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Time of India
7 days ago
- Business
- Time of India
Gold price falls big. Check why is gold rate down
Gold prices edged lower on Thursday, weighed down by a stronger dollar and robust U.S. economic data, while caution persisted as markets awaited clarity on tariff developments. Spot gold fell 0.3 per cent to $3,337.43 per ounce after hitting a session low of $3,309.59. U.S. gold futures settled 0.4 per cent lower at $3,345.3. The US dollar gained 0.3 per cent, making the greenback-priced gold more expensive for foreign currency holders. Why is Gold Price Down? Explore courses from Top Institutes in Select a Course Category MBA Product Management Data Analytics Design Thinking Leadership Data Science CXO Technology PGDM Others Digital Marketing Finance Operations Management Project Management Management Public Policy Data Science Cybersecurity Healthcare Artificial Intelligence others MCA healthcare Degree Skills you'll gain: Analytical Skills Financial Literacy Leadership and Management Skills Strategic Thinking Duration: 24 Months Vellore Institute of Technology VIT Online MBA Starts on Aug 14, 2024 Get Details Skills you'll gain: Financial Management Team Leadership & Collaboration Financial Reporting & Analysis Advocacy Strategies for Leadership Duration: 18 Months UMass Global Master of Business Administration (MBA) Starts on May 13, 2024 Get Details 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sleep Apnea Ruined My Life – Then I Found This Simple Trick Health Insight Undo U.S. jobless claims fell last week, pointing to steady job growth in July, while retail sales data beat expectations, adding 0.6 per cent 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. Live Events Will Gold Rate Go Up? 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 per cent levy that will be imposed unless a deal is clinched by an August 1 deadline. If President Donald 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 Meanwhile, gold exports from Switzerland jumped 44 per cent month-on-month in June as bullion flew back to the vaults in the United Kingdom from the U.S. via Swiss refineries, Swiss customs data showed on Thursday. Palladium was up 3.8 per cent at $1,277.78, 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 0.3 per cent to $38.07 per ounce and platinum gained 3.1 per cent to $1,460.13. FAQs Q1. What are Palladium prices? A1. Palladium was up 3.8 per cent at $1,277.78, 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. Q2. What are current gold prices? A2. Spot gold fell 0.3 per cent to $3,337.43 per ounce after hitting a session low of $3,309.59. U.S. gold futures settled 0.4 per cent lower at $3,345.3.
Reuters
7 days ago
- Business
- Reuters
Wall Street lifted as data, corporate earnings show consumer strength
July 17 (Reuters) - The Nasdaq Composite (.IXIC), opens new tab rose to a record high on Thursday, with Wall Street's other major indexes also advancing, as strong economic data and positive earnings reports cheered investors. U.S. retail sales bounced back sharply in June, signaling renewed economic momentum and confidence among consumers. The data was the latest set in a week regarded as a proving ground for the staying power of strong market gains since April and a clue to the timing of potential interest rate cuts by the Federal Reserve. Economic data has been somewhat mixed, with strong retail sales combined with stalled producer prices and a spike in consumer inflation in June, and a spike in consumer inflation in the same month. Investors believe the U.S. central bank will hold off on rate cuts as it weighs the inflationary impact of President Donald Trump's import tariffs. Traders now peg the odds of a September rate cut at just over 54%, with a July move nearly ruled out, according to CME's FedWatch tool. "The Fed is going to be more cautious and data-driven than what the market wants them to do," said Jason Barsema, president of Halo Investing. Fed Governor Adriana Kugler warned that rate cuts are on hold for now, as Trump's tariffs begin to push up consumer prices and tight policy remains key to keeping inflation expectations in check. U.S. Treasury yields also edged lower following the retail sales data. At 2:15 p.m. ET, the Dow Jones Industrial Average (.DJI), opens new tab rose 202.04 points, or 0.46%, to 44,457.00, the S&P 500 (.SPX), opens new tab increased 28.94 points, or 0.46%, to 6,292.72, and the Nasdaq Composite (.IXIC), opens new tab gained 153.86 points, or 0.74%, to 20,884.35. Accompanying strong retail sales was upbeat commentary from consumer-facing American companies. PepsiCo (PEP.O), opens new tab forecast upbeat results, fueled by demand for energy drinks and healthier sodas, helping offset concerns about a dip in annual core profit. The company's shares jumped 6.9%. United Airlines (UAL.O), opens new tab gained 3.2% after the