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Economic Times
23-06-2025
- Business
- Economic Times
Gold rises as investors seek safe havens amid Middle East conflict fears
Gold prices inched higher on Monday as investors turned to safe-haven assets amid growing fears of a broader Middle East conflict, with markets closely watching for Iran's response to U.S. attacks on its nuclear sites. ADVERTISEMENT FUNDAMENTALS * Spot gold was up 0.1% at $3,371.30 an ounce, as of 0020 GMT. U.S. gold futures were steady at $3,387.20. * The world braced on Sunday for Iran's response after the U.S. attacked key Iranian nuclear sites, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution. * In a televised address, U.S. President Donald Trump warned Iran against retaliating, stating that any response would trigger further attacks unless Iran agreed to pursue peace. * Tehran vowed retaliation, with missile exchanges between Iran and Israel continuing over the weekend. Israeli fighter jets struck military sites in western Iran, according to officials, while Iranian missiles wounded scores of people and flattened buildings in Tel Aviv. ADVERTISEMENT * Meanwhile, the close split at the U.S. Federal Reserve over whether to keep hedging against inflation risks or move forward faster with rate cuts came through on Friday in the first public comments from policymakers following a decision this week to hold borrowing costs steady for now. * The Fed's latest Monetary Policy Report to Congress, released on Friday, said that U.S. inflation remains somewhat elevated and the labor market is solid. However, it suggested that the full impact of Trump's tariffs is likely yet to be felt, reiterating the Fed's stance that it can wait for greater clarity before making policy moves. ADVERTISEMENT * On Friday, Trump once again floated the idea of firing Fed Chair Jerome Powell, whom he has long criticized for not lowering interest rates as much as he wants. * Elsewhere, spot silver was up 0.1% at $36.03 per ounce, platinum fell 0.3% to $1,260.78, while palladium edged down 0.1% to $1,043. DATA/EVENTS (GMT) 0030 Japan JibunBK Comp Op, SVC PMI, Mfg PMI Flash SA June 0715 France HCOB Mfg, Services, Composite Flash PMI June 0730 Germany HCOB Mfg, Services, Composite Flash PMI June 0800 EU HCOB Mfg, Services, Composite Flash PMI June 0830 UK Flash Composite, Manufacturing, Services PMI June 1345 US S&P Global Mfg, Services, Comp PMI Flash June 1400 US Existing Home Sales May. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
New Straits Times
23-06-2025
- Business
- New Straits Times
Gold rises as investors seek safe havens amid Middle East conflict fears
NEW YORK: Gold prices inched higher on Monday as investors turned to safe-haven assets amid growing fears of a broader Middle East conflict, with markets closely watching for Iran's response to US attacks on its nuclear sites. Spot gold was up 0.1 per cent at US$3,371.30 an ounce, as of 0020 GMT. US gold futures were steady at US$3,387.20. The world braced on Sunday for Iran's response after the US attacked key Iranian nuclear sites, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution. In a televised address, US President Donald Trump warned Iran against retaliating, stating that any response would trigger further attacks unless Iran agreed to pursue peace. Tehran vowed retaliation, with missile exchanges between Iran and Israel continuing over the weekend. Israeli fighter jets struck military sites in western Iran, according to officials, while Iranian missiles wounded scores of people and flattened buildings in Tel Aviv. Meanwhile, the close split at the US Federal Reserve over whether to keep hedging against inflation risks or move forward faster with rate cuts came through on Friday in the first public comments from policymakers following a decision this week to hold borrowing costs steady for now. The Fed's latest Monetary Policy Report to Congress, released on Friday, said that US inflation remains somewhat elevated and the labor market is solid. However, it suggested that the full impact of Trump's tariffs is likely yet to be felt, reiterating the Fed's stance that it can wait for greater clarity before making policy moves. On Friday, Trump once again floated the idea of firing Fed Chair Jerome Powell, whom he has long criticized for not lowering interest rates as much as he wants. Elsewhere, spot silver was up 0.1 per cent at US$36.03 per ounce, platinum fell 0.3 per cent to US$1,260.78, while palladium edged down 0.1 per cent to US$1,043.
