Gold Rebounds from Two-week Low; US Jobs Data in Focus
Gold gained on Friday as investors rushed to buy the metal a day after its prices hit a two-week low amid receding trade tensions, while the market's focus shifted to the US non-farm payrolls report due later in the day.
Spot gold rose 0.4% to $3,254.51 an ounce, as of 0610 GMT.
Gold hit its lowest level since mid-April in the previous session and has lost nearly 2% so far this week, the steepest weekly fall since late February.
US gold futures rose 1.3% to $3,263, Reuters reported.
"There have been softening stance (on tariffs) and situation has improved a bit, but still there are a lot of uncertainties so gold will still be preferred by investors," said ANZ Commodity Strategist Soni Kumari, adding that every price correction in gold is seen as a buying opportunity.
"If prices continue to decline and approach the $3,000 level, it could attract a lot of investment demand."
Beijing is "evaluating" an offer from Washington to hold talks over US President Donald Trump's 145% tariffs, China's Commerce Ministry said, although it warned US not to engage in "extortion and coercion."
Bullion, a safeguard against political and financial turmoil, last soared to a record high of $3,500.05 on April 22.
The market now awaits the US non-farm payrolls report due at 1230 GMT for more cues on the Federal Reserve's policy path.
Non-farm payrolls likely increased by 130,000 jobs in April after rising by 228,000 in March, a Reuters survey showed.
Chinese markets are closed for the Labor Day holiday from May 1-5 and will resume trade on Tuesday, May 6.
Gold started trading in premium in India this week for the first time in five months as demand revived due to a key festival and as prices corrected sharply from last week's record high.
Spot silver rose 0.5% to $32.57 an ounce, platinum firmed 1.1% to $968.76 and palladium gained 1.1% to $950.79.
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Asharq Al-Awsat
16 hours ago
- Asharq Al-Awsat
US Sanctions on Syria: From Hafez al-Assad to al-Sharaa
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This triggered a period of confusion and internal reviews before his administration outlined an initial mechanism that balanced implementing his announcement with addressing his advisors' worries over unfettered engagement with the new Syrian leadership. Before assessing this current phase of easing sanctions, we need a historical overview of them, their context, underlying rationale, implementation methods, and what their potential impact might be for Syria and its people. Sanctions on Syria can be divided into three eras: under Hafez al-Assad, under his son Bashar, and now under interim President Ahmed al‑Sharaa. Shift toward Iran (1979–2000) US sanctions on Syria began in 1979, following the Camp David Accords between Egypt and Israel and the rise of Iran's revolution. With the end of the strategic alliance between Cairo and Damascus, Hafez al-Assad viewed Iran's emerging regime as a counterweight to Iraq and Israel. Washington designated Syria a state sponsor of terrorism in 1979 due to its role in Lebanon and its support for fighters opposed to Israel. Consequently, the US imposed restrictions on foreign aid, defense exports, and the transfer of dual‑use goods. In November 1986, President Ronald Reagan barred Syrian planes from landing in the US. The Iraq War (2001–2010) Sanctions entered a new phase as US policy shifted after the September 11, 2001 attacks and the invasions of Afghanistan and Iraq, coinciding with Bashar al‑Assad's arrival to power in July 2000. In his 2002 State of the Union, President George W. Bush labeled Iran, Iraq under Saddam Hussein, and North Korea the 'Axis of Evil', prompting Iran to form a 'Resistance Axis' that included Syria and Hezbollah. With these strains came stricter measures: the Syria Accountability and Lebanon Sovereignty Act of 2003, enforced by OFAC at the US Treasury in 2004 under Executive Order 13338, targeted Syria's role in Lebanon and its pursuit of weapons of mass destruction, as well as its opposition to the US-led occupation of Iraq. On May 7, 2025, the Trump administration signed a notice extending the national emergency concerning Syria until May 7, 2026, encompassing executive orders from 2003 to 2012. The Syrian uprising and Caesar Act Following Syria's uprising in March 2011, the US imposed a wave of sanctions targeting violence and human rights abuses. President Barack Obama's April 29, 2011 executive order froze Assad regime assets, followed by an August 2011 ban on oil, asset freezes, and broad trade prohibitions, excluding food and medicine. However, the defining moment came with the Caesar Civilian Protection Act of 2019, signed by Trump in December 2019 and implemented in June 2020. Targeting infrastructure, military maintenance, energy, and those funding the Assad regime, it also banned foreign investment in Syria's reconstruction. This legislation aimed to check both Russian and Iranian influence and serve as leverage for negotiations with Moscow, permitting temporary waivers if productive talks occurred. Though enacted long after the