Gold eases on firmer dollar, solid US data
Spot gold fell 0.2% to $3,338.78 per ounce, by 1231 p.m. EDT (1631 GMT) after hitting a session low of $3,309.59.
U.S. gold futures fell 0.4% to $3,344.20.
Following the latest U.S. data, "there was a bit of rise in the dollar and U.S. Treasury yields are higher. So, it's put a little weakness in the gold market," said Bob Haberkorn, senior market strategist at RJO Futures.
The dollar gained 0.2%, making the greenback-priced gold more expensive for foreign currency holders.
U.S. jobless claims fell last week, pointing to steady job growth in July, while retail sales data beat expectations, adding 0.6% last month, though some of the gain likely reflected tariff-driven price increases.
Fed Governor Adriana Kugler said the Fed should not cut interest rates "for some time" as the impact of Trump administration tariffs begins to pass through to prices.
Gold is often regarded as a hedge against uncertainty and inflation, but higher interest rates diminish its appeal, as it yields no interest.
On the trade front, Japan's top trade negotiator held talks with the U.S. Commerce Secretary on U.S. tariffs, as Tokyo races to avert a 25% levy that will be imposed unless a deal is clinched by an August 1 deadline.
"If Trump follows through on his threats and trade tensions escalate, it's not a stretch to imagine gold challenging — and potentially breaking-its record highs again," said Fawad Razaq, market analyst at City Index and FOREX.com.
Palladium rose 2.8% to $1,265.76, reaching its highest level since September 2023.
Fears of an escalating war in Russia, a major palladium exporter, are fuelling supply concerns and driving prices higher, Haberkorn said.
Elsewhere, spot silver added 0.2% to $38.01 per ounce, while platinum lost 1% to $1,432.50.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
10 minutes ago
- Daily Mail
Iconic supermarket set to close stores in two states: Full list of locations
Homeland has become the latest grocer to announce widespread closures, confirming it will shutter several underperforming locations this summer. The company says four stores in Oklahoma — operating as Homeland, United Supermarkets, and Discount Foods banners — will close by August 16. A Piggly Wiggly in Gordon, Georgia — also run by Homeland — is also set to shut down. Christin King, director of marketing and public relations for Homeland, said the Oklahoma closures were based on 'financial performance', 'It is very unfortunate that we had to make these tough decisions, but our goal is doing the best thing for our company and our employee owners,' King told The Oklahoman. 'By closing these stores, we are able to focus on the greatest opportunities that strengthen other communities, grow communities and to really strengthen our organization by focusing resources in those areas.' These supermarkets are some of the forecast 15,000 store closures that will occur this year following inflation, tariffs and the retail apocalypse's turn for the worse. Homeland traces its roots back to a United Supermarket founded in Sayre, Oklahoma in 1916. The parent company of Homeland, Homeland Acquisition Corp. Inc., was originally linked to the Safeway grocery store chain. It officially adopted the Homeland name for its stores after becoming an independent company in 1987. The company hit a bump in the road in 2002 when it filed for bankruptcy and was acquired by Associated Wholesale Grocers. The Kansas-based firm was credited for reviving the chains owned by Homeland. While at its prime, Associate Wholesale Grocers opted to sell Homeland Acquisition Corp. Inc. to employees through an Employee Stock Ownership Plan (ESOP) in 2011. The company has been 100 percent employee-owned since 2012, and currently operates around 80 stores in Georgia, Oklahoma, and Texas. Homeland and Associate Wholesale Grocers' business deals may have been what Albertsons and Kroger hoped would happen when planning to merge their stores. However the merger was a bust, and Kroger has been busy shuttering over 60 underperforming stores since shutting down its shipping services. However, some chains have continued to thrive and expand. Aldi, the fastest-growing supermarket, is opening more than 225 US locations this year, part of the 800 locations the chain plans to operate by the end of 2028. Trader Joe's fans were excited this year to discover the company planned to open a dozen stores across 10 states. That number has since moved up to more than 30. Wegmans joined in by announcing its plans to open four new stores after receiving 'thousands of requests' from customers. Other brands that are set to open stores this year include Walmart and the discount retailer Five Below.