carrier projected stronger demand since early July, offering a rare bright spot for an industry strained by Trump's budget cuts and trade tensions. Rivals Delta (DAL.N), opens new tab and American Airlines (AAL.O), opens new tab also climbed over 1% each. "Today is a day of somewhat justification of consumer health and earnings that continue to impress in a way that offer relief to markets," said Keith Buchanan, senior portfolio manager at Globalt Investments. Technology stocks were also buoyed, with the index (.SPLRCT), opens new tab on course for another record finish. Its 1% gain was the highest among the 11 S&P sectors. U.S. chipmakers edged up after TSMC ( opens new tab, the world's main producer of advanced AI chips, posted a record quarterly profit, saying demand for artificial intelligence was getting stronger. U.S.-listed shares of TSMC gained 3.7%, Marvell (MRVL.O), opens new tab rose 2.1% and Nvidia (NVDA.O), opens new tab added 1.1%. Wall Street also watched Netflix (NFLX.O), opens new tab ahead of its quarterly results after the market's close. Its shares were up 1.6%. On Wednesday, markets whipsawed after reports suggested Trump was mulling the ouster of Fed Chair Jerome Powell. Though Trump quickly shot down the reports, his persistent criticism of the Fed and hints at a possible ouster kept investors jittery. Meanwhile, attention also remained on looming tariffs, with an August 1 deadline threatening higher levies for many U.S. trading partners.
Yahoo
7 days ago
- Business
- Yahoo
Stocks Supported by Signs of US Economic Strength
The S&P 500 Index ($SPX) (SPY) today is up +0.25%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.19%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.47%. September E-mini S&P futures (ESU25) are up +0.25%, and September E-mini Nasdaq futures (NQU25) are up +0.51%. Stocks are climbing today on signs the US economy is holding up, despite tariff uncertainty. Positive economic news today included a decline in weekly jobless claims to a 3-month low, a stronger-than-expected retail sales report, and a rise in the Philadelphia Fed index to a 5-month high. More News from Barchart Dear Google Stock Fans, Mark Your Calendars for July 23 Dear UnitedHealth Stock Fans, Mark Your Calendars for July 29 Peter Thiel Is Betting Big on This Ethereum Treasury Stock. Should You Buy Shares Now? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Strength in airline stocks is also lifting the broader market, as United Airlines Holdings jumped more than 3% after CEO Kirby said the second half of the year has become more predictable and the company has potential 'upside' to beat its earnings targets, as customers return to booking flights. On the negative side, health insurers are retreating today, led by an -11% plunge in Elevance Health after the company cut its earnings outlook for the year. Also, hawkish comments from Fed Governor Adriana Kugler were bearish for stocks when she said the Fed should keep interest rates on hold 'for some time,' citing accelerating inflation as tariffs start to boost prices. US weekly initial unemployment claims unexpectedly fell -7,000 to a 3-month low of 221,000, showing a stronger labor market than expectations of an increase to 233,000. US June retail sales rose +0.6% m/m, stronger than expectations of +0.1% m/m, and June retail sales ex-autos rose +0.5% m/m, stronger than expectations of +0.3% m/m. The US June import price index ex-petroleum was unchanged m/m, weaker than expectations of +0.2% m/m. The US July Philadelphia Fed business outlook survey rose +19.9 to a 5-month high of 15.9, stronger than expectations of -1.0. The US July NAHB housing market index rose +1 to 33, right on expectations. On the trade front, President Trump said late Wednesday that he intends to send a tariff letter to more than 150 countries notifying them their tariff rates could be 10% or 15%, effective August 1, and that the group was 'not big countries who don't do that much business with the US.' Also, signs that the US could ease some of its export restrictions on semiconductor chips to China are bullish for chip makers. Commerce Secretary Lutnick said Nvidia could soon resume sales of its less advanced H20 chips to China, and Advanced Micro Devices received similar assurances from the Commerce Department, a sign that the US may be in the process of negotiating a grand trade deal with China. Treasury Secretary Bessent is expected to meet his Chinese counterpart, Vice Premier He Lifeng, within 'the next couple of weeks' and signaled the US will likely extend an August 12 deadline for the easing of sky-high tariffs. However, stocks were undercut by negative trade news that emerged last week and during this past weekend. Over the weekend, President Trump announced that the US will impose 30% tariffs on US imports from the European Union and Mexico, effective August 1. Mr. Trump said last Thursday that a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%. Last week, Mr. Trump imposed a 50% tariff on copper imports, which will include semi-finished goods, and stated that drug companies could face tariffs as high as 200% on imports if they don't relocate production to the US within the next year. