Gold extends losses as U.S. and EU close in on tariff deal; silver rallies
Spot gold was down 1.2% at $3,389.09 per ounce, as of 12:45 p.m. ET (1645 GMT), after hitting its highest point since June 16 earlier in the day.
U.S. gold futures also slipped 1.3% to $3,399.90.
"So we're seeing a trade deal with Japan and looking at one with the EU. Ultimately, it means no major retaliatory tariffs from the EU, which has supported risk appetite...equity markets are doing pretty well," said Bart Melek, head of commodity strategies at TD Securities.
The European Union and the United States are moving toward a trade deal that would impose a broad 15% tariff on EU goods imported into the U.S., two diplomats said on Wednesday.
This comes as U.S. President Donald Trump also reached a trade deal with Japan on the same day to lower tariffs on auto imports, offering a welcome sign of progress in his broader tariff negotiations on multiple fronts.
Bullion tends to thrive in periods of uncertainty and also in low-interest-rate environments because the opportunity cost of holding a non-yielding asset is reduced.
The markets do not expect an interest rate cut from the U.S. Federal Reserve in July, but the Fed's independence appears under threat from mounting political interference, according to a clear majority of economists polled by Reuters.
Among other metals, spot silver fell 0.2% to $39.19 per ounce, after hitting a near 14-year peak, earlier in the session.
"The recent rally in silver is being driven by a combination of strong industrial demand, persistent supply deficits, and increased investor interest," said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
"A decisive push past $40 could come from a further breakout in gold prices, renewed weakness in the U.S. dollar, or signs of deeper supply tightness – especially if physical premiums start to rise again in key Asian markets."
Platinum fell 1.4% to $1,421.79 and palladium was up 0.2% at $1,277.26.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
an hour ago
- The National
The recent poll makes it clear – the EU door is open for Scotland
The news that there is overwhelming support among folks in five key EU members for an independent Scotland joining the bloc comes as no surprise – I've been having conversations with their representatives and diplomats for years. YouGov polled 2000 folks in Germany, and 1000 in Denmark, Spain, Italy and France asking: 'If Scotland voted for independence from the rest of the UK and asked to join the European Union, would you support or oppose allowing it to do so?' In Denmark, 75% support, 6% oppose; Germany, 68%/10%; Spain, 65%/13%; Italy, 64%/11%, and France, 63%/13%. I include the 'oppose' figures because it really is a slam dunk across all five countries: if people aren't actively in favour there are plenty don't know/don't cares, and little actual opposition. READ MORE: Police remove pro-Palestine protesters from John Swinney's Edinburgh Fringe show If anything, I'd love to see the numbers for all EU states and suspect they'd be similar, with potential Irish, Polish and other Scandinavian figures likely to be particularly intriguing. So we should be wary of the breathless 'we're Scots, everyone loves us!' attitude you'll find at the panglossian end of the Yes spectrum. There will be a serious negotiation and they'll argue hard for their interests (as indeed will we), but the upshot is clear – they want us in. The poll (and I really would urge reading it in full) also asked the question about the UK rejoining, and the numbers were less enthusiastic, but still remarkably positive given the last few years of nonsense, ranging from 51% in Italy to 53% in France, 60% in Spain and 63% in Germany. But, opposition was higher as were don't knows/don't cares. A salutary note for the UK's remainiacs, though – the EU deal you left isn't the one you'll get back. The UK had the financial rebate on the EU budget, opt-outs on passport-free travel, joining the euro and some aspects of judicial co-operation, and when asked about the UK joining but keeping them, all states bar Denmark (which has a couple of opt-outs too) were opposed. The UK, if it rejoins, will need to get over itself and join as a full, normal member. That causes no problems for Scotland given there are several dozen reasons why, like Ireland, we wouldn't want the opt-outs anyway (except for Schengen passport-free travel given, like Ireland, we only have one land border and let's assume the UK does not join any time soon). Even more salutary, the poll also asked 2000 or so UK folks whether they were in favour of rejoining, and 57% think they should keep the opt outs. Precisely the exceptionalist attitude that got the UK into this mess. So, for Scotland, game on. The last couple of weeks also showed other reasons why joining is urgent. The EU Commission president Dr Ursula von der Leyen came to Scotland to meet with visiting US president Donald Trump and agreed – or at least agreed in general terms yet to actually be agreed – a trade pact with the US. Where unease over the potential impact of the handshake has been voiced in various member state capitals, it is clear that the EU acting with one voice was taken seriously, to the extent the current US administration takes anything seriously. But more on that as the actual details emerge, closer to home, the first draft of the catchily named Multiannual Financial Framework was unveiled, the EU budget for 2028-2034. At €1.78 trillion (yes, trillion), it is a big old number but only 1.26% of the EU's Gross National Income. This is still a significant increase, and while this is only the EU Commission's first proposal and it will be hotly debated by the member states and EU Parliament, it shows a more assertive EU Commission, and more spending on an EU level. It was only released late last Tuesday so a lot of analysis will be done on the coming weeks, but a few things are clear. There will be a significant increase in EU defence, both in procuring new kit and in defence research and development spending. Scotland's universities and defence companies risk being excluded. The budget for renewables technology, research and the move to the just transition is in for significant increases – and again, our companies and researchers risk being left out – as well as on the infrastructure spending where Scotland has an urgent need for better grid connections to sell our abundant clean green energy. Agriculture and European food production continue to be supported, with €291 billion being ring-fenced for direct payments to farmers as part of a €387bn budget for other supports. NOT many Scots farmers voted for Brexit, but even so, have endured the triple whammy of having lost subsidy and access to the single market as well as being on the chopping block for any future UK trade deals, there's plenty of good news for Scots farmers in joining the EU. Cohesion policy – the EU structural funds Scotland made such good use of in building infrastructure and training – take a hit, with a smaller budget and less prominence. But it's still €392bn and non-members won't get buttons from it. The EU is moving on apace in a fast-changing world, and where the UK Government has made some steps in achieving a better mood music, there's no substitute for actual membership. I would welcome the UK getting serious about rejoining the EU, but in my heart of hearts, I just can't see it because too many UK politicians are running scared of populists. Scotland, however, has it all to play for.
