Latest news with #BartMelek
Arab Times
14-05-2025
- Business
- Arab Times
Gold surges on bargain-hunting and softer-than-expected US inflation report
NEW YORK, May 14: Gold prices rebounded on Tuesday, driven by bargain-hunting after a sharp loss the previous day, with softer-than-expected inflation data from the U.S. providing additional support. As of 1357 ET (17:57 GMT), spot gold rose 0.4% to $3,246.95 per ounce, recovering from a low of $3,207.30 on Monday. U.S. gold futures also settled 0.6% higher at $3,247.8. Bart Melek, head of commodity strategies at TD Securities, commented on the price movement: "We had a big correction in gold on Monday following the news of a deal between the U.S. and China. However, with tariffs on China still at 30%, this remains negative for the economy." The U.S. and China announced a 90-day pause on tariffs on Monday. As part of this agreement, the U.S. agreed to reduce tariffs on Chinese imports from 145% to 30%, while China pledged to lower duties on U.S. imports from 125% to 10%. Gold prices had surged to multiple record highs in 2025, driven by concerns over economic slowdowns following U.S. President Donald Trump's sweeping tariffs, strong central bank buying, geopolitical tensions, and increased investment in gold-backed exchange-traded funds. In other news, the U.S. Consumer Price Index (CPI) increased by 0.2% last month, according to the Bureau of Labor Statistics. Economists had forecast a 0.3% rise. Jim Wyckoff, senior analyst at Kitco Metals, pointed out that the inflation report "leans slightly favorable for the precious metals markets because it does not pose a problematic inflation scenario that would deter the Federal Reserve from cutting interest rates." Markets expect the Federal Reserve to resume its policy easing in September, which typically makes non-yielding assets like gold more attractive. Other precious metals saw gains as well, with spot silver rising nearly 1% to $32.89 an ounce, platinum climbing 1.4% to $985.92, and palladium gaining 1% to $955.15.
Express Tribune
14-05-2025
- Business
- Express Tribune
Gold regains Rs3,700 per tola
Listen to article Gold prices in Pakistan rebounded sharply on Tuesday, mirroring gains in the international market following a wave of bargain-hunting after Monday's sharp decline. A softer-than-expected US inflation report also supported the precious metal's recovery. According to data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold rose by Rs3,700 per tola, reaching Rs344,200 in the local market. Similarly, the price of 10-gram gold climbed Rs3,173 to settle at Rs295,096. The previous day (Monday), gold had plunged by Rs10,400 per tola, ending at Rs340,500. Globally, gold prices rose on Tuesday on bargain-hunting after a sharp loss in the previous day, while softer-than-expected inflation data from the US also lent support, according to Reuters. Spot gold rose 0.3% to $3,243.99 an ounce as of 1120 EST (1520 GMT), after falling as low as $3,207.30 on Monday. US gold futures were up 0.7% at $3,249.50. "We had a big correction in gold on Monday on the news that there is a deal made between the US and China," Bart Melek, Head of Commodity Strategies at TD Securities, said. "However, tariffs (on China) are still 30%, which is quite negative for the economy." The United States and China on Monday said they would pause their tariffs for 90 days. Following talks in Geneva over the weekend, the US said it will cut tariffs on Chinese imports to 30% from 145% while China said it would cut duties on US imports to 10% from 125%. Bullion had shattered multiple record highs in 2025 owing to concerns over economic slowdown following US President Donald Trump's sweeping tariffs, strong central bank buying, geopolitical tensions and increased flow into gold-backed exchange-traded funds. Commenting on market dynamics, Adnan Agar, Director at Interactive Commodities, said gold touched a high of $3,265 and a low of $3,215 during the session on the Pakistan Mercantile Exchange. "The US inflation data was better than expected, which initially pushed gold prices higher. The market later corrected but stabilised around $3,244," he noted. He added that the market is currently data-driven. "If gold breaks the $3,275$3,270 resistance zone, we could see a move towards $3,300 and above. However, a drop below $3,220$3,200 could pull the price down to $3,180," Agar said, adding that future movement depends on upcoming economic indicators. Meanwhile, the Pakistani rupee posted a slight decline against the US dollar in the inter-bank market on Tuesday, depreciating by 0.04%. At the close of trading, the rupee settled at 281.67, down by 10 paisa from Monday's closing rate of 281.57. Globally, the US dollar maintained its upward momentum, buoyed by investor optimism following a trade agreement between the United States and China.
