
Gold hits one-week high on weaker dollar, US fiscal concerns
Gold prices rose on Wednesday to their highest levels in a week as the dollar weakened and investors sought safety amid U.S. fiscal uncertainty, with Congress debating a sweeping tax bill.
Spot gold was up 0.2% at $3,293.98 an ounce, as of 0209 GMT, after hitting its highest level since May 12 earlier in the session.
U.S. gold futures gained 0.3% to $3,295.80.
The dollar retreated to its lowest level since May 8, making greenback-priced gold cheaper for overseas currency holders.
'The general dollar index lost more than a full point in the last 24 hours as the Moody's downgrade, plus skepticism about trumps tax bill continues to undermine the dollar,' said Marex analyst Edward Meir.
Trump on Tuesday pressed his fellow Republicans in the U.S. Congress to unite behind a sweeping tax-cut bill, but apparently failed to convince a handful of holdouts who could still block a package that encompasses much of his domestic agenda.
Gold, traditionally considered a safe-haven asset during political and economic uncertainty, tends to thrive in a low-rate environment.
'Over the medium- to longer-term, further upside in gold is favoured, though if any positive trade-deal headlines arise this could be an obstacle for gold in attempting to reclaim the $3,500 level,' said KCM Trade Chief Market Analyst Tim Waterer.
St. Louis Fed President Alberto Musalem told the Economic Club of Minnesota that easing trade tensions would allow the labor market to stay strong and inflation to remain on path to the Fed's 2% goal.
Gold prices rebound on dollar weakness, US downgrade
Traders now bet that the Fed will resume cutting rates in October and see around 54 basis points of cuts by the end of 2025.
Spot silver fell 0.2% to $32.99 an ounce, platinum was down 0.3% at $1,050.25.
Palladium gained 0.5% to $1,017.93, its highest level since February 4.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Business Recorder
6 hours ago
- Business Recorder
Energy stocks keep FTSE 100 steady as trade deal optimism wanes
London's FTSE 100 was slightly lower on Thursday as recent optimism around the U.S.-China trade deal waned, but gains in heavyweight energy stocks and some companies limited declines. The benchmark FTSE 100 was flat as of 0901 GMT, after coming within touching distance of an intraday record high. Mid-caps were down 0.6%. U.S. President Donald Trump said on Wednesday that he was willing to extend a July 8 deadline for completing trade talks with countries, but it was not likely necessary as the U.S. would specify the terms of deals in a week or so. The announcement comes after trade talks with China resulted in a deal to bring their truce back on track but failed to impress investors. Risk assets sold off globally, with stocks lower in Asia and Europe. The main U.S. stock index futures were also down over 0.4% each. Geopolitical tensions also added to the cautious mood after Trump pulled some personnel from the Middle east amid mounting tensions with Iran. However, the FTSE 100 managed to outperform peers as heavyweight energy stocks gained 1.4%. Shell and BP were the biggest boosts to the index. Some corporate news also helped, with personal care stocks up 0.9%, powered by a 2.3% gain in Tesco after the food retailer's UK sales growth accelerated in the first quarter. Health and safety device maker Halma gained 4.1% after its annual adjusted pretax profit beat expectations. Worries around UK-U.S. trade tensions were also lower as the country is the only one to have signed a trade deal with the U.S. after Trump's scathing tariffs shook up global financial markets. Meanwhile, data showed that the British economy shrank more-than-expected, the biggest monthly drop since October 2023. Among other stocks, Intermediate Capital Group and JD Sports lost 4% and 2.8%, respectively, as they traded without entitlement to their latest dividend payout.


Business Recorder
7 hours ago
- Business Recorder
Ugandan shilling flat ahead of budget reading
KAMPALA: The Ugandan shilling was flat on Thursday data from the London Stock Exchange Group showed, ahead of the finance minister reading the 2025/26 (July-June) budget later in the day. Ugandan shilling firms on commodity dollar inflows At 0805 GMT, commercial banks quoted the shilling at 3,581/3,591, the same level as Wednesday's close.


Business Recorder
8 hours ago
- Business Recorder
European shares tumble as trade, geopolitical tensions mount
European shares dropped on Thursday, in their fourth straight session of declines, as trade optimism stemming from U.S.-China trade talks faded, while mounting geopolitical tensions led to the markets being more cautious. The pan-European STOXX 600 was down 0.4% at 549.41 points at 0707 GMT, while most regional bourses were also in the red. U.S. President Donald Trump said on Wednesday that he was willing to extend the deadline for trade talks but it was not likely necessary as the U.S. will send offer letters to countries in a week or so. However, markets were a little concerned about the European Union being able to clinch a deal before Trump's July 8 deadline - when the tariff pause expires. Geopolitical worries added more caution to markets already navigating U.S. tariff-driven uncertainty after trade talks with China did not offer a solution to de-escalate longstanding tensions. European shares slip as markets unfazed by US-China deal U.S. personnel were being moved out of the Middle East because 'it could be a dangerous place' amid rising tensions with Iran, Trump said on Wednesday. In the market, travel and leisure stocks were the worst hit, down 1.7%, while industrial miners fell 1.1%. Among stocks, BE Semiconductor Industries (BESI) jumped 7.7% after raising its long-term financial targets ahead of its investor day. Tesco gained 1.3% after Britain's biggest food retailer's domestic sales growth accelerated in its first quarter.