Gold succumbs to profit-taking after US jobs data-fuelled rally
Spot gold lost 0.3% to $3,354.17 per ounce as of 0229 GMT. Bullion had risen more than 2% on Friday. However, U.S. gold futures gained 0.2% to $3,407.10.
'Gold has made a conservative start to the week following Friday's price jump. A combination of profit taking and dollar stabilisation has caused gold to ease marginally to kick-off the week,' KCM Trade Chief Market Analyst Tim Waterer said.
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.
Last week, U.S. job growth slowed more than expected in July, with nonfarm payrolls increasing by 73,000 jobs last month, after rising by a downwardly revised 14,000 in June, the Labor Department's Bureau of Labor Statistics said.
This revived hopes of a Fed rate cut in September, with markets now pricing in an 81% chance, per CME FedWatch tool.
The tariffs U.S. President Donald Trump imposed last week on scores of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said in comments aired on Sunday.
'But with Trump on the tariff warpath once again, and the soft U.S. jobs report increasing the odds that we could see a September FOMC rate cut, any pullbacks in the precious metal could be of a shallow nature,' Waterer added.
Gold, traditionally considered a safe-haven asset during political and economic uncertainties, tends to thrive in a low-interest-rate environment.
Spot silver fell 0.6% to $36.80 per ounce, platinum slipped 0.6% to $1,307.02 and palladium eased 0.9% to $1,197.76.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
3 minutes ago
- Business Recorder
TSX boosted by mining stocks, Fed rate cut optimism
Canada's main stock index rose on Tuesday, rebounding after Friday's selloff, with investors optimistic about the U.S. Federal Reserve cutting interest rates in September. The Toronto Stock Exchange's S&P/TSX composite index rose 1.8% by 10:05 ET (0205 GMT) to 27,495.10 points, after three straight sessions of declines. Global stocks were lifted after traders ramped up bets of a U.S. rate cut in September to almost 94%, according to CME Fedwatch, following last week's soft U.S. nonfarm payrolls data. 'People see (unemployment numbers) as being the rationale for a reduction in interest rates at the Fed, and that's essentially positive for stock markets,' said Thomas Caldwell, Chairman at Caldwell Securities. 'Earnings are coming across fairly well and so the world is moving on, but there's this undercurrent of what will be the longer term damage of tariffs and this upending of world trade.' On the day, material stocks were among top gainers, with gold mining stocks adding 6%. Kinross Gold Corp gained 9% to the top of the index while Novagold, IAMGOLD and Seabridge Gold were up more than 5% each. First Quantum Minerals' shares rose 4.4% after the miner signed a $1 billion deal with Royal Gold. Tech stocks rose 2.8%, boosted by e-commerce platform Shopify's 5.43% climb after brokerage Benchmark raised its target price ahead of earnings on Wednesday. Electronics firm Celestica rose 3% and cybersecurity firm Blackberry climbed 3.4%. All sectors were in the green after TSX posted its biggest decline since April in Friday's selloff. Data showed Canada's merchandise trade deficit widened in June to C$5.9 billion ($4.24 billion) with imports outpacing exports. Canadian ministers are set to start discussing trade with Mexican President Claudia Sheinbaum on Tuesday. U.S. President Donald Trump put a 35% tariff on goods imported from Canada last week.
Business Recorder
3 minutes ago
- Business Recorder
Wall Street pares gains after fresh economic data; earnings in spotlight
Wall Street's main indexes gave up opening gains on Tuesday after data showed U.S. services activity stalled, while investors continued to assess the latest batch of corporate earnings. At 10:07 a.m. ET, the Dow Jones Industrial Average fell 63.46 points, or 0.14%, to 44,110.18, and the S&P 500 lost 1.86 points, or 0.03%, to 6,328.08. The Nasdaq Composite gained 37.45 points, or 0.18%, to 21,091.04. U.S. services sector growth unexpectedly stalled in July, as new orders barely budged and hiring slipped further - even as input costs soared at their fastest pace in nearly three years - highlighting how uncertainty around the Trump administration's tariff policy continues to weigh on businesses. Wall Street had roared back to life on Monday by posting its best session since May 27 and recouping last week's losses when disappointing July jobs data and sharp downward revisions to prior months fueled expectations of a Fed rate cut in September. As per CME Group's FedWatch tool, odds of a September cut stands at 90%, up sharply from 63.3% just a week ago – and market watchers are eyeing at least two quarter-point cuts by year-end. Earnings from major names on Tuesday include Advanced Micro Devices, Snap and Rivian. Pfizer gained 3.6% in after raising its annual profit forecast, while Palantir Technologies rose 8.6% as it boosted itsannual revenue forecast. Meanwhile, President Donald Trump's decision to fire the head of the Bureau of Labor Statistics, responsible for past jobs data, stoked investors' fears about the integrity of economic data. Wall St rebounds as Fed rate cut bets intensify on weaker payrolls Trump on a CNBC interview said he would 'shortly' announce his pick for an open seat on the Federal Reserve's board of governors and possibly his nominee for Fed chair as well. 'You can announce who the next chair is, but I don't think that Chair Powell will be going anywhere until the end of his term. I also don't think that whoever is announced as the new Fed chair will really be impactful,' said Art Hogan, chief market strategist at B Riley Wealth. Investors also weighed the impact of U.S. tariffs on global economies and corporate earnings. Trump signaled that the U.S. could soon slap a 'small tariff' on pharmaceutical imports, with the potential for steeper rates down the line. He also hinted at progress toward a trade deal with China, suggesting a possible meeting with President Xi Jinping by this year's end if talks succeed. Beyond last week's jobs data jolt, Wall Street has stayed buoyant, fueled by blockbuster earnings from the 'Magnificent 7' tech giants, with Nvidia's results on deck in three weeks. Reflecting the market's upbeat mood, HSBC just boosted its S&P 500 year-end target by more than 800 points to 6,400, citing AI excitement and easing U.S. policy uncertainty. Caterpillar slipped 0.3% after reporting a lower second-quarter profit, hurt by sluggish demand for construction equipment and higher costs tied to U.S. tariffs. KFC parent Yum Brands fell 2.8% after missing estimates for second-quarter comparable sales and profit. Advancing issues outnumbered decliners by a 1.29-to-1 ratio on the NYSE and by a 1.07-to-1 ratio on the Nasdaq. The S&P 500 posted 31 new 52-week highs and four new lows, while the Nasdaq Composite recorded 54 new highs and 40 new lows.
Business Recorder
an hour ago
- Business Recorder
US stocks edge higher, extending rebound
NEW YORK: Wall Street stocks edged higher early Tuesday, as expectations of Federal Reserve interest rate cuts countered uncertainty about tariffs and the US economy. US equity indices rose more than one percent on Monday, essentially recovering Friday's losses that had followed a downcast American jobs report. The jump comes as markets price in a September Fed interest rate cut and eye as many as two additional cuts later this year. About 30 minutes into trading, the Dow Jones Industrial Average was flat at 44,179.97. Wall Street springs higher after Friday's tumultuous selloff The broad-based S&P 500 added 0.1 percent at 6,338.41, while the tech-rich Nasdaq Composite Index climbed 0.3 percent to 21,124.51. Tuesday's modest market advance made sense in light of unresolved talks with key trading partners China, Canada and Mexico, said Art Hogan of B. Riley Wealth Management. 'I think investors are waiting for better news on that front, but not panicking yet,' Hogan said. 'It's going to be impossible to really get a good read on what's the ultimate tariff level' across the board absent deals with those important partners, he added.
