Gold succumbs to profit-taking after US jobs data-fuelled rally
Spot gold lost 0.3% to $3,354.17 per ounce as of 0229 GMT. Bullion had risen more than 2% on Friday. However, U.S. gold futures gained 0.2% to $3,407.10.
'Gold has made a conservative start to the week following Friday's price jump. A combination of profit taking and dollar stabilisation has caused gold to ease marginally to kick-off the week,' KCM Trade Chief Market Analyst Tim Waterer said.
Asian markets tracked Wall Street lower as fears for the U.S. economy returned with a vengeance, prompting investors to price in an almost certain rate cut in September and undermining the dollar.
Last week, U.S. job growth slowed more than expected in July, with nonfarm payrolls increasing by 73,000 jobs last month, after rising by a downwardly revised 14,000 in June, the Labor Department's Bureau of Labor Statistics said.
This revived hopes of a Fed rate cut in September, with markets now pricing in an 81% chance, per CME FedWatch tool.
The tariffs U.S. President Donald Trump imposed last week on scores of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said in comments aired on Sunday.
'But with Trump on the tariff warpath once again, and the soft U.S. jobs report increasing the odds that we could see a September FOMC rate cut, any pullbacks in the precious metal could be of a shallow nature,' Waterer added.
Gold, traditionally considered a safe-haven asset during political and economic uncertainties, tends to thrive in a low-interest-rate environment.
Spot silver fell 0.6% to $36.80 per ounce, platinum slipped 0.6% to $1,307.02 and palladium eased 0.9% to $1,197.76.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
'Pak diplomatic clout rises under COAS'
In a glowing review, the British journal The Economist has heaped praise on Field Marshal Asim Munir's diplomatic acumen, noting that his stewardship is breathing new life into Pakistan's foreign policy and reshaping the country's image on the world stage. The article casts a spotlight on the historic meeting between Field Marshal Munir and US President Donald Trump at the White House in June, an encounter that laid the foundation for a diplomatic transformation in South Asia. The piece also noted a dramatic shift in Washington's tone, quoting Trump as having called India a "dead economy" while slapping a 25 per cent tariff on its goods. Meanwhile, in a notable contrast, a trade deal was inked with Pakistan at a much lighter 19 per cent tariff on exports – a clear indicator of warming relations between the two countries. "There he was, enjoying a private lunch with Donald Trump in the White House on June 18, just over a month after Pakistan's brief conflict with India," The Economist wrote of the high-profile meeting. "Then, at the end of July, came further snubs for India: branding it a 'dead economy', Mr Trump imposed tariffs of 25pc while hailing a new trade deal with Pakistan." The journal further stated that the tide may be turning in Pakistan's favour, reporting that Washington was now actively working to revive trade, defence cooperation and counter-terrorism ties with Islamabad. According to the article, a senior US official acknowledged Pakistan's operations against ISIS, and the administration was now considering supplying Pakistan with armoured vehicles and night vision equipment. Speaking to the Director General of Inter-Services Public Relations (ISPR), Lieutenant General Ahmed Sharif Chaudhry, The Economist quoted him as saying that Field Marshal Munir is "well versed" with the West, despite not having trained in the US or the UK. "To India's dismay, America and Pakistan are now rebuilding ties with a focus on trade, counter-terrorism and consultation on Middle Eastern policy. America may even sell arms again to Pakistan," the magazine noted. The Economist also acknowledged that Pakistan had recently won praise from Washington for taking out key figures of a local offshoot of the Islamic State terrorist group, a feather in the cap of Pakistan's counter-terrorism campaign. In June, United States Central Command (Centcom) commander Army General Michael Kurilla described Pakistan as a "phenomenal partner" in the fight against terrorism, particularly citing its efforts in Balochistan and operations targeting groups like the Islamic State. In a further sign that the ice is thawing, America has softened its stance on Pakistan's long-range missile programme, once seen by Biden-era officials as a looming threat to US interests, The Economist observed.
