Latest news with #FedBankofRichmond
Business Recorder
6 hours ago
- Business
- Business Recorder
Safe-haven gold near a one-month low as global tensions ebb
Gold fell more than 1% to its lowest level in nearly a month on Friday due to easing geopolitical and trade tensions and as investors awaited US inflation data for clues on the future trajectory of interest rates. Spot gold lost 1.4% to $3,282.68 per ounce by 1055 GMT, its lowest since late May. Prices have fallen by over 2% this week and more than $200 from a record high scaled in April. US gold futures fell 1.6% to $3,294.50. The Iran-Israel ceasefire, brokered earlier this week by US President Donald Trump, is holding for now. A White House official said on Thursday that the US has reached an agreement with China on how to expedite rare earths shipments to the US July 9 is the deadline for Trump's 'reciprocal' tariffs as nations rush to get an agreement. 'The loss of haven demand has meant that despite the latest leg down in the dollar, gold has not benefited from this at all,' said Fawad Razaqzada, market analyst at City Index and 'A bit of a pullback would not be too bad an outcome as that will allow long-term technical overbought conditions on higher time frames to work off, allowing the metal to shine again when macro conditions are more favourable once more.' The immediate focus is the US Personal Consumption Expenditure data, an inflation gauge, scheduled for release at 1230 GMT. Fed Bank of Richmond President Thomas Barkin said tariffs are very likely to push inflation up over the coming months. Gold slips on easing ME tensions, Fed rate cut uncertainty Despite its reputation as a hedge against inflation and uncertainty, zero-yield bullion loses appeal in a high interest rate environment. Spot silver fell 1.8% to $35.96. Platinum dropped 5.9% to $1,334.63, after hitting its highest since 2014. Palladium fell 1.2% to $1,117.96. The main reason for the price increase in platinum was likely to be the high discount to gold, which is apparently considered too expensive, said Commerzbank in a note.
Business Recorder
19 hours ago
- Business
- Business Recorder
Gold slips on easing ME tensions, Fed rate cut uncertainty
NEW YORK: Gold prices edged lower on Thursday, weighed down by easing geopolitical tensions in the Middle East and continued uncertainty over the Federal Reserve's interest rate trajectory. Spot gold fell 0.5% to $3,316.47 per ounce, as of 0933 a.m. EDT (1333 GMT). US gold futures slipped 0.4% to $3,329.20. 'Gold has declined over the past few sessions due to de-escalation in the Middle East. Also, adding pressure was the anticipated interest rate cut — eagerly awaited by the market that continues to be delayed amid rising inflation expectations driven by Trump-era tariffs,' said David Meger, director of metals trading at High Ridge Futures. Meanwhile, Fed Bank of Richmond President Thomas Barkin cautioned it was hard to know how tariff increases will translate into inflation in the US economy. Chicago Fed president Austan Goolsbee said a decision by US President Donald Trump to name a replacement for Fed chair Jerome Powell would have no influence on monetary policy from outside the central bank. Markets currently anticipate two rate cuts totalling 50 basis points this year, starting in September. Gold usually does well during times of uncertainty and inflation, but higher interest rates make it less attractive since it doesn't earn any interest. Data showed the US economy contracted a bit faster than previously thought in the first quarter amid tepid consumer spending, underscoring the distortions caused tariffs. Investors are now eyeing Friday's Personal Consumption Expenditures (PCE) data. Palladium lost 2.5% to $1,084.41. Platinum climbed to its highest level since September 2014, adding 1.7% to $1,377.62. Internal combustion vehicles are likely to remain relevant for longer as governments delay phase-out targets, and biofuel adoption continues to rely on platinum group metals, said Nitesh Shah, commodities strategist at WisdomTree. Spot silver was up 0.2% to $36.39.