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 3% at the July 29-30 FOMC meeting and 58% at the following meeting on Sep 16-17. The markets will focus on any fresh news regarding tariffs or trade deals during the remainder of this week. Later today, the July NAHB housing market index is expected to rise +1 to 33. On Friday, June housing starts are expected to climb +3.3% m/m to 1.298 million, and June building permits are expected to slip -0.6% m/m to 1.386 million. Also, the University of Michigan's US July consumer sentiment index is expected to climb +0.8 to 61.5. Earnings season began in earnest this week with a focus on big bank earnings results. The consensus is for S&P 500 companies to show Q2 earnings growth of +2.8% y/y, the smallest increase in two years, according to Bloomberg Intelligence. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research. Overseas stock markets today are higher. The Euro Stoxx 50 is up +1.23%. China's Shanghai Composite closed up +0.37%. Japan's Nikkei Stock 225 closed up +0.60%. Interest Rates September 10-year T-notes (ZNU25) today are up +3 ticks. The 10-year T-note yield is down -2.4 bp to 4.431%. T-notes recovered from early losses today and moved higher on carryover support from late Wednesday when President Trump said he has 'no plans' on firing Fed Chair Powell. T-notes also found support on signs of easing price pressures after today's news showed the June import price index ex-petroleum rose less than expected. T-notes initially moved lower today on stronger-than-expected US economic news, including June retail sales, weekly initial unemployment claims, and the July Philadelphia Fed manufacturing survey, which signaled strength in the US economy that was hawkish for Fed policy. Also, strength in stocks today has reduced safe-haven demand for T-notes. In addition, hawkish comments from Fed Governor Adriana Kugler limited gains in T-notes when she said the Fed should keep interest rate on hold 'for some time.' European government bond yields today are moving lower. The 10-year German bund yield is down -2.0 bp to 2.667%. The 10-year UK gilt yield fell from a 6-week high of 4.678% and is down -0.1 bp to 4.638%. Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at the July 24 policy meeting. US Stock Movers United Airlines Holdings (UAL) is up more than +3% to lead airline stocks higher after CEO Kirby said the second half of the year has become more predictable and the company has potential 'upside' to beat its earnings targets as customers returned to booking flights. Also, Alaska Air Group (ALK) is up more than +3% and American Airlines Group (AAL) is up more than +2%. In addition, Delta Air Lines (DAL) is up more than +1%. PepsiCo (PEP) is up more than +6% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net revenue of $22.73 billion, above the consensus of $22.32 billion. Snap-on (SNA) is up more than +5% after reporting Q2 net sales of $1.18 billion, stronger than the consensus of $1.16 billion. CSX Corp (CSX) is up more than +2% after Semafor reported that Union Pacific is exploring an acquisition of the company. Steven Madden Ltd (SHOO) is up more than +5% after Citigroup upgraded the stock to buy from neutral with a price target of $32. Travelers Cos (TRV) is up more than +2% to lead gainers in the Dow Jones Industrials after reporting Q1 core EPS of $6.51, well above the consensus of $3.60. Mondelez International (MDLZ) is up more than +2% after Jefferies upgraded the stock to buy from hold with a price target of $78. Health insurance providers are sliding today, led by an -11% plunge in Elevance Health (ELV) to lead losers in the S&P 500 after cutting its earnings outlook for the year to 'approximately' $30 per share, well below a previous forecast of $34.15 to $34.85 per share. Also, Molina Healthcare (MOH) is down more than -3%. In addition, Humana (HUM), Centene (CNC), and Cigna Group (CI) are down more than -2%. Finally, UnitedHealth Group (UNH) is down more than -1% to lead losers in the Dow Jones Industrials. Sonic Automotive (SAH) is down more than -8% after JPMorgan Chase downgraded the stock to underweight from overweight with a price target of $72. Abbott Laboratories (ABT) is down more than -7% after reporting Q2 organic sales of +6.90%, below the consensus of +7.03% and forecasting full-year organic sales of +6% to +7%, weaker than the consensus of +7.37%. Starwood Property Trust (STWD) is down more than -4% after selling over 25.5 million shares of its common stock in an underwritten public offering overnight between $19.91 to $20.33 a share, below Wednesday's