The Independent
11 minutes ago
- The Independent
Trump's Treasury Secretary suggests August 1 trade deal deadline doesn't matter one day after Commerce Secretary calls it a ‘hard deadline'
The Trump administration may be taking a flexible approach to what it previously described as a 'hard deadline' of long-promised tariffs taking effect on August 1. 'The important thing here is the quality of the deal, not the timing of the deals,' Treasury Secretary Scott Bessent told CNBC on Monday, arguing the president's tariff threats had created 'maximum leverage as only he can do' for countries to swiftly reach trade deals with the U.S. 'Our trading partners were told that the rates could boomerang back toward the April 2nd levels,' he added. 'We can continue talking then. But again, we're proceeding apace with the negotiations, but we're not going to rush for the sake of doing deals.' Other Trump officials have described the August 1 deadline, when U.S. trading partners could face up to 40 percent tariffs, as a firmer cutoff point. 'That's a hard deadline, so on August 1, the new tariff rates will come in,' Commerce Secretary Howard Lutnick told CBS News on Sunday. 'Nothing stops countries from talking to us after August 1, but they're going to start paying the tariffs on August 1.' The president, for his part, has called the deadline " firm but not 100 percent firm.' Throughout July, the Trump administration has written letters to foreign leaders warning of the coming tariffs, expected to include a 35 percent tariff rate against Canada, a major U.S. trading partner, and a 30 percent rate for the European Union and Mexico. Since being unveiled in April, Trump's 'Liberation Day' tariff agenda has been repeatedly delayed, and the administration has conceded it won't achieve its original promise of 90 trade deals in 90 days. 'There's 200 countries,'' the president said earlier this month. 'You can't talk to all of them.'' The president's hesitancy to fully implement the tariffs has prompted critics of the president to deem the tariff agenda the 'TACO' plan, for 'Trump always chickens out.' The markets ' shrugged' off Trump's move to push back the tariffs to August, Carolyn Kissane, a professor at NYU's School of Professional Studies Center for Global Affairs, told The Independent earlier this month, compared to the initial market plunge when the tariffs were first revealed. 'The pattern is familiar: dramatic declarations, walk-backs, and renewed threats. It's eroded his credibility and resembles the boy who cried wolf,' Kissane added. 'He believes this tactic gives him a unique leverage to negotiate, but it also weakens the threats.'
Reuters
12 minutes ago
- Reuters
Washington says China will not let US government employee leave the country
WASHINGTON, July 21 (Reuters) - The U.S. State Department said on Monday that the Chinese government had blocked a U.S. Patent and Trademark Office employee visiting the Asian country in a personal capacity from leaving. "We are tracking this case very closely and are engaged with Chinese officials to resolve the situation as quickly as possible," a State Department spokesperson said. The U.S. Patent and Trademark Office is part of the federal Department of Commerce. The individual's name and whether the person was detained were not disclosed. The Chinese embassy in Washington and the U.S. Commerce Department did not immediately respond to requests for comment. The Washington Post reported on Sunday that a U.S. citizen who works for the Commerce Department had traveled to China several months ago to visit family. The man was being prevented from leaving the country after he failed to disclose on his visa application that he worked for the U.S. government, the newspaper said, citing sources. Beijing has used exit bans on both Chinese and foreign nationals in connection with civil disputes, regulatory enforcement and criminal investigations. Analysts say the tactic is at times used to crack down on local dissent and also as diplomatic leverage in disputes with other nations. Washington and Beijing have had friction for years over issues ranging from tariffs to the origins of COVID-19 and Taiwan. Chenyue Mao, a Wells Fargo (WFC.N), opens new tab banker, has also been blocked from leaving China. Beijing's foreign ministry said on Monday she was involved in a criminal case and obliged to cooperate with an investigation. Mao was the latest of several executives from foreign corporations to be stopped as they tried to depart China. The U.S. bank suspended all employee travel to China after Mao's exit ban, a person familiar with the matter told Reuters last week, saying Mao was a U.S. citizen.
