Gold Extends Gains on Demand From China Following Holidays
(Bloomberg) -- Gold extended gains — following a surge of almost 3% on Monday — as the world's biggest bullion buyer came back from holiday, boosting demand despite a firmer dollar.
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The precious metal rose as much as 1.6% to above $3,387 an ounce as China returned from a five-day break. Buyers have been piling into gold on the conviction that it's record-setting rally still has room to run.
'Dip buyers returned to markets as China reopened this morning,' said Priyanka Sachdeva, an analyst at Phillip Nova. A stronger dollar today will likely keep a lid on further upward momentum for gold, she added.
Bullion's status as a safe haven has been reinforced by the market chaos unleashed by US President Donald Trump's aggressive trade policy. His moves to impose, then pause, sweeping tariffs on imports have undermined the dollar's traditional role as a haven and led investors to boost allocations away from US assets.
The precious metal has surged by more than a quarter this year, hitting a record just above $3,500 an ounce in April, before losing some ground in the last couple of weeks. The ascent has been driven by haven buying as the trade war unnerved investors, as well as by speculative demand in China and central-bank buying.
Spot gold rose 0.8% to $3,359.61 an ounce at 12:28 p.m. in Singapore. That was in spite of a stronger greenback, with a gauge of its strength advancing as much as 0.2% after data showed activity at US service providers accelerated in April. Silver, palladium and platinum climbed.
Elsewhere, investors are looking ahead to the Federal Reserve's midweek interest-rate decision. Policymakers are widely expected to hold rates steady when they conclude their meeting on Wednesday, despite Trump ratcheting up pressure on Chair Jerome Powell to loosen. Lower borrowing costs tend to benefit bullion as it doesn't pay interest.
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Yahoo
37 minutes ago
- Yahoo
Trump tariffs live updates: Trump, Xi Jinping speak as focus turns to US trade deals
President Trump and Chinese leader Xi Jinping spoke on Thursday, and both countries pledged to restart tariff and trade talks in the coming days. Trump hailed the call as "positive," with both leaders inviting the other to visit their respective countries. Chinese state media said Xi urged Trump to remove "negative" trade measures on his country. The call came after weeks of Trump publicly pushing for the talk, as US-China tensions have risen in the aftermath of the countries' trade truce reached in mid-May in Geneva. Both countries have accused the other of breaching that truce while ratcheting up pressure on other issues. The US and China are also now using their control over certain key materials to gain control in the trade war. Bloomberg reported on Friday that the US dominates in ethane, a gas used to make plastics, and China buys nearly all of it. Washington is now tightening control by requiring export licenses. Read more: What Trump's tariffs mean for the economy and your wallet Trump's call with Xi came as the US is pushing countries to speed up trade talks. The White House confirmed that the US sent a letter to partners as a "friendly reminder" that Trump's self-imposed 90-day pause on sweeping "reciprocal" tariffs is set to expire in early July. White House advisers have for weeks promised trade deals in the "not-too-distant future," with the only announced agreement so far coming with the United Kingdom. US and Indian officials held trade talks this week and agreed to extend those discussions on Monday and Tuesday ahead of the July 9 deadline. 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India's Tata Steel has warned that it might be excluded from tariff-free access to the US under the UK's trade agreement with the Trump administration. This exclusion risks putting more than $180M worth of annual exports at risk. The FT reports: Read more here. Two of the largest economies in the euro zone saw industrial production decline in the first month of President Trump's sweeping tariffs, indicating a economic slowdown after a stronger-than-expected year, according to a report in the Wall Street Journal on Friday. Wall Street Journal: Read more here. The EU said on Friday that it is open to reducing tariffs on US fertiliser imports as a trade bargaining tool in talks with the Trump administration. However, the EU said it would not weaken its food safety standards in pursuit of a deal. EU agriculture commissioner Christophe Hansen told Reuters: "That is definitely an option," Hansen said, of reducing US fertiliser tariffs. Reuters reports: Read more here. 