closing price of $20.85. Archer-Daniels-Midland (ADM) is down more than -2% after President Trump said Coca-Cola has agreed to use 'real cane sugar' in Coke soda in the US, which could reduce demand for ADM's corn syrup and hurt its corn-processing business. Shake Shack (SHAK) is down more than -2% after Jeffries downgraded the stock to underperform from hold with a price target of $120. MP Materials (MP) is down more than -1% after it said it commenced a $500 million underwritten public offering of its common stock to fund its expansion. Earnings Reports (7/17/2025) PepsiCo Inc (PEP), Travelers Cos Inc/The (TRV), Abbott Laboratories (ABT), Elevance Health Inc (ELV), Cintas Corp (CTAS), Marsh & McLennan Cos Inc (MMC), US Bancorp (USB), Snap-on Inc (SNA), General Electric Co (GE), Citizens Financial Group Inc (CFG), Fifth Third Bancorp (FITB), Netflix Inc (NFLX). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Standard
17-07-2025
- Business
- The Standard
Fed's Kugler backs holding rates steady as tariffs fuel inflation
Adriana Kugler, member of the Board of Governors of the Federal Reserve, speaks to The Economic Club of New York in New York City, U.S., June 5, 2025. REUTERS/Kylie Cooper
Yahoo
17-07-2025
- Business
- Yahoo
Some Fed officials hold firm on wait-and-see rate stance despite Trump pressure
Some Federal Reserve policymakers are not budging from their view that rates should remain where they are despite the intensifying pressure from President Trump and his allies to ease monetary policy immediately. Federal Reserve Governor Adriana Kugler and New York Fed president John Williams both made this argument in speeches delivered Wednesday night and Thursday morning, citing the risk of inflation pressure from tariffs. 'With the unemployment rate still at historically low levels, elevated short-run inflation expectations, and goods inflation rising due to the upward pressure from tariffs, I find it appropriate to hold our policy rate at the current level for some time,' Kugler said in a speech in Washington. 'I judge that inflation is likely to increase further as tariff effects build up during the rest of the year.' On Wednesday Williams stressed that he thinks that tariffs are already pushing up inflation and that will increase in the coming months. He expects tariffs will push up inflation by a full percentage point in the second half of this year and into the first part of 2026. 'Maintaining this modestly restrictive stance of monetary policy is entirely appropriate to achieve our maximum employment and price stability goals,' Williams said in his speech Wednesday night. Opposing camps now forming inside the central bank on the question of Trump's tariffs and how they will affect how the Fed acts on rates. Two other Fed governors, Christopher Waller and Michelle Bowman, have argued for cuts as early as the next meeting July 29-30. Waller last week reiterated that any inflation from tariffs will be temporary, justifying a looser approach. 'I think we're just too tight and we could consider cutting the policy rate in July,' said Waller, adding, 'It's not political.' Waller's arguments carry increasing weight since he is considered to be among the candidates to replace Jerome Powell as Fed chair next May, when Powell's term is up. 'We're not seeing a lot of tariff inflation yet,' Waller added last week. 'For that reason, I've been arguing that we could start lowering the policy rate from our current setting.' These views align with those of Trump, who has repeatedly called on the Fed and Powell to ease monetary policy, citing what he views as a lack of inflation thus far from tariffs and the savings that could be made if the US were paying lower interest on its debt. Powell has argued for more time to assess whether inflation does in fact move higher over the summer. Williams made a similar argument Wednesday, saying holding rates steady will allow more time to assess the data. He said he anticipates inflation will come in between 3 and 3.5% percent this year and then fall back to about 2.5% next year before reaching 2% in 2027. The Fed's goal is to get inflation back down to 2%. Kugler noted the still-restrictive policy stance is important to keep longer-run inflation expectations anchored. She said she is not seeing any progress on headline and core inflation the past six months, noting that goods inflation has gone up and that reflects some pass through of increased tariffs. Kugler stressed that businesses may not yet be passing the higher tariffs to their selling prices because they are waiting for greater clarity. She also noted that tariff rates could increase further, as seen in newly proposed reciprocal tariffs for several countries and the new tariffs on copper introduced last week, putting further upward pressure on prices. Click here for in-depth analysis of the latest stock market news and events moving stock prices
