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Gold ticked up in tight trading on Wednesday on a retreat in U.S. Treasury yields, although a stronger dollar put a lid on gains for the safe-haven metal, with investors awaiting U.S. labor market data due later this week.

·         Spot gold was up 0.1% at $1,760.78 per ounce by 1:38 p.m. EDT, reversing from an earlier session low of $1,744.84. U.S. gold futures settled up 0.1% at $1,761.8.

·         “Gold has taken a backseat to other safety assets, and a lot hinges on the U.S. nonfarm payrolls data, with the metal likely to move sideways until then,” said Bob Haberkorn, senior market strategist at RJO Futures.

·         The yield on 10-year U.S. Treasuries pulled back after hitting a more than three-month high, but remained above 1.5%.

·         Taking cues from surging energy prices that could spur inflation and interest rate hikes, the U.S. dollar rose, making bullion expensive for holders of other currencies, and restricting gains.

·         Following data showing a strong rise in U.S. private jobs in September, investors’ focus shifts to key U.S. non-farm payrolls data on Friday that is expected to shape the Federal Reserve’s tapering plan.

·         Xiao Fu, head of commodities markets strategy at Bank of China International, said that even if the non-farm payrolls data is not “spectacular and just in line with expectations”, some Fed members already think the condition for tapering has been fulfilled, and that is putting pressure on gold.

·         Reduced stimulus and higher interest rates could dull bullion’s appeal as it translates to higher opportunity cost.

·         While “months of continued ETF liquidations reflect the poor sentiment that is pervasive across the precious metals complex”, reasons to own gold are growing more compelling, TD Securities analysts said in a note.

·         Spot silver fell 0.6% to $22.52 per ounce and palladium shed 1.8% to $1,879.42.

·         Platinum jumped 1.9% to $980.50 per ounce.

 

·         Bitcoin jumps to nearly 5-month high, topping $55,000 on Wednesday

 

·         Subsiding COVID-19 infections boost U.S. private payrolls in September

The long-awaited private-sector payroll report from Automatic Data Processing ADP came out this morning, with results better than expected: 568K new jobs were created in the private sector during the month of September, better than expectations of 425K and the previous month’s downwardly revised 340K. Led by the Leisure & Hospitality space, which brought 266K for the month on its own, we again see the U.S. labor force experiencing healthy growth.

 

·         U.S. Senate appears near temporary truce in debt-ceiling standoff

·         Senate GOP leader McConnell offers short-term debt ceiling extension following pressure from Biden

Senate Minority Leader Mitch McConnell on Wednesday offered a short-term suspension of the U.S. debt ceiling to avert a national default and economic crisis until Democrats are able to pass a more permanent solution before the end of the year.

 

·         Biden chides 'dangerous' Republicans in CEO meeting as debt limit chaos looms

·         U.S. debt limit crisis must be resolved 'immediately' Treasury's Yellen says

U.S. Treasury Secretary Janet Yellen said the country’s debt limit needs to be raised by Congress “immediately” to avoid a financial crisis.

 

·         U.S. Treasury's Yellen tells Estonian finance minister tax deal 'top priority'

U.S. Treasury Secretary Janet Yellen told Estonian Finance Minister Keit Pentus-Rosimannus on Wednesday that it was important to reach a deal to reshape the global tax system to ensure that corporations pay their fair share, the Treasury said in a statement.

Estonia has thus far opposed OECD discussions surrounding a 15% global minimum corporate tax, arguing in favor of exemptions from the system.

 

·         Biden, Xi plan U.S.-China virtual summit before year's end, U.S. says

·         Taiwan says U.S. commitment is 'rock solid' after Biden remark on China's Xi

Taiwan's Foreign Ministry said on Wednesday Washington had reassured them that its approach to the island had not changed, a day after President Joe Biden said that he and Chinese President Xi Jinping agreed to abide by the "Taiwan agreement."

 

·         China’s military activity near Taiwan increases risks of an accident, says analyst

 

·         Indonesian parliament to vote on major tax overhaul

 

·         COVID-19 UPDATES:

 

 

Reference: CNBC, Reuters, Worldometers