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So far this week, the yellow metal has lost around 0.5% of its value amid the rising likelihood of Fed reversing its dovish stance as the US labor market shows signs of strong recovery. In addition, bets were further raised after producer prices surged at the fastest rate in over a decade during July across the US, hiking worries of inflation heating up.

·         Gold Price Futures (GC) Technical Analysis – Big Decision for Short-Sellers on Test of $1757.70 – $1776.50

The direction of the December Comex gold futures contract early Friday is likely to be determined by trader reaction to $1757.70.

The direction of the December Comex gold futures contract early Friday is likely to be determined by trader reaction to $1757.70.

 

- Bearish Scenario

A sustained move under $1757.70 will indicate the presence of sellers. If this move creates enough downside momentum then look for a possible break into a series of retracement levels at $1718.70, $1716.00 and $1708.00.

 

- Bullish Scenario

A sustained move over $1757.70 will signal the presence of aggressive counter-trend buyers. Taking out $1759.60 will indicate the buying is getting stronger. This could trigger a short-covering rally into $1776.50.

 

- Side Notes

Besides the resistance zone at $1757.70 to $1776.50 that could attract new sellers, traders should pay attention to $1763.10. This is last week’s close. Finishing over this level, will form a weekly closing price reversal bottom.

 

·         GOLD, XAU/USD, UNIVERSITY OF MICHIGAN SENTIMENT, IGCS, TECHNICAL ANALYSIS - TALKING POINTS:

- Gold prices aimed slightly higher, attempting to recover prior flash crash

- Softer University of Michigan Sentiment data could offer XAU/USD upside

- Retail traders reduced upside gold exposure, IGCS hints prices may rise

 

GOLD SENTIMENT ANALYSIS

 

 

·         FDA permits Covid vaccine booster shots for people with weakened immune systems

 

 

·         Italy's problem bank casts shadow over Draghi's summer break

When Italian Prime Minister Mario Draghi returns from his brief summer break one of the thorniest items on his "to do" list will be finally fixing the woes of the world's oldest bank, Monte dei Paschi di Siena (MPS).

 

·         Japan inflation seen weak despite export boom as COVID hits consumption: Reuters poll

·         China’s new U.S. envoy stresses importance of Taiwan in first high level meeting

China’s newly appointed ambassador in Washington stressed the utmost importance of Taiwan in the Sino-U.S. relationship.

 

·         Malaysia's economy grows more quickly than expected in Q2; c.bank cuts 2021 view

Malaysia’s economy grew 16.1% in the April-June period from a year ago, the central bank said on Friday. Economists had expected the economy to grow by a median estimate of 14.3% in the April-June period, according to a Reuters poll.

 

·         Malaysia c.bank slashes 2021 growth outlook on COVID-19 surge, lockdowns

Malaysia’s economy expanded more quickly than expected on an annual basis in the second quarter, but the central bank slashed its 2021 growth forecast as rising COVID-19 cases and new lockdown measures weighed on the outlook.

Gross domestic product shrank on a quarterly basis while the central bank cut its full-year growth forecast to 3.0%-4.0% from 6-7.5% previously.

 

·         This map shows the latest Covid outbreak in mainland China

 

So far this month, locally transmitted cases reported in mainland China have climbed to 878 — more than double the 390 cases recorded for the entire month of July, according to CNBC’s tally of daily data by China’s National Health Commission.

 

·         Sydney daily COVID-19 cases hit record high, more troops to enforce lockdown

 

 

·         U.S. deploying 3,000 troops to help evacuate Afghan embassy staff as Taliban advances

 

The Biden administration will deploy 3,000 troops to Afghanistan in order to facilitate the drawdown of personnel at the U.S. Embassy in Kabul as the Taliban rapidly advances toward the Afghan capital.

 

The troops, which will consist of three infantry battalions in total from the Marines and Army, will deploy to Kabul’s Hamid Karzai International Airport within 24 to 48 hours, Pentagon spokesman John Kirby said during a press briefing Thursday.

 

The Taliban also claims to have captured Kandahar and Herat, Afghanistan’s second- and third-largest cities. Afghan officials confirmed Thursday evening that the Taliban captured Kandahar, the 12th provincial capital out of 34 to fall to insurgents, according to a report by The Associated Press.