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2 days ago
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Gold prices tick higher amid tariff and economic growth concerns
Gold prices ticked higher on Wednesday morning amid concerns about US tariffs and global economic growth. Gold futures (GC=F) were up 0.3% at $3,388 per ounce at the time of writing, while the spot gold price rose 0.2% to $3,361.05 per ounce. In the latest developments on US tariffs, president Donald Trump signed an order on Tuesday to increase duties on steel and aluminium to 50%, which came into effect overnight. However, the UK was temporarily spared from this doubling of tariffs. Trump then said in a post on Truth Social in the early hours of Wednesday that it was "extremely hard" to reach a deal with China's president Xi Jinping. The comments come after China responded to Trump's accusation on Friday that it had "totally violated its agreement" with the US, in turn accusing the US of breaching the agreement and vowing to protect its interests. Concerns about the economic impact of Trump's tariffs were compounded by the Organisation of Economic Cooperation and Development (OECD) cutting its global growth forecasts on Tuesday. The OECD warned that the economic outlook was becoming "increasingly challenging" and predicted that that global gross domestic product (GDP) growth will slow from 3.3% in 2024 to 2.9% this year and in 2026. Read more: FTSE 100 LIVE: London flat, Europe gains as UK to be spared 50% steel and aluminium tariffs Investors have been turning to gold, as the precious metal is considered to act as a hedge in times of economic and political uncertainty. ING head of commodities strategy Warren Patterson and commodities strategist Ewa Manthey pointed out that gold prices were up around 27% so far this year. "The rise is being driven by the global trade war, geopolitical risks, and central banks adding to their reserves. In the first quarter, central banks bought 244 tonnes of gold," they said. However, they cited latest data from the World Gold Council, which showed central banks added a net 12 tonnes of gold to global gold reserves in April, 12% lower than the previous month and a long way below the 12-month average of 28 tonnes. "Although central banks are still buying gold, the pace has slowed as prices hit record highs," they said. "April marked the second consecutive month of slower accumulation. "Despite the slowdown in purchases, central banks are likely to continue to add gold to their reserves, given the uncertain economic environment and the efforts to diversify away from the US dollar." The pound edged higher against the dollar (GBPUSD=X), rising 0.1% to $1.3532 at the time of writing, as investors looked ahead to trade talks on Wednesday. The US dollar index ( which measures the greenback against a basket of six currencies, was little changed in early European trading, changing hands at 99.18. US trade representative Jamieson Greer and EU trade commissioner Maroš Šefčovič are set to hold trade talks in Paris on Wednesday. The G7 – comprising the UK, US, Canada, France, Germany, Italy and Japan – are also due to hold trade talks in Paris today,ahead of their summit in Canada in less than two weeks' time. Neil Wilson, UK investor strategist at Saxo Markets, said that the "the key is whether there is much appetite to nail your colours to a trade deal with Trump before court cases are complete in the US." Stocks: Create your watchlist and portfolio "The US Court of International Trade's ruling against Trump's 'liberation day' tariffs prolongs the situation and creates further uncertainty," he said. "But markets seem content to see the glass half full for now." Wilson added: "The G7 summit in Canada kicks off in 11 days. The White House has pushed for countries to submit their best and final offers by today ... could we see an announcement from Trump if he doesn't get what he wants? There is scope for another hit-and-TACO move here." TACO, which stands for "Trump always chickens out", is an acronym that has emerged in recent days to describe the president's frequent about-turns on trade policy. In other currency moves, the pound was muted against the euro (GBPEUR=X), trading at €1.188 at the time of writing. Oil prices slipped on Wednesday morning, as investors weighed an increase in supply along with concerns about global economic growth. Brent crude futures (BZ=F) fell 0.3% to $63.98 a barrel, while West Texas Intermediate futures (CL=F) declined 0.4% at $61.29 a barrel. Matt Britzman, a senior equity analyst at Hargreaves Lansdown, said that markets were digesting "OPEC+ plans to boost output and lingering concerns over global growth and trade tensions continue to weigh on the demand outlook." Read more: Bank of England governor expects interest rates and pay to decrease this year He said investors were also weighing a "larger-than-expected drop in US crude inventories and ongoing geopolitical risks, from the Russia-Ukraine conflict to potential disruptions in Iran and Canada. "Supply-side uncertainties continue to provide a floor for prices," he added. More broadly, the FTSE 100 (^FTSE) hovered around the flatline on Wednesday morning, trading at 8,794 points. For more details, on broader market movements check our live coverage here. Read more: How next week's spending review could impact your finances What is the Pension Investment Review? Eurozone inflation cools to 1.9% in May paving way for interest rate cut