Business Recorder
08-05-2025
- Business
- Business Recorder
Gold slips more than 1pc; Fed verdict on tap
NEW YORK: Gold prices fell more than one percent on Wednesday, pressured by a firmer dollar and US-China trade talks optimism, while the focus is on Federal Reserve's policy decision due later in the day. Spot gold slipped 1% to $3,395.29 an ounce as of 0957 ET (1357 GMT). US gold futures lost about 0.6% to $3,403.50. The US dollar gained 0.2% against other fiat currencies. A stronger dollar makes gold more expensive for other currency holders. 'China and the United States are formally trying to start a conversation on tariffs, igniting optimism in risk markets,' said Bart Melek, head of commodity strategies at TD Securities. US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China's economic tsar He Lifeng in Switzerland this weekend for talks that could be the first step toward resolving a trade war disrupting the global economy. Gold, considered a hedge against geopolitical risks, has risen 29.4% so far this year. Bank of America said, 'while we see limited upside (for gold) near term, we expect prices to push higher again in second half of 2025, potentially hitting $4,000.' China's central bank added gold to its reserves in April for the sixth straight month, official data showed. Meanwhile, the Fed's policy decision is due at 1400 ET (1800 GMT) today, followed by Chair Jerome Powell's speech. The market will watch out for cues on policy outlook. 'If the Fed surprises and is a lot more hawkish than the market expects, we think there is strong support above $ 3,100,' Melek added. The Fed in the past had indicated that it was in no hurry to cut rates and market consensus is that there will be no cuts before July. Higher interest rates tend to pressure bullion as it yields no interest. Elsewhere, spot silver shed 1.4% to $32.81 an ounce, platinum dropped 0.1% to $986.15 and palladium edged 0.7% higher to $981.03.
Wall Street Journal
02-05-2025
- Business
- Wall Street Journal
Gold Consolidates; Fundamentals Solid Despite Recent Selloff
2346 GMT — Gold consolidates in the early Asian session. Despite the recent selloff, gold's fundamentals remain solid, TD Securities' Bart Melek says in a research report. 'It's likely too late to make tariff deals which would prevent an economic slowdown and higher inflation, implying the Fed may well cut rates in a de-facto stagflationary environment,' the head of Commodity Strategy says. 'At the same time, many relationships between the U.S. and key trading and strategic partners have been broken, suggesting a slow pivot away from USD and Treasurys will continue to happen, he says.' This implies market participants should again tilt toward the precious metal, Melek adds. Spot gold is 0.1% lower at $3,238.05/oz. (
Zawya
14-04-2025
- Business
- Zawya
Gold falls more than 1% as risk sentiment improves
Gold prices dipped more than 1% on Monday, retreating from a record high hit earlier in the day, as risk appetite improved after the White House exempted smartphones and computers from reciprocal tariffs on China. Spot gold was down 1.2% at $3,199.09 an ounce, as of 09:24 a.m. ET (1324 GMT), after hitting an all-time high of $3,245.42. U.S. gold futures fell 0.9% to $3,215.70. "Some risk-on trading here got us off the recent highs, but still the environment is pretty good for gold," said Bart Melek, head of commodity strategies at TD Securities. Risk sentiment in wider financial markets ticked higher after Washington announced the exclusion of certain electronics like smartphones and computers from President Donald Trump's reciprocal tariffs. "Perhaps some relief on the tariff front, with the exemption of some electronics maybe taking some of the safe haven bid out," said Peter Grant, vice president and senior metals strategist at Zaner Metals. "However, ongoing uncertainty about trade and tariffs, weakness in the dollar and softer yields tend to be supportive for gold." Trump said on Sunday he would be announcing the tariff rate on imported semiconductors over the next week, keeping market participants on the edge. Supporting gold, the dollar was languishing near a three-year low against its rivals. The trade war between the United States and China has rattled global markets and driven investors into the metal, which is traditionally viewed as a hedge against geopolitical and economic uncertainty. Goldman Sachs remained most bullish among major banks on gold, raising its year-end forecast to $3,700, citing stronger-than-expected central bank demand and heightened recession risks impacting ETF inflows. Elsewhere, spot silver slipped 1.1% to $31.91 an ounce, while platinum gained 0.5% to $947.05. Palladium rose 3.4% to $946.36. (Reporting by Brijesh Patel, Ishaan Arora and Anmol Choubey in Bengaluru; Editing by Emelia Sithole-Matarise)
