Gold falls on firmer US dollar and rising trade optimism
Spot gold was down 0.5 percent at $3,350.08 per ounce, as of 11:20 a.m. Saudi time. US gold futures fell 0.6 percent to $3,351.70.
The US dollar index rebounded from more than a two-week low, making bullion more expensive for overseas buyers, while benchmark 10-year US Treasury yields rose.
A resurgence in risk appetite driven by optimism over potential tariff negotiations, and better-than-expected jobless claims reinforcing the view that the US Federal Reserve is unlikely to cut rates, is pressuring gold, said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades.
'There is an element of uncertainty that still lingers ... with a strong support around $3,300, I see the potential for gold prices to rise should new episodes of volatility be triggered,' he said.
The European Commission said on Thursday a negotiated trade solution with the US is within reach — while EU members voted to approve counter-tariffs on €93 billion euros ($109 billion) of US goods in case the talks collapse.
Data showed the number of Americans filing new applications for jobless benefits fell to a three-month low last week, pointing to stable labor market conditions.
Meanwhile, President Donald Trump pressed Fed Chair Jerome Powell to lower interest rates in a tense visit to the US central bank on Thursday, less than a week before the next rate-setting meeting where policymakers are expected to hold interest rates steady.
Markets are pricing in a potential rate cut in September.
Gold typically performs well during periods of uncertainty and in low-interest-rate environments.
Elsewhere, spot silver fell 0.5 percent to $38.90 per ounce, but was on track for a weekly gain, up about 1.9 percent so far. Platinum lost 0.6 percent to $1,400.02 and palladium slipped 0.7 percent to $1,219.20.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Asharq Al-Awsat
11 minutes ago
- Asharq Al-Awsat
French PM Says EU-US Trade Deal an Act of ‘Submission' and a Dark Day for Europe
France called a framework trade deal between the United States and European Union a "dark day" for Europe, saying the bloc had caved in to US President Donald Trump with an unbalanced deal that slaps a headline 15% tariff on EU goods while sparing US imports from any immediate European retaliation. The criticism from Prime Minister Francois Bayrou followed months of French calls for EU negotiators to take a tougher stance against Trump by threatening reciprocal measures — a position that contrasted with the more conciliatory approaches of Germany and Italy. "It is a dark day when an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission," Bayrou wrote on X of what he called the "von der Leyen-Trump deal". The high-level French criticism, and President Emmanuel Macron's silence since the deal was signed between Trump and European Commission President Ursula von der Leyen, stood in contrast with the more benign reaction from Berlin and Rome. French government ministers acknowledged the agreement had some benefits, including exemptions for sectors such as spirits and aerospace, but said it remained fundamentally unbalanced. "This state of affairs is not satisfactory and cannot be sustained," French European Affairs Minister Benjamin Haddad said on X, urging the EU to activate its so-called anti-coercion instrument, which would allow for non-tariff retaliation. Trade Minister Laurent Saint-Martin criticized the EU's handling of the negotiations, saying the bloc should not have refrained from hitting back in what he described as a power struggle initiated by Trump. "Donald Trump only understands force," he told France Inter radio. "It would have been better to respond by showing our capacity to retaliate earlier. And the deal could have probably looked different," he added. Macron had said that the EU should respond in kind if the United States slapped tariffs on EU goods, and apply equivalent measures on US imports into the bloc, in particular on services, in which the US enjoys a surplus with the EU. But the softer line advocated by German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni, whose countries are more dependent than France on exports to the US, prevailed.
