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Yahoo
13-05-2025
- Business
- Yahoo
Gold takes a dive as US-China trade deal dents safe-haven appeal
Sterling weakened against the US dollar in early European trading on Monday, slipping 0.9% to $1.3177, as the greenback surged on renewed optimism following weekend trade talks between Washington and Beijing. The US dollar index ( which measures the greenback against a basket of six currencies, was up 1% to $101.32. The gains were driven by a weekend announcement from the United States that it had reached a preliminary trade deal with China after high-level negotiations in Switzerland, easing investor concerns about a potential recession in the world's largest economy. Both sides said on Monday they would suspend 24% of additional ad valorem tariffs on goods from the other country for an initial period of 90 days, in a joint statement following trade talks in Geneva over the weekend. The dollar's advance was further buoyed by the Federal Reserve's recent "hawkish pause" in interest rate policy, which supported expectations of tighter monetary conditions ahead and pushed the greenback to a one-month high. Read more: FTSE 100 LIVE: Stocks head higher as US and China agree temporary deal to cut tariffs "I suspect that talk of the demise of the US dollar as a reserve currency is premature and that we'll see a more normal trading pattern resume once we have some clarity around global trade," Michael McCarthy, chief executive officer of online trading platform Moomoo Australia, told Reuters. "US inflation data is obviously going to be very important, and for the Aussie we'll be looking at the unemployment data this week, but I think it's trade talks that are very likely to dominate market action," he added. Despite its decline against the dollar, the pound edged higher versus the euro, rising 0.3% to €1.1857. The move was attributed to positive sentiment surrounding the recent US-UK trade discussions. Last week, US president Donald Trump announced that while a 10% tariff would remain on most British imports, Washington would reduce higher levies on British cars, steel, and aluminium — a shift that traders saw as supportive of sterling. Meanwhile, the euro remained under pressure amid mounting expectations of further interest rate cuts by the European Central Bank. Gold prices fell on Monday as signs of easing trade tensions between the United States and China prompted investors to pivot away from safe-haven assets in favour of riskier bets. Gold futures were down by 3.5% to $3,226.30 per ounce, while the spot gold price lost 2.8% to $3,234.59 per ounce. The drop follows constructive trade discussions over the weekend that market participants interpreted as a potential turning point in strained relations between the world's two largest economies. China's vice premier He Lifeng described the talks with US officials as 'an important first step' in stabilising bilateral trade relations. US Treasury secretary Scott Bessent echoed that sentiment, saying the two sides had made 'substantial progress.' The more upbeat tone in trade diplomacy has eased fears over additional tariffs and contributed to the unwinding of positions in traditional safe-haven assets such as gold. Nikos Tzabouras, senior market Analyst at said: 'Gold dips amid risk-on mood sparked by the US-China trade agreement that dulls demand for safe havens. The substantial rollback in duties, coupled with growing optimism about further trade deals with other partners, opens the door for a deeper pullback in gold prices. 'However, the relief may prove short-lived. The agreement represents a temporary pause, not a comprehensive resolution, and negotiations for a broader deal are expected to be more complex. As a result, trade uncertainty is likely to persist, potentially underpinning continued interest in gold as a hedge against geopolitical and economic volatility.' Gold, which historically benefits during periods of economic and political uncertainty, also tends to perform well in low-interest rate environments. However, shifting expectations for US monetary policy and reduced geopolitical tensions have weighed on the metal in recent sessions. Read more: Bank of England's commitment to bring inflation down is 'unwavering', says Bailey On Friday, Cleveland Federal Reserve president Beth Hammack said the central bank needed more time to assess the economic fallout from Trump's tariff measures before determining its policy response. 