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Economic Times
14-05-2025
- Business
- Economic Times
Gold's glow fades as inflation cools and China fears ease – where does gold go from here in 2025?
Why are gold prices dropping despite inflation worries? Live Events How are trade talks influencing gold's movement? Is the fed expected to cut rates again this year? How have other precious metals reacted? Where does gold go from here in 2025? FAQs: (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Gold prices dipped slightly on Wednesday as investors took a closer look at weaker U.S. inflation numbers for April and signs of easing trade tensions between the U.S. and China. After reaching historic highs last month, gold continues to hover in a volatile zone as markets shift focus toward economic data and the Federal Reserve's next move on interest gold fell 0.6% to $3,232.50 per ounce by 10:05 a.m. in London, following a 0.4% gain on Tuesday. Earlier in the session, prices dropped by as much as 0.9% before recovering some ground. This marks the second decline in three days for the precious metal. Meanwhile, the Bloomberg Dollar Spot Index was also down 0.4%, giving some support to gold's latest U.S. inflation report showed that consumer prices rose less than expected in April, signaling that companies might not be rushing to pass on higher tariffs to customers. This shift eases immediate inflation concerns and lowers expectations of aggressive Federal Reserve action, both of which traditionally boost gold the inflation print coming in softer, markets now see a stronger chance of interest rate cuts later in 2025. Since gold doesn't yield interest, lower rates typically make it more attractive compared to bonds or savings between the United States and China appear to be cooling. A weekend meeting in Switzerland led to a breakthrough in trade negotiations, and new U.S. tariff rates came in lower than expected. That reduced investors' need for safe-haven assets like to Justin Lin, analyst at Global X ETFs, 'The U.S.–China tariff rates surprised materially to the downside, which eases investor concerns around trade-driven growth risks.' He added that investors are moving capital out of defensive sectors like gold, seeking returns in riskier latest inflation data may increase the chances of the Federal Reserve cutting rates later this year. With growth concerns still lingering and inflation cooling, pressure is mounting on the Fed to support the economy further. That said, the Fed has been cautious, and investors are closely watching upcoming economic indicators for clearer guidance.A weaker dollar—partly driven by discussions between the U.S. and South Korea over currency policies—has also added to market speculation on Fed actions. A falling dollar typically supports gold prices, but it hasn't been enough to hold prices up this broader precious metals market showed mixed results. Silver prices edged slightly lower, reflecting similar sentiment to gold. However, platinum and palladium prices moved higher, suggesting that some industrial demand remains resilient even amid broader divergence points to a complex market environment where investor demand and industrial use are influencing metals in different the short-term dip, gold remains up about 20% in 2025, having previously surged to a record high above $3,500 per ounce last month. That rally was fueled by earlier fears that the U.S.-China conflict would drag down global growth or trigger with those fears easing and inflation cooling, gold's momentum may slow—but not disappear. If the Fed moves to cut rates or if new tensions flare, gold could rebound prices are dropping due to weaker U.S. inflation and easing trade interest rates make gold more attractive since it doesn't pay interest.
Time of India
14-05-2025
- Business
- Time of India
Gold's glow fades as inflation cools and China fears ease – where does gold go from here in 2025?
Gold prices dipped slightly on Wednesday as investors took a closer look at weaker U.S. inflation numbers for April and signs of easing trade tensions between the U.S. and China. After reaching historic highs last month, gold continues to hover in a volatile zone as markets shift focus toward economic data and the Federal Reserve's next move on interest rates. Spot gold fell 0.6% to $3,232.50 per ounce by 10:05 a.m. in London, following a 0.4% gain on Tuesday. Earlier in the session, prices dropped by as much as 0.9% before recovering some ground. This marks the second decline in three days for the precious metal. Meanwhile, the Bloomberg Dollar Spot Index was also down 0.4%, giving some support to gold's floor. Why are gold prices dropping despite inflation worries? The latest U.S. inflation report showed that consumer prices rose less than expected in April, signaling that companies might not be rushing to pass on higher tariffs to customers. This shift eases immediate inflation concerns and lowers expectations of aggressive Federal Reserve action, both of which traditionally boost gold demand. Also Read: U.S. stock market futures today: S&P 500, Nasdaq, and Dow edge higher as inflation cools, U.S.-China trade tensions ease, and the Magnificent 7 rally—are investors still showing caution? With the inflation print coming in softer, markets now see a stronger chance of interest rate cuts later in 2025. Since gold doesn't yield interest, lower rates typically make it more attractive compared to bonds or savings accounts. Live Events How are trade talks influencing gold's movement? Tensions between the United States and China appear to be cooling. A weekend meeting in Switzerland led to a breakthrough in trade negotiations, and new U.S. tariff rates came in lower than expected. That reduced investors' need for safe-haven assets like gold. According to Justin Lin, analyst at Global X ETFs, 'The U.S.–China tariff rates surprised materially to the downside, which eases investor concerns around trade-driven growth risks.' He added that investors are moving capital out of defensive sectors like gold, seeking returns in riskier assets. Is the fed expected to cut rates again this year? The latest inflation data may increase the chances of the Federal Reserve cutting rates later this year. With growth concerns still lingering and inflation cooling, pressure is mounting on the Fed to support the economy further. That said, the Fed has been cautious, and investors are closely watching upcoming economic indicators for clearer guidance. A weaker dollar—partly driven by discussions between the U.S. and South Korea over currency policies—has also added to market speculation on Fed actions. A falling dollar typically supports gold prices, but it hasn't been enough to hold prices up this week. How have other precious metals reacted? The broader precious metals market showed mixed results. Silver prices edged slightly lower, reflecting similar sentiment to gold. However, platinum and palladium prices moved higher, suggesting that some industrial demand remains resilient even amid broader uncertainty. This divergence points to a complex market environment where investor demand and industrial use are influencing metals in different ways. Where does gold go from here in 2025? Despite the short-term dip, gold remains up about 20% in 2025, having previously surged to a record high above $3,500 per ounce last month. That rally was fueled by earlier fears that the U.S.-China conflict would drag down global growth or trigger inflation. Now, with those fears easing and inflation cooling, gold's momentum may slow—but not disappear. If the Fed moves to cut rates or if new tensions flare, gold could rebound sharply. FAQs: Q: Why are gold prices falling this week? Gold prices are dropping due to weaker U.S. inflation and easing trade tensions. Q: What's the connection between gold and Federal Reserve rate cuts? Lower interest rates make gold more attractive since it doesn't pay interest.