Asharq Al-Awsat
20 minutes ago
- Asharq Al-Awsat
US-China Set to Meet with Extension of Tariff Pause on the Cards
Top economic officials from the United States and China are set to renew negotiations Monday -- with an extension of lower tariff levels on the cards -- as President Donald Trump's trade policy enters a critical week. Talks between the world's top two economies are slated to happen over two days in the Swedish capital Stockholm, and they come as other countries are also rushing to finalize deals with Washington. For dozens of trading partners, failing to strike an agreement in the coming days means they could face significant tariff hikes on exports to the United States come Friday, August 1. The steeper rates, threatened against partners like Brazil and India, would raise the duties their products face from a "baseline" of 10 percent now to levels up to 50 percent. Tariffs imposed by the Trump administration have already effectively raised duties on US imports to levels not seen since the 1930s, according to data from The Budget Lab research center at Yale University. For now, all eyes are on discussions between Washington and Beijing as a delegation including US Treasury Secretary Scott Bessent meets a Chinese team led by Vice Premier He Lifeng in Sweden. While both countries in April imposed tariffs on each other's products that reached triple-digit levels, US duties this year have temporarily been lowered to 30 percent and China's countermeasures slashed to 10 percent. But the 90-day truce, instituted after talks in Geneva in May, is set to expire on August 12. Since the Geneva meeting, the two sides have convened in London to iron out disagreements. China progress? "There seems to have been a fairly significant shift in (US) administration thinking on China since particularly the London talks," said Emily Benson, head of strategy at Minerva Technology Futures. "The mood now is much more focused on what's possible to achieve, on warming relations where possible and restraining any factors that could increase tensions," she told AFP. Talks with China have not produced a deal but Benson said both countries have made progress, with certain rare earth and semiconductor flows restarting. "Secretary Bessent has also signaled that he thinks a concrete outcome will be to delay the 90-day tariff pause," she said. "That's also promising, because it indicates that something potentially more substantive is on the horizon." The South China Morning Post, citing sources on both sides, reported Sunday that Washington and Beijing are expected to extend their tariff pause by another 90 days. Trump has announced pacts so far with the European Union, Britain, Vietnam, Japan, Indonesia and the Philippines, although details have been sparse. An extension of the US-China deal to keep tariffs at reduced levels "would show that both sides see value in continuing talks", said Thibault Denamiel, a fellow at the Centre for Strategic and International Studies. US-China Business Council President Sean Stein said the market is not anticipating a detailed readout from Stockholm: "What's more important is the atmosphere coming out." "The business community is optimistic that the two presidents will meet later this year, hopefully in Beijing," he told AFP. "It's clear that on both sides, the final decision-maker is going to be the president." Sweden's Prime Minister Ulf Kristersson said both countries' willingness to meet was a "positive development". Far from ideal For others, the prospect of higher US tariffs and few details from fresh trade deals mark "a far cry from the ideal scenario", said Denamiel. But they show some progress, particularly with partners Washington has signaled are on its priority list like the EU, Japan, the Philippines and South Korea. The EU unveiled a pact with Washington on Sunday while Seoul is rushing to strike an agreement, after Japan and the Philippines already reached the outlines of deals. Breakthroughs have been patchy since Washington promised a flurry of agreements after unveiling, and then swiftly postponing, tariff hikes targeting dozens of economies in April. Denamiel warned of overlooking countries that fall outside Washington's priority list. Solid partnerships are needed, he said, if Washington wants to diversify supply chains, enforce advanced technology controls, and tackle excess Chinese capacity.
Saudi Gazette
22 minutes ago
- Saudi Gazette
Jotun Saudi commemorates 40 years of innovation and growth
Jotun, one of the world's leading manufacturers of paints and coatings, is celebrating 40 years of successful operations in Saudi Arabia, marking four decades of contribution to the Kingdom's most iconic landmarks and infrastructure development. Since establishing its first Saudi operations in 1985, Jotun has become deeply embedded in the nation's architectural heritage, protecting and beautifying structures that define the Saudi skyline. Since the inception of the Kingdom's modern infrastructure development through to today's ambitious megaprojects, Jotun's protective and decorative coatings have preserved majority of iconic landmarks that symbolize Saudi Arabia's progress. 'Our success over the past 40 years is built on a strong team, deep-rooted values, and a stable long-term strategy that has enabled us to contribute to national infrastructure and supporting sustainable development,' said Morten Fon, President and CEO of Jotun Paints. 'As we look to the future, we remain committed to offering innovative, high-performance solutions that meet the needs of a transforming nation.' Over the past four decades, the company has delivered approximately two billion liters of paint, coating more than 300 million square meters across Saudi Arabia. The company's presence has grown to include 500 Multicolour Centres throughout the Kingdom, creating a network that provides a curated, personalized experience for professional and homeowners alike. Looking to the future, Jotun Saudi Arabia has announced plans to double its production capacity through significant investments in Jotun's manufacturing facilities in Yanbu. The expansion will incorporate advanced technologies that enhance both production efficiency and sustainability. "As Saudi Arabia continues its remarkable transformation, we are expanding our capabilities to meet growing demand,' said Martin Chew, Vice President Middle East and Africa. "This investment reflects our commitment to local manufacturing excellence and our confidence in the Kingdom's continued development." 'This 40-year milestone is not only a celebration of our past, but a commitment to the future,' Fon added. 'Our legacy is defined by our values, long-standing partnerships, premium products, and great people. We will continue to deliver reliable paint solutions for protection, performance, and beauty to the Kingdom for generations to come.' To mark this important milestone, Jotun Saudi has planned a year-long series of celebratory events to honor its employees, partners, and legacy—reinforcing its deep-rooted connection with the Kingdom and its people.
