Gold succumbs to profit-taking after US jobs data-fuelled rally
slipped on Monday as investors booked profits after a sharp rise in the previous session following weaker-than-expected U.S. jobs data that boosted expectations for a
Federal Reserve interest rate cut
in September.
FUNDAMENTALS
Explore courses from Top Institutes in
Please select course:
Select a Course Category
Public Policy
healthcare
Others
Healthcare
Management
Design Thinking
PGDM
Data Science
Leadership
others
CXO
Digital Marketing
Data Science
Technology
Operations Management
MBA
Finance
Degree
Project Management
Cybersecurity
MCA
Product Management
Artificial Intelligence
Data Analytics
Skills you'll gain:
Economics for Public Policy Making
Quantitative Techniques
Public & Project Finance
Law, Health & Urban Development Policy
Duration:
12 Months
IIM Kozhikode
Professional Certificate Programme in Public Policy Management
Starts on
Mar 3, 2024
Get Details
Skills you'll gain:
Duration:
12 Months
IIM Calcutta
Executive Programme in Public Policy and Management
Starts on
undefined
Get Details
* Spot gold lost 0.3% to $3,351.80 per ounce as of 0055 GMT. Bullion had risen more than 2% on Friday. However, U.S.
gold futures
gained 0.2% to $3,404.80.
* The
dollar index
fell 0.5% against a basket of rivals, making gold more affordable for holders of other currencies. Meanwhile, the benchmark 10-year yield languished near a five-week trough.
* A weaker than expected U.S. employment growth in July and a downward revision of 258,000 jobs in the May and June
non-farm payrolls
signalled a sharp deterioration in labor market conditions and revived hopes of a Fed rate cut in September, with markets now pricing in a 90% chance, per CME FedWatch tool.
Live Events
* Gold, traditionally considered a
safe-haven asset
during political and economic uncertainties, tends to thrive in a low-interest-rate environment.
*
SPDR Gold Trust
, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.15% to 953.08 tonnes on Friday from 954.51 tonnes on Thursday.
* Demand for physical gold in key
Asian markets
improved slightly last week as a pullback in prices sparked buying interest, though volatility kept some buyers cautious.
* Asian markets tracked Wall Street lower as fears for the U.S. economy returned with a vengeance, prompting investors to price in an almost certain rate cut in September and undermining the dollar.
* Spot silver fell 0.5% to $36.83 per ounce, platinum slipped 0.6% to $1,307.25 and palladium dipped 1.6% to $1,189.27. DATA/EVENTS (GMT) 1400 US Factory Orders MM June.
ETMarkets WhatsApp channel
)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
36 minutes ago
- India Today
Why are global investors running from US markets in 2025?
The United States stands on the precipice of an unprecedented financial crisis as Bank of America warns that up to $41 trillion in foreign-held American assets could flee the country. This staggering figure represents roughly a third of US equity and bond markets, encompassing stocks, corporate and government bonds, real estate, and reserves. The warning signs are already materialising. By early 2025, foreign investors had withdrawn $6.5 billion in a single week, whilst an additional $8.9 billion in investments remained frozen amid mounting uncertainty. This exodus stems from political turmoil, unpredictable trade policies, and soaring national debt exceeding $37 President Trump's re-election in 2025 marked a critical turning point. His administration implemented aggressive tariffs ranging from 10-50% on goods from over 60 countries, including major trading partners such as China, India, the EU, and Mexico. Whilst these measures aimed to force foreign companies to establish operations within America, they have instead triggered retaliatory tariffs, disrupted supply chains, and created an investment environment plagued by administration's approach extends beyond trade policy. Trump's public attacks on the Federal Reserve and efforts to undermine its independence have raised serious concerns about US governance. The "America First" doctrine signals a retreat from multilateral cooperation, prioritising domestic political gains over established alliances and investor players are responding accordingly. China has dramatically reduced its holdings of US Treasury securities, whilst Saudi Arabia quietly reallocates assets away from dollar-denominated investments. Central banks worldwide are rebalancing reserves, moving towards euros, yuan, and gold as the dollar's share of global reserves sinks to multi-decade implications extend far beyond Wall Street. Foreign capital withdrawal threatens to crash stock prices and bond values, whilst interest rates would soar, affecting millions of retirement accounts. Key sectors including technology, artificial intelligence, biotechnology, and green energy—all dependent on foreign investment—face potential job losses and reduced innovation economies across Asia and Europe stand ready to capture this redirected capital, offering more stable investment climates and predictable trade policies. As America grapples with this crisis of confidence, the fundamental question remains: can the US restore trust and maintain its financial dominance, or will it witness the beginning of its economic decline?- EndsMust Watch
