Gold rises on weaker dollar; investors await US jobs data
Gold edged higher on Monday, supported by a weaker US dollar, while investors hunkered down for US economic data due later this week for signals on the Federal Reserve's policy path.
Spot gold rose 0.6 per cent to US$3,293.55 per ounce as of 2:00 p.m. EDT (1800 GMT) after reaching its lowest point since May 29 earlier in the session. The yellow metal was up for the second straight quarter, rising 5.5 per cent.
US gold futures settled 0.6 per cent higher at US$3,307.70.
"A weaker dollar today is providing a bit of support. But we're still within the well-defined range that has dominated since the middle of May," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
The dollar languished against the euro and Swiss franc as markets weighed the prospect of a ballooning US government deficit and the potential for trade deals with major trading partners.
On the trade front, the US and China resolved issues over rare earth minerals and magnet shipments last week, renewing hopes for further talks between the two superpowers. Elsewhere, Canada scrapped its digital services tax targeting US tech firms late Sunday to revive stalled trade negotiations with the US
Gold, traditionally considered a hedge during times of uncertainty, also thrives in a low-interest rate environment.
Investors now await the US ADP employment data, due Wednesday, and Thursday's initial jobless claims data for hints on the central bank's potential policy path.
Citi analysts said in a note that they expect gold prices to consolidate between US$3,100 and US$3,500 in the third quarter of the year, noting that the late April peak of US$3,500 may already be the high as the gold market deficit approaches its peak.
Spot silver eased 0.1 per cent at US$35.93 per ounce, while platinum fell 0.3 per cent to US$1,334.70, and palladium dropped 3.2 per cent to US$1,097.24. The three metals were headed for gains so far this quarter.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
Landmark EU tech rules holding back innovation, Google says
FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, U.S., May 13, 2025. REUTERS/Carlos Barria/File Photo BRUSSELS (Reuters) -Alphabet's Google will on Tuesday warn EU antitrust regulators and its critics that landmark European Union rules aimed at reining in Big Tech are hampering innovation to the detriment of European users and businesses. The U.S. tech giant will also urge regulators to give more detailed guidance to help it comply with the rules, and ask its critics to provide evidence of costs and benefits to prove their case. Google is under pressure to address charges under the EU's Digital Markets Act that it favours its own services such as Google Shopping, Google Hotels and Google Flights over rivals. The charges may result in fines of as much as 10% of its global annual revenue. Earlier this month, Google proposed more changes to its search results to better showcase rival products, but critics say these still do not ensure a level playing field. "We remain genuinely concerned about real world consequences of the DMA, which are leading to worse online products and experiences for Europeans," Google's lawyer Clare Kelly will tell a workshop organised by the European Commission to give Google critics the opportunity to seek clarifications. She will say changes implemented by Google to date after discussions with the Commission and its critics have resulted in European users paying more for travel tickets as they cannot directly access airline sites, according to a copy of her speech seen by Reuters. Kelly will also say European airlines, hotels and restaurants have reported up to a 30% loss in direct booking traffic, while users have complained about clunky workarounds. Google's other lawyer, Oliver Bethell, will ask regulators to spell out in detail what the company needs to do, and critics to come up with hard evidence. "If we can understand precisely what compliance looks like, not just in theory, but taking account of on the ground experience, we can launch compliant services quickly and confidently across the EEA," he will say. The EEA is the 27 EU countries, Iceland, Liechtenstein and Norway. "We need help identifying the areas where we should focus. That means bringing real evidence of costs and benefits that we can take account of with the Commission," Bethell said. The day-long workshop starts at 0700 GMT. (Reporting by Foo Yun CheeEditing by Mark Potter)
Free Malaysia Today
3 hours ago
- Free Malaysia Today
Dollar feeble as Trump's tax bill and tariffs weigh
The US dollar index. which measures the US currency against six others, slipped to 96.688, its lowest since February 2022. SINGAPORE : The US dollar languished at its weakest against the euro since September 2021 today, as President Donald Trump's spending bill stoked fiscal worries and uncertainty around trade deals continued to weigh on sentiment. Investors have also started wagering on a quicker pace of monetary policy easing by the Federal Reserve (Fed) this year, ahead of a slew of US economic data this week, headlined by Thursday's nonfarm payrolls report. That spurred dollar-selling, leaving the euro perched at a near four-year high of US$1.179. The single currency surged 13.8% in the January-June period, its strongest-ever first-half performance, LSEG data showed. Sterling was steady at US$1.3737, not far from the three-and-a-half-year high it touched last week, while the Japanese yen firmed to ¥143.68 per dollar. The yen has gained 9% in the first half of the year, its strongest performance since 2016. The dollar index. which measures the US currency against six others, slipped to 96.688, its lowest since February 2022. Investors are grappling with uncertainty over the US Senate's efforts to pass Trump's tax-cut and spending bill, which faces internal party divisions over its projected US$3.3 trillion addition to the national debt. The fiscal concerns have dampened sentiment and prompted some investors to diversify. The world's reserve currency is down more than 10%, its biggest first-half dive since the era of free-floating currencies began in the early 1970s. 