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·         Gold prices extended losses on Wednesday hurt by a jump in the dollar and U.S. Treasury yields ahead of U.S. non-farm payrolls data.

 

·         Spot gold fell 0.5% to $1,750.51 per ounce by 0723 GMT, while U.S. gold futures were 0.7% lower at $1,749.40.

 

·         Gold’s price momentum is skewed downward on the basis of monetary policy expectations, IG Market analyst Kyle Rodda said.

 

·         “There’s still significant signs of cost pressures in the global economy and that’s going to keep the focus on central banks and tightening policy.”

 

·         Gold is often viewed as an inflation hedge, but reduced central bank stimulus and interest rate hikes tend to push government bond yields up, translating into a higher opportunity cost for holding non-interest yielding bullion.

 

·         Focus is now on Friday’s U.S. payrolls data, which is expected to show 488,000 jobs were added in September. The National Employment Report by payroll processor ADP, is due at 1215 GMT.

 

·         Gold prices will likely consolidate in a $1,745-$1,775 range, Edward Moya, a senior market analyst at brokerage OANDA, said in a note.

 

·         “Once tapering is fully priced in, financial markets will grow fixated over the risks to the 2022 outlook and that will be the green light for many investors to return to bullion.”

 

·         Chicago Fed President Charles Evans said on Tuesday he continued to believe supply bottlenecks were driving most of the recent increase in inflation and would subside. He also repeated that the central bank was close to begin reducing its monthly asset purchases.

 

·         Gold Price Forecast: XAU/USD needs acceptance below $1750 to seek additional downside

Gold price retreated sharply from eight-day highs of $1771 and tested the recent range lows just below $1750 on Tuesday, before recovering to settle the day at $1760. Wednesday’s trading so far is no different for XAU/USD, as bears remain in control. Why does XAU/USD look vulnerable below $1750? FXStreet’s Dhwani Mehta explains it.

“The September 27 highs of $1745 remain on the sellers’ radars if the recent range lows near the $1749 region is cleared on a sustained basis. Further south, the seven-week lows at $1722 could be back in play.”

“Only a daily closing above the short-term critical 21-DMA at $1767could revive the recent recovery momentum, opening gates towards the downward-sloping 50-DMA at $1782. Gold bulls will then target the $1800 psychological magnate.”

 

·         Spot silver fell 1.1% to $22.42 per ounce, platinum slipped 1.4% to $948.02, and palladium was down 0.9% to $1,896.66.

 

·         Fed funds futures markets are priced for rate hikes to begin around November 2022, but anticipate rates topping out at just over 1% through most of 2025 even though Fed members project rates reaching 1.75% in 2024.

 

·         Biden: 'Real possibility' Democrats might change Senate rules for debt hike

 

·         Biden says he and China's Xi agree to abide by Taiwan agreement

U.S. President Joe Biden said on Tuesday that he has spoken to Chinese President Xi Jinping about Taiwan and they agreed to abide by the Taiwan agreement, as tensions have ratcheted up between Taipei and Beijing.

 

·         U.S.-China talks will be difficult, but reengagement is the right strategy, expert says

U.S.-China talks will be “extremely tough sledding,” but reengagement is the correct strategy to take, according to a vice president and managing director of a U.S.-based think tank.

Wendy Cutler of the Asia Society Policy Institute’s comments came after U.S. Trade Representative Katherine Tai on Monday said she is looking forward to negotiations with the Chinese.

Beijing is now very confident and has a “very hardline attitude,” said Cutler who was formerly Assistant U.S. Trade Representative for Japan, Korea and APEC Affairs.

“It’s going to be tough sledding, but then again, I think Ambassador Tai, by laying out the fact she wants to reengage with China — that is the right strategy for now,” she said.

 

·         Taiwan defence minister says tensions with China are the worst in four decades

 

·         Hong Kong property agencies suing Evergrande to recover commissions

Two Hong Kong property agencies are suing heavily indebted China Evergrande Group (3333.HK) over unpaid commissions, according to a court filing and media reports, piling pressure on the developer as it scrambles to raise funds and avert a collapse.

 

 

·         New Japan PM Kishida off to rocky start in polling

Japan's new Prime Minister, Fumio Kishida, is struggling to find his footing with voters just two days after he was voted into office and launched his new government, multiple polls by local media showed on Tuesday.

 

·         German industrial orders fall more than expected in August

German industrial orders fell more than expected in August on weaker demand from abroad following two months of unusually strong gains due to major contracts, data showed on Wednesday.

The figures published by the Federal Statistics Office showed orders for goods 'Made in Germany' were down by 7.7% on the month in seasonally adjusted terms. A Reuters poll of analysts had pointed to a drop of 2.1% on the month.

 

·         Boris Johnson to tell Conservative Conference he has 'guts' to reshape and 'level-up' Britain's economy

·         France's Villeroy to be renewed as head of Bank of France

 

·         New Zealand raises rates for first time in seven years, more to come

New Zealand's central bank hiked interest rates on Wednesday for the first time in seven years and signalled further tightening to come, as it looks to get on top of inflationary pressures and cool a red-hot housing market.

The 25 basis point rate hike marks the start of a tightening cycle that had been expected to begin in August, but was delayed after an outbreak of the coronavirus Delta variant and a lockdown that is continuing in its biggest city Auckland.

The increase in the cash rate to 0.50% by the Reserve Bank of New Zealand (RBNZ) had been forecast by all 20 economists polled by Reuters.

 

·         Australia banking regulator tightens home loan requirements, more to come

Australia's banking regulator on Wednesday tightened restrictions on home lending and flagged possible further action, saying rapid loan growth that has fed a surge in housing prices poses a risk to financial stability.

·         ASEAN weighs excluding Myanmar junta boss from summit –envoy

 

·         WHO says unvaccinated people are ‘dying unnecessarily’ from Covid as hospitals fill

 

·         Merck says it signed deal to supply Singapore with its Covid-19 antiviral pill

Merck announced on Wednesday a supply and purchase agreement that will provide Singapore with access to its experimental oral Covid-19 antiviral drug, the latest Asian country to try to snap up supplies.

 

·         Merck says it signed deal to supply Singapore with its Covid-19 antiviral pill