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"I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal," President Trump said. Trump added that the call focused on trade, including rare earth minerals, and that the two leaders did not discuss the Russia-Ukraine war or Iran. Notably, Trump outlined that he and Xi agreed on next steps for trade talks, which will take place "shortly." Trump is sending Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer to meet with Chinese officials. Trump also said he and the first lady had been invited to visit China and that he extended the same invitation to President Xi. Read more here. The US trade deficit shrank in April as imports fell sharply, mainly due to President Trump's tariffs and companies who had previously raced to beat high import costs, no longer rushing in goods ahead of new levies. Reuters reports: Read more here. Chinese state media reported Thursday morning that President Trump and Chinese President Xi Jinping had a phone call at Trump's request. Anticipation had been building as to when the two leaders would speak, as trade tensions between the US and China reignited after Trump and Chinese officials each stated the other had broken their informal Geneva agreement. Trump had publicly pushed for a phone call, which press secretary Karoline Leavitt hinted would come this week. The call appears to mark the first talk between the two leaders during Trump's second term in office. Indian and US officials are holding high-level talks this week in New Delhi to hammer out a finalized trade deal that could be announced this month, two government sources told Reuters. Reuters reports: Read more here. The tit-for-tat game between the US and China continues. 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The world's largest consumer goods company, Procter & Gamble (PG), said on Thursday it will cut 7,000 jobs, approximately 6% of its total workforce, over the next two years as part of a new restructuring plan to combat falling consumer demand and higher costs due to tariffs. P&G said it also plans to exit some product categories and brands in certain markets. P&G, which makes popular brands such as Pampers and Tide detergent, said the restructuring plan comes when consumer spending is pressured. Like P&G, other consumer companies are also facing a drop in demand, such as Unilever. President Trump's tariffs on trading partners have deeply impacted global markets and led to recession fears in the US, which is the biggest market for P&G. A Reuters poll revealed that Trump's trade war has cost companies over $34B in lost sales and higher costs. My colleague Brian Sozzi highlights some of P&G's changes within his latest piece, stating that the consumer goods brand knows how to do a "few things very well." P&G was forced to raise prices on some products in April. Pricing and cost cuts were the main levers, CFO Andre Schulten said. On Thursday, Schulten and P&G's operations head Shailesh Jejurikar acknowledged that the geopolitical environment was "unpredictable" and that consumers were facing "greater uncertainty." Read more here. Instead of passing on tariff costs to consumers, tonic maker Fevertree Drinks (FQVTY) announced on Thursday it would equally split costs of the 10% tariff imposed on UK imports to the US with brewer Molson Coors (TAP). The British company, known for its premium cocktail mixers, counts the United States as its largest market, where it continues to deliver strong momentum bolstered by its partnership with the US beer maker Molson Coors. Read more here. Reuters reports: Read more here. 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Trade talks between the US and India were set to wrap up this Friday, but now they are being extended into next week as officials on both sides aim to work out an interim deal before a July 9 deadline. Indian government sources said the discussions, which have focused on tariff cuts in the farming and auto sectors, will continue next Monday and Tuesday. President Trump and Indian Prime Minister Narendra Modi are looking to double trade by 2030 and cement a trade pact by fall 2025. Reuters reports: Read more here. US and Chinese officials exchanged jabs at an event held by the American Chamber of Commerce (AmCham) in Shanghai on Friday, as the chamber appealed for more clarity for American businesses operating in China. Reuters reports: Read more here. India's Tata Steel has warned that it might be excluded from tariff-free access to the US under the UK's trade agreement with the Trump administration. This exclusion risks putting more than $180M worth of annual exports at risk. The FT reports: Read more here. Two of the largest economies in the euro zone saw industrial production decline in the first month of President Trump's sweeping tariffs, indicating a economic slowdown after a stronger-than-expected year, according to a report in the Wall Street Journal on Friday. Wall Street Journal: Read more here. The EU said on Friday that it is open to reducing tariffs on US fertiliser imports as a trade bargaining tool in talks with the Trump administration. However, the EU said it would not weaken its food safety standards in pursuit of a deal. EU agriculture commissioner Christophe Hansen told Reuters: "That is definitely an option," Hansen said, of reducing US fertiliser tariffs. Reuters reports: Read more here. If car buyers think they will be able to beat President Trump's tariffs, they should think again. The trade war has already led to an increase in US auto prices and some of these hikes are invisible to consumers. Bloomberg News reports: Read more here. According to a survey conducted by the American Chamber of Commerce in China, most US firms with operations in china are not budging. The survey revealed that some US don't want to leave the country and in fact would ramp up production in China, despite the the challenges posed by tariffs. Bloomberg News reports: Read more here. We know what President Trump wants in trade discussions with China. But what does China's Xi Jinping want? Bloomberg News reports Read more here. Both the US and China are using their control over key materials in a deepening trade war standoff. On Friday, Bloomberg reported that Washington is restricting ethane shipments, a gas China heavily relies on for plastics production. This follows Washingtons block on chip exports to China. 