Gold rises on weaker US dollar
Spot gold was up 0.5% at $3,369.17 per ounce by 1114 GMT. US gold futures rose 0.5% to $3,376.30. 'The modest support...comes from a weaker US dollar. With the tariff August 1 deadline coming closer, the market focus will be if trade deals are announced, or tariffs are implemented,' said UBS commodity analyst Giovanni Staunovo.
The dollar eased 0.3% against a basket of other major currencies, making gold less expensive for their holders.
US Commerce Secretary Howard Lutnick said on Sunday he was confident the United States can secure a trade deal with the European Union, but August 1 is a hard deadline for tariffs to kick in.
Gold, often considered a safe-haven asset during economic uncertainty, tends to do well in a low interest rate environment. The US Federal Reserve's next policy meeting is scheduled for July 29-30, following its decision to hold rates steady last month.
'Elevated inflation expectations and strong economic data are weighing on expectations around the number of Fed rate cuts this year. Despite this, the buy-on-dip strategy remains in place, protecting downside risks for gold prices,' ANZ analysts said in a note.
Last week, Fed Governor Christopher Waller said he still believed that the US central bank should cut rates next week. Data showed that top consumer China's imports of gold fell for a second successive month in June.
China's imports of platinum in June fell 6.1% from the prior month. Spot silver gained 0.8% to $38.47 per ounce, platinum rose 1.6% to $1,444.11 and palladium was 2.1% higher at $1,266.91.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
7 hours ago
- Business Recorder
Pakistan reaffirms commitment to GSP+
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday underscored the European Union's status as one of Pakistan's foremost trading partners and reaffirmed the government's commitment to the Generalised Scheme of Preferences Plus (GSP+), describing it as a mutually beneficial arrangement. The prime minister, during a meeting with the outgoing Ambassador of the European Union to Pakistan, Dr Riina Kionka – who paid a farewell call as she concluded her diplomatic tenure – acknowledged her contributions to strengthening Pakistan-EU relations. Extending his felicitations to Ambassador Kionka on the successful completion of her assignment, Sharif appreciated her efforts in enhancing Pakistan-EU relations. GSP plus status: EU review puts Pakistan's duty-free export to the test amid reforms push He also acknowledged the European Union's timely assistance during the devastating floods of 2022, and lauded the ambassador's role in mobilising support. The prime minister conveyed his warm regards to the EU President, Ursula von der Leyen, and expressed his desire to meet her in the near future to further deepen bilateral engagement. The Interaction also included discussions on domestic political developments and the broader trajectory of Pakistan-EU relations. Ambassador Kionka expressed her gratitude to the prime minister and the government for the support extended to her during her tenure. She reaffirmed the EU's commitment to advancing its partnership with Pakistan, and stated that she would continue to advocate for strong bilateral ties in her upcoming role in Brussels. Copyright Business Recorder, 2025
Business Recorder
8 hours ago
- Business Recorder
Dollar gains, Pound weakens against euro
NEW YORK: The US dollar advanced on Friday, bolstered by solid economic data that suggested the Federal Reserve was justified in taking a patient approach to cutting interest rates, while tariff negotiations showed more clarity. 'The dollar regained some ground the past two days, after being on the defensive earlier in the week ... supported mostly by an encouraging set of US economic data that argues for continued patience at the Fed,' said Elias Haddad, senior markets strategist at Brown Brothers Harriman in London. The US currency, however, showed little reaction to data showing new orders for key US-manufactured capital goods unexpectedly fell in June while shipments of those products increased moderately. That suggested business spending on equipment slowed considerably in the second quarter. The greenback was set for its biggest weekly drop in a month, ahead of more tariff dialogue and central bank meetings next week, while sterling dipped after softer-than-expected British retail sales data. Both the Fed and the Bank of Japan are expected to hold rates steady at next week's policy meetings, but traders are focusing on the subsequent comments to gauge the timing of the next moves. Politics is a factor for both central banks, most dramatically in the US, where President Donald Trump once again pressed for lower interest rates on Thursday as he locked horns with Fed Chair Jerome Powell. Brown Brothers' Haddad said the Fed's monetary policy is being 'overshadowed by the political pressure to lower interest rates. That's one of the reasons why I think the dollar's upside is limited.' The dollar managed to recover a touch against the euro late on Thursday, however, after Trump said he did not intend to fire Powell, as he has frequently suggested he could. 'The market relief was based on the fact that Trump refrained from calling for Powell to go, although that was based on Trump's view that Powell would 'do the right thing',' said Derek Halpenny, head of EMEA research at MUFG. He added, however, that 'the theme of Fed independence being undermined by the White House will unlikely go away and remains a downside risk for the dollar.' Falls against the euro and yen leave the dollar index, which measures the dollar against six other currencies, at 97.45, on track for a drop of 0.75% this week, its weakest performance in a month, though it bounced back 0.3% on Friday. Meanwhile, in Japan, though the trade deal signed with the US this week could make it easier for the BOJ to continue rate hikes, the bruising loss for Prime Minister Shigeru Ishiba's coalition in upper house elections on Sunday complicates life for the BOJ. The yen was softer, thanks in part to below-expectations Tokyo inflation data, with the dollar last up 0.5% at 147.66 yen, though on course for a weekly 0.7% fall. The euro was down 0.2% at $1.1728 but set for a weekly gain of 0.8%. The pound was last down 0.6% on the dollar at $1.3434.
Business Recorder
9 hours ago
- Business Recorder
PM reaffirms commitment to GSP+
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday underscored the European Union's status as one of Pakistan's foremost trading partners and reaffirmed the government's commitment to the Generalised Scheme of Preferences Plus (GSP+), describing it as a mutually beneficial arrangement. The prime minister, during a meeting with the outgoing Ambassador of the European Union to Pakistan, Dr Riina Kionka – who paid a farewell call as she concluded her diplomatic tenure – acknowledged her contributions to strengthening Pakistan-EU relations. Extending his felicitations to Ambassador Kionka on the successful completion of her assignment, Sharif appreciated her efforts in enhancing Pakistan-EU relations. GSP plus status: EU review puts Pakistan's duty-free export to the test amid reforms push He also acknowledged the European Union's timely assistance during the devastating floods of 2022, and lauded the ambassador's role in mobilising support. The prime minister conveyed his warm regards to the EU President, Ursula von der Leyen, and expressed his desire to meet her in the near future to further deepen bilateral engagement. The Interaction also included discussions on domestic political developments and the broader trajectory of Pakistan-EU relations. Ambassador Kionka expressed her gratitude to the prime minister and the government for the support extended to her during her tenure. She reaffirmed the EU's commitment to advancing its partnership with Pakistan, and stated that she would continue to advocate for strong bilateral ties in her upcoming role in Brussels. Copyright Business Recorder, 2025
