Latest news with #SPDRGoldTrust
Zawya
2 hours ago
- Business
- Zawya
Gold flat as dollar firms after US imposes fresh tariffs; jobs data in focus
Gold prices were flat on Friday and is set to log a weekly fall as the dollar crept higher after U.S. President Donald Trump slapped new tariff rates on dozens of countries, while investors awaited U.S. non-farm payrolls data due later in the day. FUNDAMENTALS * Spot gold was steady at $3,289.79 per ounce, as of 0127 GMT. Bullion is down 1.4% so far this week. * U.S. gold futures eased 0.3% to $3,340.20. * The dollar index rose 0.1% to hover near a two-month peak hit on Thursday, making gold more expensive for other currency holders. * Trump signed an executive order on Thursday imposing "reciprocal" tariffs ranging from 10% to 41% on imports from dozens of countries and foreign locations. * He increased duties on Canadian goods to 35% from 25% for all products not covered by the U.S.-Mexico-Canada trade agreement, but gave Mexico a 90-day reprieve to negotiate a broader deal. * Asian shares fell on Friday after the U.S. slapped dozens of trading partners with steep tariffs. * Focus now shifts to U.S. jobs data due later in the day for more cues on Federal Reserve's rate-cut path after the bank left rates unchanged earlier this week. * Fed funds futures imply just a 39% chance of a rate cut in September, compared with 65% before the Fed meeting, according to the CME's FedWatch. * Gold thrives in a low-interest rate environment as it is a non-yielding asset. * SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.09% to 954.51 tonnes on Thursday from 955.37 tonnes on Wednesday. * Spot silver held steady at $37.10 per ounce, platinum fell 0.3% to $1,308.85 and palladium rose 0.9% to $1,216.25. DATA/EVENTS (GMT) 0145 China Caixin Mfg PMI Final July 0600 UK Nationwide house price mm, yy July 0750 France HCOB Manufacturing PMI July 0755 Germany HCOB Mfg PMI July 0800 EU HCOB Mfg Final PMI July 0830 UK S&P GLOBAL MANUFACTURING PMI July 0900 EU HICP Flash YY July 0900 EU HICP-X F, E, A, T Flash MM, YY July 1230 US Non-Farm Payrolls, Unemployment Rate July 1230 US Average Earnings YY July 1345 US Average Earnings YY July 1400 US ISM Manufacturing PMI, U Mich Sentiment Final July
Zawya
22-07-2025
- Business
- Zawya
Gold prices rise to over one-month high on softer dollar, bond yields
Gold prices climbed on Tuesday to their highest point in more than a month, supported by a weaker U.S. dollar and lower Treasury yields, as investors looked for progress in trade talks ahead of an August 1 deadline. FUNDAMENTALS * Spot gold was steady at $3,390.73 per ounce, as of 0112 GMT, after hitting its highest since June 17 earlier in the session. U.S. gold futures held their ground at $3,404.20. * The U.S. dollar index was hovering near a more than one-week low against its rivals, making greenback-priced gold less expensive for other currency holders, while benchmark 10-year U.S. Treasury yields hit a more than one-week low on Monday. * The European Union is exploring a broader set of possible counter measures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats. * Trade negotiations have yet to yield any meaningful deals as the clock ticks down on U.S. President Donald Trump's August 1 tariff deadline. * Also on radar, the European Central Bank is expected to hold interest rates steady at 2.0% following a string of cuts at the end of its policy meeting on July 24. The U.S. Federal Reserve monetary policy is scheduled for next week. * Traders are pricing about a 59% chance of a rate cut by the Fed in September, according to the CME FedWatch Tool. Gold tends to perform well in a low-interest-rate environment. * Meanwhile, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.36% to 947.06 tons on Monday from 943.62 tons on Friday. * China brought in 63 metric tons of gold last month, the lowest amount since January, data from the General Administration of Customs showed on Sunday. * Spot silver edged 0.1% higher to $38.93 per ounce, platinum added 0.4% to $1,444.05 and palladium eased 0.2% to $1,262.35. (Reporting by Brijesh Patel in Bengaluru; Editing by Sherry Jacob-Phillips)
Zawya
17-07-2025
- Business
- Zawya
Gold dips as dollar firms, Trump's Powell remarks ease market jitters