'In the near term, gold possibly [will] continue to decline as the dollar could appreciate and amid reducing geopolitical risk the haven demand too may drop hence, the yellow metal may decline to $3,200/oz in the near term,' Jigar Trivedi, senior commodity analyst at Reliance Securities, said. Oil prices jumped on Monday after the US and China announced plans to ease some of their tariff measures, stoking optimism that the two largest crude consumers might be on the path to resolving their trade dispute. Brent crude futures (BZ=F) were up 2.6%, to trade at $65.58 a barrel, while West Texas Intermediate futures (CL=F) climbed 2.7%, hitting $62.68 a barrel. Stocks: Create your watchlist and portfolio The market responded positively to the news, with traders hopeful that a more stable trade relationship between the world's two largest economies would foster stronger industrial activity and increased consumer demand, particularly in China. Despite the optimism surrounding the potential resolution of trade tensions, the rally in oil prices was tempered by concerns over the upcoming production increases announced by OPEC+. The cartel plans to raise oil output in May and June, a decision that adds to existing uncertainty around global demand. 'Optimism over constructive US-China talks supported sentiment, but limited details and OPEC's plan to raise output capped gains,' said Toshitaka Tazawa, an analyst at Fujitomi Securities. Adding to the cautious sentiment, Goldman Sachs (GS) has revised its oil price forecasts downward, now expecting Brent crude to average $60 per barrel and WTI to average $56 per barrel for the remainder of 2025. The investment bank also anticipates prices to dip further in 2026, with Brent and WTI projected to average $56 and $52 per barrel, respectively. In broader market movements, the FTSE 100 (^FTSE) was up 0.3% on Monday morning, trading at 8,579 points at the time of writing. 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Free Malaysia Today
12-05-2025
- Business
- Free Malaysia Today
Dollar gains versus yen, franc on Sino-US trade optimism as yuan firms
The US economy has taken a beating since president Donald Trump's often chaotic rollout of sweeping tariffs last month. (Reuters pic) TOKYO : The dollar climbed against its safe-haven counterparts on Monday after weekend talks between the US and China eased concerns of a damaging trade war between the world's two biggest economies while global hot spots appeared to cool. The greenback, treasuries and equities have taken a beating since US President Donald Trump's often chaotic rollout of sweeping tariffs last month shook confidence in American assets. After talks in Geneva, treasury secretary Scott Bessent and trade representative Jamieson Greer said yesterday a deal had been reached with China to cut the US trade deficit. Details were scarce but a joint statement is expected today. The focus will also be on US earnings and data this week, including consumer price index (CPI) figures on Tuesday, for indications of how the trade spat has impacted the economy and expectations for further rate cuts by the US federal reserve. 'I suspect that talk of the demise of the US dollar as a reserve currency is premature and that we'll see a more normal trading pattern resume once we have some clarity around global trade,' said Michael McCarthy, chief executive officer of online trading platform Moomoo Australia. 'US inflation data is obviously going to be very important, and for the Aussie we'll be looking at the unemployment data this week, but I think it's trade talks that are very likely to dominate market action,' he added. In addition to US inflation data for last month, April retail sales due on Thursday will also provide the latest pulse on consumer spending. The greenback climbed 0.4% to ¥145.93 and 0.5% to CHF0.8337. The dollar index was little changed near a one-month high. The gauge is still down 3.6% from the April 2 announcement of Trump's 'Liberation Day' global tariffs. On the geopolitical front, India and Pakistan announced a ceasefire over the weekend following the four days of fighting between the nuclear powers that had rattled markets. And Ukrainian President Volodymyr Zelensky said he was ready to meet Russian leader Vladimir Putin in Turkey on Thursday for direct talks, the first since the early months of the 2022 invasion. The New Zealand and Australian dollars, widely seen as proxies for risk assets, advanced 0.3% to A$0.5927 and tacked on 0.3% at NZ$0.6432, respectively. The euro stood at €1.1228, down 0.2%. Sterling traded at £1.3288, down 0.3%. China's offshore yuan rose about 0.2% to CN¥7.224 per dollar. Progress in the US-China talks is positive for markets as it provides a reference point for other trading partners, said Jason Chan, senior investment strategist at Bank of East Asia. 'If even China can make a deal, then other Asian countries like Japan, India, and SEA countries could follow and progress their own trade talks,' Chan said.