Yahoo
2 days ago
- Business
- Yahoo
Gold prices tick higher amid tariff and economic growth concerns
Gold prices ticked higher on Wednesday morning amid concerns about US tariffs and global economic growth. Gold futures (GC=F) were up 0.3% at $3,388 per ounce at the time of writing, while the spot gold price rose 0.2% to $3,361.05 per ounce. In the latest developments on US tariffs, president Donald Trump signed an order on Tuesday to increase duties on steel and aluminium to 50%, which came into effect overnight. However, the UK was temporarily spared from this doubling of tariffs. Trump then said in a post on Truth Social in the early hours of Wednesday that it was "extremely hard" to reach a deal with China's president Xi Jinping. The comments come after China responded to Trump's accusation on Friday that it had "totally violated its agreement" with the US, in turn accusing the US of breaching the agreement and vowing to protect its interests. Concerns about the economic impact of Trump's tariffs were compounded by the Organisation of Economic Cooperation and Development (OECD) cutting its global growth forecasts on Tuesday. The OECD warned that the economic outlook was becoming "increasingly challenging" and predicted that that global gross domestic product (GDP) growth will slow from 3.3% in 2024 to 2.9% this year and in 2026. Read more: FTSE 100 LIVE: London flat, Europe gains as UK to be spared 50% steel and aluminium tariffs Investors have been turning to gold, as the precious metal is considered to act as a hedge in times of economic and political uncertainty. ING head of commodities strategy Warren Patterson and commodities strategist Ewa Manthey pointed out that gold prices were up around 27% so far this year. "The rise is being driven by the global trade war, geopolitical risks, and central banks adding to their reserves. In the first quarter, central banks bought 244 tonnes of gold," they said. However, they cited latest data from the World Gold Council, which showed central banks added a net 12 tonnes of gold to global gold reserves in April, 12% lower than the previous month and a long way below the 12-month average of 28 tonnes. "Although central banks are still buying gold, the pace has slowed as prices hit record highs," they said. "April marked the second consecutive month of slower accumulation. "Despite the slowdown in purchases, central banks are likely to continue to add gold to their reserves, given the uncertain economic environment and the efforts to diversify away from the US dollar." The pound edged higher against the dollar (GBPUSD=X), rising 0.1% to $1.3532 at the time of writing, as investors looked ahead to trade talks on Wednesday. The US dollar index ( which measures the greenback against a basket of six currencies, was little changed in early European trading, changing hands at 99.18. US trade representative Jamieson Greer and EU trade commissioner Maroš Šefčovič are set to hold trade talks in Paris on Wednesday. The G7 – comprising the UK, US, Canada, France, Germany, Italy and Japan – are also due to hold trade talks in Paris today,ahead of their summit in Canada in less than two weeks' time. Neil Wilson, UK investor strategist at Saxo Markets, said that the "the key is whether there is much appetite to nail your colours to a trade deal with Trump before court cases are complete in the US." Stocks: Create your watchlist and portfolio "The US Court of International Trade's ruling against Trump's 'liberation day' tariffs prolongs the situation and creates further uncertainty," he said. "But markets seem content to see the glass half full for now." Wilson added: "The G7 summit in Canada kicks off in 11 days. The White House has pushed for countries to submit their best and final offers by today ... could we see an announcement from Trump if he doesn't get what he wants? There is scope for another hit-and-TACO move here." TACO, which stands for "Trump always chickens out", is an acronym that has emerged in recent days to describe the president's frequent about-turns on trade policy. In other currency moves, the pound was muted against the euro (GBPEUR=X), trading at €1.188 at the time of writing. Oil prices slipped on Wednesday morning, as investors weighed an increase in supply along with concerns about global economic growth. Brent crude futures (BZ=F) fell 0.3% to $63.98 a barrel, while West Texas Intermediate futures (CL=F) declined 0.4% at $61.29 a barrel. Matt Britzman, a senior equity analyst at Hargreaves Lansdown, said that markets were digesting "OPEC+ plans to boost output and lingering concerns over global growth and trade tensions continue to weigh on the demand outlook." Read more: Bank of England governor expects interest rates and pay to decrease this year He said investors were also weighing a "larger-than-expected drop in US crude inventories and ongoing geopolitical risks, from the Russia-Ukraine conflict to potential disruptions in Iran and Canada. "Supply-side uncertainties continue to provide a floor for prices," he added. More broadly, the FTSE 100 (^FTSE) hovered around the flatline on Wednesday morning, trading at 8,794 points. For more details, on broader market movements check our live coverage here. Read more: How next week's spending review could impact your finances What is the Pension Investment Review? Eurozone inflation cools to 1.9% in May paving way for interest rate cutError 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