Gold prices dipped in early Asian trade on Thursday, pressured by a firmer dollar and easing market tensions after U.S. President Donald Trump said it was "highly unlikely" he would dismiss Federal Reserve Chair Jerome Powell. FUNDAMENTALS * Spot gold was down 0.2% at $3,340.16 per ounce, as of 0120 GMT. U.S. gold futures fell 0.4% to $3,346.50. * The dollar index edged 0.1% higher against its rivals, making greenback-priced bullion more expensive for other currency holders. * Trump is open to the idea of firing Federal Reserve Chair Jerome Powell, a source told Reuters on Wednesday. * However, Trump said on Wednesday that he is not planning to fire Powell, but kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates. * Investors worry that removing Powell before his term ends in May 2026 would undermine credibility in the U.S. financial system and the dollar as a safe-haven currency. * Gold is often used as a safe store of value during times of political and financial uncertainty. * Data showed that U.S. producer prices were unexpectedly unchanged in June as an increase in the cost of goods because of tariffs on imports was offset by weakness in services. * On the trade front, EU trade chief Maros Sefcovic headed to Washington on Wednesday for tariff talks, an EU spokesperson told Reuters, adding that he will meet U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. * SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.33% to 950.79 tons on Wednesday from 947.64 tons in the prior session. * Spot silver eased 0.1% to $37.86 per ounce. Platinum rose 0.2% to $1,419.95 and palladium gained 0.2% to $1,233.09. DATA/EVENTS (GMT) 0600 UK Claimant Count Enem Chng, HMRC Payrolls Change June 0600 UK ILO Unemployment Rate May 0900 EU HICP Final MM, YY June 1230 US Import Prices YY, Retail Sales MM June 1230 US Philly Fed Business Indx July 1230 US Initial Jobless Clm 12 July, w/e
Yahoo
02-07-2025
- Business
- Yahoo
ETFs in Focus Amid Gold's Largest Half-Year Rise Since 2007
Gold had a spectacular first half of 2025, with SPDR Gold Trust GLD adding about 24%. While gold prices took a hit in the past month as evident from the 2.2% decline in GLD, the precious metal again started to move northward, buoyed by growing optimism that the Federal Reserve will resume interest rate cuts later this year. Markets priced in the likelihood of at least two rate reductions by the Fed in 2025. So far in 2025, gold has risen approximately 25%, now trading less than $200 below April's all-time high. The precious metal's strength has been underpinned by the ongoing geopolitical and trade tensions, along with growing concerns over the global economic impact of President Trump's proposed tariff agenda. The U.S. dollar has taken a hit, with a key dollar gauge down nearly 11% in the first half of the year — its worst showing since 1973. This depreciation has further boosted the appeal of gold as the metal is priced in the greenback. Platinum too capped a remarkable 29% gain in June — its strongest monthly rally on record. The surge has been attributed to tight supply conditions and robust demand from Chinese jewelry manufacturers, coupled with speculative buying from both the United States and China. In addition to gold and platinum, both silver and palladium posted gains, reflecting broad strength across the precious metals complex. In early April 2025, analysts at RBC Capital Markets commented that gold remains overvalued from a macroeconomic perspective. They emphasized that recent price increases were driven by uncertainty, and the factors creating that uncertainty were equally unstable. Despite the potential for a correction, they noted that weakening economic sentiment was likely to support gold's appeal—suggesting that high prices were likely to persist, as quoted on Kitco. A further rise in gold prices would require soft economic sentiments and rumors about economic slowdown to translate into weakness in hard data. This transition could fuel a more aggressive move by investors into gold. Despite negative projections, actual economic data continues to show decency. However, we know that a clear downturn in the real economy could lead the Federal Reserve to shift from its current neutral policy stance to rate cuts, which can spark a fresh rally in gold. Against this backdrop, one can closely track gold-based exchange-traded funds (ETFs). Some options in the market are SPDR Gold Shares GLD, iShares Gold Trust Micro IAUM, SPDR Gold MiniShares Trust GLDM and iShares Gold Trust IAU. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR Gold Shares (GLD): ETF Research Reports iShares Gold Trust (IAU): ETF Research Reports SPDR Gold MiniShares Trust (GLDM): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
