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Business Recorder
4 days ago
- Business
- Business Recorder
Gold hits one-week low as dollar gains; trade talks in focus
NEW YORK: Prices fell to their lowest level in more than a week on Wednesday as the dollar strengthened, while investors monitored developments in trade negotiations between the United States and its trading partners. Spot gold was down 0.1% at $3,297.19 per ounce, as of 9:23 am ET (1323 GMT), after hitting its lowest level since June 30 earlier. US gold futures fell 0.3% to $3,306.10. The US dollar index hovered near a two-week high, making bullion less attractive for overseas buyers. The yield on benchmark 10-year US Treasury notes remained close to a three-week peak. 'In the short term, I note that the dollar is bouncing off those recent lows a little bit, taking some of the wind out of the sails of the gold market... from a longer term perspective gold prices are well supported,' said David Meger, director of metals trading at High Ridge Futures. On the trade front, the European Union said it was working on reaching a deal with the United States by the end of the month, while Trump promised that he would deliver further tariff notices on unnamed countries. Investors are also focused on the minutes of the Federal Reserve's latest policy meeting, due at 2:00 pm ET (1800 GMT) for any hints on central bank's interest rate trajectory. Minutes from the Fed's June 17-18 meeting are expected to show a divided central bank hesitant to commit to rate cuts amid uncertainty over the inflation impact of Trump's tariff hikes. 'We would expect out of those minutes today to reiterate the likelihood that the Fed will not be lowering rates at its July meeting and the earliest would be at its September meeting,' Meger added. Gold usually does well in uncertain times but tends to struggle when interest rates are high, since it doesn't earn interest. Spot silver fell 1% to $36.40 per ounce, platinum shed 0.3% to $1,355.69 and palladium lost 1.5% to $1,094.44.
Hindustan Times
04-07-2025
- Business
- Hindustan Times
Gold price today in US: Drops 1% to $3,328.63 as rate cut hopes fade
The price of gold fell by 1% after a strong US jobs report came in stronger than expected on Thursday, thus making it less likely for the Federal Reserve to cut interest rates, which makes gold less attractive, Reuters reported. Gold price today in US: The US dollar and stock index futures went up after new jobs data came out. (Pexels) Spot gold dropped 0.9% to $3,328.63 an ounce by 2:00 p.m. EDT (1800 GMT). Earlier in the day, it had dropped over 1%. US gold futures, however, closed 0.4% higher at $3,342.90. The US dollar and stock index futures went up after new jobs data came out. The report showed that non-farm payrolls rose by 147,000 in June. Experts had expected an increase of only 110,000 jobs, according to a Reuters survey. A stronger dollar usually makes gold more expensive for buyers in other countries. Also Read: Mortgage rates fall again in US: 15-year stands at 5.57%, 30-year at 6.61% Lesser likelihood of a Fed rate cut earlier than currently anticipated David Meger, who works at High Ridge Futures, said, 'The better than expected jobs number means we see a lesser likelihood of a Fed rate cut earlier than currently anticipated. As a result, the dollar strengthened, which is adding pressure to the gold market.' He also added, 'The key is the fact that the idea or possibility of a July rate cut is off the table.' After the jobs report, traders are now expecting about 51 basis points of rate cuts from the Fed by the end of 2025. Before the report, the expectation was around 66 basis points. The first cut is now seen in October. Gold does better when interest rates are low because it doesn't earn interest. On the trade side, the US and Vietnam reached a deal on Wednesday. This happened just before US tariffs on Vietnam were set to begin on July 9. In Washington, House Republicans moved forward with a big tax-and-spending plan backed by Donald Trump. It could add $3.4 trillion to the US debt if passed. Carsten Menke from Julius Baer said, 'As the indebtedness of the US continues to grow, investors might become more concerned about the US dollar, which should benefit gold in the longer-term.' Other metal prices Other metals also moved on Thursday, following Spot silver rose 0.7% to $36.84 an ounce, platinum dropped 3.1% to $1,374.89 and palladium fell 1.5% to $1,137.69.