3 days ago
- Business
- Yahoo
Pound edges lower following economic growth forecast cut
The pound dipped nearly 0.2% against the dollar (GBPUSD=X) to trade at $1.3519 on Tuesday, after the Organisation of Economic Cooperation and Development (OECD) cut its forecasts for growth in 2025 and 2026. The OECD warned that the economic outlook was becoming "increasingly challenging" and predicted that that global gross domestic product (GDP) growth will slow from 3.3% in 2024 to 2.9% this year and in 2026. The organisation said that was based on the 'on the technical assumption that tariff rates as of mid-May are sustained despite ongoing legal challenges." "The slowdown is concentrated in the United States, Canada and Mexico, with China and other economies expected to see smaller downward adjustments," it said. For the UK, the OECD lowered it economic growth forecast to 1.3% this year, from the 1.4% it predicted in March. It expected growth to slow further in 2026 to 1%, which was also lower than a previous forecast of 1.2%. Russ Mould, investment director at AJ Bell (AJB.L), said that while the OECD's global growth forecast cut was "only a small revision ... it's still enough to cause investors some digestion as they consume their morning news." "The 90-day pause on tariffs has just over a month before expiration, meaning the pressure is on countries to do deals with the Trump administration," he said. "Reports suggest that [US president Donald] Trump wants best offers on trade negotiations by Wednesday, perhaps to avoid any last-minute rush or stalemate situations." Read more: FTSE 100 LIVE: Stocks head lower as global growth set to slow this year amid Trump tariffs On Monday, China hit back at Trump's claim it had violated the temporary trade agreement between the two countries, while the EU said it opposed the president's doubling of tariffs on steel and aluminium imports. The dollar index ( which pits the greenback against a basket of global currencies, ticked up 0.2% at 98.91. It has lost about 0.9% over the past five sessions. Markets have endured wild swings since Trump unveiled sweeping global tariffs in April. Last week, a new source of uncertainty over his trade policy emerged when a federal appeals court quickly paused a ruling that would have blocked most of the president's tariffs as illegal. The Trump administration is due to respond to the appeals court by Monday 9 June. Sterling was slightly higher against the euro (GBPEUR=X), meanwhile, hitting the €1.184 mark ahead of the eurozone's fresh flash inflation reading and interest rate decision later in the week. Eurozone inflation dipped to 1.9% year-on-year in May, according to the latest flash estimates, slightly below the ECB's 2% target. Oil prices were muted on Tuesday morning, as concerns about economic growth appeared to cap gains from a OPEC+-induced rally in the previous session. Brent crude futures (BZ=F) were flat at $64.59 a barrel, at the time of writing, while West Texas Intermediate futures (CL=F) dipped 0.1% at $62.43 a barrel. The Organization of the Petroleum Exporting Countries and its allies — known as OPEC+ — said in a statement on Saturday that its eight participating countries had agreed to increase output by 411,000 barrels per day. Stocks: Create your watchlist and portfolio Jim Reid, a market strategist at Deutsche Bank ( said: "An increase of this magnitude was flagged on the wires on Friday afternoon and there was some prospect of it being higher than this. He said that oil futures were higher on Monday morning "in a relief that the output increase wasn't higher." However, the OECD's economic growth forecast cut appeared to reignite fears of a global slowdown and how this could weigh on demand for fuel. Gold prices fell declined on Tuesday, as a stronger dollar weighed on the precious metal. Gold futures (GC=F) fell 0.4% at $3,382.30 per ounce at the time of writing, while the spot gold price was down 0.7% to $3,356.98 per ounce. A stronger greenback tends to weigh on gold prices, as the precious metal is typically priced in dollars, meaning a rise in the currency makes the commodity more expensive for foreign buyers. Read more: Trending tickers: Meta, TSMC, BioNTech, Applied Digital and BAT In a note on Tuesday, Bank of America (BAC) strategists said that they were bullish on gold over a one-month horizon. They acknowledged that gold was "facing headwinds near-term as the market adjusts to Trump's economic policies, which may bring about higher inflation and a stronger USD [dollar]." "There is also a risk the EM (emerging market) central bank reduce gold buying, if domestic currencies decline on tariffs," they said. "Yet, ongoing macro uncertainty and rising global debt levels remain supportive," the strategists added. Read more: What is the Pension Investment Review? Eurozone inflation cools to 1.9% in May paving way for interest rate cut UK 'bargain' stocks that have outperformed the market long-termSign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Pound edges lower following economic growth forecast cut
