion, trade ministry data showed on Thursday. That beat the 33.6% average of 17 economist estimates in a Reuters poll, and marked the eighth consecutive month of expansion.
Exports grew 45.6% in May, the sharpest increase since August 1988.
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