Economic Times
37 minutes ago
- Economic Times
Ex-Intel boss pushes shocking $40 billion rescue plan involving Apple, Nvidia - calls for sacking Lip-Bu Tan
Intel $40 billion rescue plan: Former Intel CEO Craig Barrett suggests a $40 billion plan. It aims to rescue Intel and America's chipmaking dominance. He urges Intel's major clients like Apple and Google to invest. Each should contribute $5 billion. This will ensure domestic chip supply. It will also provide pricing power against Asian rivals. He criticizes Intel's current CEO and investment strategies. Tired of too many ads? Remove Ads Craig Barrett warns of existential threat to Intel and US chipmaking $40 billion proposal targets Intel's biggest customers Tired of too many ads? Remove Ads Intel CEO Lip-Bu Tan under scrutiny amid massive losses Tariffs on advanced chip imports could boost US manufacturing Donald Trump calls for Intel CEO's resignation FAQs Tired of too many ads? Remove Ads Ex-Intel CEO and chairman Craig Barrett has made an urgent call to action, laying out a striking $40 billion plan to save Intel and with it, America's leadership in advanced chipmaking, as per a a piece written for Fortune, Barrett warned that without immediate funding, Intel could fall permanently behind rivals like Taiwan's TSMC and South Korea's Samsung, a shift he believes would be disastrous for national security and the US tech industry, as per a Tom's Hardware believes Intel remains the only American company capable of competing with TSMC at the leading edge of semiconductor manufacturing, according to the report. But he says the company lacks the capital to scale its operations and invest in next-generation technologies, as per the report. According to him, federal funding through the CHIPS Act won't be enough to close the gap, as per a Tom's Hardware reportALSO READ: See you in court! Trump targets Fed Chair Jerome Powell with massive lawsuit threat Instead, he's proposing that Intel's eight largest customers, including companies like Apple, Google, and Nvidia, should each contribute $5 billion, adding up to a collective $40 billion investment, according to the report. In return, these companies would gain guaranteed domestic chip supply and pricing leverage against Asian competitors, as reported by Tom's also pointed out that neither TSMC nor Samsung has plans to bring their most advanced manufacturing capabilities to the US, which he sees as a long-term threat to American companies dependent on foreign chips, according to the wrote that 'The only place the cash can come from is the customers,' adding that leadership in manufacturing requires proactive investment years ahead of market demand, as per the READ: AI upstart Perplexity shocks tech world with $34.5 billion bid to snatch Google Chrome He also criticized Intel's current leadership under CEO Lip-Bu Tan, who was appointed in March 2025, according to the Tom's Hardware report. The company has been struggling with massive financial losses, $18.8 billion in 2024 alone, and another $2.9 billion in the second quarter of 2025, and has also laid off tens of thousands of workers, while canceling major projects, as per the former chairman specifically called out Intel's hesitation to invest in its upcoming 14A manufacturing process without pre-existing customer contracts, calling the approach 'a joke' and warning it risks falling permanently behind, as reported by Tom's plan hinges on two things that include immediate investment in critical technologies like High-NA EUV and backside power delivery, and potential US tariffs on imported advanced chips to stimulate domestic demand, as reported by Tom's Hardware. Barrett even rejected calls to split Intel into separate design and manufacturing entities, pointing out that the core problem is capital, not structure, according to the remark comes after US president Donald Trump had publicly called for Tan's resignation over alleged ties to China, as per the report. Barrett highlighted that his proposal was important for both national security and supply chain stability, warning that the US cannot afford to let Intel's manufacturing leadership slip away, as reported by Tom's wants Intel's biggest customers to each invest $5 billion to help the company modernize its tech players like Apple, Google, and Nvidia.
