Latest news with #NiteshShah
Reuters
30-07-2025
- Business
- Reuters
Gold falls 1% as strong US data fuels expectations of rate cut delays
July 30 (Reuters) - Gold fell 1% on Wednesday as solid U.S. economic data reinforced expectations that the Federal Reserve will hold interest rates steady at its meeting later in the day, while also increasing the likelihood that rate cuts may be pushed back for the remainder of the year. Spot gold was down 1% at $3,292.77 per ounce, as of 11:27 a.m. ET (1527 GMT). U.S. gold futures also fell 1% to $3,288.30. The ADP National Employment report showed U.S. private payrolls rising more than expected in July, though signs of a slowing labor market persisted. Separately, a Commerce Department report showed second‑quarter GDP grew 3%, beating forecasts of 2.4% in a Reuters poll. "The releases that just came out really look quite supportive for the economy. GDP was an upside surprise. Same with labor market addition. So both indicate that the Fed can continue to wait on cutting rates," said Nitesh Shah, commodities strategist at WisdomTree. The U.S. central bank is widely expected to leave rates unchanged, resisting pressure from U.S. President Donald Trump's repeated calls for cuts. Traders see a 60% chance of the Fed cutting rates in September versus 66% before the data. Market participants will be parsing Fed Chair Jerome Powell's comments that are due at 2:30 p.m. ET (1830 GMT) for any nuance on the timing and trajectory of policy shifts. Shah noted that the louder the Trump administration voices its distaste for current policymaking, the more likely it is to drive gold prices. Gold tends to perform well in a low-interest rate environment and during periods of uncertainty. On the trade front, the U.S. and China agreed to extend their 90‑day tariff truce, pending Trump's approval, following two days of what were described as constructive talks in Stockholm. Spot silver fell 1.8% to $37.52 per ounce, platinum lost over 3.6% to $1,344.33, and palladium was down 2.3% to $1,229.72.
Reuters
30-07-2025
- Business
- Reuters
Gold falls as strong US data fuels expectations of rate cut delays
July 30 (Reuters) - Gold fell on Wednesday as solid U.S. economic data reinforced expectations that the Federal Reserve will hold interest rates steady at its upcoming meeting, while also increasing the likelihood that rate cuts may be pushed back for the remainder of the year. Spot gold was down 0.6% at $3,306.57 per ounce, as of 9:34 a.m. ET (1334 GMT). U.S. gold futures fell 0.6% to $3,303.40. "The releases that just came out really look quite supportive for the economy. GDP was an upside surprise. Same with labor market addition. So both indicate that the Fed can continue to wait on cutting rates," said Nitesh Shah, commodities strategist at WisdomTree. The ADP National Employment report showed U.S. private payrolls rising more than expected in July, though signs of a slowing labor market persisted. Separately, a Commerce Department report showed second‑quarter GDP grew 3%, beating forecasts of 2.4% in a Reuters poll. The U.S. central bank is widely expected to leave rates unchanged later in the day, resisting pressure from U.S. President Donald Trump's repeated calls for cuts. Traders currently see a 60% chance of the Fed cutting rates in September versus 66% before the data. Market participants will be parsing Fed Chair Jerome Powell's comments due at 2:30 ET (1830 GMT) for any nuance on the timing and trajectory of policy shifts. Shah noted that the louder the administration voices its distaste for current policymaking, the more likely it is to drive gold prices. Gold tends to do well in a low-interest rate environment and during periods of uncertainty. On the trade front, U.S. and China agreed to extend their 90‑day tariff truce following two days of what were described as constructive talks in Stockholm. Elsewhere, spot silver fell 1.5% to $37.61 per ounce, platinum slipped 1.1% to $1,380.25 and palladium was down 0.5% to $1,251.88.
Business Recorder
24-07-2025
- Business
- Business Recorder
Copper edges up to two-week peak
LONDON: Copper prices touched their highest in over two weeks on Wednesday as a US-Japan trade deal boosted sentiment, although gains were capped over concern about surpluses and rising inventories. Three-month copper on the London Metal Exchange was little changed at $9,918 a metric ton in official open-outcry trading after earlier touching its strongest since July 4 at $9,947. Copper has gained about 4% over the past week and is approaching its three-month peak of $10,020.50 hit on July 2. Sentiment was boosted after US President Donald Trump struck a trade deal with Japan, lifting global share markets. Metals investors are focused on a potential trade deal with the world's top metals consumer China ahead of a meeting scheduled for next week between US and Chinese officials in Stockholm. Worries about oversupply, however, weighed on the market, highlighted by data showing the copper market was in a surplus of 272,000 metric tons in the first five months of the year. Also chipping away support was an overhang of inventories in the US after traders took advantage of higher prices there due to the expectation of tariffs being imposed, which are due to take effect on August 1. 'We could see ... copper range-trading once the tariffs come into play or possibly even soften,' said Nitesh Shah, commodity strategist at WisdomTree. 'The US will be using up all that stockpile of copper before importing new units from abroad and therefore demand may look a little bit weak for that period of inventory rundown.' Copper flows are now being diverted away from the US and are showing up in rising LME inventories, which have surged 38% since June 27. US Comex copper futures gained 1.7% to $5.82 a lb, bringing the premium of Comex over LME copper to $2,903 a ton. Aluminium was the worst performing LME metal, dropping 0.5% to $2,646.50 a ton. 'I think the producers are quite happy to get on and do a lot of forward selling around these levels,' Robert Montefusco at broker Sucden Financial told a webinar. Among other metals, zinc rose 0.2% to $2,865, lead gained 0.9% to $2,030, nickel slipped 0.2% to $15,500 and tin climbed 1.5% to $34,400.