Yahoo
12-05-2025
- Business
- Yahoo
Gold takes a dive as US-China trade deal dents safe-haven appeal
Sterling weakened against the US dollar in early European trading on Monday, slipping 0.9% to $1.3177, as the greenback surged on renewed optimism following weekend trade talks between Washington and Beijing. The US dollar index ( which measures the greenback against a basket of six currencies, was up 1% to $101.32. The gains were driven by a weekend announcement from the United States that it had reached a preliminary trade deal with China after high-level negotiations in Switzerland, easing investor concerns about a potential recession in the world's largest economy. Both sides said on Monday they would suspend 24% of additional ad valorem tariffs on goods from the other country for an initial period of 90 days, in a joint statement following trade talks in Geneva over the weekend. The dollar's advance was further buoyed by the Federal Reserve's recent "hawkish pause" in interest rate policy, which supported expectations of tighter monetary conditions ahead and pushed the greenback to a one-month high. Read more: FTSE 100 LIVE: Stocks head higher as US and China agree temporary deal to cut tariffs "I suspect that talk of the demise of the US dollar as a reserve currency is premature and that we'll see a more normal trading pattern resume once we have some clarity around global trade," Michael McCarthy, chief executive officer of online trading platform Moomoo Australia, told Reuters. "US inflation data is obviously going to be very important, and for the Aussie we'll be looking at the unemployment data this week, but I think it's trade talks that are very likely to dominate market action," he added. Despite its decline against the dollar, the pound edged higher versus the euro, rising 0.3% to €1.1857. The move was attributed to positive sentiment surrounding the recent US-UK trade discussions. Last week, US president Donald Trump announced that while a 10% tariff would remain on most British imports, Washington would reduce higher levies on British cars, steel, and aluminium — a shift that traders saw as supportive of sterling. Meanwhile, the euro remained under pressure amid mounting expectations of further interest rate cuts by the European Central Bank. Gold prices fell on Monday as signs of easing trade tensions between the United States and China prompted investors to pivot away from safe-haven assets in favour of riskier bets. Gold futures were down by 3.5% to $3,226.30 per ounce, while the spot gold price lost 2.8% to $3,234.59 per ounce. The drop follows constructive trade discussions over the weekend that market participants interpreted as a potential turning point in strained relations between the world's two largest economies. China's vice premier He Lifeng described the talks with US officials as 'an important first step' in stabilising bilateral trade relations. US Treasury secretary Scott Bessent echoed that sentiment, saying the two sides had made 'substantial progress.' The more upbeat tone in trade diplomacy has eased fears over additional tariffs and contributed to the unwinding of positions in traditional safe-haven assets such as gold. "Obviously, the overall continued uncertainty in regards to tariffs remains probably the most significant underpinning behind gold," said David Meger, director of metals trading at High Ridge Futures. Gold, which historically benefits during periods of economic and political uncertainty, also tends to perform well in low-interest rate environments. However, shifting expectations for US monetary policy and reduced geopolitical tensions have weighed on the metal in recent sessions. Read more: Bank of England's commitment to bring inflation down is 'unwavering', says Bailey On Friday, Cleveland Federal Reserve president Beth Hammack said the central bank needed more time to assess the economic fallout from Trump's tariff measures before determining its policy response. 'In the near term, gold possibly [will] continue to decline as the dollar could appreciate and amid reducing geopolitical risk the haven demand too may drop hence, the yellow metal may decline to $3,200/oz in the near term,' Jigar Trivedi, senior commodity analyst at Reliance Securities, said. Oil prices jumped on Monday after the US and China announced plans to ease some of their tariff measures, stoking optimism that the two largest crude consumers might be on the path to resolving their trade dispute. Brent crude futures (BZ=F) were up 2.6%, to trade at $65.58 a barrel, while West Texas Intermediate futures (CL=F) climbed 2.7%, hitting $62.68 a barrel. Stocks: Create your watchlist and portfolio The market responded positively to the news, with traders hopeful that a more stable trade relationship between the world's two largest economies would foster stronger industrial activity and increased consumer demand, particularly in China. Despite the optimism surrounding the potential resolution of trade tensions, the rally in oil prices was tempered by concerns over the upcoming production increases announced by OPEC+. The cartel plans to raise oil output in May and June, a decision that adds to existing uncertainty around global demand. 