Economic Times
an hour ago
- Economic Times
See you in court! Trump targets Fed Chair Jerome Powell with massive lawsuit threat
Donald Trump lawsuit Jerome Powell: Donald Trump is threatening a lawsuit against Federal Reserve Chair Jerome Powell over a $3 billion renovation project he deems "horrible and grossly incompetent." Trump claims the project should have cost only $50 million. He also reiterated his demand for Powell to cut interest rates immediately, despite concerns about rising core inflation. Tired of too many ads? Remove Ads Donald Trump Threatens Lawsuit Against Jerome Powell Over Fed's $3 Billion Renovation Tired of too many ads? Remove Ads Trump Repeats Call for Powell to Slash Interest Rates Immediately Tired of too many ads? Remove Ads FAQs US president Donald Trump is once again turning up the heat on Federal Reserve Chair Jerome Powell, this time threatening a major lawsuit over what he calls a "horrible and grossly incompetent" handling of a costly renovation project at the Fed's Washington headquarters, as per a wrote on his social media site Truth Social, saying that he is "considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings," as quoted by pointed out that, "Three Billion Dollars for a job that should have been a $50 Million Dollar fix up. Not good!," but he did not give any details about the lawsuit to which he was referring, as per the Newsweek READ: AI upstart Perplexity shocks tech world with $34.5 billion bid to snatch Google Chrome The Federal Reserve, however, has pointed to a range of unforeseen issues as reasons for the ballooning costs, including the discovery of more asbestos than initially known, toxic soil contamination, and redesigns that were necessary as the project evolved, according to the report. The Fed also highlighted that the modernisation project will ultimately save money by consolidating most of its operations, as per the Newsweek Fed chair and US president have previously clashed over this during Trump's visit to the Fed construction project in July, when Powell disputed his characterisation of the costs involved, as reported by READ: Is it AI or Trump's policies? US sees brutal 140% layoff spike in July, worst surge since early COVID chaos Trump also repeated his demand for Powell to cut interest rates in his Truth Social post after the publication of the most recent inflation data, according to the headline rate of CPI inflation held steady at 2.7% in July, while the underlying rate of core inflation, which strips out volatile food and energy prices, rose to 3.1% in the month, increasing from 2.9% in June, as per the Newsweek the US central bank has held off cutting rates due to concerns that Trump's tariffs may fuel an increase in inflation, and has been waiting for more data before making a move, according to the report. But markets now expect a September rate cut, as inflation is fairly stable and jobs data is weakening, reported wrote that "Jerome 'Too Late' Powell must NOW lower the rate," and also called the Fed chair a "loser," as per the US president highlighted that "The damage he has done by always being Too Late is incalculable. Fortunately, the economy is sooo good that we've blown through Powell and the complacent Board," as quoted im the Newsweek some experts have warned that the rising core inflation data is a red flag, like Kathy Jones, chief fixed income strategist at the Schwab Center for Financial Research, wrote on X that "CPI was in line with expectations, but the trend is heading in the wrong direction," adding, "It may not prevent a rate cut by the Fed in September, because policy is 'restrictive' but progress toward 2% inflation appears to have stalled," as quoted in the believes the Federal Reserve's $3 billion renovation project has been mismanaged and cost far more than expect a rate cut in September, but it depends on inflation and job market data, as per the Newsweek report.