'In 2025, the US exceptionalism narrative has been called into question. 'Treasury auction demand has been under pressure in recent months, and foreign investor appetite has reduced,' said Nathan Hamilton, investment analyst for fixed income at Aberdeen Investments. 'Bear steepening of the Treasury yield curve, coupled with US dollar weakness, suggests financial markets are less willing to look through the relative credit risk metrics of the US on the back of its status as the world's reserve currency,' Hamilton said. Meanwhile, Trump has continued hammering the Fed to ease monetary policy, sending Fed chair Jerome Powell a list of central bank interest rates around the world adorned with handwritten commentary saying the US rate should be between Japan's 0.5% and Denmark's 1.75%. Trump's constant tirade against the Fed and Powell has fuelled investor worries about the central bank's independence and its credibility. Trump cannot fire Powell over a policy dispute, but last week urged him to resign. Investor focus will be on comments from Powell, who joins several other central bank chiefs at the European Central Bank forum in Sintra, Portugal, today. Traders are now pricing in 67 basis points of easing from the Fed this year. 'There are many reasons not to like the US dollar. Some are structural, like the erratic trade policies and fiscal risks,' said Moh Siong Sim, a currency strategist at Bank of Singapore. 'They have earlier caused the US dollar to weaken despite its relative yield advantage. But the risk of a more dovish Fed eroding US dollar's yield advantage is the latest source of US dollar weakness,' Moh said. Thursday's nonfarm payrolls is expected to show 110,000 new jobs in June, down from 139,000 in May, according to a Reuters poll of economists. The unemployment rate was expected to have crept higher to 4.3%, from 4.2% last month. With the July 9 deadline for Trump's tariffs fast approaching investors are also keeping an eye on trade deals between the US and its partners although there have not been many agreements so far. Trump expressed frustration with US-Japan trade negotiations as treasury secretary Scott Bessent warned that countries could be notified of sharply higher tariffs despite good-faith negotiations.
The Star
3 hours ago
- The Star
S&P 500, Nasdaq close at record highs, cap best quarter in over a year
NEW YORK: The S&P 500 and Nasdaq reached record closing highs on Monday, capping their best quarter in over a year as hopes for trade deals and possible rate cuts eased investor uncertainty. Both indexes ended the quarter with double-digit gains. The S&P 500 gained 10.57% during the period, the Nasdaq rose 17.75%, and the Dow climbed 4.98%. The Russell 2000 Small Cap index rose 8.28% in the quarter. Still, the three main indexes posted their weakest first-half performances since 2022, as the uncertainty around trade policy has kept investors wary during the year, with tensions peaking after President Donald Trump disclosed widespread tariffs on April 2. Trade deals with China and the UK have fueled optimism that an all-out global trade war can be minimized, with hopes for more deals to be reached before Trump's July 9 trade deadline. The end of the quarter was also influenced by managers tweaking their portfolios to look more attractive at quarter-end. "Animal spirits seem to have taken hold here," said Roy Behren, co-president of Westchester Capital management fund. "It is also quite common for the last couple of days of a quarter to see strength because of the window dressing." On Sunday, Canada scrapped its digital services tax targeting U.S. tech firms, just hours before it was due to take effect, in a bid to advance stalled trade negotiations with the United States. But U.S. Treasury Secretary Scott Bessent warned on Monday that countries could still face sharply higher tariffs on July 9 even if they are negotiating in good faith, and any potential extensions will be up to Trump. Meanwhile, U.S. Senate Republicans will try to pass Trump's sweeping tax-cut and spending bill, despite divisions within the party about its expected $3.3 trillion hit to the $36.2 trillion national debt. Trump wants the bill passed before the July 4 Independence Day holiday. Key economic data releases this week include monthly non-farm payrolls and the Institute for Supply Management's survey on manufacturing and services sectors for June. Several U.S. central bank officials including Federal Reserve Chair Jerome Powell are scheduled to speak later this week. A raft of soft economic data and expectations that Trump will replace Powell with someone dovish have pushed up bets of rate cuts from the Fed this year. On Monday, nine of the 11 S&P indexes closed up. The Dow Jones Industrial Average rose 275.50 points, or 0.63%, to 44,094.77, the S&P 500 gained 31.88 points, or 0.52%, to 6,204.95 and the Nasdaq Composite gained 96.28 points, or 0.48%, to 20,369.73. Shares of big U.S. banks rose after most cleared the Federal Reserve's annual "stress test," paving the way for billions in stock buybacks and dividends. Leading the S&P 500 were Hewlett Packard Enterprise, up 11.1 %, First Solar up 8.8 %,and Juniper Networks up 8.45 %. "The current rally was driven by few heavyweight stocks that drove indexes up, giving the market a sense of optimism despite rising deficit and unresolved policy issues," said Cole Smead, CEO and portfolio manager of Smead Capital Management. "The stock market doesn't seem to care at all, people think this party is going to go on forever," he said. "I think this game is over. It's just a matter of when and how bad it gets." Volume on U.S. exchanges was 17.12 billion shares, compared with the 18.23 billion average for the full session over the last 20 trading days. (Reporting by Sabrina Valle in New York; Additional reporting by Sruthi Shankar and Nikhil Sharma in Bengaluru; Editing by Devika Syamnath and Matthew Lewis)
