Gold traded in a narrow $5 range on Thursday as investors gauged the impact of U.S. backing of Hong Kong protesters on its trade negotiations with China, while palladium scaled a record peak on a sustained supply crunch.
Technical Resistance: 1481/1496
Technical support: 1430/1406
World stocks indices stall as U.S.-China tensions flare again
A four-day rally that had lifted world stocks to near-record highs stalled on Thursday after China said it would retaliate for U.S. legislation backing Hong Kong’s protesters, leaving investors concerned as to the extent of the Chinese response. Investors worried a new U.S. law backing Hong Kong protests could derail Washington’s and Beijing’s efforts to end their trade war.
Japan’s factory output posts biggest fall in almost two years
Japan’s industrial output slipped at the fastest pace since early last year in October, exposing widening cracks in the economy which faces a decline in domestic and foreign demand. Factory output fell 4.2% in October from the previous month, trade ministry data showed on Friday, coming in below the median market forecast for a 2.1% fall and swinging from a 1.7% rise the previous month.
Bank of Korea stands pat on interest rates
South Korea’s central bank left interest rates unchanged, as widely expected, at its last policy meeting of the year on Friday, while assessing the effect of its recent rate cuts on an economy hit hard by the Sino-U.S. trade war and cooling global demand. The Bank of Korea’s policy board voted to hold the benchmark interest rate steady at 1.25%
Source: Bloomberg, CNBC, Reuters