Gold rises as Fed rate cut bets pressure dollar, yields
Gold prices saw an increase. This happened because the U.S. dollar weakened. Treasury yields also went down. Weak U.S. jobs data increased expectations of a Federal Reserve rate cut in September. Silver, platinum also experienced gains. Palladium saw a slight decrease. Investors are closely watching upcoming economic data releases. These include China Caixin Services PMI and US ISM N-Mfg PMI.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
Trump rules out Bessent for Fed chair
U.S. President Donald Trump said on Tuesday he had removed Treasury Secretary Scott Bessent from consideration for an open seat on the Federal Reserve's Board of Governors, but said he would "very shortly" announce his choice. In an interview with CNBC, Trump said Fed Governor Adriana Kugler's decision to vacate her seat early was a "pleasant surprise." The departure of Kugler, whose term would have ended on January 31, appears to have accelerated Trump's planning for the U.S. central bank, giving him an immediate opening to fill with a person who could also be promoted to the top policymaking role when Fed Chair Jerome Powell's term ends in May. "It'll be one of four people," Trump said, adding that he considered both current White House economic adviser Kevin Hassett and former Fed Governor Kevin Warsh as "very good" possibilities. He did not name the other two, but is reportedly considering current Governor Christopher Waller, who has advocated rate cuts but not at the pace or extent Trump wants. "There are numerous people that are qualified," Trump said. "I am going to be announcing that very shortly," the president said in reference to naming a replacement for Kugler, who was appointed to the Fed's board by former President Joe Biden. Trump said Bessent would not be in the running for the position because he wants to remain in the top Treasury job. The nominee would, at least initially, serve the few months remaining in Kugler's term. But Trump could be explicit that he plans for that person to then be nominated to a full 14-year term after that time, and to also be his choice to replace Powell when the Fed chief's term expires next May - giving his nominee several months and several policy meetings to begin to influence the policy debate. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program "A lot of people say, when you do that, why don't you just pick the person who is going to head up the Fed? That's a possibility too," Trump said. The president has been critical of Powell for not cutting interest rates since Trump returned to power in January, and contemplated trying to fire him, even as Fed policymakers balance evidence of both a slowing economy and a weakening job market against the fact that inflation remains well above the central bank's 2% target and is expected to move higher. The Fed is charged by Congress to maintain stable prices and maximum employment, and is potentially facing a situation where the two goals conflict with each other - posing a painful set of tradeoffs. The nominee to fill Kugler's seat will need to be confirmed by the Senate, and would require another Senate vote for a full 14-year term early next year. The nomination for the next Fed chief would require a separate Senate confirmation process. 'ANOTHER LEVEL OF PROBLEMS' Kugler's departure was announced the same day that Trump, angered over data that showed job growth slowing in the first months of his administration, fired Bureau of Labor Statistics Commissioner Erika McEntarfer while alleging without evidence that BLS was manipulating the jobs data to make him look bad. Economists have warned since Trump returned to the White House in January that his combination of import tariffs and erratic trade policy would likely lead to a labor market slowdown and higher inflation, a broadly shared outlook that has been among the factors keeping the Fed from lowering rates until the inflation impact becomes clearer. The central bank last week held its policy rate steady in the 4.25%-4.50% range, though Waller dissented on the grounds that the inflation risk from tariffs appeared modest at best, while the job market and growth in general appeared to be weakening. The release on Friday of the jobs report for July, with weak monthly employment gains and downward revisions to prior months, appeared to validate those concerns and led to increased market bets the Fed would cut rates at its September 16-17 meeting. The firing of the BLS commissioner touched off a global wave of concern about the continued integrity of U.S. government data, with Trump's actions being given a fire-the-messenger interpretation by much of the economics and statistics community. The president's choice now to head the statistics agency and potentially to lead the Fed will be scrutinized all the more carefully, said Michael Strain, director of economic policy studies at the conservative American Enterprise Institute. "Imagine if one of your concerns is that there's a lackey in charge of the agency and the numbers are fake. That's ... another level of problems," Strain said of the BLS. "Maybe he sees this independence thing really matters. Maybe he's got somebody from the outside saying 'Look, Mr. President, if you appoint somebody who's perceived to be a lackey as the Fed chair, take the BLS freakout and multiply by 1,000." Live Events
