Gold falls on strong US jobs data and improved trade outlook
[BENGALURU] Gold prices fell on Monday (Jun 9) as a stronger-than-expected US jobs report cooled expectations of interest rate cuts from the Federal Reserve, while optimism over easing trade tensions between US-China weighed on the bullion's safe-haven demand.
Spot gold fell 0.2 per cent to US$3,303.19 an ounce, as at 0056 GMT. US gold futures fell 0.7 per cent to US$3,323.40.
Three of US President Donald Trump's top aides will meet with their Chinese counterparts in London on Monday for talks aimed at resolving the trade dispute between the two largest economies that has kept global markets on edge.
The US economy added 139,000 jobs in May, surpassing analysts' expectations, while the unemployment rate was unchanged at 4.2 per cent, the Labor Department said.
Wage growth also exceeded forecasts, dampening the likelihood of imminent rate cuts.
Investors have scaled back bets on rate cuts, now anticipating one reduction in October.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Trump, meanwhile, said that a decision on the next Federal Reserve chair would be announced soon, adding that a 'good Fed chair' would lower interest rates.
The US dollar index edged slightly up, making gold more expensive for overseas buyers.
On the geopolitical front, Trump's order banning citizens of 12 countries from entering the US goes into effect on Monday.
Russia stated on Sunday that its forces had advanced to the edge of Ukraine's Dnipropetrovsk region amid tensions over peace talks and the repatriation of soldiers' remains.
Gold, often seen as a hedge against inflation and geopolitical uncertainty, could face pressure from higher interest rates, which reduce its appeal as a non-yielding asset.
Elsewhere, spot silver remains unchanged at US$35.94 per ounce, platinum fell 0.5 per cent to US$1,163.10, while palladium was down 0.5 per cent to US$1,041.75. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
28 minutes ago
- Straits Times
UK employment plummets by most in five years, 276,000 jobs lost since Oct 2024
LONDON – UK employment plunged by the most in five years and wage growth slowed more than forecast, as the labour market deteriorated after Chancellor of the Exchequer Rachel Reeves ramped up the cost of hiring. Tax data showed the number of employees on payroll tumbled 109,000 in May, the biggest decline since May 2020, the Office for National Statistics (ONS) said on June 10. It was much worse than the 20,000 fall predicted by economists. It took the number of jobs lost since Ms Reeves' first budget in October 2024 to 276,000 and suggested the labour market has worsened significantly since a £26 billion (S$45 billion) tax hike on businesses took effect in April. The payrolls number is often revised and the ONS said May should be treated with extra caution as the estimate is based on partial figures. The figures suggest firms are seeking cost savings after Labour increased payroll taxes for businesses and hiked the minimum wage. That will likely ease concerns at the Bank of England (BOE) that inflation will continue to be fuelled by higher wage growth, as officials try to contain a fresh pick-up in price pressures. The pound held losses after the data showed wages grew slightly less than expected in the period, down 0.2 per cent on the day to around US$1.35. Traders increased bets on a rate cut this year. 'There continues to be weakening in the labour market, with the number of people on payroll falling notably,' said ONS director of economic statistics Liz McKeown. 'Feedback from our vacancies survey suggests some firms may be holding back from recruiting new workers or replacing people when they move on.' The ONS also said pay growth excluding bonuses eased to 5.2 per cent, the slowest pace in seven months. Economists had expected 5.3 per cent on average. Private-sector wage growth – the measure watched most closely by the BOE – cooled to slowed to 5.1 per cent from 5.5 per cent. Vacancies fell in the three months through May. Unemployment rose to 4.6 per cent, the highest since the summer of 2021. However, policymakers do not trust the estimates after a plunge in responses to the survey underpinning the figure. Sticky pay and price data have kept the BOE wary over cutting interest rates too quickly, adding to doubts over whether it will stick to a once-a-quarter pace to its reductions. While wage growth is easing, it remains well above the 3 per cent or so that the BOE deems compatible with keeping inflation at the 2 per cent target. Markets have all but ruled out another move at their meeting next week and put the odds of a cut to borrowing costs in August at around 60 per cent, with officials expected to stick to their 'gradual and careful' approach to cutting rates. Some including Governor Andrew Bailey said they considered skipping another cut at their meeting in May but were persuaded to back an easing by Donald Trump's trade war. 'Today's labour market data provides the Bank of England with tentative evidence that the rise in labour costs is unlikely to lead to a rebound in wage growth,' said Ms Yael Selfin, chief economist at KPMG UK. Energy bills and regulated prices boosted inflation in April to the highest level in over a year, though policymakers believe underlying pressures are gradually cooling. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
28 minutes ago
- Straits Times
Chinese tourists ramp up European summer trips, as Americans cut back
