Latest news with #BartMelek
Reuters
6 days ago
- Business
- Reuters
Gold extends losses as U.S. and EU close in on tariff deal; silver rallies
July 23 (Reuters) - Gold prices extended losses on Wednesday following reports that the U.S. and European Union were closing in on a 15% tariff deal, dampening safe-haven demand, while silver earlier surged to its highest level since September 2011. 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 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.
Wall Street Journal
7 days ago
- Business
- Wall Street Journal
Oil Rises, Boosted by Hopes for More Trade Agreements
0006 GMT — Oil rises in the early Asian session, boosted by hopes for more trade agreements. President Trump announced a 'massive' trade deal with Japan on Truth Social late Tuesday on Truth Social. Trump's announcement follows other U.S. trade deals with the Philippines and Indonesia. Hopes for comprehensive trade deals between the Trump administration and the U.S.'s key trading partners and strong seasonal demand are keeping global oil prices elevated, says Bart Melek, head of Commodity Strategy at TD Securities, in a research report. Front-month WTI crude oil futures are 0.4% higher at $65.56/bbl; front-month Brent crude oil futures are 0.4% higher at $68.87/bbl. (
CNBC
10-07-2025
- Business
- CNBC
CCTV Script 09/07/25
On Tuesday local time, after Trump threatened to impose a 50% tariff on copper, U.S. copper futures prices surged—at one point rising by about 17% before pulling back. However, by the close of trading, prices still ended at a record high. Overnight, July-delivery COMEX copper futures rose by 66.05 cents per pound to settle at $5.645 per pound, a gain of about 13%. According to Dow Jones Market Data, this marked the largest single-day increase for that futures contract since 1968. Trump's copper tariff threat comes at a time when the U.S. and countries around the world are projecting a significant increase in copper demand over the next decade. Data centers, automakers, and utility companies are increasingly relying on copper as a key material to build power grids, produce electric vehicles, and support the development of AI and digital infrastructure. According to the U.S. Geological Survey, refined copper consumption in the U.S. in 2024 is around 1.6 million tons. Although the U.S. has abundant copper resources, it still depends on imports from key trading partners to meet demand. Chile is the largest source, accounting for 38% of imports, followed by Canada at 28%, and Mexico at 8%. Research from Morgan Stanley shows that net imports account for 36% of total U.S. copper demand. As a result, Trump's tariff threat has triggered a clear price premium for U.S. copper futures over the global benchmark, London copper futures. According to Bart Melek, Head of Commodity Strategy at TD Securities, when adjusted for exchange rates, U.S. copper prices are currently about $2,000 per ton higher than those in London. This is a significant spread that could attract more copper into U.S. warehouses, thereby putting pressure on global copper supplies. Reporting by the Financial Times also shows that many traders have rushed to ship copper into the U.S. ahead of potential tariff implementation. Large volumes of copper have already flowed into the U.S. from Europe and Asia. Some analysts describe copper trading now as the most sentiment-driven in the entire metals market. Meanwhile, regarding Trump's claim that he would impose tariffs as high as 200% on foreign-made pharmaceuticals, the U.S. pharmaceutical lobby groups have issued warnings, saying that medicines have traditionally been exempt from tariffs and that adding tariffs would raise costs and risk supply shortages. PhRMA, the largest pharmaceutical lobby group in the U.S., reiterated its opposition to tariffs on medicines in a new statement. The group said that every dollar spent on tariffs means one less dollar available for domestic manufacturing or future medical innovation. In 2024, total U.S. pharmaceutical imports amounted to around $212 billion, making medicines the country's fifth-largest import category. Experts warn that imposing tariffs on pharmaceuticals could lead to higher drug prices for Americans.'That would be potentially disastrous for every person, because we need those pharmaceuticals, and it takes those companies a very long time to produce them here in the US."
Wall Street Journal
30-06-2025
- Business
- Wall Street Journal
Gold Edges Lower Amid Trade Deal Hopes, Risk Appetite
2347 GMT — Gold edges lower in the early Asian session. 'It looks increasingly likely the U.S. moved closer to trade deals with China and other key trading partners,' TD Securities' Bart Melek says in a research report. Also, the Iran-Israel cease-fire is reviving risk appetite, the head of Commodity Strategy says. 'While we judge that gold may still move lower, a deep rout is not expected as we see firm technical support at plus/minus $50 of $3,100/oz,' Melek adds. Spot gold is 0.2% lower at $3,267.43/oz. (
Zawya
23-06-2025
- Business
- Zawya
Gold inches higher as Iran-Israel tensions offset dollar strength
Gold prices nudged higher on Monday, as escalating Iran-Israel tensions outweighed pressure from a stronger dollar, with markets closely watching Iran's next move. Spot gold was up 0.2% at $3,375.79 an ounce, as of 0939 a.m. EDT (1339 GMT). U.S. gold futures gained 0.2% at $3,391.70. The U.S. dollar index rose 0.5%. A stronger U.S. currency makes gold less affordable for other currency holders. Israel's military bombed Evin prison in northern Tehran, a potent symbol of Iran's governing system, in what Israel called its most intense bombing yet of the Iranian capital a day after the United States joined the war. Meanwhile, Iran repeated earlier threats to retaliate against the U.S. "If we don't see significant inflation on top of what we're already seeing from tariffs, that ultimately means more risk appetite. So, gold safe haven purchases may moderate a little bit, at least in the short run," said Bart Melek, head of commodity strategies at TD Securities. "I think prices will stay fairly stable, maybe moving up or down by around $75," he added. Gold is traditionally seen as a hedge against inflation and a safe haven during times of uncertainty. However, higher interest rates reduce its appeal, as it doesn't generate any yield. Investors also await the U.S. Personal Consumption Expenditures data due later this week. Last week, the Federal Reserve left the U.S. policy rate in its current 4.25%-4.50% range with policymakers hinting at possible rate cuts later this year, though Chair Jerome Powell expressed uncertainty due to tariff policy and economic response. Spot silver was up 0.4% at $36.14 per ounce and platinum rose 2.1% to $1,291.50. Palladium gained 2.% to $1,070.09, reaching its highest level since June 12. (Reporting by Sarah Qureshi in Bengaluru; Editing by Shailesh Kuber)
