Gold rises on weaker dollar as investors eye developments
Spot gold was up 0.5 per cent at $3,365.49 per ounce by 0751 GMT. US gold futures rose 0.5 per cent to $3,373.20.
'The modest support comes from a weaker US dollar. With the tariff August 1 deadline coming closer, the market focus will be if trade deals are announced, or tariffs are implemented,' said UBS commodity analyst Giovanni Staunovo.
The dollar eased 0.2 per cent against a basket of other major currencies, making gold less expensive for their holders.
United States Commerce Secretary Howard Lutnick said on Sunday he was confident the United States can secure a trade deal with the European Union, but August 1 is a hard deadline for tariffs to kick in.
Gold, often considered a safe-haven asset during economic uncertainty, tends to do well in a low interest rate environment.
The US Federal Reserve's next policy meeting is scheduled for July 29-30, following its decision to hold rates steady last month.
'Elevated inflation expectations and strong economic data are weighing on expectations around the number of Fed rate cuts this year. Despite this, the buy-on-dip strategy remains in place, protecting downside risks for gold prices,' ANZ analysts said in a note. Last week, Fed Governor Christopher Waller said he still believes that the US central bank should cut rates next week.
Reuters
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
5 hours ago
- Zawya
Meta to halt political advertising in EU from October, blames EU rules
Meta Platforms will end political, electoral, social issue advertising on its platform in the European Union in early October because of the legal uncertainties due to EU rules targeting political advertising, the U.S. social media company said on Friday. Meta's announcement echoed Alphabet unit Google's decision announced last November, underscoring Big Tech's pushback against EU rules aimed at reining in their power and making sure that they are more accountable and transparent. The European Union legislation, called the Transparency and Targeting of Political Advertising (TTPA) regulation and which will apply from Oct. 10, was triggered by concerns about disinformation and foreign interference in elections across the 27-country bloc. The EU law requires Big Tech companies to clearly label political advertising on their platforms, who paid for it and how much as well as which elections are being targeted or risk fines up to 6% of their annual turnover. "From early October 2025, we will no longer allow political, electoral and social issue ads on our platforms in the EU," Meta said in a blog post. "This is a difficult decision - one we've taken in response to the EU's incoming Transparency and Targeting of Political Advertising (TTPA) regulation, which introduces significant operational challenges and legal uncertainties," it said. Meta said TTPA obligations create what it said is an untenable level of complexity and legal uncertainty for advertisers and platforms operating in the EU. It said the EU rules will ultimately hurt Europeans. "We believe that personalised ads are critical to a wide range of advertisers, including those engaged on campaigns to inform voters about important social issues that shape public discourse," Meta said. "Regulations, like the TTPA, significantly undermine our ability to offer these services, not only impacting effectiveness of advertisers' outreach but also the ability of voters to access comprehensive information," the company added.
Zawya
6 hours ago
- Zawya
Gold falls on firmer US dollar and rising trade optimism
Gold prices fell on Friday, pressured by a recovery in the U.S. dollar and optimism over progress in trade talks between the United States and the European Union. Spot gold was down 0.6% at $3,347.28 per ounce by 0949 GMT. U.S. gold futures fell 0.7% to $3,349.80. The U.S. dollar index rebounded from more than a two-week low, making bullion more expensive for overseas buyers, while benchmark 10-year U.S. Treasury yields rose. A resurgence in risk appetite driven by optimism over potential tariff negotiations, and lower-than-expected U.S. jobless claims reinforcing the view that the Federal Reserve is unlikely to cut rates, is pressuring gold, said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades. "There is an element of uncertainty that still lingers... with a strong support around $3,300, I see the potential for gold prices to rise should new episodes of volatility be triggered," he said. The European Commission said on Thursday that a negotiated trade solution with the United States is within reach - while EU members voted to approve counter-tariffs on 93 billion euros ($109 billion) of U.S. goods in case the talks collapse. Data showed the number of Americans filing new applications for jobless benefits fell to a three-month low last week, pointing to stable labour market conditions. President Donald Trump pressed Fed Chair Jerome Powell to lower interest rates in a tense visit to the U.S. central bank on Thursday, less than a week before the next rate-setting meeting where policymakers are expected to hold interest rates steady. Markets are pricing in a potential rate cut in September. Gold typically performs well during periods of uncertainty and in low-interest-rate environments. Spot silver fell 0.6% to $38.85 per ounce, but was still on track for a weekly gain of about 1.6%. Platinum was 1.2% lower at $1,391.25, with palladium also down 1.2% at $1,213.76. (Reporting by Anmol Choubey in Bengaluru, additional reporting by Ishaan Arora; Editing by Rachna Uppal, Kirsten Donovan)
Al Etihad
7 hours ago
- Al Etihad
UK equities slip as investors assess mixed earnings, economic data
25 July 2025 14:48 (REUTERS) London's main stock indexes slipped on Friday as investors assessed a mixed bag of corporate earnings and awaited updates on EU-US trade internationally oriented FTSE 100 fell 0.3% as of 0939 GMT, pulling back from its all-time peak reached on Thursday, but was on track to register its fifth straight weekly gain. The midcap FTSE 250 index also lost 0.3%.Data showed British retail sales rose by 0.9% in June, a partial rebound from May's 2.8% plunge, which was the biggest fall since December 2023.A survey showed consumer confidence dipped this month ahead of possible tax increases later this year, and households added to their and materials stocks led the sectoral decline, falling 1.8%, dragged down by Marshalls, which tumbled 21.6%, on downbeat full-year adjusted pre-tax profit metal miners lost 1.7%, tracking a fall in gold Mining fell 2.8%, Endeavour Mining lost 1.3%, and Fresnillo down 2.2%. Automobiles rose 0.7%.In corporate updates, NatWest rose 1.9% after the lender said its profit increased by 18% in the first half and the company announced a new share buyback worth 750 million pounds ($1.01 billion).Close Brothers surged 8.6% after announcing the sale of its execution services and securities business, Winterflood, to Marex for 103.9 million the flip side, Rightmove fell 1.2% after warning it expects sales growth in the second half of 2025 to be lower than the first half's 10%.Jupiter Fund Management fell 5.1% after the wealth manager reported lower half-yearly pre-tax await to see whether the European Union can reach a trade deal with the US before US President Donald Trump's August 1 deadline. Meanwhile, British Prime Minister Keir Starmer will lobby Trump to accelerate a final deal to cut tariffs on British steel, the Financial Times reported.