'Ethane is no longer just a byproduct of shale — it's now a geopolitical weapon,' said Julian Renton, lead analyst covering natural gas liquids at East Daley Analytics. 'China bet billions building infrastructure around US ethane, and Washington is now questioning whether that bet should continue to pay off.' But the US is not the only one weaponising their grip on vital materials. China has tightened control on rare earths, a crucial element used for technology products. However, on Thursday President Trump got a commitment from China to restore flow of rare earth magnets. These moves by the US and China marks a shift toward using strategic resources as leverage. President Trump confirmed his call with Chinese leader Xi Jinping on Truth Social, saying the call lasted one and half hours and "resulted in a very positive conclusion for both Countries." "I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal," President Trump said. Trump added that the call focused on trade, including rare earth minerals, and that the two leaders did not discuss the Russia-Ukraine war or Iran. Notably, Trump outlined that he and Xi agreed on next steps for trade talks, which will take place "shortly." Trump is sending Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer to meet with Chinese officials. Trump also said he and the first lady had been invited to visit China and that he extended the same invitation to President Xi. Read more here. The US trade deficit shrank in April as imports fell sharply, mainly due to President Trump's tariffs and companies who had previously raced to beat high import costs, no longer rushing in goods ahead of new levies. Reuters reports: Read more here. Chinese state media reported Thursday morning that President Trump and Chinese President Xi Jinping had a phone call at Trump's request. Anticipation had been building as to when the two leaders would speak, as trade tensions between the US and China reignited after Trump and Chinese officials each stated the other had broken their informal Geneva agreement. Trump had publicly pushed for a phone call, which press secretary Karoline Leavitt hinted would come this week. The call appears to mark the first talk between the two leaders during Trump's second term in office. Indian and US officials are holding high-level talks this week in New Delhi to hammer out a finalized trade deal that could be announced this month, two government sources told Reuters. Reuters reports: Read more here. The tit-for-tat game between the US and China continues. A Bloomberg report on Thursday said that the Trump administration plans to broaden restrictions on China's tech sector with new regulations to include subsidiaries of companies under US curbs. This follows China's curbs on rare earths which have led to the US, the EU, Japan and global car companies sounding the alarm on supply chain issues. The Geneva tariff talks between the US and China were meant to help prevent trade tensions between the two nations and put a stop to escalating tariffs. However, it seems both sides are unwilling to back down. Bloomberg News reports: Read more here. US business optimism has fallen sharply, reflecting a trend seen in the first quarter of the year and a reversal from the buoyant mood after President Trump was elected. Bloomberg News reports: Read more here. The world's largest consumer goods company, Procter & Gamble (PG), said on Thursday it will cut 7,000 jobs, approximately 6% of its total workforce, over the next two years as part of a new restructuring plan to combat falling consumer demand and higher costs due to tariffs. P&G said it also plans to exit some product categories and brands in certain markets. P&G, which makes popular brands such as Pampers and Tide detergent, said the restructuring plan comes when consumer spending is pressured. Like P&G, other consumer companies are also facing a drop in demand, such as Unilever. President Trump's tariffs on trading partners have deeply impacted global markets and led to recession fears in the US, which is the biggest market for P&G. A Reuters poll revealed that Trump's trade war has cost companies over $34B in lost sales and higher costs. My colleague Brian Sozzi highlights some of P&G's changes within his latest piece, stating that the consumer goods brand knows how to do a "few things very well." P&G was forced to raise prices on some products in April. Pricing and cost cuts were the main levers, CFO Andre Schulten said. On Thursday, Schulten and P&G's operations head Shailesh Jejurikar acknowledged that the geopolitical environment was "unpredictable" and that consumers were facing "greater uncertainty." Read more here. Instead of passing on tariff costs to consumers, tonic maker Fevertree Drinks (FQVTY) announced on Thursday it would equally split costs of the 10% tariff imposed on UK imports to the US with brewer Molson Coors (TAP). The British company, known for its premium cocktail mixers, counts the United States as its largest market, where it continues to deliver strong momentum bolstered by its partnership with the US beer maker Molson Coors. Read more here. Reuters reports: Read more here. British firms are brushing off President Trump's tariffs, according to a survey released on Thursday by the Bank of England. Reuters reports: Read more here.