Yahoo
14-05-2025
- Business
- Yahoo
Gold Edges Lower as Traders Assess Trade Talks, Fed Outlook
(Bloomberg) -- Gold edged lower for the second time in three days as traders assess softer-than-expected US inflation figures for April and cooling trade tensions with China. As Coastline Erodes, One California City Considers 'Retreat Now' A New Central Park Amenity, Tailored to Its East Harlem Neighbors What's Behind the Rise in Serious Injuries on New York City's Streets? How Finland Is Harvesting Waste Heat From Data Centers Lawsuit Challenges Trump Administration Policy on Migrant Children Bullion fell as much as 0.9% before paring some losses, with reports on US-South Korea talks about currency policies causing the dollar to drop. Gold suffered a sharp selloff on Monday when a truce in trade talks between Washington and Beijing drove a reallocation away from havens. 'The US–China tariff rates surprised materially to the downside, which eases investor concerns around trade-driven growth risks,' said Justin Lin, an analyst at Global X ETFs. 'Capital is likely flowing out of defensive sectors and gold.' The breakthrough — following a weekend meeting in Switzerland — rekindled an appetite for risk assets among investors, sparking a rally that erased the S&P 500's losses in 2025. The precious metal remains about a fifth higher this year, after peaking at a record above $3,500 an ounce last month as trade tensions flared. Investors had feared that the confrontation could spur a slowdown in growth or recessions, as well as faster inflation. On Tuesday, April's price growth print for the US came in weaker than expected, suggesting little urgency so far by companies to pass along the cost of higher tariffs to consumers. That could bolster the case for further rate cuts from the Federal Reserve this year, which tend to make non-interest bearing bullion more appealing to investors. Spot gold traded 0.6% lower at $3,232.50 an ounce at 10:05 a.m. in London, after gaining 0.4% on Tuesday. The Bloomberg Dollar Spot Index was 0.4% lower. Silver edged lower, while platinum and palladium rose. Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race Trump Has Already Ruined Christmas Why Obesity Drugs Are Getting Cheaper — and Also More Expensive The Recession Chatter Is Getting Louder. Watch These Metrics ©2025 Bloomberg L.P.
Yahoo
14-05-2025
- Business
- Yahoo
Gold Drops as Traders Reassess Need for Havens After Trade Truce
(Bloomberg) — Gold (GOLD) fell for the second time in three days as cooling trade tensions between the US and China drove a reallocation away from havens. As Coastline Erodes, One California City Considers 'Retreat Now' A New Central Park Amenity, Tailored to Its East Harlem Neighbors What's Behind the Rise in Serious Injuries on New York City's Streets? How Finland Is Harvesting Waste Heat From Data Centers Lawsuit Challenges Trump Administration Policy on Migrant Children Bullion dropped almost 1%, eclipsing a modest gain on Tuesday, after Washington and Beijing reached a truce in their trade fight, lowering many tariffs for 90 days. The breakthrough — which came after a weekend meeting in Switzerland — rekindled an appetite for risk assets among investors. The precious metal remains more than a fifth higher this year, after peaking at a record above $3,500 an ounce last month as trade tensions flared. Investors had feared that the confrontation could spur a slowdown in growth or recessions, as well as faster inflation. Still, US data on the pace of price gains in April was benign. 'The US–China tariff rates surprised materially to the downside, which eases investor concerns around trade-driven growth risks,' said Justin Lin, an analyst at Global X ETFs. 'Capital is likely flowing out of defensive sectors and gold.' Spot gold was 0.6% lower at $3,231.56 an ounce at 1:51 p.m. in Singapore, after gaining 0.4% on Tuesday. The Bloomberg Dollar Spot Index was steady. Silver and palladium dropped, while platinum edged higher. Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race Trump Has Already Ruined Christmas Why Obesity Drugs Are Getting Cheaper — and Also More Expensive The Recession Chatter Is Getting Louder. Watch These Metrics ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
