Gold Retreats as Dollar Firms ahead of Key US Economic Data

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)
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Gold Retreats as Dollar Firms ahead of Key US Economic Data

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)

Gold extended declines on Thursday, pressured by a stronger dollar, while investors were cautious ahead of key US economic data that might provide clues about the size of the Federal Reserve's interest rate cuts expected later this year.

Spot gold fell 0.5% to $2,645.39 per ounce by 0812 GMT.

US gold futures edged 0.2% lower to $2,665.60.

The dollar hit a one-month high, making greenback-priced bullion more expensive for other currency holders.

Gold is consolidating at this point but prices will likely retest an all-time high of $2,685 as charts show persistent strong upward trends, said Brian Lan, managing director at Singapore-based dealer GoldSilver Central, according to Reuters.

Investors are watching out for the ISM services data and the initial jobless claims, due later in the day, along with the US non-farm payroll data expected on Friday.

Data on Wednesday showed US private payrolls increased more than expected in September - further evidence that labour market conditions were not deteriorating.

Expectations of another 50-basis-point rate cut at the Fed's November meeting have dipped, with markets currently pricing in a 36% chance, down from 49% last week, according to CME's FedWatch Tool.

Gold tends to thrive in a low interest rate environment and political turmoil.

"Middle East tensions and US elections will continue supporting bullion in the longer term... In the short-term, some funds might shift to oil from gold since oil is doing better," Lan said.

Israel bombed central Beirut, killing at least six, after its forces suffered the deadliest day on the Lebanese front in a year of clashes against Iran-backed armed group Hezbollah.

Perth Mint's gold product sales touched a 10-month peak in September, while silver sales hit a seven-month high.

Spot silver fell 1.2% to $31.49, platinum shed about 1% to $992.10 and palladium lost 2.2% to $992.93.



China Expands Visa-free Entry to More Countries in Bid to Boost Economy

Shoppers with their purchased goods walk past a popular outdoor shopping mall in Beijing, on Nov. 14, 2024. (AP Photo/Andy Wong)
Shoppers with their purchased goods walk past a popular outdoor shopping mall in Beijing, on Nov. 14, 2024. (AP Photo/Andy Wong)
TT

China Expands Visa-free Entry to More Countries in Bid to Boost Economy

Shoppers with their purchased goods walk past a popular outdoor shopping mall in Beijing, on Nov. 14, 2024. (AP Photo/Andy Wong)
Shoppers with their purchased goods walk past a popular outdoor shopping mall in Beijing, on Nov. 14, 2024. (AP Photo/Andy Wong)

China announced Friday that it would expand visa-free entry to citizens of nine more countries as it seeks to boost tourism and business travel to help revive a sluggish economy.
Starting Nov. 30, travelers from Bulgaria, Romania, Malta, Croatia, Montenegro, North Macedonia, Estonia, Latvia and Japan will be able to enter China for up to 30 days without a visa, Foreign Ministry spokesperson Lin Jian said.
That will bring to 38 the number of countries that have been granted visa-free access since last year. Only three countries had visa-free access previously, and theirs had been eliminated during the COVID-19 pandemic.
The permitted length of stay for visa-free entry is being increased from the previous 15 days, Lin said, and people participating in exchanges will be eligible for the first time. China has been pushing people-to-people exchange between students, academics and others to try to improve its sometimes strained relations with other countries, The Associated Press reported.
China strictly restricted entry during the pandemic and ended its restrictions much later than most other countries. It restored the previous visa-free access for citizens of Brunei and Singapore in July 2023, and then expanded visa-free entry to six more countries — France, Germany, Italy, the Netherlands, Spain and Malaysia — on Dec. 1 of last year.
The program has since been expanded in tranches. Some countries have announced visa-free entry for Chinese citizens, notably Thailand, which wants to bring back Chinese tourists.
For the three months from July through September this year, China recorded 8.2 million entries by foreigners, of which 4.9 million were visa-free, the official Xinhua News Agency said, quoting a Foreign Ministry consular official.