logo
Gold slips as easing geopolitical tensions weigh; US inflation data in focus

Gold slips as easing geopolitical tensions weigh; US inflation data in focus

Gold slipped on Monday as signs of easing geopolitical risks weighed on its safe-haven demand, with markets now focused on upcoming U.S. inflation data that could offer insight into the Federal Reserve's interest rate outlook.
Spot gold fell 0.7% to $3,376.67 per ounce, as of 0248 GMT, after hitting its highest since July 23 on Friday.
U.S. gold futures for December delivery dropped 1.5% to $3,439.70.
'Cooling geopolitical tensions surrounding the war in Ukraine saw gold fall further, following Friday's announcement that President Donald Trump will meet with Vladimir Putin on the U.S. soil,' City Index senior analyst Matt Simpson said.
Trump said on Friday he will meet Russian President Putin on August 15 in Alaska to negotiate an end to the war in Ukraine.
Focus this week will be on U.S. consumer prices due on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3% to an annual pace of 3.0% and away from the Fed's target of 2%.
'A hot print could further strengthen the dollar and cap gains on gold, though I suspect support will remain in place overall as investors seek to scoop up discounts,' Simpson said.
Recent softer-than-expected U.S. jobs report boosted bets for a Fed rate cut in September. Markets imply around a 90% probability of a September easing, and at least one more cut by this year end.
Non-yielding gold thrives in a low-interest rate environment.
Also on the radar are trade discussions as Trump's August 12 deadline for a deal between Washington and Beijing loomed.
Meanwhile, COMEX gold speculators increased net long position by 18,965 contracts to 161,811 in the week to August 5.
Elsewhere, spot silver fell 0.8% to $38.02 per ounce, platinum slipped 0.9% to $1,320.45 and palladium lost 0.3% to $1,122.69.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Euro zone bonds steady as traders mull hot US inflation, await Alaska summit
Euro zone bonds steady as traders mull hot US inflation, await Alaska summit

Business Recorder

time16 minutes ago

  • Business Recorder

Euro zone bonds steady as traders mull hot US inflation, await Alaska summit

LONDON: Euro zone bonds held steady as markets continue to digest Thursday's hot US inflation print while awaiting the outcome of the Alaska summit between US President Donald Trump and Russian President Vladimir Putin later on Friday. German 10-year yields traded flat around 2.7097%, while the rate-sensitive 2-year yields were also steady at 1.9441%. On Thursday, US producer price data came in hotter than expected, renewing inflation concerns and prompting traders to scale back Fed rate cut bets. Ahead of Friday's summit in Alaska, Trump said he believes his Russian counterpart is ready to end the war in Ukraine, but that peace would likely require at least a second meeting involving Ukraine's leader. Reuters

Shein's UK sales surge to $2.8 billion in 2024, boosting profits as IPO looms
Shein's UK sales surge to $2.8 billion in 2024, boosting profits as IPO looms

Business Recorder

timean hour ago

  • Business Recorder

Shein's UK sales surge to $2.8 billion in 2024, boosting profits as IPO looms

LONDON: Shein's British business made 2.05 billion pounds ($2.77 billion) in sales in 2024, a 32.3% increase from the previous year, a filing by the online fast-fashion retailer showed early on Friday. Shein does not report global results publicly, but the filing sheds light on its growth in Britain, its third-biggest market after the United States and Germany, as the company works toward an initial public offering in Hong Kong. Founded in China and headquartered in Singapore, Shein has spent years attempting to list, first in New York and then in London, but faced criticism from US and UK politicians and failed to get approval from China's securities regulator for the offshore IPO at a time of increasing tensions between China and the US. The global retailer's UK business, Shein Distribution UK Ltd, reported a pretax profit of 38.25 million pounds in 2024, up 56.6% from 24.4 million pounds in 2023. In the filing, Shein highlighted 2024 milestones, such as a pop-up shop in Liverpool, a Christmas bus tour across 12 UK cities and the opening of two new offices in Kings Cross and Manchester. Known for deeply discounted pricing, Shein runs constant promotions and offers coupons or rewards that encourage shoppers to keep buying. Shein has taken market share from retailers like ASOS and H&M as surging inflation dented consumers' spending power, driving them to hunt for bargains. Shein has also broadened its offering beyond fashion — the UK site sells 7.99-pound ($10.84) dresses and 15-pound ($20.36) jeans, as well as everything from toys and craft supplies to storage units. Shein's business has benefited from customs duty exemptions on low-value e-commerce packages that allow it to send goods directly from factories in China to shoppers' doorsteps largely tariff-free. But that perk is on its way out, driving Shein's costs — and prices — up, particularly in the U.S., where imports from China are now subject to steep tariffs. U.S. President Donald Trump's administration has scrapped its 'de minimis' exemption for parcels under $800, and the European Union plans to remove its equivalent duty waiver on e-commerce parcels worth less than 150 euros. Britain is also reviewing its policy on low-value imports after retailers said it was giving online players like Shein and Temu an unfair advantage.

