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Business Recorder
6 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.
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.
Time of India
12-06-2025
- Business
- Time of India
Gold prices edge down as traders monitor US-China talks
Gold prices edged lower on Tuesday as traders closely monitored U.S.-China talks, the outcome of which could simmer down trade tensions and boost the global economy, lessening demand for safe-haven assets, while a rising U.S. dollar added pressure. Spot gold fell 0.1% to $3,324.55 an ounce as of 1402 EDT (1802 GMT) and U.S. gold futures settled 0.3% lower at $3,343.40. The dollar index rose 0.2% against its rivals, making gold more expensive for other currency holders. USD/ "Over the last several sessions, we've seen gold retrace a bit off the recent highs, mostly done on the back of optimism in regards to the expectations of negotiations between China and the U.S., UK and Russia," said David Meger, director of metals trading at High Ridge Futures. U.S. Commerce Secretary Howard Lutnick said the talks with China were going well and expected to last all day as the two sides met for a second day in London, seeking a breakthrough on export controls that have threatened a fresh rupture between the superpowers. A trade deal could dampen gold's appeal as a safe haven, since it tends to thrive amidst geopolitical and economic uncertainty as a store of value. "(Investors are) waiting for a pullback to happen, like around $3,100 an ounce, but right now it's just wait and see on what comes out of the China talks," said Bob Haberkorn, senior market strategist at RJO Futures. Investors are also keenly awaiting U.S. Consumer Price Index data on Wednesday. Spot silver was down 0.5% to $36.53 per ounce. Platinum eased 0.5% to $1,213.08, after hitting its highest level since May 2021. Palladium lost 1.2% to $1,061.85. "The rally in platinum has been supported by a combination of supply concerns, speculative interest and a broader uplift across the precious metals complex," said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. "Palladium is lagging primarily due to its narrower demand base and weaker investment appeal."
International Business Times
04-06-2025
- Business
- International Business Times
Gold Falls from 4-Week High as Dollar Strengthens and Tariff Fears Grow
Gold prices jumped to nearly a four-week peak in the previous session, providing a glimmer of hope for investors seeking shelter from market turbulence. But that optimism lasted only until Tuesday, when a stronger United States dollar and renewed global trade worries pushed the precious metal back down. Investor sentiment turned cautious again, particularly with important data and geopolitical updates. Spot gold fell by 1.1 percent to $3,340.79 an ounce by 10:21 a.m. ET, dropping from its previous peak — the highest since May 8. U.S. gold futures fell 0.9% to $3,365.90. The drop came as the dollar index (.DXY) was up 0.5%, rebounding from a one-month low. A strengthening dollar tends to make gold more expensive for buyers who do not use the currency and typically acts to depress demand. Even with Tuesday's slip, gold is still up almost 28 percent for the year. The metal remains a trusted haven amid inflationary pressures and geopolitical tension. Silver fell 1.2% to $34.37 an ounce but still remained near a seven-month peak hit recently. Platinum slipped 0.4 percent, to $1,059.32, while palladium gained 1.4 percent, to $1,003.10. Gold has shown huge sensitivity to changes in politics and central-bank expectations. Traders are on edge this week awaiting a possible phone conversation between U.S. President Donald Trump and Chinese President Xi Jinping. Trump shocked the world with his latest accusations aginst China for reneging on a past pledge to roll back tariffs, fueling fears that trade tensions could return to the fore. Further clouding the outlook was an announcement by the European Commission, which said it planned to challenge Washington's most recent tariff plans. Meanwhile, Trump suggested doubling tariffs on steel and aluminum, which could heighten trade friction with trade partners. "Market conditions are going through the summer slow period," said David Meger, director of metals trading at High Ridge Futures. "That, extending as well with trade jitters, could mean gold continues to trade sideways unless we see a big catalyst." Investors are also awaiting important U.S. economic updates this week. All eyes are on Friday's nonfarm payrolls report and on remarks from several Federal Reserve officials. Analysts say September could be an inflection point for rate cuts, which would normally be supportive for gold.
Business Recorder
03-06-2025
- Business
- Business Recorder
Gold falls from near four-week peak on firm dollar
NEW YORK: Gold fell over 1% on Tuesday after hitting a near four-week high, pressured by a firmer dollar as investors grew cautious ahead of a potential call between US President Donald Trump and Chinese leader Xi Jinping. Spot gold fell 1.1% to $3,340.79 an ounce as of 10:21 a.m. ET (1421 GMT), after hitting its highest since May 8, earlier in the session. US gold futures eased 0.9% to $3,365.90. The dollar rose 0.5% from an over-a-month low hit earlier in the session, making gold costlier for foreign buyers. 'We are moving into this period that is well known to be the summer doldrums, so there's an expectation that the gold market could fall into a bit of a lull or a sideways consolidation,' said David Meger, director of metals trading at High Ridge Futures. Markets are on edge ahead of a likely Trump-Xi call this week, after Trump accused China of violating an agreement to roll back tariffs. The talks come as trade tensions between the world's two largest economies continue to simmer. Separately, the European Commission said it would push for lower US tariffs even as Trump proposed doubling duties on steel and aluminum, while Washington urged trade partners to submit revised offers by Wednesday to speed up talks.
