Latest news with #FXTM
South China Morning Post
30-05-2025
- Business
- South China Morning Post
Asia diversifies from US dollar with Chinese yuan, gold, bitcoin driving change
A growing number of Asian economies are cautiously moving away from the US dollar by creating alternative trade agreements and increasing their investments in assets such as gold and digital currencies – a trend that analysts say signals a longer-term shift toward a more multipolar monetary system. A recent study by foreign exchange platform Forex Complex pointed to three primary indicators of de-dollarisation: a reduced share of US dollars in national reserves, a rise in gold's share, and growing use of alternative currencies in bilateral trade. Singapore , Indonesia and Japan ranked among the top 10 countries making the most progress on this front. 'Asian nations are increasingly seeking to reduce reliance on the US dollar, especially in response to sanctions, tariffs, and rising geopolitical risks,' said Chris Lodge, vice-president at foreign exchange brokerage FXTM. While the dollar continues to dominate global markets – accounting for nearly half of SWIFT payments and over 80 per cent of foreign exchange trades – Lodge said diversification efforts are gaining traction in Southeast Asia , the Middle East , and among Brics members. In Asia, more transactions are being conducted in Chinese yuan , followed by the euro and Emirati dirham in select bilateral arrangements, he added.
Sky News
17-04-2025
- Business
- Sky News
Why have gold prices hit record highs?
Gold has been reaching record highs of late, with the price of spot gold hitting $3,357.40 (£2,532) per ounce for the first time ever on Wednesday. It marked a rise of around $700 (£528) this year and comes at a time of significant uncertainty over Donald Trump's tariffs on imports into the US. That is no coincidence. That's because gold is a tangible commodity - a physical good that can be bought and sold. Gold prices fell more than 1% on Thursday after a sharp rise in the previous session as investors booked profits ahead of a long Easter weekend. An estimated 3,000 tonnes are mined each year, with China mining the most gold in 2024, followed by Russia, Canada and the US. And the Bank of England holds the world's second biggest known trove, with roughly 400,000 gold bars worth billions of pounds sitting in its vaults. So why is it going up in value? Gold considered a 'safe haven' The precious metal is known as a "safe haven" - an asset that typically retains or increases in value during times of market turbulence or economic uncertainty. Investors typically flock to safe havens to protect their capital from losses when markets are volatile. So it's perhaps no surprise that its value has skyrocketed at a time when markets around the world have been unsettled by the introduction and temporary rolling back of some US tariffs. "Gold remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements and fears about a global recession," said Lukman Otunuga, senior research analyst at online trading broker FXTM. Singapore-based dealer GoldSilver central managing director Brian Lan added: "Gold will continue to be strong as long as there's uncertainty." Gold saw a similar surge at the start of the COVID-19 pandemic, but has been on an upward trend for years. Those in favour of investing in gold argue it can serve to diversify and balance your investment portfolio, as well as mitigate possible risks down the road. Some also take comfort in buying something tangible that has the potential to increase in value over time, and which isn't directly tied to global currencies. But gold sceptics warn people to be wary. The Commodity Futures Trade Commission has previously warned that precious metals can be highly volatile, and prices rise as demand goes up - meaning "when economic anxiety or instability is high, the people who typically profit from precious metals are the sellers". It adds that if you do choose to invest in gold, it's important to educate yourself on safe trading practices and be cautious of potential scams and counterfeits on the market. And while gold being a tangible currency is in many ways seen as a plus, it also means it can run out; and some analysts estimate it will do so in less than three decades.
Zawya
11-02-2025
- Business
- Zawya
Trump tariffs push safe-haven gold to record peak
Gold prices hit a record high on Tuesday, spurred by safe-haven demand as U.S. President Donald Trump's new tariffs on steel and aluminium imports heightened concerns about a possible global trade war. Spot gold hit a peak of $2,942.70 per ounce in Asian trading hours before easing to stand 0.1% lower at $2,904.59 as of 1118 GMT. Bullion's eighth record high of 2025 has brought the glittering $3,000 milestone into view as investors navigate growing uncertainties over the repercussions of U.S. trade policies. U.S. gold futures fell 0.1% to $2,932.20, trading at a premium over the spot price, which is currently around $28. "Uncertainty and unpredictability about Trump's presidency could sweeten appetite for gold," said Lukman Otunuga, senior research analyst at FXTM. Trump substantially raised tariffs on steel and aluminium imports to a flat 25% "without exceptions or exemptions" in a move he hopes will aid struggling industries in the United States but which also risks sparking a multi-front trade war. Reuters technical analyst Wang Tao said that gold may extend gains into $2,950 to $2,962 per ounce before reversing its uptrend. Traders are keeping an eye on Federal Reserve Chair Jerome Powell's testimony and Wednesday's U.S. inflation data for fresh clues on the interest rate outlook in the world's largest economy. A Reuters poll showed the Fed was expected to wait until next quarter before cutting rates again. Tariffs could fuel U.S. inflation and postpone rate cuts. Any surprise in Powell's testimony or a downside surprise in the CPI report may cause gold to experience a technical correction, added Otunuga. Bullion is considered a hedge against inflation but higher interest rates dampen the non-yielding asset's appeal. Elsewhere, gold leasing rates in India hit a record high, tracking the overseas market, where rates have jumped due to a supply crunch as banks divert the precious metal to the United States in a bid to avoid potential tariffs. Among other metals, spot silver fell nearly 1% to $31.73 per ounce, platinum eased 1.2% to $982.20 and palladium shed 1.1% to $972.45. (Reporting by Daksh Grover in Bengaluru Editing by Christina Fincher)
Zawya
06-02-2025
- Business
- Zawya
Gold's 5-session record streak pauses, but momentum remains upbeat
Gold prices paused on Thursday after a five-session rally to all-time highs on tensions over trade wars between the world's two largest economies raising worries about economic growth, and in turn, uncertainty about the future path of U.S. interest rates. Spot gold was down fell 0.2% to $2,860.24 per ounce by 1028 GMT after hitting an all-time high of $2,882.16 on Wednesday. U.S. gold futures shed 0.3% to $2,883.40. "It's quite clear that gold has got a bit between its teeth, like a racing horse, and the momentum is very much on the upside," independent analyst Ross Norman said, adding that the danger of an escalation in the trade war, especially between the U.S. and China, is raising massive uncertainties. "But the correction is a natural phenomenon... profit-taking off the highs," Norman said, noting that gold, technically, is overbought with the RSI of about 76, so it is looking a bit overextended. A Relative Strength Index (RSI) reading above 70 indicates overbought conditions, potentially leading to a correction. While global trade war concerns have accelerated the flight to safety, "growing bets around tariffs rekindling inflationary pressures could bring gold bears back into the picture, especially if this results in higher for longer U.S. rates," said FXTM senior research analyst Lukman Otunuga. U.S. Federal Reserve officials pointed to the large policy uncertainty around tariffs and issues arising from the early days of Trump's administration as among the top challenges in figuring out where to take the monetary policy in the months ahead. Market focus is on the non-farm payrolls report on Friday, which could offer insights into the economy's overall strength and Fed policy path. "A disappointing jobs print could strengthen the argument around lower U.S. interest rates, boosting gold prices. The same can be said vice-versa," Otunuga added. Elsewhere, spot silver dropped 0.8% to $32.06 per ounce, and palladium fell 0.2% to $987.75. Platinum rose 0.7% to $985.90.
