Gold heads for second weekly loss, investors eye US inflation data
Gold fell on Friday and was headed for a second weekly loss, as a slight uptick in the dollar and the Israel-Iran truce weighed on prices, with markets eyeing U.S. inflation data for clues into the Federal Reserve's interest rate trajectory.
Spot gold slipped 1% to $3,292.19 per ounce as of 0402 GMT. Bullion has lost 2.2% so far this week.
U.S. gold futures fell 1.3% to $3,305.20.
The dollar rose 0.2% against its rivals, making greenback-priced bullion more expensive for overseas buyers.
This week's dip is due to the Israel-Iran peace deal, said Brian Lan, managing director at GoldSilver Central, Singapore, adding that prices are consolidating with a slight downward bias and likely to stay around current levels.
Iranians and Israelis have sought to resume normal life after 12 days of the most intense confrontation ever between the two foes and a ceasefire that took effect Tuesday.
Investors are awaiting the U.S. core personal consumption expenditure data due at 1230 GMT for further insight into the Fed's monetary policy outlook, with analysts polled by Reuters forecasting a 0.1% monthly increase and a 2.6% annual rise. Markets are currently pricing in a 63-basis-point rate cut this year, starting in September.
Gold slips on easing ME tensions, Fed rate cut uncertainty
U.S. President Donald Trump says that tame inflation means the Fed should already be reducing its policy rate, but so far only two Fed policymakers to date embracing the possibility of a rate cut at the central bank's July meeting.
Gold thrives in a low-rate environment as it is a zero-yielding asset.
'I think what could be happening is that some length is leaving gold and finding its way into other precious metals, like platinum and palladium…So maybe some speculative rotation at work,' Marex analyst Edward Meir said.
Spot silver was down 0.7% at $36.38 per ounce, platinum fell 2.2% to $1,386.75, after hitting its highest level in nearly 11 years, while palladium gained 0.9% to hit its highest since October 2024 of $1,142.49.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Sterling keeps climbing on struggling dollar
LONDON: The pound was set for its biggest weekly gain against the dollar in nearly four months on Friday and held close to its near four-year high hit the previous day, though that was more due to dollar weakness than sterling strength. The pound was last up 0.14% on the dollar at $1.13745, just off Thursday's top of $1.37701, the highest since late 2021. It was broadly steady on the euro, at 85.24 pence, underlining the fact that the move in the pound against the dollar - referred to as cable by financial markets - has much more to do with the dollar. 'The gains in cable reflect mostly this year's weakness in the dollar and the strength of the euro, which has dragged the pound higher due to the limited parameters of the EUR/GBP trading range,' Rabobank analysts said in a note. The pound has gained 2.2% against the dollar this week, its most since early March, as the greenback's short-lived gains during the Israel-Iran conflict fade. Dollar hovers near 3-1/2-year low as traders wager on US rate cut The main domestic support for the pound this year has come from the Bank of England being slower to cut interest rates than peers, particularly the European Central Bank, as inflation remains sticky. 'Core inflation in the UK has basically stopped moving for the past year - hard to say why. BoE officials are quite concerned. That makes it difficult to cut rates and also the economic outlook is not improving,' Michael Pfister, FX analyst at Commerzbank, said. Analysts also said they were watching this week's political drama given what Rabobank described as 'the overhang of a very large debt/GDP ratio and a UK current account deficit.' Prime Minister Keir Starmer this week sharply scaled back planned welfare cuts after more than 100 of his Labour Partylawmakers publicly opposed the reforms, which sought to shave 5 billion pounds ($6.9 billion) per year off a rapidly rising welfare bill.