Daily Mail
3 hours ago
- Daily Mail
Dem senator agrees with GOP that Trump's making progress on trade war but others make grim tariffs forecast
A prominent Democratic senator is backing President Donald Trump 's trade war strategy, even as others in his party warn that looming economic fallout could soon hit American consumers and industries. Pennsylvania Senator John Fetterman, told Fox News Digital this week that the Trump administration's aggressive use of tariffs has been effective so far. 'Absolutely,' Fetterman said when asked if he believed the U.S. is winning the trade war. 'I'm a huge fan of Bill Maher, and I mean, I think he's really one of the oracles for my party, and he acknowledged it, it's like, hey, he thought that the tariffs were going to tank the economy, and then he acknowledged that it didn't,' Fetterman added. 'So, for me, it seems like the E.U. thing has been going well, and I guess we'll see how it happens with China.' Fetterman's comments come as Trump intensifies his tariff push. On Thursday, the 47th President signed two new executive orders - one raising tariffs on Canadian imports from 25 percent to 35 percent beginning Friday, and another modifying reciprocal tariff rates for countries with significant U.S. trade deficits. The White House cited Canada's failure to help curb fentanyl and other illicit drug imports as the reason for the increased tariffs. 'The goal is to secure fair, balanced and reciprocal trade relationships,' the White House said in a statement. The moves build on Trump's earlier decision this year to impose a baseline 10 percent tariff on all countries, with steeper rates for those running large trade surpluses with the U.S. Trump's recently installed tariffs took effect on April 9, and since then, the his administration has inked several major trade deals. During his second term, Trump and his administration reached a trade agreement with the European Union (EU) under which the E.U. committed to purchasing $750 billion in American energy and investing an additional $600 billion in the U.S. economy by 2028. As part of the deal, the E.U. accepted a 15 percent percent tariff rate. A separate agreement was struck with Japan, which pledged $550 billion in investments aimed at rebuilding and expanding key American industries. Japan also agreed to open its markets further to U.S. exports and, like the E.U., accepted a baseline 15 percent tariff rate. However, many top Democrats remain skeptical. While speaking with Fox News Digital, Rhode Island Senator Jack Reed cautioned that any short-term gains could be undercut by rising prices. 'Within a few weeks or months, you'll start seeing significant increases in most things you buy,' Reed said. 'And also, you will see disruption in terms of a lot of our industries, because they're not able to access product or supply.' Senator Chris Van Hollen, of Maryland, echoed those concerns, saying Trump's tariff strategy contradicts his campaign promises. 'This is the president who said he was going to come in and reduce prices. Prices are going to rise, and they're going to rise more over time,' Van Hollen warned. However, Massachusetts Senator, Elizabeth Warren, took a broader view, arguing that Trump's confrontational trade policies are pushing U.S. allies to look elsewhere for business. 'Donald Trump may beat his chest and say, "Man, I made him take a 15 percent tariff or 25 percent tariff," but also understand that every one of those trading partners is now looking hard all around the rest of the world to find other customers,' Warren said. 'The United States under Donald Trump is not a reliable trading partner. And that's not good for any of us.' Warren also linked the trade war to interest rate policy, blaming Trump's tariff decisions for the Federal Reserve's refusal to lower rates. 'Jerome Powell said last month that he would have lowered interest rates back in February if it hadn't been for the chaos that Donald Trump was creating over trade,' Warren said. 'And the consequence has been that American families have, for six months now, been paying more on credit cards, more on car loans, more home mortgages.' Republicans, however, are rallying behind the president's hardline stance. Texas Senator Ted Cruz called the strategy a 'big win'. 'I think it's exactly the right approach,' Cruz said. 'It's what I have been urging the president to do, and I think the successes he's winning are big wins for America.' Seemingly mocking Democrats' warnings of economic turmoil, and quoting the film Casa Blanca, Cruz added, 'I'm shocked, shocked that Democrats are rooting for the economy to do badly under President Trump.' 'It'd be nice if some Democrats would put their partisan hatred for Trump aside and actually start working together for American workers and American jobs. Unfortunately, I don't see a whole lot of Democrats interested in doing that right now,' he said. Louisiana Senator John Kennedy praised the E.U. deal and said he hopes it leads to what he calls 'ideal reciprocity'. 'Clearly, the president got a good deal from one perspective. The Europeans just caved, they did. Fifteen percent tariffs on them, zero on us, commitment to invest in our country,' Kennedy said. 'But the part of the deal I like the most - the E.U. and the president agreed that a whole bunch of goods would be tariff-free. That is, no American tariffs and no E.U. tariffs.' 'Let the free enterprise system work. May the best product at the best price win,' Kennedy added. 'That, to me, would be the perfect situation.'
Daily Mail
4 hours ago
- Daily Mail
Ingenious ways to pass on your wealth inheritance tax-free - without turning your children into lazy brats
Many families would far rather pass wealth to the next generation than have it seized by the taxman but are wary of giving children and grandchildren too easy a ride. It's a classic conundrum. How do you give away your hard-earned money without undermining the values of hard work and financial responsibility you hope to instil in your offspring?