Indian Express
2 hours ago
- Indian Express
Donald Trump eyes new Fed Chair as he calls for Jerome Powell's ouster
US President Donald Trump appears ready to push Federal Reserve Chair Jerome Powell out. The President, who has for months attacked the Federal Reserve Chair as 'stubborn,' signalled Tuesday that he is weighing a list of candidates to succeed Powell and may act soon. 'I didn't say I'm making a decision right now,' he told CNBC. But for anyone watching, the intent was clear: Trump wants Powell gone. Trump has long accused the central bank chief of refusing to lower interest rates in the face of economic slowdown and his own trade war. On Friday, after another disappointing jobs report, he went further, calling on the Fed's board of governors to override Powell. 'THE BOARD SHOULD ASSUME CONTROL,' Trump wrote on Truth Social, 'AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!' The President's frustrations have coincided with a string of economic data that has not gone his way. Friday's nonfarm payrolls report showed just 73,000 jobs added in July – far below expectations – and included downward revisions of 258,000 for the previous two months. Hours later, Trump fired Erika McEntarfer, the commissioner of the Bureau of Labor Statistics, blaming her for 'the biggest miscalculations in over 50 years.' The move stunned economists. 'The risk of politicising the data collection process should not be overlooked,' warned Michael Feroli, JPMorgan Chase's chief US economist. 'Having a flawed instrument panel can be just as dangerous as having an obediently partisan pilot.' But if Trump is steering, he's also reshaping the cockpit. The resignation of Federal Reserve Governor Adriana Kugler, announced Friday, gives Trump a new opening. Kugler's term was set to run until January, but her early departure, combined with McEntarfer's firing, leaves Trump with two powerful vacancies to fill. And he's made it clear he knows the stakes. The Kugler vacancy, wrote Krishna Guha of Evercore ISI, 'jump-starts the Trumpification of the Fed by handing President Trump a vacancy into which he can place a potential or even a clearly designated successor to Powell as Fed chair.' Trump has hinted as much himself—saying his nominee for Kugler's post could well be the next chair when Powell's term expires in May 2026. He's also floated the possibility of pushing Powell out sooner, a move that would draw legal and political fire but has not been ruled out. Trump also ruled out Treasury Secretary Scott Bessent—'He's doing a great job, and he wants to do what he's doing'—but said he is evaluating 'Kevin and Kevin,' referring to former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett. 'Both Kevins are very good,' Trump said. Two sitting Fed governors, Christopher Waller and Michelle Bowman, have already broken with Powell on interest rate policy. After Friday's meeting, both issued statements pushing for rate cuts and arguing that Trump's tariffs had only a one-time effect on inflation. Yet the Fed has held interest rates steady through 2025, and Powell has so far resisted Trump's repeated public pressure. The next chance for a rate cut comes in September.
NDTV
2 hours ago
- NDTV
Trump Says US China Close To Trade Agreement, Will Meet Xi If Deal Is Struck
President Donald Trump said on Tuesday the US was close to a trade deal with China and that he would meet his Chinese counterpart Xi Jinping before the end of the year if an agreement is struck. "He asked for a meeting, and I'll end up having a meeting before the end of the year most likely, if we make a deal. If we don't make a deal, I'm not going to have a meeting," Trump told CNBC in an interview referring to China's Xi. "We're getting very close to a deal. We're getting along with China very well," Trump said. Treasury Secretary Scott Bessent said last week he believed the US had the "makings of a deal" with China after officials from the two countries met in Stockholm in a bid to resolve economic disputes aimed at extending their truce on a trade war by three months. China is facing an August 12 deadline to reach a durable tariff agreement with the US administration, after Beijing and Washington reached preliminary deals in May and June to end escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Without a deal, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. Speaking to CNBC, Trump also said his administration would soon impose tariffs on US imports of pharmaceuticals, semiconductors and chips, which is expected to impact China.
