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Business Times
08-07-2025
- Business
- Business Times
Gold steady after Trump unveils steeper tariffs, Treasury yields weigh
[BENGALURU] Gold prices steadied on Tuesday (Jul 8) as US President Donald Trump announced sharply higher tariffs on goods from Japan, South Korea and other nations, while higher US treasury yields capped gains. Spot gold fell 0.1 per cent to US$3,331.89 per ounce as at 0035 GMT. US gold futures were steady at US$3,341.80. On Monday, Trump began telling trade partners, including Japan and South Korea, that sharply higher US tariffs would start on Aug 1, marking a new phase in the trade war he launched earlier this year. The Aug 1 effective date for US tariffs was firm, Trump emphasised but added he was open to extensions if countries made proposals. 'Reciprocal tariffs' were capped at 10 per cent until Jul 9 to allow for negotiations, but only agreements with Britain and Vietnam have been reached so far. The yield on benchmark US 10-year notes hovered near a two-week high, while the US dollar index shed 0.1 per cent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up A higher yield increases the opportunity cost of holding non-yielding bullion, while a weaker US dollar makes it more affordable for holders of other currencies. The Trump administration will not immediately impose a new 10 per cent tariff against members of the developing nation Brics bloc but will proceed if countries take so-called 'anti-American' policy actions, according to a source familiar with the matter. Trump's tariff policies have stoked inflation fears, further complicating the Federal Reserve's path to lower interest rates. The minutes of its June meeting, expected on Wednesday, should offer more clues into its policy outlook. A paper published jointly by the San Francisco and New York Federal Reserve banks suggests the possibility of the Fed cutting its short-term rate target to near-zero levels in the coming years despite current relatively high borrowing costs. Spot silver lost 0.5 per cent to US$36.74 per ounce, platinum shed 1.5 per cent to US$1,370.46 and palladium fell 2.1 per cent to US$1,170.46. REUTERS
Reuters
26-03-2025
- Business
- Reuters
CFO optimism dropped as Trump tariff plans unfolded, survey says
WASHINGTON, March 26 (Reuters) - Optimism among company chief financial officers dropped in the first quarter as tariff risks and uncertainty began to cloud an outlook among business executives that had been buoyed by President Donald Trump's election victory, according to a survey by two Federal Reserve banks and Duke University. On a scale of 0 to 100, average optimism among around 400 CFOs, opens new tab, key players in the corporate spending, investment and pricing decisions that can influence the direction of the economy, fell from a pandemic-era high 66 at the end of last year to 62.1 in the current quarter. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. The index fell as low as 50.5 during a pandemic surge of inflation, but had risen to around 60 before jumping 6 points following Trump's election. Only one sector, construction, showed rising optimism since then, from 66.6 to 68. Optimism among CFOs in manufacturing, the sector Trump has said he will help by taxing imports, fell from 66.6 to 61.6. The drop seemed tied to rising concerns about the uncertain impact of tariffs and Trump's efforts to rewire global trade. The CFOs now anticipate slower growth and higher prices than they did at the end of last year. 'Uncertainty and trade policy were clearly on the minds of CFOs,' said Sonya Ravindranath Waddell, vice president and economist with the Federal Reserve Bank of Richmond. 'Not only did almost one-third of respondents report concerns about tariffs, but those respondents had notably lower optimism, lower expectations for GDP growth, lower expectations for revenue and employment growth, and higher expectations for price growth in 2025.' The CFO survey tracks a recent drop in a Conference Board survey of consumer sentiment, opens new tab, which fell in March to a four-year low with households fearing both recession and higher inflation.