18-06-2025
- Business
- Yahoo
Why Gold ETFs Offer the Best Safe Haven Right Now
Gold has surged to record highs fueled by rising geopolitical tensions, such as Iran-Israel tensions, and a sharp loss of confidence in traditional U.S. safe havens. Historically, investors turned to U.S. Treasuries and the dollar during times of crisis. But this time, these assets are also under pressure. A rare trifecta of weakness — declines in U.S. stocks, bonds and the dollar — signaled a broader shift in sentiment in April amid Trump tariff tensions. Policy uncertainty, inflation risks, and concerns about U.S. leadership have pushed investors to rethink their strategies. The gold bullion ETF SPDR Gold Trust GLD has gained 27% so far this year (as of June 16, 2025). The U.S. dollar ETF Invesco DB US Dollar Index Bullish Fund UUP has retreated 8.3% in the year-to-date frame (as of June 16, 2025). iShares 20+ Year Treasury Bond ETF TLT has lost about 2.4% so far this year. A sharp rise in U.S. policy uncertainty has unsettled investors. Meanwhile, the U.S. dollar, long considered overvalued, is starting to unwind. Forecasts point to a potential 10-20% decline against major currencies like the euro and yen over the medium term. The narrowing yield gap between the United States and other major economies is further weakening the dollar's appeal. Note that Moody's downgraded the U.S. sovereign credit rating by one notch in May 2025, citing concerns over the country's ballooning $36 trillion debt burden. This move, following similar actions by Fitch in 2023 and S&P in 2011, raised alarm among investors about the nation's long-term fiscal sustainability. The downgrade has veered the market's focus toward Washington's fiscal policy debates. This is especially true since a major tax cut bill backed by President Donald Trump may raise the fiscal deficit (read: ETFs to Play Amid Long-Term Yields' Best Week Since 1982). However, many analysts believe that the debt downgrade could eventually lead to higher borrowing costs for both public and private entities. The value of U.S. treasuries is likely to decline as the bond prices and yields are inversely related. With both Treasuries and the dollar underperforming, investors are turning to gold as a more reliable store of value. Unlike financial instruments tied to government or central bank actions, gold holds intrinsic value and is immune to inflation or political instability. 'Gold's key advantage is that it is no one else's liability,' said Nikos Kavalis, managing director at Metals Focus. 'When an investor owns Treasurys, other sovereign bonds and even currencies, they are ultimately buying into the respective economy,' he said, as quoted on CNBC. Moreover, the U.S. inflation reports are still cooler than expected, despite the tariff threat. The data points may lead the Fed to remain more dovish than expected. If the interest rates remain lower, non-yielding assets like gold should outperform. Japan has lagged behind other central banks in raising interest rates, which has discouraged investors from moving into the yen due to the unfavorable interest rate differential. Note that the Bank of Japan (BOJ) maintained its policy rate at 0.5% for the second consecutive meeting in May. Therefore, the yen, traditionally viewed as a safe haven, has been losing its appeal. The Swiss National Bank (SNB) may be attempting to curb safe-haven inflows, which could reduce the franc's appeal. In March, the SNB set its policy rate at 0.25%. Swiss consumer prices declined in May—the first drop in over four years—leading some analysts to speculate that lower interest rates could be on the horizon. Hence, the Swiss franc—another safe haven—may not offer much in terms of returns. The latest pivot toward gold reflects a deeper shift. For decades, U.S. assets were favored globally due to superior growth, strong yields and the dominance of the dollar. But as these pillars are weakening, investors are diversifying more intentionally, adding exposure to international markets and alternatives like gold. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares 20+ Year Treasury Bond ETF (TLT): ETF Research Reports SPDR Gold Shares (GLD): ETF Research Reports Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