'Optimism over constructive US-China talks supported sentiment, but limited details and OPEC's plan to raise output capped gains,' said Toshitaka Tazawa, an analyst at Fujitomi Securities. Adding to the cautious sentiment, Goldman Sachs (GS) has revised its oil price forecasts downward, now expecting Brent crude to average $60 per barrel and WTI to average $56 per barrel for the remainder of 2025. The investment bank also anticipates prices to dip further in 2026, with Brent and WTI projected to average $56 and $52 per barrel, respectively. In broader market movements, the FTSE 100 (^FTSE) was up 0.3% on Monday morning, trading at 8,579 points at the time of writing. For more details, check our live coverage while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
Gold takes a dive as US-China trade deal dents safe-haven appeal
Sterling weakened against the US dollar in early European trading on Monday, slipping 0.9% to $1.3177, as the greenback surged on renewed optimism following weekend trade talks between Washington and Beijing. The US dollar index ( which measures the greenback against a basket of six currencies, was up 1% to $101.32. The gains were driven by a weekend announcement from the United States that it had reached a preliminary trade deal with China after high-level negotiations in Switzerland, easing investor concerns about a potential recession in the world's largest economy. Both sides said on Monday they would suspend 24% of additional ad valorem tariffs on goods from the other country for an initial period of 90 days, in a joint statement following trade talks in Geneva over the weekend. The dollar's advance was further buoyed by the Federal Reserve's recent "hawkish pause" in interest rate policy, which supported expectations of tighter monetary conditions ahead and pushed the greenback to a one-month high. Read more: FTSE 100 LIVE: Stocks head higher as US and China agree temporary deal to cut tariffs "I suspect that talk of the demise of the US dollar as a reserve currency is premature and that we'll see a more normal trading pattern resume once we have some clarity around global trade," Michael McCarthy, chief executive officer of online trading platform Moomoo Australia, told Reuters. "US inflation data is obviously going to be very important, and for the Aussie we'll be looking at the unemployment data this week, but I think it's trade talks that are very likely to dominate market action," he added. Despite its decline against the dollar, the pound edged higher versus the euro, rising 0.3% to €1.1857. The move was attributed to positive sentiment surrounding the recent US-UK trade discussions. Last week, US president Donald Trump announced that while a 10% tariff would remain on most British imports, Washington would reduce higher levies on British cars, steel, and aluminium — a shift that traders saw as supportive of sterling. Meanwhile, the euro remained under pressure amid mounting expectations of further interest rate cuts by the European Central Bank. Gold prices fell on Monday as signs of easing trade tensions between the United States and China prompted investors to pivot away from safe-haven assets in favour of riskier bets. Gold futures were down by 3.5% to $3,226.30 per ounce, while the spot gold price lost 2.8% to $3,234.59 per ounce. The drop follows constructive trade discussions over the weekend that market participants interpreted as a potential turning point in strained relations between the world's two largest economies. China's vice premier He Lifeng described the talks with US officials as 'an important first step' in stabilising bilateral trade relations. US Treasury secretary Scott Bessent echoed that sentiment, saying the two sides had made 'substantial progress.' The more upbeat tone in trade diplomacy has eased fears over additional tariffs and contributed to the unwinding of positions in traditional safe-haven assets such as gold. "Obviously, the overall continued uncertainty in regards to tariffs remains probably the most significant underpinning behind gold," said David Meger, director of metals trading at High Ridge Futures. Gold, which historically benefits during periods of economic and political uncertainty, also tends to perform well in low-interest rate environments. However, shifting expectations for US monetary policy and reduced geopolitical tensions have weighed on the metal in recent sessions. Read more: Bank of England's commitment to bring inflation down is 'unwavering', says Bailey On Friday, Cleveland Federal Reserve president Beth Hammack said the central bank needed more time to assess the economic fallout from Trump's tariff measures before determining its policy response. 