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See - Sada Elbalad
an hour ago
- Business
- See - Sada Elbalad
Gold Declines Amid Trade Optimism and Geopolitical Easing
Waleed Farouk Gold prices recorded a notable decline in the local Egyptian market on Saturday, coinciding with the weekend closure of global exchanges. This came after the international ounce dropped by 2.8% at the end of the trading week, weighed down by easing geopolitical tensions and improved global trade prospects. According to the latest market data, gold prices in Egypt fell by EGP 25 per gram during Saturday's trading compared to the previous day. The price of 21-karat gold settled at EGP 4,600 per gram, while the global ounce dropped by $95, closing the week at $3,274. The 24-karat gram was priced at EGP 5,257, 18-karat at EGP 3,943, and 14-karat at EGP 3,067. The price of the gold pound stood at EGP 36,800. On Friday, gold prices in the local market had already fallen by EGP 70 per gram, as 21-karat gold opened at EGP 4,695 and closed at EGP 4,625. Simultaneously, the international ounce slid by $60, from $3,334 to $3,274. Risk Appetite Weighs on Gold The decline occurred despite traditionally supportive factors for gold, such as a weaker US dollar and expectations of interest rate cuts. However, growing investor appetite for risk shifted capital toward high-yield assets, placing additional selling pressure on bullion. The signing of a formal trade agreement between the United States and China, along with statements from US officials suggesting more deals may follow before July 9, helped boost market confidence. Notably, China announced its readiness to expedite shipments of rare earth minerals to Washington, reinforcing optimism around global trade relations. Geopolitical Shifts Ease Safe-Haven Demand On the geopolitical front, Iran signaled openness to diplomacy with the United States, while Al Arabiya reported that the Israel-Gaza conflict could end within two weeks — developments that reduced geopolitical risk premiums and weakened gold's safe-haven appeal. Despite a 1.32% drop in the US Dollar Index this week and stable US Treasury yields, gold failed to capitalize on these supportive signals. Analysts interpreted this as a sign of shifting market dynamics and waning traditional demand for safe-haven assets. Equities Surge, Gold Falters Saeed Embabi, Executive Director of the online gold and jewelry trading platform iSagha, noted that strong performances in global equity markets — particularly the Nasdaq Composite and S&P 500, both reaching all-time highs — reflect investor preference for growth assets over gold amid improved economic outlooks. These developments are seen as part of a transitional phase, during which investors reassess asset roles amid ongoing monetary easing and receding geopolitical fears. US Economic Data and Policy Outlook US inflation data showed the core Personal Consumption Expenditures (PCE) index rose 2.7% year-over-year in May, exceeding expectations and complicating the Federal Reserve's policy path. Minneapolis Fed President Neel Kashkari reaffirmed his forecast for two rate cuts in 2025, noting that the economic impact of trade conflicts might be less severe or more delayed than previously anticipated. Meanwhile, in Washington, the Biden administration is facing growing challenges to pass a proposed tax cut and spending bill before the self-imposed July 4 deadline. The plan is estimated to add approximately $2.4 trillion to the national debt over the next decade. Treasury Department data revealed that the federal deficit reached $316 billion in May alone, with interest payments on debt soaring to $92 billion — second only to Medicare and Social Security — raising fears of an impending debt crisis. Political Pressure on the Fed Market anxiety was further fueled by comments from former President Donald Trump, who criticized Fed Chair Jerome Powell as 'terrible' and hinted at replacing him before his term ends in 2026. These remarks sparked renewed concerns about the Federal Reserve's independence, adding downward pressure on the dollar. Despite short-term weakness in gold, analysts believe that renewed geopolitical tensions or inflationary setbacks could restore the metal's safe-haven appeal. For now, the market remains in a state of cautious anticipation, awaiting clearer direction on global growth and monetary policy trends. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
The Star
8 hours ago
- Business
- The Star
Ringgit to trade firmer against US dollar next week, ahead of US labour data
KUALA LUMPUR: The ringgit is expected to trade firmer next week following the US labour market data, an analyst said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors would pay attention on two key developments, namely the Nonfarm Payrolls (NFP) and the unemployment rate - and the expiry of the 90-day pause on US tariff implementation. "The labour market data will be pivotal in shaping expectations for the US Federal Reserve's policy direction, with greater emphasis likely to shift towards supporting maximum employment "With signs of a softening global and US economy emerging, investor sentiment is expected to remain cautious heading into the second half of 2025,' he told Bernama. Mohd Afzanizam said the US job market is showing moderation, with the monthly average NFP standing at 123,800 in the first five months of 2025, down from 179,600 in the same period last year. The unemployment rate had risen from 4.0 per cent in January to 4.2 per cent in March this year, he added. On the currency front, he said the ringgit has shown resilience this week, rebounding from RM4.2948 against the US dollar on June 23 to RM4.2327 on June 26, marking a 1.5 per cent appreciation. "With the US Dollar Index (DXY) on a softer trajectory, we anticipate the ringgit could trade firmer around RM4.22 to RM4.23 in the coming week,' he said. The ringgit ended the week higher against the greenback, closing at 4.2300/2355 on Thursday from 4.2505/2565 last Friday. The local note traded lower against a basket of major currencies. The ringgit depreciated vis-à-vis the Japanese yen to 2.9359/9399 from 2.9245/9289 at last Friday's close, shed against the British pound to 5.8141/8217 from 5.7356/7437 previously, and slid versus the euro to 4.9597/9661 from 4.9000/9069 at the end of last week. The ringgit also traded lower against ASEAN currencies. The local note dropped against the Singapore dollar to 3.3192/3240 on Thursday from 3.3088/3140 last Friday, and weakened versus the Thai baht to 13.0254/0488 from 12.9727/9969 last week. It fell versus the Indonesian rupiah to 260.9/261.4 on Thursday from 259.2/259.7 last Friday and was marginally lower against the Philippine peso at 7.47/7.49 compared to 7.43/7.45 previously. The market was closed on Friday for the Maal Hijrah public holiday. - Bernama