Business Recorder
23-07-2025
- Business
- Business Recorder
Copper edges up to two-week peak on hopes for trade deals
LONDON: Copper prices touched their highest in over two weeks on Wednesday as a U.S.-Japan trade deal boosted sentiment, although gains were capped over concern about surpluses and rising inventories. Three-month copper on the London Metal Exchange was up 0.2% at $9,934 at 0945 GMT, its strongest since July 4. Copper has gained about 4% over the past week and is approaching its three-month peak of $10,020.50 hit on July 2. Sentiment was boosted after U.S. President Donald Trump struck a trade deal with Japan, lifting global share markets. Metals investors are focused on a potential trade deal with the world's top metals consumer China ahead of a meeting scheduled for next week between U.S. and Chinese officials in Stockholm. Worries about oversupply, however, weighed on the market, highlighted by data showing the copper market was in a surplus of 272,000 metric tons in the first five months of the year. Copper edges higher, others slip on uncertainty Also chipping away support was an overhang of inventories in the U.S. after traders took advantage of higher prices there due to the expectation of tariffs being imposed, which are due to take effect on August 1. 'We could see … copper range-trading once the tariffs come into play or possibly even soften,' said Nitesh Shah, commodity strategist at WisdomTree. 'The U.S. will be using up all that stockpile of copper before importing new units from abroad and therefore demand may look a little bit weak for that period of inventory rundown.' Copper flows are now being diverted away from the U.S. and are showing up in rising LME inventories, which have surged 38% since June 27. Among other metals, aluminium dropped 0.5% to $2,641.50 a ton and zinc dipped 0.1% to $2,856, while lead gained 0.8% to $2,026, nickel added 0.1% to $15,545 and tin was up 0.3% to $34,000.
Business Recorder
16-07-2025
- Business
- Business Recorder
Copper sags as worries subside about disruptions, inventories rise
LONDON: Copper prices slipped on Wednesday as concern eased about supply disruptions and inventories continued rising amid uncertainty about the impact of US tariffs. Benchmark three-month copper on the London Metal Exchange traded 0.4% lower at $9,610 per metric ton at 1345 GMT, down from a three-month peak just over $10,000 touched on July 2. 'There hasn't been any additional supply disruptions to push prices higher across the various exchanges,' said Nitesh Shah, commodity strategist at WisdomTree. Protesters have lifted blockades in Peru, the world's third biggest copper producer, that blocked a major copper transit route for more than two weeks, one of the protest leaders told Reuters late on Tuesday. Meanwhile, Rio Tinto on Wednesday posted 9% higher quarterly copper output and forecast full-year production at the higher end of its guidance range, while Antofagasta reported an 11% jump in copper production in the first half. At the same time, a flow of copper to the US by traders anticipating tariffs has tapered off following the announcement that 50% duties would be imposed on August 1. 'The inventory drain from the LME and Shanghai has plateaued and almost reversed. You're starting to see a build-up in both locations,' Shah added. LME copper stocks gained by another 10,525 tons, data showed on Wednesday, having jumped by a third over the past 2-1/2 weeks. US Comex copper futures dropped 1.3% to $5.51 a lb, bringing the premium of Comex over LME copper to $2,527 a ton. Investors were also digesting data on Tuesday showing China's economy slowed less than expected in the second quarter. 'The GDP print, hitting slightly above target, takes away the need for additional stimulus, and that may potentially constrain copper prices,' Shah said. LME tin dropped 1.5% to $32,830 a ton, having touched a three-week low on market speculation that tin mining licences would be re-issued in Wa State, Myanmar, boosting supply. Wa State suspended all work at local mines in August 2023 to protect resources. Among other metals, LME aluminium fell 0.5% to $2,568 a ton, nickel lost 1.1% to $14,970, zinc shed 0.4% to $2,686 and lead eased 0.7% to $1,983, the weakest since June 20.