Business Recorder
an hour ago
- Business Recorder
Iron ore posts largest weekly gain in six on falling inventories
SINGAPORE: Iron ore futures rose on Friday, posting their largest weekly gain since May 16 on falling iron ore and steel inventories, outweighing Taiwan's anti-dumping duties. The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) ended daytime trade 1.99% higher at 716.5 yuan ($99.95) a metric ton. The contract gained 1.64% this week, snapping two consecutive weeks of losses. The benchmark July iron ore on the Singapore Exchange was 1.43% higher at $94.65 a ton as of 0801 GMT, rising 1.11% this week, rallying after five consecutive weeks of losses. 'Falling iron ore port inventories are a tailwind, providing downside protection to iron ore prices,' said ANZ analysts. Total stockpiles of iron ore across ports in China fell 0.74% week-on-week to 133.6 million tons as of June 27, according to SteelHome data. Iron ore dips on increased supply; dollar strength caps gains Mysteel data showed finished steel inventories held by Chinese traders continued to fall from June 20 to 26, marking the seventh consecutive weekly decline. However, the pace of the fall slowed compared to the week before, which could be attributed to increased production at domestic mills, Mysteel added. Meanwhile, China stocks are set to hit their biggest weekly gain in more than seven months, with the Mideast ceasefire buoying investor sentiment. Still, China's industrial profits swung back into sharp decline in May from a year earlier, as sluggish domestic demand from a prolonged property crisis squeezed profits in the country's industrial firms, compounded by a price war among automakers. On the trade front, Taiwan is set to impose anti-dumping duties as high as 20.15% on Chinese-made hot-rolled steel starting on July 3. Other steelmaking ingredients on the DCE rose, with coking coal and coke up 4.89% and 2.52%, respectively. Steel benchmarks on the Shanghai Futures Exchange mostly gained ground. Rebar and hot-rolled coil strengthened around 1%, wire rod climbed 1.65% and stainless steel fell 0.04%.
Business Recorder
an hour ago
- Business Recorder
JSW strengthens India paints push with $1.6 billion Akzo Nobel unit deal
BENGALURU: JSW Paints will buy Dutch paint maker Akzo Nobel's Indian arm for about $1.6 billion, in what will be the country's biggest deal yet in the sector as competition intensifies between established players and new entrants. The deal comes as challenges for Indian paint makers mount, including volatile raw material costs and heightened competition, with billionaire Kumar Mangalam Birla's entry into the sector last year eating into Asian Paints' market share. Dulux Paint-owner Akzo Nobel had announced a review of its South Asia operations last year to rein in costs and boost its core coatings business. Shares of Akzo Nobel India jumped more than 11% after the deal was announced, and were trading 7.6% higher in Mumbai at around 0830 GMT. India's paint and coatings market is expected to reach $16.37 billion in size by 2030, Mordor Intelligence estimates, from $10.46 billion in 2025, driven by a boom in infrastructure and real estate development. The deal, which includes debt, will be the Indian paint sector's biggest deal on record, Dealogic data showed. JSW Paints, launched in 2019 and part of the $23 billion JSW Group, will buy a 74.76% stake in Akzo Nobel India for $1.05 billion and launch an open offer for the roughly 25% held by public shareholders. JSW Steel files review petition before India's top court on Bhushan Power deal collapse Parent Akzo Nobel, the fourth-largest paint maker in the world by market capitalisation behind PPG, Nippon Paint and Sherwin-Williams, will continue to retain its research and development centre and powder coatings business in India. Growing competition Once completed, the deal will propel JSW Paints to fourth place by market share in a sector dominated by Asian Paints , Berger Paints and Kansai Nerolac, according to Geojit Financial Services analyst Antu Thomas. Birla-owned Grasim launched Birla Opus in 2024, crowding the already-competitive market. Birla has since filed an antitrust complaint against Asian Paints for allegedly abusing its market position, Reuters has reported. In 2022, the competition regulator closed a case filed by JSW Paints against Asian Paints for abusing its market position, saying it found no breach of competition laws. 'While this acquisition offers JSW Paints a significant scale-up opportunity, near-term integration challenges could provide an opportunity for incumbent players to strengthen their market position in the luxury segment,' Amit Purohit, vice president at Elara Capital said. Akzo Nobel is likely to rake in 900 million euros in net proceeds and plans to launch a 400 million euro share buyback program after the deal's closing, which is expected in the fourth quarter of 2025.