internal conflict began, the Act functioned less as a response to internal dynamics and more as an economic restraint on reconstruction efforts. Al‑Sharaa after Assad By late 2024, with Bashar al-Assad's regime fallen and Trump back in power, Syria had not been a US priority, with internal debate over how to engage the new al‑Sharaa administration. That shifted after Trump spoke with Türkiye's President Recep Tayyip Erdogan on March 16, signaling alignment with Turkish‑Saudi policy against the hardline Israeli stance. In Saudi Arabia, Trump began rolling back sanctions on Syria, but the fate of the Caesar Act remains uncertain, currently suspended in 180‑day increments, extendable. Although it was briefly lifted for humanitarian relief during the Feb 2023 Türkiye-Syria earthquakes and in areas controlled by the Syrian Democratic Forces (SDF), its full repeal remains on hold. Mechanisms and challenges Trump's administration has implemented three key executive measures: Treasury's 'GL‑25' on May 23, enabling sweeping economic coverage; a 180‑day suspension of Caesar sanctions; and a specific waiver for the Commercial Bank of Syria via the US Financial Crimes Enforcement Network, allowing re‑establishment of correspondent banking relationships. GL‑25 has no set expiry and can be revoked anytime, while Caesar waivers renew every six months. An earlier GL‑24 waiver, issued in January, allowed limited official and energy sector transactions and personal transfers, but US banks have remained cautious. 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Even after al‑Sharaa met Trump, the Treasury's waiver excludes HTS leader Abu Mohammed al‑Golani, al-Sharaa's former nom de guerre, who remains sanctioned under UN Security Council Resolution 1267, supported by a likely Russian veto of any attempt to remove HTS from global blacklists. Arms embargoes and surveillance‑tech restrictions will also persist. The Caesar Act itself was renewed by Congress in January 2025 for five years, lasting until January 2030 unless overturned legislatively and its suspension may be extended in November 2025. But these continue as temporary waivers, not full repeals. US politics and Congressional dynamics Legislative repeal would require Act passage in Congress. Ironically, Trump's allies in this are Democrats, as many Republicans, especially senators, remain wary. Senate Foreign Relations Committee Chair Jim Risch remarked that Trump lifted sanctions a bit more than what was expected, but cautioned that the sanctions could come back. 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The most immediate relief will come from reconnecting Syrian banks to global payment systems, especially SWIFT, dismantling the economic collapse born of widespread distrust. Yet Syria remains on the FATF grey list, deterring banks and obstructing liquidity, so regulatory frameworks must be built. Future prospects Ambitious domestic and regional projects have surfaced under al‑Sharaa, with some contracts bypassing competitive bids. The UAE has been granted an $800 million concession at the Port of Tartus, via a Dubai Ports World MoU, to develop multi-purpose terminals, industrial zones, dry ports, and logistics hubs. Meanwhile, a 30‑year deal with French CMA CGM was signed to develop Latakia Port. China's VDL company secured rights to 300,000 m² in the Adra Free Zone outside Damascus for 20 years to build industrial and commercial facilities with tax breaks, labor flexibility, and repatriable profits. A Qatari-US-Turkish energy consortium plans a $7 billion, 5,000 MW power project. 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Pakistan set to hold rates as Israel-Iran conflict overshadows growth push
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Asharq Al-Awsat
a day ago
- Asharq Al-Awsat
Dollar and Other Safe Havens Rise as Israel Strikes Iran
The US dollar rallied alongside the safe-haven Japanese yen and Swiss franc, with currency markets abruptly reversing direction on news Israel had launched strikes on Iran. Israel has begun carrying out strikes on Iran, two US officials told Reuters, adding that there was no US assistance or involvement in the operation. Another report suggested that explosions were heard northeast of Iran's capital Tehran. An index that measures the dollar against six other currencies gained 0.4%, and was last at 98.07, in early Asia trading. Against the yen, the dollar slipped 0.35% to 143 per dollar , while the Swiss franc tumbled 0.39% to 0.807 per dollar. Risk-sensitive Asian currencies such as the Aussie dollar and the New Zealand dollar weakened 0.9% each, Reuters reported. Earlier in the week, the dollar index hit multi-year lows as investors were not impressed by a US-China trade truce, while cooler-than-expected inflation data fuelled expectations of more aggressive interest rate cuts by the Federal Reserve. The dollar is on track for weekly declines against the yen, the Swiss franc and the euro. Crude prices jumped more than $4 on the news as investors priced in potential supply disruptions from the oil-rich region, while gold prices climbed 0.8% to their strongest since early May.