The pound dipped nearly 0.2% against the dollar (GBPUSD=X) to trade at $1.3519 on Tuesday, after the Organisation of Economic Cooperation and Development (OECD) cut its forecasts for growth in 2025 and 2026. The OECD warned that the economic outlook was becoming "increasingly challenging" and predicted that that global gross domestic product (GDP) growth will slow from 3.3% in 2024 to 2.9% this year and in 2026. The organisation said that was based on the 'on the technical assumption that tariff rates as of mid-May are sustained despite ongoing legal challenges." "The slowdown is concentrated in the United States, Canada and Mexico, with China and other economies expected to see smaller downward adjustments," it said. For the UK, the OECD lowered it economic growth forecast to 1.3% this year, from the 1.4% it predicted in March. It expected growth to slow further in 2026 to 1%, which was also lower than a previous forecast of 1.2%. Russ Mould, investment director at AJ Bell (AJB.L), said that while the OECD's global growth forecast cut was "only a small revision ... it's still enough to cause investors some digestion as they consume their morning news." "The 90-day pause on tariffs has just over a month before expiration, meaning the pressure is on countries to do deals with the Trump administration," he said. "Reports suggest that [US president Donald] Trump wants best offers on trade negotiations by Wednesday, perhaps to avoid any last-minute rush or stalemate situations." Read more: FTSE 100 LIVE: Stocks head lower as global growth set to slow this year amid Trump tariffs On Monday, China hit back at Trump's claim it had violated the temporary trade agreement between the two countries, while the EU said it opposed the president's doubling of tariffs on steel and aluminium imports. The dollar index ( which pits the greenback against a basket of global currencies, ticked up 0.2% at 98.91. It has lost about 0.9% over the past five sessions. Markets have endured wild swings since Trump unveiled sweeping global tariffs in April. Last week, a new source of uncertainty over his trade policy emerged when a federal appeals court quickly paused a ruling that would have blocked most of the president's tariffs as illegal. The Trump administration is due to respond to the appeals court by Monday 9 June. Sterling was slightly higher against the euro (GBPEUR=X), meanwhile, hitting the €1.184 mark ahead of the eurozone's fresh flash inflation reading and interest rate decision later in the week. Eurozone inflation dipped to 1.9% year-on-year in May, according to the latest flash estimates, slightly below the ECB's 2% target. Oil prices were muted on Tuesday morning, as concerns about economic growth appeared to cap gains from a OPEC+-induced rally in the previous session. Brent crude futures (BZ=F) were flat at $64.59 a barrel, at the time of writing, while West Texas Intermediate futures (CL=F) dipped 0.1% at $62.43 a barrel. The Organization of the Petroleum Exporting Countries and its allies — known as OPEC+ — said in a statement on Saturday that its eight participating countries had agreed to increase output by 411,000 barrels per day. Stocks: Create your watchlist and portfolio Jim Reid, a market strategist at Deutsche Bank ( said: "An increase of this magnitude was flagged on the wires on Friday afternoon and there was some prospect of it being higher than this. He said that oil futures were higher on Monday morning "in a relief that the output increase wasn't higher." However, the OECD's economic growth forecast cut appeared to reignite fears of a global slowdown and how this could weigh on demand for fuel. Gold prices fell declined on Tuesday, as a stronger dollar weighed on the precious metal. Gold futures (GC=F) fell 0.4% at $3,382.30 per ounce at the time of writing, while the spot gold price was down 0.7% to $3,356.98 per ounce. A stronger greenback tends to weigh on gold prices, as the precious metal is typically priced in dollars, meaning a rise in the currency makes the commodity more expensive for foreign buyers. Read more: Trending tickers: Meta, TSMC, BioNTech, Applied Digital and BAT In a note on Tuesday, Bank of America (BAC) strategists said that they were bullish on gold over a one-month horizon. They acknowledged that gold was "facing headwinds near-term as the market adjusts to Trump's economic policies, which may bring about higher inflation and a stronger USD [dollar]." "There is also a risk the EM (emerging market) central bank reduce gold buying, if domestic currencies decline on tariffs," they said. "Yet, ongoing macro uncertainty and rising global debt levels remain supportive," the strategists added. Read more: What is the Pension Investment Review? Eurozone inflation cools to 1.9% in May paving way for interest rate cut UK 'bargain' stocks that have outperformed the market long-termError 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
