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Business Recorder
14-05-2025
- Business
- Business Recorder
Gold regains some ground as dollar eases, trade optimism fades
NEW YORK: Gold prices rose on Tuesday as the dollar crept lower and initial optimism over a trade truce between the United States and China ebbed, while investors looked forward to US inflation data due later in the day. Spot gold was up 0.6% at $3,255.09 an ounce, as of 1144 GMT, after dropping more than 2% in the previous session. US gold futures were up 0.9% at $3,258.40. The dollar index slipped 0.2% after a sharp rise in the previous session. A weaker greenback makes gold less expensive for those holding other currencies. 'The uncertainty around the trade tariffs still remain in the marketplace... the stock market is taking a breather after massive rally and we are seeing a bit of decline of the dollar,' said Carlo Alberto De Casa, external analyst at Swissquote. On Monday, US and China announced tariff reductions for the next three months, with US tariffs on Chinese imports dropping from 145% to 30% and Chinese duties on US imports falling to 10% from 125%, leading to a surge in global shares. The US and China had imposed tit-for-tat tariffs on each other last month, triggering a trade war. Traders now await the US Consumer Price Index report for fresh signals on the Federal Reserve's monetary policy trajectory. The market is expecting a 55-basis-point rate cut this year by the Fed, starting September. 'If the inflation data happened to produce a downside miss this could take some momentum away from the USD, which could see gold make forward progress,' said KCM Trade Chief Market Analyst Tim Waterer. Gold, traditionally considered a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment. On the technical front, spot gold may retest support at $3,206 per ounce, a break below which could open the way towards $3,135, according to Reuters technical analyst Wang Tao.
Zawya
13-05-2025
- Business
- Zawya
Gold regains some ground as dollar eases, trade optimism fades
Gold prices rose on Tuesday as the dollar crept lower and initial optimism over a trade truce between the United States and China ebbed, while investors looked forward to U.S. inflation data due later in the day. Spot gold was up 0.6% at $3,254.39 an ounce, as of 0639 GMT. U.S. gold futures were up 1% at $3,258.70. The dollar index slipped 0.2% after a sharp rise in the previous session. A weaker greenback makes gold less expensive for those holding other currencies. "The uncertainty around the trade tariffs still remain in the marketplace... the stock market is taking a breather after massive rally and we are seeing a bit of decline of the dollar," said Carlo Alberto De Casa, external analyst at Swissquote. On Monday, U.S. and China announced tariff reductions for the next three months, with U.S. tariffs on Chinese imports dropping from 145% to 30% and Chinese duties on U.S. imports falling to 10% from 125%, leading to a surge in global shares. The U.S. and China had imposed tit-for-tat tariffs on each other last month, triggering a trade war. Traders now await the U.S. Consumer Price Index report for fresh signals on the Federal Reserve's monetary policy trajectory. The market is expecting a 55-basis-point rate cut this year by the Fed, starting September. "If the inflation data happened to produce a downside miss this could take some momentum away from the USD, which could see gold make forward progress," said KCM Trade Chief Market Analyst Tim Waterer. Gold, traditionally considered a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment. On the technical front, spot gold may retest support at $3,206 per ounce, a break below which could open the way towards $3,135, according to Reuters technical analyst Wang Tao. Elsewhere, spot silver rose 1.5% to $33.10 an ounce, platinum climbed 1.2% to $987.85 and palladium was up 0.6% at $950.95. (Reporting by Brijesh Patel in Bengaluru; Editing by Janane Venkatraman)
Zawya
05-05-2025
- Business
- Zawya
Gold rises on dollar weakness, US Fed meeting in focus
Gold prices rose more than 1% on Monday, helped by a weaker dollar, with investors looking forward to more details on the U.S.-China trade negotiations and the Federal Reserve's policy meeting later this week. Spot gold rose 1.8% to $3,298.09 an ounce, as of 0928 GMT, after posting its worst week since February last week. U.S. gold futures climbed almost 2% to $3,306.50. The dollar index was down 0.3% against its rivals, making gold more attractive for other currency holders. "The U.S. dollar is slowing down and that is a positive for gold, more investors are betting that the Fed will cut rates relatively soon after last week's US GDP data came below expectation and now with what's going on with oil," said Carlo Alberto De Casa, external analyst at Swissquote. Although the Fed is widely expected to leave rates steady on Wednesday, market focus will be on economic projections, more clarity on future rate cuts and speeches by several Fed officials. U.S. President Donald Trump said he will not remove Jerome Powell as Fed Board Chairman before his term ends in May 2026, while reiterating his call for the Fed to cut interest rates. Non-yielding gold acts as a hedge against global uncertainty and inflation and tends to thrive in a low-interest-rate environment. Trump on Sunday said the U.S. was meeting with many countries, including China, on trade deals, and his main priority with China was to secure a fair trade deal. "With Chinese solar production now slowing amid oversupply, high U.S. recession risk and central bank gold buying remaining strong in 2025, we expect gold to continue outglittering silver," Goldman Sachs said in a note. Elsewhere, spot silver rose 1.2% to $32.37 an ounce, platinum was up 0.1% to $961.35 and palladium gained 0.8% to $961.52. (Reporting by Brijesh Patel in Bengaluru; Editing by Vijay Kishore)
