EM LATAM SOV: MNI LATAM Sovereign Market Wrap

• Gold fell heavily overnight as DXY rose and FED minutes pointed to a unanimous decision at the September FED meeting where they raised rates.  The probability for a further hike this year remains, with current pricing suggesting a hold in October and December being the most likely.  The bond market was mixed with front end yields modestly lower and 10-Yr + maturities higher.  Gold is most sensistive to the 10-Yr and with it up marginally at 5.28%, gold fell.  
• The precious metal ended the US trading day down -1.27% at US$4,111 - the lowest since early August.  
• $4,000 remains in sight for gold as momentum remains for lower as evidenced by the MACD line below the signal line, a bearish signal.  The 14-day relative strength index is at 37 - i.e. not yet oversold and could see further downside from here.    
• The key here will be gold's ability to hold above $4,100.  Gold dipped down to $4,066 during the US trading day before finding support back up to its closing level.  A sustained break below $4,100 will be a further bearish signal and could see bullion testing $4,000 this week.  
• Data wise in the US Thursday will focus on initial jobless claims and will be unlikely to move the dial on rates.  Waller and Bostic are speaking and could provide some sound bites though the next big test is next week's September CPI.  
• Watch the USD and oil prices as a likely guide for price action today as Brent tries to maintain its position above $100.  

Fig 1:  Gold Nears Oversold - though has room for further declines

source: Bloomberg Finance LP / MNI 

Source: Bloomberg Finance L.P./MNI 

• South Korea to Sell 100B Won 1.125% 10-Year Linkers
• China To Sell 30-Year Additional Bonds
  Malaysia to Sell MYR5 Billion 2029 Bonds
• China to Sell 73 Billion Yuan 2.14% 2056 Bonds
• China to Sell 150 Billion Yuan 2031 Bonds
• China to Sell 20 Billion Yuan 28-Day Bills
• Bank of Thailand to Sell 40 Billion Thb of 364-Days FRNs
• Singapore to Sell S$8.3 Billion 182-Day Bills