New York Times
37 minutes ago
- New York Times
Tesla Shares Bounce After Tanking as Musk-Trump Spat Spiraled
Shares of Tesla rose on Friday, bouncing off one of the stock's sharpest declines in years — a day after Elon Musk and President Trump's partnership ended in a furious exchange of insults and acrimony. The stock rose more than 9 percent by Friday afternoon. The rebound came after the stock had plunged more than 14 percent on Thursday, its second worst decline since 2020. Even with Friday's jump, Tesla's stock is still down about 13 percent for the week. The fallout began this week after Mr. Musk criticized the policy bill that Mr. Trump is championing, calling it an 'abomination.' For investors, though, the concern is over how the spat might harm Mr. Musk's businesses. Mr. Trump threatened to slash federal contracts and tax subsidies for Mr. Musk's companies, which amount to billions of dollars. The concerns for Tesla, the only publicly traded company in Mr. Musks portfolio, are manifold. The electric vehicle maker has put its focus on autonomous driving, something the federal government would have authority to scrutinize. 'It's difficult to get excited about the long side of the stock given what happened this week,' said James Stanley, a senior strategist at StoneX. 'It ran so high on the hope that the Trump administration would be friendly to Tesla, and I can't imagine how that isn't changing right now.' Mr. Musk, he added, 'has this knack for getting investors to look so far into the future that they can kind of discount what's happening present tense.' But now, Tesla's stock is likely overvalued, Mr. Stanley said, especially given the likelihood of a less friendly stance from the Trump administration on the company's self-driving ambitions. Some analysts are more optimistic about Tesla's prospects. 'This spat between Trump and Musk does not change our firmly bullish view of the autonomous future,' analysts at Wedbush Securities said in a research note on Friday. The Republican spending bill would end a $7,500 tax credit from the federal government that has helped reduce the cost of electric vehicles, which analysts expect could cost Tesla as much as $1 billion in annual profit. But Mr. Trump has widely signaled that policy, and Mr. Musk has in the past said he is not bothered by it. Mr. Trump and his Republican allies are also planning to kill regulations that allow Tesla to sell clean air credits to other carmakers that fail to meet environmental standards. During the first quarter, Tesla sold credits worth $595 million, more than the company's net profit of $409 million. Tesla's shares have been on a roller coaster ever since Mr. Trump's election. The stock rallied sharply at the end of 2024 before dropping this year as consumer protests against the company intensified because of the role Mr. Musk was playing in the Trump administration. The stock is down about 20 percent so far this year.
Yahoo
39 minutes ago
- Yahoo
Musk's Empire at Risk After Trump Feud Opens Multi-Front Fight
(Bloomberg) -- What began as Elon Musk's embrace of right-wing populism has become a defining — and potentially harmful — chapter in his business career. Next Stop: Rancho Cucamonga! ICE Moves to DNA-Test Families Targeted for Deportation with New Contract Where Public Transit Systems Are Bouncing Back Around the World US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn Trump Said He Fired the National Portrait Gallery Director. She's Still There. By endorsing Donald Trump's MAGA movement and far-right parties in Europe, Musk alienated a big portion of his original customer base, eroding Tesla's brand, sales and market share around the globe. Then came this week's rupture: a personal and public breakup with Trump that prompted threats of retaliation from a man with control over the world's most powerful government. By simultaneously burning bridges with both his customers and now the political movement he funded and amplified for months, Musk now faces a rare convergence of threats: collapsing brand loyalty, shaky revenues, and mounting legal and regulatory risk. Tesla Inc.'s sales are already stumbling under the weight of partisan baggage. SpaceX, long seen as a strategic national asset, is facing new scrutiny as political winds shift. And the green shoots at X — Musk's $44 billion 'free speech' experiment— that were fueled by Musk's proximity to the White House and the ad dollars that followed, may soon disappear. 'Elon isn't functioning to the benefit of his shareholders,' said Ross Gerber, the chief executive officer of Tesla shareholder Gerber Kawasaki, which has been reducing its Tesla holdings over the last few years. Speaking on Bloomberg Television on Thursday while the meltdown was still going on, Gerber said Musk's behavior is leading to the 'dismantling of the Musk empire in real time.' With enemies on both flanks, Musk finds himself at the center of a storm fueled by consumer revolt and political hostility. 'Nobody on the right is gonna buy a Tesla, nobody on the left is gonna buy a Tesla. Elon is a man without a country,' said Steve Bannon, an outside adviser to Trump who has long been critical of Musk, in an interview. Bannon says he is 'in continual conversations at the most senior levels' of the Trump administration to push them to revoke Musk's security clearance and use the Defense Production Act to seize SpaceX and Starlink on grounds they're vital to US national security. Even if Trump doesn't take such extreme measures, there is no shortage of retaliatory options for the White House. The president could try to wield the power of agencies like the US Securities and Exchange Commission, the National Highway Traffic Safety Administration and the Federal Aviation Administration to inflict real harm — or even just incessant regulatory morass — onto all of Musk's businesses and the source of his wealth. In