Yahoo
3 days ago
- Business
- Yahoo
Pound edges lower following economic growth forecast cut
The pound dipped nearly 0.2% against the dollar (GBPUSD=X) to trade at $1.3519 on Tuesday, after the Organisation of Economic Cooperation and Development (OECD) cut its forecasts for growth in 2025 and 2026. The OECD warned that the economic outlook was becoming "increasingly challenging" and predicted that that global gross domestic product (GDP) growth will slow from 3.3% in 2024 to 2.9% this year and in 2026. The organisation said that was based on the 'on the technical assumption that tariff rates as of mid-May are sustained despite ongoing legal challenges." "The slowdown is concentrated in the United States, Canada and Mexico, with China and other economies expected to see smaller downward adjustments," it said. For the UK, the OECD lowered it economic growth forecast to 1.3% this year, from the 1.4% it predicted in March. It expected growth to slow further in 2026 to 1%, which was also lower than a previous forecast of 1.2%. Russ Mould, investment director at AJ Bell (AJB.L), said that while the OECD's global growth forecast cut was "only a small revision ... it's still enough to cause investors some digestion as they consume their morning news." "The 90-day pause on tariffs has just over a month before expiration, meaning the pressure is on countries to do deals with the Trump administration," he said. "Reports suggest that [US president Donald] Trump wants best offers on trade negotiations by Wednesday, perhaps to avoid any last-minute rush or stalemate situations." Read more: FTSE 100 LIVE: Stocks head lower as global growth set to slow this year amid Trump tariffs On Monday, China hit back at Trump's claim it had violated the temporary trade agreement between the two countries, while the EU said it opposed the president's doubling of tariffs on steel and aluminium imports. The dollar index ( which pits the greenback against a basket of global currencies, ticked up 0.2% at 98.91. It has lost about 0.9% over the past five sessions. Markets have endured wild swings since Trump unveiled sweeping global tariffs in April. Last week, a new source of uncertainty over his trade policy emerged when a federal appeals court quickly paused a ruling that would have blocked most of the president's tariffs as illegal. The Trump administration is due to respond to the appeals court by Monday 9 June. Sterling was slightly higher against the euro (GBPEUR=X), meanwhile, hitting the €1.184 mark ahead of the eurozone's fresh flash inflation reading and interest rate decision later in the week. Eurozone inflation dipped to 1.9% year-on-year in May, according to the latest flash estimates, slightly below the ECB's 2% target. Oil prices were muted on Tuesday morning, as concerns about economic growth appeared to cap gains from a OPEC+-induced rally in the previous session. Brent crude futures (BZ=F) were flat at $64.59 a barrel, at the time of writing, while West Texas Intermediate futures (CL=F) dipped 0.1% at $62.43 a barrel. The Organization of the Petroleum Exporting Countries and its allies — known as OPEC+ — said in a statement on Saturday that its eight participating countries had agreed to increase output by 411,000 barrels per day. Stocks: Create your watchlist and portfolio Jim Reid, a market strategist at Deutsche Bank ( said: "An increase of this magnitude was flagged on the wires on Friday afternoon and there was some prospect of it being higher than this. He said that oil futures were higher on Monday morning "in a relief that the output increase wasn't higher." However, the OECD's economic growth forecast cut appeared to reignite fears of a global slowdown and how this could weigh on demand for fuel. Gold prices fell declined on Tuesday, as a stronger dollar weighed on the precious metal. Gold futures (GC=F) fell 0.4% at $3,382.30 per ounce at the time of writing, while the spot gold price was down 0.7% to $3,356.98 per ounce. A stronger greenback tends to weigh on gold prices, as the precious metal is typically priced in dollars, meaning a rise in the currency makes the commodity more expensive for foreign buyers. Read more: Trending tickers: Meta, TSMC, BioNTech, Applied Digital and BAT In a note on Tuesday, Bank of America (BAC) strategists said that they were bullish on gold over a one-month horizon. They acknowledged that gold was "facing headwinds near-term as the market adjusts to Trump's economic policies, which may bring about higher inflation and a stronger USD [dollar]." "There is also a risk the EM (emerging market) central bank reduce gold buying, if domestic currencies decline on tariffs," they said. "Yet, ongoing macro uncertainty and rising global debt levels remain supportive," the strategists added. Read more: What is the Pension Investment Review? Eurozone inflation cools to 1.9% in May paving way for interest rate cut UK 'bargain' stocks that have outperformed the market long-termSe produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
