· Gold prices held above the key psychological level of $1,800 as the dollar and bond yields came under pressure after a tamer-than-expected rise in U.S. inflation led to uncertainty on when the U.S. central bank will begin tapering its asset purchases.
· Spot gold was steady at $1,802.86 per ounce, as of 0120 GMT on Wednesday, having hit a one-week peak of $1,808.50 in the previous session.
· U.S. gold futures eased 0.2% to $1,803.80.
· Lower yields reduce the opportunity cost of holding the non-interest bearing bullion.
· Japanese manufacturers’ confidence worsened to a five-month low in September as the fallout from the latest wave of Covid-19 put fresh pressure on the world’s third-largest economy, the Reuters Tankan poll showed.
· Gold Price Forecast: XAU/USD recovery falters near $1,800 as USD rebounds
Update: Gold prices stall gains near $1,800 after hitting a one-week high on Tuesday. The drop in the US benchmark US Treasury yields supported the current upside movement in the prices the previous day. The movement was primarily sponsored after the softer-than-expected rise in US Inflation data revealed yesterday, which raised the doubts over the Fed’s timeline to taper monetary stimulus.
Weaker equity market and concerns on the rapid spread of the coronavirus delta variant and its impact on the global economic recovery continue to lend support near the lower levels.
In addition to the re-think over the Fed tapering, covid woes and geopolitical tensions also weigh on the market sentiment, underpinning the safe-haven demand of the US Treasury bonds, which in turn weigh on its yields.
Although the virus numbers from the Asia-Pacific region have eased of late, slower jabbing and doubts over the Delta variant spread challenge the market sentiment. Also weighing on the risk appetite, as well as gold, are hurricanes in the US and political tension in Canada and the Middle East.
Looking forward, gold traders will keep their eyes on the more clues to confirm the next week’s tapering from the Fed. The same highlights Thursday’s Retail Sales and Friday’s Michigan Consumer Confidence. For today, risk catalysts and the US Industrial Production for August, expected to ease from 0.9% to 0.5%, could offer intermediate moves.
Despite crossing an immediate trading range between $1,782 and $1,804, gold prices failed to provide a daily closing beyond the 200-DMA level near $1,809.
Also challenges the gold buyer is the sluggish MACD and RSI conditions, as well as double tops surrounding $1,834.
Meanwhile, 61.8% Fibonacci retracement of July-August fall, around $1,777, adds to the downside filters, other than the multiple lows marked recently near $1,782.
It’s worth observing that five-week-old horizontal support of around $1,758 will challenge gold bears below $1,777.
Overall, gold remains firmer but needs to cross the 200-DMA for giving controls to the bulls.
· Gold Price Analysis: Acceptance above $1810 to clear the way towards $1832/34 supply zone
The $1,800-$1,795 zone seems to protect the immediate downside
· Silver fell 0.1% to $23.81 per ounce.
· Platinum hit an over nine-month low of $930.85 and was last down 0.4% to $935.60.
· Palladium was flat at $1,979.16. Prices touched their lowest level since July 2020 at $1,935 in the previous session.
· EU's chief executive warns against 'pandemic of the non-vaccinated'
The pace of vaccination against COVID-19 must be quickened across the globe to avert "a pandemic of the non-vaccinated", the European Union's chief executive said on Wednesday in her annual policy speech.
· Ifo institute sees German inflation slowing to 2-2.5% in 2022
German inflation is expected to slow to 2% to 2.5% in 2022 from an estimated 3% this year, the Ifo economic institute said on Wednesday.
· Chinese ambassador barred from UK parliament over sanctions row
The Chinese ambassador to Britain has been banned from attending an event in the British parliament because Beijing imposed sanctions on lawmakers who highlighted alleged human right abuses in Xinjiang.
· China’s retail sales grew 2.5% in August, far slower than 7% expected
· Fitch says possible China Evergrande default may have broader effects
Rating agency Fitch said that numerous sectors could be exposed to heightened credit risk if Chinese property developer Evergrande were to default.
· China Evergrande's liquidity crisis deepens on report of interest payment miss
China’s major banks have been notified by the housing authority that Evergrande Group won’t be able to pay loan interest due Sept. 20, Bloomberg reported on Wednesday, underlining the broadening impact of a liquidity crisis at the property developer.
· Nigeria's August inflation eases ahead of cenbank rate decision
Nigeria’s annual inflation eased in August for a fifth straight month to 17.01% after the pace of food price growth witnessed a drop, figures from the statistics office showed on Wednesday, ahead of a central bank rate-setting meeting this week.
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