Trump and Putin to spar over Ukraine peace and arms control at Alaska summit
Trump and Putin to spar over Ukraine peace and arms control at Alaska summit

Business Recorder

timean hour ago

  • Business Recorder

Trump and Putin to spar over Ukraine peace and arms control at Alaska summit

MOSCOW: Donald Trump and Vladimir Putin hold talks in Alaska on Friday, with the US president's hopes of sealing a ceasefire agreement on Ukraine uncertain but with a last gasp offer from Putin of a possible nuclear deal that could help both men save face. The meeting of the Russian and U.S. leaders at a Cold War-era air force base in Alaska will be their first face-to-face talks since Trump returned to the White House and comes amid Ukrainian and European fears that Trump might sell Kyiv out. The White House said the meeting will take place at 11 a.m Alaska time (1900 GMT). Trump, who once said he would end Russia's war in Ukraine within 24 hours, said on Thursday the three-and-a-half-year conflict had proven a tougher nut to crack than he had thought. He said if his talks with Putin went well, setting up a subsequent three-way summit with Ukrainian President Volodymyr Zelenskiy - who was not invited to Friday's meeting - would be even more important than his encounter with Putin. Trump is pressing for a truce to bolster his credentials as a global peacemaker worthy of the Nobel Peace Prize, something he has made clear is important to him. Ukraine and its European allies were heartened by their conference call on Wednesday in which, they said, Trump agreed Ukraine must be involved in any talks about ceding land. Zelenskiyy said Trump had also supported the idea of security guarantees in a post-war settlement, although the US president has made no public mention of them. Wednesday's call eased their fears of a Trump-Putin deal that would leave Ukraine under pressure to make territorial and other concessions. Putin, whose war economy is showing signs of strain, needs Trump to help Russia break out of its straitjacket of ever-tightening Western sanctions, or at the very least not to hit Moscow with more sanctions, something Trump has threatened. Trump says Putin summit a prelude to real Ukraine dealmaking The day before the summit, the Kremlin leader held out the prospect of something else he knows Trump wants - a new nuclear arms control agreement to replace the last surviving one, which is due to expire in February next year. Trump says Putin will do a deal on Ukraine Trump said on the eve of the summit that he thought Putin would do a deal on Ukraine, but he has blown hot and cold on the chances of a breakthrough. Putin, meanwhile, praised what he called 'sincere efforts' by the U.S. to end the war. A source close to the Kremlin told Reuters it looked as if the two sides had been able to find some unspecified common ground beforehand. 'Apparently, some terms will be agreed upon tomorrow (Friday) because Trump cannot be refused, and we are not in a position to refuse (due to sanctions pressure),' said the source, who spoke on condition of anonymity because of the matter's sensitivity. Putin has set stringent conditions for a full ceasefire, but one compromise could be a phased truce in the air war, although both sides have accused the other of flouting a previous accord. Analysts say Putin could try to look like he's giving Trump what he wants while remaining free to escalate in Ukraine if he wants to. 'If they (the Russians) are able to put a deal on the table that creates some kind of a ceasefire but that leaves Russia in control of those escalatory dynamics, does not create any kind of genuine deterrence on the ground or in the skies over Ukraine… that would be a wonderful outcome from Putin's perspective,' said Sam Greene, director of Democratic Resilience at the Center for European Policy Analysis. Trump suggests land transfers will be needed Zelenskiyy has accused Putin of bluffing and playing for time to avoid U.S. secondary sanctions and has ruled out handing Moscow any territory. Trump has said land transfers between Russia and Ukraine could be a possible way of breaking the logjam. Putin, whose forces control nearly one fifth of Ukraine, wants Trump to start reviving the two countries' shrunken economic, political and business ties and, ideally, not to make that process contingent on progress on Ukraine. But it is unclear whether Putin is willing to compromise on Ukraine. In power for a quarter of a century, the Kremlin chief has staked his legacy on coming out of the war with something he can sell to his people as a victory. Chief among his war aims is complete Russian control over the Donbas industrial region in eastern Ukraine, which comprises the Donetsk and Luhansk regions. Despite steady advances, around 25% of Donetsk remains beyond Russian control. Putin also wants full control of Ukraine's Kherson and Zaporizhzhia regions; NATO membership to be taken off the table for Kyiv; and limits on the size of Ukraine's armed forces. Ukraine has said these terms are unacceptable and tantamount to asking it to capitulate.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store