'In the near term, gold possibly [will] continue to decline as the dollar could appreciate and amid reducing geopolitical risk the haven demand too may drop hence, the yellow metal may decline to $3,200/oz in the near term,' Jigar Trivedi, senior commodity analyst at Reliance Securities, said. Oil prices jumped on Monday after the US and China announced plans to ease some of their tariff measures, stoking optimism that the two largest crude consumers might be on the path to resolving their trade dispute. Brent crude futures (BZ=F) were up 2.6%, to trade at $65.58 a barrel, while West Texas Intermediate futures (CL=F) climbed 2.7%, hitting $62.68 a barrel. Stocks: Create your watchlist and portfolio The market responded positively to the news, with traders hopeful that a more stable trade relationship between the world's two largest economies would foster stronger industrial activity and increased consumer demand, particularly in China. Despite the optimism surrounding the potential resolution of trade tensions, the rally in oil prices was tempered by concerns over the upcoming production increases announced by OPEC+. The cartel plans to raise oil output in May and June, a decision that adds to existing uncertainty around global demand. 'Optimism over constructive US-China talks supported sentiment, but limited details and OPEC's plan to raise output capped gains,' said Toshitaka Tazawa, an analyst at Fujitomi Securities. Adding to the cautious sentiment, Goldman Sachs (GS) has revised its oil price forecasts downward, now expecting Brent crude to average $60 per barrel and WTI to average $56 per barrel for the remainder of 2025. The investment bank also anticipates prices to dip further in 2026, with Brent and WTI projected to average $56 and $52 per barrel, respectively. In broader market movements, the FTSE 100 (^FTSE) was up 0.3% on Monday morning, trading at 8,579 points at the time of writing. For more details, check our live coverage 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
Zawya
12-05-2025
- Business
- Zawya
Dollar gains versus yen on US-China trade optimism; Kiwi climbs
TOKYO: The dollar climbed in early Asian trade on Monday after weekend talks between the United States and China eased concerns of a trade war between the world's two biggest economies while global hot spots appeared to cool. The greenback, Treasuries and equities have taken a beating since sweeping tariffs announced by U.S. President Donald Trump last month shook confidence in American assets. After talks in Geneva, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer on Sunday said a deal had been reached with China to cut the U.S. trade deficit. Further details are expected on Monday. Eyes will also be on U.S. earnings and data this week, including consumer price index (CPI) figures on Tuesday, for indications of how the trade spat has impacted the economy and expectations for rate hikes by the U.S. Federal Reserve. "I suspect that talk of the demise of the U.S. dollar as a reserve currency is premature and that we'll see a more normal trading pattern resume once we have some clarity around global trade," said Michael McCarthy, chief executive officer of online trading platform Moomoo Australia. "U.S. inflation data is obviously going to be very important, and for the Aussie we'll be looking at the unemployment data this week, but I think it's trade talks that are very likely to dominate market action," he added. India and Pakistan announced a ceasefire over the weekend following the four days of fighting between the nuclear powers that had rattled markets. And Ukrainian President Volodymyr Zelenskiy said he was ready to meet Russian leader Vladimir Putin in Turkey on Thursday for direct talks, the first since early months of the 2022 invasion. Tuesday's U.S. CPI reading for last month will give a fresh read on inflation trends, while April retail sales on Thursday offer the latest window into consumer spending. Jobs data is also expected on Thursday for the U.S. and Australia. The U.S. currency climbed 0.6% to 146.19 yen. The dollar index added 0.1%, hovering near a one-month high. The gauge is still down 3.5% from the April 2 announcement of Trump's "Liberation Day" tariffs. New Zealand's kiwi dollar, a common proxy for risk assets, advanced 0.3% to $0.5924. The Australian dollar fetched $0.6425 , up 0.2%. The euro stood at $1.1224, down 0.2%. Sterling slid 0.3% to $1.3277. (Reporting by Rocky Swift; Editing by Stephen Coates)
