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CNBC
15 hours ago
- Business
- CNBC
Treasury yields tick lower as investors look ahead to Fed's interest rate decision
U.S. Treasury yields were lower on Monday as investors anticipated the Federal Reserve's interest rate decision later this week, as well as a key inflation reading, which will shed light on the impact of tariffs on the economy. At 4:39 a.m. ET, the 10-year Treasury yield was down just over one basis point to 4.371%. The 2-year yield was less than 1 basis point lower to 3.912%, while the 30-year yield fell one basis point to 4.911%. One basis point is equal to 0.01%. Yields and prices move in opposite directions. It's a busy week ahead for investors, with the Fed set to have its two-day policy meeting, concluding on Wednesday, when the interest rate decision will be announced. Traders are pricing in a 97% chance that interest rates will be held steady at their current target range of 4.25% to 4.5%, according to the CME FedWatch Tool. They will also look for clues on whether rate cuts will be coming later in the year. The personal consumption expenditures index — the Fed's preferred inflation gauge — is due on Thursday and will reveal the effects of tariffs on inflation. The report is forecast to show inflation increasing to 2.4% from 2.3% year over year, according to FactSet, and to 0.31% from 0.14%, on a monthly basis. Other economic data coming out this week includes the Job Openings and Labor Turnover Survey on Tuesday, ADP's private payrolls report on Wednesday, weekly initial jobless claims on Thursday, and July's jobs report on Friday. On the tariff front, the U.S. and European Union announced Sunday that they've reached a trade agreement which includes 15% tariffs on EU goods imported to the U.S. That's down from the 30% levy that the EU would have been hit with on the approaching Aug. 1 deadline.
The Star
7 days ago
- Business
- The Star
Gold eases from one-month high on firmer dollar, profit-taking
A worker polishes gold bullion bars in Australia. — AFP Gold prices eased on Tuesday from their highest level in more than a month, pressured by profit-taking and a slight rebound in the dollar, while investors looked for progress in trade talks ahead of an August 1 deadline. Spot gold was down 0.3% at $3,384.49 per ounce, as of 0656 GMT. Earlier in the session, bullion hit its highest level since June 17. U.S. gold futures also slipped 0.3% to $3,397. "Gold's move on the upside has been pretty much supported by positive technicals and as well as reinforced by a broad base of dollar weakness," OANDA senior market analyst Kelvin Wong said. The dollar index edged 0.1% higher after falling to a more than one-week low on Monday, making greenback-priced gold more expensive for other currency holders. The European Union is exploring a broader set of possible countermeasures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats. U.S. President Donald Trump has threatened 30% duties on imports from Europe if no agreement is signed before the August 1 deadline. "There could be a possibility that U.S. and the respective trading partners may not agree to the terms and condition and that potentially could see a bit of uncertainty and there could be some hedging activities by market participants going forward," Wong said. Also on radar, the European Central Bank is expected to hold interest rates steady at 2.0% following a string of cuts at the end of its policy meeting on July 24. The U.S. Federal Reserve's monetary policy meeting is scheduled for next week. Traders are pricing about a 59% chance of a rate cut by the Fed in September, according to the CME FedWatch Tool. Gold tends to perform well in a low-interest-rate environment. Spot silver dipped 0.1% to $38.86 per ounce, platinum added 0.6% to $1,447.53 and palladium gained 0.2% to $1,266.95. - Reuters
Economic Times
7 days ago
- Business
- Economic Times
Gold at over one-month high as weak dollar, bond yields lift appeal
Gold prices climbed on Tuesday to their highest level in more than a month, supported by a weaker U.S. dollar and lower Treasury yields, as investors looked for progress in trade talks ahead of an August 1 deadline. ADVERTISEMENT Spot gold was little changed at $3,389.98 per ounce, as of 0503 GMT. Earlier in the session, bullion hit its highest level since June 17. U.S. gold futures held their ground at $3,402.90. "Gold's move on the upside has been pretty much supported by positive technicals and as well as reinforced by a broad base of dollar weakness," OANDA senior market analyst Kelvin Wong said. The U.S. dollar index was hovering near a more than one-week low against its rivals, making greenback-priced gold less expensive for other currency holders. Benchmark 10-year U.S. Treasury yields hit a more than one-week low on Monday. ADVERTISEMENT The European Union is exploring a broader set of possible countermeasures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats. U.S. President