Express Tribune
2 hours ago
- Express Tribune
US announces major tourist visa change
The US could require bonds of up to $15,000 for some tourist and business visas under a pilot program launching in two weeks, a government notice said on Monday, an effort that aims to crack down on visitors who overstay their visas. The program gives US consular officers the discretion to impose bonds on visitors from countries with high rates of visa overstays, according to a Federal Register notice. Bonds could also be applied to people coming from countries where screening and vetting information is deemed insufficient, the notice said. President Donald Trump has made cracking down on illegal immigration a focus of his presidency, boosting resources to secure the border and arresting people in the US illegally. He issued a travel ban in June that fully or partially blocks citizens of 19 nations from entering the U.S. on national security grounds. Trump's immigration policies have led some visitors to skip travel to the United States. Transatlantic airfares dropped to rates last seen before the COVID-19 pandemic in May and travel from Canada and Mexico to the US fell by 20% year-over-year. Effective August 20, the new visa program will last for approximately a year, the government notice said. Consular officers will have three options for visa applicants subjected to the bonds: $5,000, $10,000 or $15,000, but will generally be expected to require at least $10,000, it said. The funds will be returned to travelers if they depart in accordance with the terms of their visas, the notice said. A similar pilot program was launched in November 2020 during the last months of Trump's first term in office, but it was not fully implemented due to the drop in global travel associated with the pandemic, the notice said. The State Department was unable to estimate the number of visa applicants who could be affected by the change. Many of the countries targeted by Trump's travel ban also have high rates of visa overstays, including Chad, Eritrea, Haiti, Myanmar and Yemen. Numerous countries in Africa, including Burundi, Djibouti and Togo also had high overstay rates, according to US Customs and Border Protection data from fiscal year 2023. A provision in a sweeping spending package passed in the Republican-controlled US Congress in July also created a $250 "visa integrity fee" for anyone approved for a non-immigrant visa that could potentially be reimbursable for those who comply with visa rules. The $250 fee goes into effect on October 1
Express Tribune
3 hours ago
- Express Tribune
Rupee extends momentum
The Pakistani rupee continued its upward momentum against the US dollar on Monday, appreciating by 0.02% in the inter-bank market. At the close of trading, the local currency was quoted at 282.66, marking a modest gain of six paisa. During the previous week, the rupee had advanced by 73 paisa, or 0.26%, closing at 282.72 compared with 283.45 a week earlier, according to data from the State Bank of Pakistan (SBP). AKD Securities noted that the rupee has strengthened by Rs2.31 against the greenback over the past nine trading sessions. On the global front, the US dollar edged slightly higher on Monday after suffering a blow last week from disappointing jobs data and political turbulence following President Donald Trump's dismissal of a top labour official. US Labour Department figures released on Friday showed job growth in July fell short of expectations, while non-farm payrolls for the previous two months were sharply revised downwards by 258,000, highlighting further weakness in the labour market and bolstering expectations of imminent interest rate cuts by the Federal Reserve. Meanwhile, gold prices in Pakistan rose, tracking gains in the international market, where the precious metal extended its upward momentum for a third consecutive session. The rally was driven by renewed expectations of interest rate cuts by the US Fed, following the release of softer economic data last week. According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold per tola increased by Rs500 to settle at Rs359,500. Meanwhile, the price of 10 grams rose by Rs429 to Rs308,213. The latest uptick comes after a sharp jump on Saturday, when gold surged by Rs6,100 per tola, reaching Rs359,000. Commenting on the market trend, Interactive Commodities Director Adnan Agar said gold prices continued to show strength. "Monday's high was $3,385 and the low at $3,344. The market was later hovering around $3,378. If it closes above $3,375-80, there is potential for gold to test $3,440-50 levels again," he said. He added that Friday's economic data came out in favour of gold, boosting sentiment and triggering a recovery in global prices. "If gold maintains its strength and closes above key levels, further upside is likely in the coming sessions," Agar noted. Spot gold rose 0.3% to $3,373.22 per ounce as of 1315 GMT, its highest level since July 24. US gold futures gained 0.8% to $3,427.10. "The odds are stronger now for a rate cut in September and even stronger for another rate cut in December. That, coupled with the headwinds of inflation, I think, is pretty bullish for gold," said Daniel Pavilonis, Senior Market Strategist at RJO Futures.