Business Times
23-06-2025
- Business
- Business Times
Gold rises as investors seek safe havens amid Middle East conflict fears
[BENGALURU] Gold prices inched higher on Monday (Jun 23) as investors turned to safe-haven assets amid growing fears of a broader Middle East conflict, with markets closely watching for Iran's response to US attacks on its nuclear sites. Spot gold was up 0.1 per cent at US$3,371.30 an ounce, as at 0020 GMT. US gold futures were steady at US$3,387.20. The world braced on Sunday for Iran's response after the US attacked key Iranian nuclear sites, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution. In a televised address, US President Donald Trump warned Iran against retaliating, stating that any response would trigger further attacks unless Iran agreed to pursue peace. Tehran vowed retaliation, with missile exchanges between Iran and Israel continuing over the weekend. Israeli fighter jets struck military sites in western Iran, according to officials, while Iranian missiles wounded scores of people and flattened buildings in Tel Aviv. Meanwhile, the close split at the US Federal Reserve over whether to keep hedging against inflation risks or move forward faster with rate cuts came through on Friday in the first public comments from policymakers following a decision this week to hold borrowing costs steady for now. The Fed's latest Monetary Policy Report to Congress, released on Friday, said that US inflation remains somewhat elevated and the labour market is solid. However, it suggested that the full impact of Trump's tariffs is likely yet to be felt, reiterating the Fed's stance that it can wait for greater clarity before making policy moves. On Friday, Trump once again floated the idea of firing Fed chair Jerome Powell, whom he has long criticised for not lowering interest rates as much as he wants. Elsewhere, spot silver was up 0.1 per cent at US$36.03 per ounce, platinum fell 0.3 per cent to US$1,260.78, while palladium edged down 0.1 per cent to US$1,043. REUTERS
New York Post
20-06-2025
- Business
- New York Post
Fed divided over whether to slash interest rates in July
Federal Reserve officials are signaling a widening divide over when to begin cutting interest rates, with Governor Christopher Waller pushing for a reduction as soon as next month — while Richmond Fed President Thomas Barkin is warning that tariff-driven inflation risks still loom large. 'I think we're in the position that we could do this as early as July,' Waller told CNBC's 'Squawk Box' on Friday. 'That would be my view, whether the committee would go along with it or not.' Waller argued that inflation has cooled enough to justify easing monetary policy and downplayed concerns over Trump-era tariffs. 'It should be a one-off level effect and not cause persistent inflation,' he said. 4 Federal Reserve Governor Christopher Waller signaled Friday that the central bank could begin easing interest rates as early as next month. REUTERS 4 Richmond Fed President Thomas Barkin is warning that tariff-driven inflation risks still loom large. REUTERS Barkin took a more cautious tone, telling Reuters: 'I don't think the data gives us any rush to cut…I am very conscious that we've not been at our inflation target for four years.' He pointed to ongoing uncertainty over trade policy, telling Reuters: 'There will be some inflationary impact. It's hard to know how much.' A Federal Reserve governor is a nationally appointed official who always votes on monetary policy. The president of a regional Fed bank, such as Richmond, votes on a rotating basis and focuses on regional conditions. Barkin noted the labor market remains solid and consumer spending is steady. 'Nothing is burning on either side such that it suggests there's a rush to act,' he said. His comments came just after the Fed released its latest Monetary Policy Report to Congress, which acknowledged that inflation is 'somewhat elevated' and trade policy impacts are 'highly uncertain.' Consumer spending, Barkin said, is 'holding up fine. It's not frothy. It's not weak.' Employers, he added, are still in a 'low-hiring-low-firing' posture. The central bank held its key rate steady this week. Projections showed a near-even split: 10 officials see two or three cuts in 2025; nine see one or none. 'There are two perfectly reasonable views that are articulated there,' according to the Richmond fed boss. Waller urged a cautious start. 'You'd want to start slow and bring them down, just to make sure that there's no big surprises. But start the process. That's the key thing,' he told CNBC. Markets showed mixed signals Friday. As of 1:01 PM EDT, the Dow Jones rose 118.13 points (0.28%) to 42,289.79. The S&P 500 edged down 0.67 points to 5,980.20, and the Nasdaq slipped 54.82 points (0.28%) to 19,491.45. 4 Fed Chair Jerome Powell said this week that the central bank would keep interest rates steady. Getty Images 4 President Trump has been agitating for the Fed to lower interest rates for months. AP Trump has called for steep rate cuts to ease pressure on the $36 trillion national debt, recently labeling Fed Chair Jerome Powell 'stupid' and a 'numbskull.' Still, Powell and others have maintained a cautious stance, emphasizing a wait-and-see approach. 'We've been on pause for six months, thinking that there was going to be a big tariff shock to inflation. We haven't seen it,' Waller said. The next Fed meeting comes just ahead of a July 9 trade deadline that could bring another round of tariffs. 'I'd say the overwhelming reaction we're still getting is wait and see,' Barkin said. 'Wait and see is not put your foot on the brakes. It's just not put your foot on the gas.'
Business Times
20-06-2025
- Business
- Business Times
Still early to assess tariff impact on US economy, Fed report says
THE Federal Reserve's latest Monetary Policy Report to Congress, released on Friday (Jun 20), said US inflation is somewhat elevated and the labour market is in solid shape. However, it suggested that President Donald Trump's tariffs have likely only begun to be felt, and repeated the central bank's view that it can wait for more clarity before taking action. 'The effects on US consumer prices of the increase in import tariffs this year are highly uncertain, as trade policy continues to evolve, and it is still early to assess how consumers and firms will respond,' said the report, which comes ahead of next week's testimony before Congress by Fed chair Jerome Powell. 'Although the effects of tariffs cannot be observed directly in the official consumer price statistics, the pattern of net price changes among goods categories this year suggests that tariffs may have contributed to the recent upturn in goods inflation.' So far, though, the effect of tariffs has yet to show up in the official data for some goods, notably cars, though they have weighed on household and business sentiment. The Monetary Policy Report, which comes twice yearly, generally summarises topics already well known to Fed watchers and market participants. On Wednesday, Fed policymakers wrapped up their rate-setting meeting with a decision to leave the policy rate in the 4.25 to 4.5 per cent range, where it has been since December. Central bankers want to see how the Trump administration's tariffs and other policies affect inflation, the labour market, and the economy broadly before they adjust borrowing costs. Powell said he expects to see 'meaningful' inflation in the coming months, and policymakers generally see the economy slowing and the unemployment rate ticking up to 4.5 per cent this year. The report said that despite uncertainty the financial system has been 'resilient'. REUTERS