just one day, the Musk-Trump spat shaved $34 billion from his personal net worth, the second-largest loss ever in the history of the Bloomberg Billionaires Index of the 500 wealthiest people on the planet. The only bigger wealth hit: his own wipeout in November 2021. Tesla lost $153 billion of market value on Thursday, with shares reversing course on Friday after Musk began to simmer down. Musk has faced deep stretches of pain before. There are flanks of skeptics who have, over the years, called for his impending demise only to be proven wrong by the world's richest man and his cult following of fans and funders willing to throw ever-growing sums of money at his ambitions. Most famously, Tesla flirted with bankruptcy only to reverse course and become the biggest electric vehicle seller in the world. Musk's $44 billion purchase of X was widely panned as the company's debt languished on banks' books, only to see those fortunes reversed after Trump's election. 'Musk has a habit of teetering on the edge of destruction and pulling himself back just in the nick of time,' said Nancy Tengler, whose firm holds 3.5% of its growth portfolio Tesla stock, in a Friday interview on Bloomberg Television. Tengler, CEO and chief investment officer of Laffer Tengler Investments, said her firm has been adding Tesla shares in recent months but now has a 'full position.' 'He needs to dial down the rhetoric and the drama and get back to the business,' she says, as investors own Tesla stock for growth, not for 'the histrionics.' To pull off a rebound this time around, Musk is going to have to convince people to start buying his electric vehicles at a faster clip and reverse the painful sales slide in the US, Europe and around the world. He's also going to have to attract riders to his new robotaxi service in Austin as the company makes a gigantic bet on artificial intelligence, robotics and self-driving cars. Musk has lobbied lawmakers to help clear a path for driverless vehicles, something Trump initially endorsed. It's now unclear if the Trump-Musk fallout complicates the regulatory environment for autonomous vehicles and potentially slows the path forward for Tesla's robotaxi network. 'The disagreement will not help Tesla demand but could potentially (temporarily) alienate multiple sides of the political spectrum,' said Morgan Stanley analyst Adam Jonas in a research note entitled 'Well That Escalated Quickly...' Jonas said emotions are 'running high' and that he's sticking to his long-term $410 price target on Tesla's share price but is bracing for near-term volatility and is 'prepared for the stock to give up more.' Other tests in the coming weeks may include a $5 billion debt offering of the billionaire's AI company, xAI Corp., as well as funding rounds for xAI and SpaceX. Musk recently closed a $650 million late-stage raise for his neurotechonlogy company Neuralink from big investors including Sequoia Capital, ARK Investment Management and Founders Fund. From a legal and regulatory perspective, there's even more at stake for Musk if the Trump administration turns on the billionaire and claws back contracts like the president threatened on Thursday. SpaceX, one of the world's most valuable startups with a market value of $350 billion, has received more than $22 billion in unclassified contracts from the Defense Department and NASA since 2000, according to data from Bloomberg Government. It launches critical national security satellites for the Pentagon and the US is depending on the Musk-led company to develop a spacecraft to put American astronauts on the moon in as little as two years. Musk's vow to decommission its all-important Dragon spacecraft, which ferries cargo and people to the International Space Station for the US, sent shock waves throughout the industry. Following through with the threat, which Musk later walked back, would sever a vital part of the US space program. 'It is untenable to have a CEO of a prime defense and aerospace contractor threaten to shut down services the government has contracted with them to perform,' said Lori Garver, a former NASA deputy administrator under former President Barack Obama. Garver says NASA needs SpaceX, but that SpaceX's business model also depends, in part, on the US government. 'Elon has already walked back decommissioning Dragon, because they do require now, as a big part of their business plan, government contracts. But they provide a service for those contracts. So it's a symbiotic relationship,' Garver said. On a more day-to-day basis, government agencies could try to inflict pain on Musk's businesses by delaying everything from space launches to satellite service to robotaxi expansion. Investigations into publicly traded Tesla or the finances of his companies could include the SEC, as well as antitrust probes and Federal Trade Commission interest around social media moderation, data use or AI. So far, Musk and Trump may be trying to at least press pause on the public spectacle. White House officials say Trump plans to focus his attention on inflation and the economy rather than speak to Musk, and insinuated without evidence that the billionaire was agitating for a call with the president. (In a pair of posts on his social media platform Friday morning, Trump intensified his push for Federal Reserve Chair Jerome Powell to lower rates.) As for pulling Musk's government contracts, Trump hasn't yet pursued any steps to follow through with his threats, one of these people said. He is, however, thinking of getting rid of his Tesla. --With assistance from Josh Wingrove and Akayla Gardner. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again What America's Pizza Economy Is Telling Us About the Real One YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Is Elon Musk's Political Capital Spent? ©2025 Bloomberg L.P. 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