Business Recorder
04-07-2025
- Business
- Business Recorder
Gold falls as strong US payrolls data douses rate cut hopes
NEW YORK: Gold fell 1% on Thursday as stronger-than-expected US payroll data cemented expectations that the Federal Reserve is unlikely to cut interest rates as early as previously anticipated, denting the metal's appeal. Spot gold fell 1% to $3,325.48 per ounce as of 1303 GMT, while US gold futures were down 0.7% to $3,336.00. The dollar and US stock index futures rose after non-farm payrolls increased by 147,000 jobs last month, the Labour Department's Bureau of Labour Statistics showed. Economists polled by Reuters had forecast payrolls rising 110,000. Stronger dollar makes bullion more expensive for overseas buyers. 'The better than expected jobs number means we see a lesser likelihood of a Fed rate cut earlier than currently anticipated. As a result, the dollar strengthened which is adding pressure to the gold market,' said David Meger, director of metals trading at High Ridge Futures. 'The key is the fact that the idea or possibility of a July rate cut is off the table.' Investors are now pricing in 53 basis points of Federal Reserve rate cuts by the end of the year, starting in October, down from around 66 basis points expected prior to the report. Non-yielding gold tends to perform well in a low-interest-rate environment. On the trade front, an agreement between the United States and Vietnam was announced on Wednesday ahead of a July 9 deadline when US tariffs are set to take effect. Meanwhile, Republicans in the US House of Representatives advanced Trump's massive tax-cut and spending bill, estimated to potentially add $3.4 trillion to the nation's debt, toward a final yes-or-no vote. 'As the indebtedness of the US continues to grow, investors might become more concerned about the US dollar, which should benefit gold in the longer-term,' said Carsten Menke, an analyst at Julius Baer. Spot silver edged down 0.2% to $36.51 per ounce, platinum lost 2.9% to $1,376.80 and palladium shed 2.3% to $1,128.78.
Business Recorder
26-06-2025
- Business
- Business Recorder
Gold slips on easing ME tensions, Fed rate cut uncertainty
NEW YORK: Gold prices edged lower on Thursday, weighed down by easing geopolitical tensions in the Middle East and continued uncertainty over the Federal Reserve's interest rate trajectory. Spot gold fell 0.5% to $3,316.47 per ounce, as of 0933 a.m. EDT (1333 GMT). US gold futures slipped 0.4% to $3,329.20. 'Gold has declined over the past few sessions due to de-escalation in the Middle East. Also, adding pressure was the anticipated interest rate cut — eagerly awaited by the market that continues to be delayed amid rising inflation expectations driven by Trump-era tariffs,' said David Meger, director of metals trading at High Ridge Futures. Meanwhile, Fed Bank of Richmond President Thomas Barkin cautioned it was hard to know how tariff increases will translate into inflation in the US economy. Chicago Fed president Austan Goolsbee said a decision by US President Donald Trump to name a replacement for Fed chair Jerome Powell would have no influence on monetary policy from outside the central bank. Markets currently anticipate two rate cuts totalling 50 basis points this year, starting in September. Gold usually does well during times of uncertainty and inflation, but higher interest rates make it less attractive since it doesn't earn any interest. Data showed the US economy contracted a bit faster than previously thought in the first quarter amid tepid consumer spending, underscoring the distortions caused tariffs. Investors are now eyeing Friday's Personal Consumption Expenditures (PCE) data. Palladium lost 2.5% to $1,084.41. Platinum climbed to its highest level since September 2014, adding 1.7% to $1,377.62. Internal combustion vehicles are likely to remain relevant for longer as governments delay phase-out targets, and biofuel adoption continues to rely on platinum group metals, said Nitesh Shah, commodities strategist at WisdomTree. Spot silver was up 0.2% to $36.39.
Shafaq News
16-06-2025
- Business
- Shafaq News
Gold drifts lower with focus on Israel-Iran conflict, Fed meeting
Shafaq News/ Gold prices slipped on Monday after hitting nearly an eight-week high, while the market focused on escalating Israel-Iran tensions and the Federal Reserve's policy meeting this week. Spot gold was down 0.5% to $3,416.48 an ounce by 8:57 a.m. EDT (1257 GMT) after hitting its highest level since April 22 earlier in the session. Prices rose more than 1% on Friday. US gold futures were down 0.5% to $3,436.10. "Keep in mind that gold has moved higher over the past several sessions, largely in response to the conflict between Israel and Iran. Today, we're seeing more of a pullback, likely due to profit-taking after that higher move," said David Meger, director of metals trading at High Ridge Futures. Iranian missiles struck Tel Aviv and the port city of Haifa on Monday, prompting Israel's defence minister to warn that residents in Tehran would "pay the price and soon". Meanwhile, leaders from the Group of Seven nations begin annual talks in Canada. US stock index futures rose while the dollar held ground in choppy trading. Investors are also focused on the Fed's two-day policy meeting, which wraps up on Wednesday. The US central bank is widely expected to keep interest rates unchanged. "At this point, it appears the Fed is inclined to remain on hold, given the significant uncertainty in the economy, ranging from tariffs to geopolitical tensions. So, it wouldn't be surprising to see the Fed delay any interest rate cuts, effectively kicking the can down the road," Meger said. Bullion is viewed as a safeguard during times of geopolitical instability and rising inflation. It also benefits from low interest rate environments, since it doesn't offer any yield income. Among other metals, spot silver rose 0.4% to $36.45 per ounce, platinum jumped 2.6% to $1,259.80, while palladium gained 2.3% to $1,051.07.