Overall, Chinese tourists are being tighter with their budgets than most of their global counterparts. PHOTO: REUTERS Newly cost-sensitive Americans may be hitting the breaks on their big European vacations this summer, but another group is taking up the slack: Chinese travellers. According to a survey about long-haul trips the European Travel Commission (ETC) is publishing on June 10, which was previewed exclusively with Bloomberg, 72 per cent of Chinese respondents say they plan to travel to Europe this summer – up 10 per cent from 2024. The figures reflect the highest demand from Chinese travellers since the pandemic. That should elicit a sigh of relief for hoteliers, restaurateurs and other business owners across the continent who depend on big-spending foreign tourists. Before Chinese outbound tourism ground to a halt in 2020, it represented a particularly lucrative sector in Europe, with Chinese travellers coming in second to Americans in spending. Chinese tourists spent US$251 billion (S$323 billion) abroad in 2024, according to UN tourism, surpassing pre-2020 levels. That makes China the largest market in terms of overall tourism spending, even if until recently most of this revenue was spent on trips within Asia. But there's a significant catch in ETC's findings: Chinese tourists do not plan to spend like they used to. That is notable, given the group's previous propensity for luxury shopping. In fact, just 29 per cent of respondents say they plan to spend more than €200 ($290) per day, a 44 per cent drop compared to last summer, and a majority of Chinese travelers – 54 per cent – plan to limit their budgets between €100 to €200 a day. Even still, at least 53 per cent of Chinese respondents in ETC's report indicate shopping will play at least some role on their trips, and budgets are more generous among business travellers, 36 per cent of whom expect to spend more than €200 a day. Overall, Chinese tourists are being tighter with their budgets than most of their global counterparts. The ETC's survey queried 7,100 long-haul travellers from Australia, Brazil, Canada, China, Japan, South Korea and the US about their summer travel intentions – and results show that a total of 11 per cent of travellers to Europe will be lowering their spending this summer. The overall ratio of travellers spending only €100 to €200 per day – 40 per cent – was lower than the Chinese traveller percentages. The reality is that in a climate of economic uncertainty, few travellers are splurging – regardless of their origins. That is echoed in data from the World Travel & Tourism Council showing that tourism growth is expected to slow sharply in 2025. Only a third of the ETC's American respondents are planning trips to Europe this summer, which is 7 per cent fewer than in 2024. And yet another three markets surveyed in the ETC report – Brazil, Canada and Japan – are on the decline, to a lesser degree. High travel costs and plans to vacation locally are the primary deterrents. Mr Eduardo Santander, chief executive officer of the ETC, sees reasons for optimism. 'While recovery from China has been more gradual than other long-haul markets, momentum is clearly building,' he said. Building back business with these travelers, he added, 'remains a top priority for many European destinations.' In other words, it's a relief that Chinese travellers are coming at all. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
36 minutes ago
- Business Times
Jumbo ventures beyond chilli crab to bring famous Siji Minfu Peking duck chain to Singapore
[SINGAPORE] Home-grown seafood restaurant group Jumbo has inked a joint venture with Chinese roast duck brand Siji Minfu to bring its signature Peking duck to Singapore. While no launch date was provided, the restaurant is expected to open at Resorts World Sentosa, featuring the brand's famed traditionally roasted Peking duck and its hallmark northern Chinese flavours. The setting will be one inspired by traditional Beijing courtyards. Jumbo said the venture offers a timely opportunity to 'build a strong partnership' with Siji Minfu and 'capitalise on the growing global food and beverage sector in Singapore' through the introduction of the established Chinese brand. The Singapore Exchange-listed company added that the collaboration is part of its 'continuing growth strategy to build a robust roster of food and beverage brands and diversify its operations', with a view to enabling future growth, regional expansion and potential spin-offs. The group, which is famous for the chilli crab sold by its Jumbo Seafood brand, has a presence across several cities in China, including Shanghai, Beijing and Fuzhou. In May, the restaurant operator reported a 10.6 per cent decline in profit to S$7.9 million for the six months ended Mar 31, down from S$8.9 million in the year-ago period. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up For Siji Minfu, this will mark the brand's first overseas outlet, adding to its existing footprint of more than 20 locations in China, including in prominent areas such as Wangfujing and Qianmen Street in Beijing. These China-based outlets are not part of the joint venture. Siji Minfu's Singapore arm was incorporated on Aug 7, 2023, while the joint venture company, Sijiminfu-Jumbo, was established on Dec 18, 2024. The joint venture is set to run for an initial term of five years, with the possibility of automatic extension or renewal by mutual agreement between the partners. It has an issued share capital of S$2.6 million, comprising 2.6 million ordinary shares – 90 per cent held by Siji Minfu and the remaining 10 per cent by Jumbo. Jumbo said the investment will be funded by internal resources, and is not expected to have a material impact on its net tangible assets or earnings per share for the financial year ending Sep 30.
