Overnight, the US Dollar Index rallied then retreated, fueling a rebound in spot gold. It closed at $4358.26 per ounce, up 0.34%; spot silver closed at $67.01 per ounce, rising 1.49%. Spot gold opened at $4359.19 per ounce in Wednesday’s ASIan session. It climbed to an intraday high of $4369.09 per ounce before pulling back, with a low of $4333.12 per ounce. At press time, gold was trading near $4334 per ounce.

The US Dollar Index surged to 100.70 overnight and then edged down to close at 100.54, a gain of 0.12%. The 2-year US Treasury yield rose by 0.5 bASIs points to 4.756%; the 10-year US Treasury yield climbed 0.9 bASIs points to 4.963%; the 30-year US Treasury yield increased by 1.7 bASIs points to 5.303%.

WTI and Brent crude oil continued to slide. WTI crude closed at $89.76 per barrel overnight, down 2.33%; Brent crude settled at $94.72 per barrel, a drop of 1.26%. US natural gas CFD closed at $3.163 per million British thermal units, up 5.963%.

The three major US stock indexes finished mixed overnight. The Dow Jones Industrial Average fell 185.03 points, or 0.36%, to 51863.80. The S&P 500 edged up 0.14 points, or 0.00%, to 7764.84. The Nasdaq Composite rose 122.18 points, or 0.45%, to 27244.28.

Most major European stock markets closed higher. Germany’s DAX 30 rose 0.06% to 25587.74. The UK FTSE 100 fell 0.28% to 10709.15. France’s CAC 40 gained 0.20% to 8154.91. The Euro Stoxx 50 advanced 0.11% to 6325.05. Spain’s IBEX 35 increased 0.14% to 19752.34. Italy’s FTSE MIB dropped 0.52% to 52101.50.

Gold T+D on the Shanghai Gold Exchange closed up 0.5% at 940.0 yuan per gram overnight, while Silver T+D rose 1.62% to 16278.0 yuan per kilogram. In Wednesday’s morning session, Gold T+D opened 0.5% higher at 940.0 yuan per gram; Silver T+D was up 1.74% at 16297.0 yuan per kilogram.

Holdings of SPDR Gold Trust, the world’s largest gold ETF, increased by 0.571 tonnes from the previous session, bringing total holdings to 1055.981 tonnes. Holdings of iShares Silver Trust, the world’s largest silver ETF, decreased by 53.38 tonnes, with total holdings standing at 15375.88 tonnes.

The central parity rate of RMB against the US dollar was set at 6.7468, 9 pips higher (RMB depreciation). EUR/CNY: 7.6935, down 124 pips. HKD/CNY: 0.86015, up 4.1 pips. GBP/CNY: 8.9680, down 183 pips. AUD/CNY: 4.7795, down 55 pips. CAD/CNY: 4.7756, down 115 pips. 100JPY/CNY: 4.2754, down 40 pips. CNY/RUB: 12.5659, up 1083 pips. NZD/CNY: 3.8453, up 77 pips. CNY/MYR: 0.60517, down 5.9 pips. CHF/CNY: 8.1930, up 5 pips. SGD/CNY: 5.2723, up 36 pips.

Data released overnight showed US ADP employment change for the week ending September 5 stood at 20,000, compared with the prior reading of 16,250. The preliminary Eurozone September Consumer Confidence Index was -16.5, versus an estimate of -16 and previous -15.5. The US September Richmond Fed Manufacturing Index came in at -2, against a forecast of 2 and prior 4.

Several Fed officials delivered speeches overnight. Williams stated that interest rate tools are functioning well and can be adjusted according to market changes. Collins backed the Fed’s rate hike last week and said it would help bring inflation back to the central bank’s 2% target. Barkin warned that inflation shocks may take time to ease and there is a risk that inflation pressures remain elevated and entrenched.

Reports say US President Trump addressed the UN General Assembly and held bilateral meetings with multiple national leaders, plus a collective meeting with Middle Eastern states. Trump said Putin is willing to meet, though he is unsure whether Putin will attend the G20 summit. Zelensky stated he is ready to reach an energy ceasefire with Russia and hold trilateral talks involving the US and Russia.

Iran is reportedly seeking to use diplomatic activities during the UN General Assembly to push for the resumption of negotiations with the US and has put forward a conditional proposal to reopen the Strait of Hormuz. Trump said he hopes to meet Iranian officials in New York if conditions are appropriate.

Italy’s Foreign Minister said he met with Iranian Foreign Minister Araghchi at the UN. They discussed negotiations on reopening the Strait of Hormuz. Italy will continue supporting all initiatives that help fully restore navigation freedom and end the conflict.

Iranian President Pezeshkian has just arrived in New York to attend and deliver a speech at the 81st UN General Assembly. Iran’s foreign minister conveyed peace talk terms to US representatives: conditions for reopening the Strait of Hormuz include the immediate lifting of maritime blockades, immediate release of frozen Iranian assets, and an end to wars across all resistance fronts.

Trump met with Venezuela’s interim President Rodriguez on the sidelines of the UN General Assembly yesterday. Sources revealed the face-to-face meeting marked the first since US military strikes against Venezuela in January.

Reports say US circles are looking forward to President Xi Jinping’s state visit to the United States. President Xi Jinping will pay a state visit to the US from September 23 to 25. Interviewees in the US generally expect China and the US to continue moving along the track of constructive strategic stability, jointly bringing more benefits to peoples of both countries and contributing greater stability and certainty to the world.

On the daily gold chart, gold rebounded after hitting a low near $4291 yesterday and faced resistance around $4375. It is now consolidating near the convergence of the 5-day and 10-day moving averages. From daily indicators, the negative MACD histogram remains extremely close to the zero line, while the RSI hovers around the 48 level.

On the 1-hour gold chart, gold continues to consolidate and trade around the middle BOLLinger Band. Short-term EMA5 and EMA10 have initially formed a bearish arrangement. The positive MACD histogram is relatively small, and RSI is running near the 47 level. Intraday trading suggestion: gold is expected to fluctuate within the range of $4315-$4375. A breakout to the upside will target $4380-$4390 or near $4400. Downside targets are $4308-$4300 or near $4292.

Key economic data and events to watch today:

15:15 France September Flash Manufacturing PMI

15:30 Germany September Flash Manufacturing PMI

16:00 Eurozone September Flash Manufacturing PMI

16:00 OECD releases Global Economic Outlook report

16:30 UK September Flash Manufacturing PMI

16:30 UK September Flash Services PMI

21:45 US September S&P Global Flash Manufacturing PMI

21:45 US September S&P Global Flash Services PMI

22:05 Fed Governor Barr speaks on housing

22:30 US EIA Crude Oil Stocks for the week ending September 18

22:30 US EIA Cushing Crude Oil Stocks for the week ending September 18

22:30 US EIA Strategic Petroleum Reserve Stocks for the week ending September 18

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