Malaysian Reserve
13 hours ago
- Business
- Malaysian Reserve
Ringgit to trade firmer against US dollar next week, ahead of US labour data
KUALA LUMPUR — The ringgit is expected to trade firmer next week following the US labour market data, an analyst said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors would pay attention on two key developments, namely the Nonfarm Payrolls (NFP) and the unemployment rate — and the expiry of the 90-day pause on US tariff implementation. 'The labour market data will be pivotal in shaping expectations for the US Federal Reserve's policy direction, with greater emphasis likely to shift towards supporting maximum employment 'With signs of a softening global and US economy emerging, investor sentiment is expected to remain cautious heading into the second half of 2025,' he told Bernama. Mohd Afzanizam said the US job market is showing moderation, with the monthly average NFP standing at 123,800 in the first five months of 2025, down from 179,600 in the same period last year. The unemployment rate had risen from 4.0 per cent in January to 4.2 per cent in March this year, he added. On the currency front, he said the ringgit has shown resilience this week, rebounding from RM4.2948 against the US dollar on June 23 to RM4.2327 on June 26, marking a 1.5 per cent appreciation. 'With the US Dollar Index (DXY) on a softer trajectory, we anticipate the ringgit could trade firmer around RM4.22 to RM4.23 in the coming week,' he said. The ringgit ended the week higher against the greenback, closing at 4.2300/2355 on Thursday from 4.2505/2565 last Friday. The local note traded lower against a basket of major currencies. The ringgit depreciated vis-à-vis the Japanese yen to 2.9359/9399 from 2.9245/9289 at last Friday's close, shed against the British pound to 5.8141/8217 from 5.7356/7437 previously, and slid versus the euro to 4.9597/9661 from 4.9000/9069 at the end of last week. The ringgit also traded lower against ASEAN currencies. The local note dropped against the Singapore dollar to 3.3192/3240 on Thursday from 3.3088/3140 last Friday, and weakened versus the Thai baht to 13.0254/0488 from 12.9727/9969 last week. It fell versus the Indonesian rupiah to 260.9/261.4 on Thursday from 259.2/259.7 last Friday and was marginally lower against the Philippine peso at 7.47/7.49 compared to 7.43/7.45 previously. The market was closed on Friday for the Maal Hijrah public holiday. — BERNAMA
India.com
a day ago
- Business
- India.com
Nifty Financial Services Index Becomes Best-Performing Sector, Surges 15.5% In H1 2025
New Delhi: The Indian financial services sector emerged as the top-performing space in the first half of 2025, as the Nifty Financial Services Index rose nearly 15.5 per cent year-to-date (YTD), according to latest data from Nifty on Friday. This strong rally outpaced other sectoral indices and reflected growing investor confidence in the sector's strength and improving economic conditions. On Friday, the index hit an all-time high of 27,305.6 during intra-day trading, marking an approximately 22.19 per cent jump from its 52-week low of 22,320.85. A 1.5 per cent rise in the Thursday session further boosted its upward momentum, supported by easing geopolitical tensions, falling crude oil prices, and a softer US Dollar Index. These factors are attracting foreign portfolio investors to Indian markets. Domestic institutional investors (DIIs) have also played a key role in supporting the rally. Investor sentiment is also being lifted by hopes of strong corporate earnings in the April-June quarter of FY26, especially in banking, insurance, and other financial services. The Nifty Financial Services Index has delivered a steady performance over the past year, gaining 15.4 per cent. In the past four months alone, it rose 3 per cent in June, 1.3 per cent in May, 6.5 per cent in April, and 9.2 per cent in March. The only weakness came at the beginning of the year, with slight declines of about 1.7 per cent in January and 0.6 per cent February. A major reason for the recent optimism is the Reserve Bank of India's final guidelines on project finance. The central bank softened its earlier draft norms, easing concerns around asset quality. According to Motilal Oswal Financial Services (MOSL), the new rules reduce the amount of money lenders need to set aside for under-construction projects. Also, the guidelines won't apply to older loans where financial closure is already complete. MOSL said that under the new rules, standard provisioning for such loans has been reduced to around 1–1.25 per cent from the earlier proposed 5 per cent. Once the projects become operational, the provisioning can go down further to as low as 0.4 per cent, depending on the type of project.
Business Standard
a day ago
- Business
- Business Standard
Dollar rebounds near 97 mark from three and half year low; US PCE data in focus
The dollar index is attempting recovery around 97 mark after having breached below the level for the first time in almost three and half years. The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, hit a low of 96.61 this week amid consistent decline following ceasefire between Israel and Iran. Investors, however continue to access media reports that claim US President Donald Trump is considering nominating the next Federal Reserve Chair by September or October. Moreover, Feds future outlook will also be gauged amid data that showed final printing of the Gross Domestic Product (GDP) for Q1 2025 confirmed that the economy lost traction, contracting more than expected and by a larger margin than the previous figure. All eyes will now turn to Friday's release of US Personal Consumption Expenditures (PCE) - Price Index data for May, the Fed's preferred inflation measure.