Donald Trump has threatened 30% duties on imports from Europe if no agreement is signed before the August 1 deadline. ADVERTISEMENT "There could be a possibility that U.S. and the respective trading partners may not agree to the terms and condition and that potentially could see a bit of uncertainty and there could be some hedging activities by market participants going forward," Wong said. Also on radar, the European Central Bank is expected to hold interest rates steady at 2.0% following a string of cuts at the end of its policy meeting on July 24. The U.S. Federal Reserve's monetary policy is scheduled for next week. ADVERTISEMENT Traders are pricing about a 59% chance of a rate cut by the Fed in September, according to the CME FedWatch Tool. Gold tends to perform well in a low-interest-rate environment. Spot silver fell 0.5% to $38.71 per ounce, platinum added 0.3% to $1,442.55 and palladium fell 1.3% to $1,250.19. (You can now subscribe to our ETMarkets WhatsApp channel)
Business Recorder
7 days ago
- Business
- Business Recorder
Gold at over one-month high as weak dollar, bond yields lift appeal
Gold prices climbed on Tuesday to their highest level in more than a month, supported by a weaker US dollar and lower Treasury yields, as investors looked for progress in trade talks ahead of an August 1 deadline. Spot gold was little changed at $3,389.98 per ounce, as of 0503 GMT. Earlier in the session, bullion hit its highest level since June 17. U.S. gold futures held their ground at $3,402.90. 'Gold's move on the upside has been pretty much supported by positive technicals and as well as reinforced by a broad base of dollar weakness,' OANDA senior market analyst Kelvin Wong said. The U.S. dollar index was hovering near a more than one-week low against its rivals, making greenback-priced gold less expensive for other currency holders. Benchmark 10-year U.S. Treasury yields hit a more than one-week low on Monday. USD/US. The European Union is exploring a broader set of possible countermeasures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats. U.S. President Donald Trump has threatened 30% duties on imports from Europe if no agreement is signed before the August 1 deadline. 'There could be a possibility that U.S. and the respective trading partners may not agree to the terms and condition and that potentially could see a bit of uncertainty and there could be some hedging activities by market participants going forward,' Wong said. Also on radar, the European Central Bank is expected to hold interest rates steady at 2.0% following a string of cuts at the end of its policy meeting on July 24. The U.S. Federal Reserve's monetary policy is scheduled for next week. Traders are pricing about a 59% chance of a rate cut by the Fed in September, according to the CME FedWatch Tool. Gold tends to perform well in a low-interest-rate environment. Spot silver fell 0.5% to $38.71 per ounce, platinum added 0.3% to $1,442.55 and palladium fell 1.3% to $1,250.19.
CNBC
7 days ago
- Business
- CNBC
Gold steadies at over one-month high as weak dollar, bond yields lift appeal
Gold prices climbed on Tuesday to their highest point in more than a month, supported by a weaker U.S. dollar and lower Treasury yields, as investors looked for progress in trade talks ahead of an August 1 deadline. Spot gold was unchanged at $3,390.69 per ounce, as of 0258 GMT. Earlier in the session, bullion hit its highest level since June 17. U.S. gold futures held their ground at $3,405.20. "Gold's move on the upside has been pretty much supported by positive technicals and as well as reinforced by a broad base of dollar weakness," OANDA senior market analyst Kelvin Wong said. The U.S. dollar index was hovering near a more than one-week low against its rivals, making greenback-priced gold less expensive for other currency holders. Benchmark 10-year U.S. Treasury yields hit a more than one-week low on Monday. The European Union is exploring a broader set of possible counter measures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats. U.S. President Donald Trump has threatened 30% duties on imports from Europe if no agreement is signed before the August 1 deadline. "There could be a possibility that U.S. and the respective trading partners may not agree to the terms and condition and that potentially could see a bit of uncertainty and there could be some hedging activities by market participants going forward," Wong said. Also on radar, the European Central Bank is expected to hold interest rates steady at 2.0% following a string of cuts at the end of its policy meeting on July 24. The U.S. Federal Reserve monetary policy is scheduled for next week. Traders are pricing about a 59% chance of a rate cut by the Fed in September, according to the CME FedWatch Tool. Gold tends to perform well in a low-interest-rate environment. Spot silver eased 0.2% to $38.84 per ounce, platinum added 0.8% to $1,449.11 and palladium fell 0.2% to $1,262.89.
