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International Business Times
15 hours ago
- Business
- International Business Times
Gold Prices Dip as Dollar Strengthens and Tariff Uncertainty Looms
The shine of gold may dazzle, but its journey is often shaped by quiet shifts in global events. Traders this week received a reminder that political decisions and currency movements can quickly take the shine off it. Gold gave back some of its recent gains as investors processed new economic data and the return of tariff tensions, underscoring how even an age-old safe harbor isn't immune from the market storm. By 2:26 p.m. ET on Friday, spot gold was down 0.7% at $3,293.59 per ounce on a weekly basis, quoted as a 1.9% decline. U.S. gold futures finished down 0.9% at $3,315.40. The downward move came after a small increase in the U.S. dollar, which gained 0.1% on the index, pricing gold higher for those holding other currencies. Also driving market jitters on Thursday, a U.S. federal appeals court reinstated significant tariffs first imposed by former President Donald Trump. That was only a day after the trade court found that Trump had exceeded his authority. That decision by the court has now thrown investors into confusion about what happens next with international trade. "Gold is consolidating," said David Meger, head of metals trading at High Ridge Futures. "We have slightly less safe-haven demand now, but escalating political tensions, particularly with tariffs, could easily support prices once more," he said. On the economic front, the U.S. Personal Consumption Expenditures (PCE) Price Index, an important inflation measure, increased by 2.1% in April from a year earlier. The increase was slightly less than the 2.2% expected by economists, indicating a potential slowdown in inflation. The report strengthened expectations in financial markets of a Federal Reserve interest rate cut in September. Lower interest rates tend to help gold, which offers no yield of its own but does become more attractive to investors when borrowing costs fall. Gold prices reached a record high of $3,500.05 per ounce earlier in April amid expectations of rate cuts and global instability. Physical demand for gold in India, meanwhile, continued to be soft. Prices in the local market gained, and wedding season also was dissipating, which resulted in a lower number of buyers in the world's second-biggest gold consumer, they said. Other precious metals fell as well. Spot silver fell 1.2% to $32.94 an ounce, while platinum fell 2.5% to $1,055.05, and palladium was down 0.6% at $967.30.
International Business Times
3 days ago
- Business
- International Business Times
Gold Prices Dip as Dollar Strengthens and Tariff Uncertainty Persists
Gold prices dropped on Friday, ending May with their first monthly loss of 2025. The dip was attributed to a firmer U.S. dollar and continued uncertainty over trade tariffs. Spot gold dropped 0.6 percent to $3,297.09 per ounce by 9:38 a.m. ET, a decline of 1.8 percent for the week. U.S. gold futures also fell 0.7% to $3,295.40. The dollar index gained 0.2%, which made gold more expensive for holders of other currencies. A federal appeals court has temporarily reinstated sweeping tariffs that US President Donald J. Trump, had placed on imported solar panels. The move followed a U.S. trade court decision, a day earlier, that had found Trump had overstepped his authority when imposing those duties. The resurrection amplified market swings and investor unease. "It doesn't look like initially gold will be so much in favor since there's a little bit less need for safe haven, but there are going to be significant restraints on Trump, and that ultimately will pop up prices," said David Meger, director of metals trading at High Ridge Futures. In economic news, the U.S. Personal Consumption Expenditures (PCE) Price Index increased 2.1% y/y in April, below expectations of a 2.2% rise. This relatively benign inflation data helped keep alive hopes that the Federal Reserve may yet cut interest rates in the coming months. Lower rates are generally good for gold, which doesn't offer a yield and stands to be pressured as the opportunity cost of holding the metal lessens. In India, gold continued to be unattractive this week as prices domestically grew higher and the wedding season came to an end. Dealers cut discounts to $31 an ounce from $49 a week ago. In the domestic market, gold was trading at around ₹94,900 per 10 grams after falling to a one-month low. Spot silver fell 0.6% to $33.14 an ounce. Platinum fell 1.6 percent to $1,065.50, and palladium lost 1 percent to $963.57.
RTÉ News
3 days ago
- Business
- RTÉ News
US consumer spending slows in April; inflation rises moderately US consumer spendi
US consumer spending increased marginally in April as a rush to beat higher prices from import duties slowed. Consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.2% last month after an unrevised 0.7% jump in March, the Commerce Department's Bureau of Economic Analysis said today. Economists polled by Reuters had forecast consumer spending climbing 0.2%. Pre-emptive buying of goods ahead of President Donald Trump's sweeping import tariffs helped to push spending higher in the previousmonth. Most of the tariffs have been implemented though higher duties on goods have been delayed until July. Duties on Chinese imports have been slashed to 30% from 145% until mid-August. Economists have argued that Trump's aggressive trade policy will sharply slow economic growth this year and boost inflation, concerns echoed by Federal Reserve officials. Minutes of the Fed's May 6-7 meeting published on Wednesday noted "participants judged that downside risks to employment and economic activity and upside risks to inflation had risen, primarily reflecting the potential effects of tariff increases." The Fed has kept its benchmark overnight interest rate in the 4.25%-4.5% range since December. A US trade court on Wednesday blocked most of Trump's tariffs from going into effect in a sweeping ruling that the president overstepped his authority. They were temporarily reinstated by a federal appeals court yesterday, adding another layer of uncertainty over the economy's outlook. The economy by all measures contracted at a 0.2% annualised rate in the first quarter after growing at a 2.4% pace in the October-December quarter. With the exception of trade data, most official economic reports are yet to show the negative effects of tariffs in a significant way, though sentiment surveys have deteriorated. Economists expect the hit could become evident in June data. US inflation was benign in April, with retailers likely still selling inventory accumulated before the tariffs. The Personal Consumption Expenditures (PCE) Price Index rose 0.1% last month after being unchanged in March, the BEA said. In the 12 months to April, PCE prices increased 2.1% after advancing 2.3% in March. Stripping out the volatile food and energy components, the PCE price index gained 0.1% last month. That followed a similar rise in the so-called core PCE inflation in March. In the 12 months to April, core inflation rose 2.5% after climbing 2.7% in March. The Fed tracks the PCE price measures for its 2% inflation target. Economists expect US inflation to accelerate this year as tariffs raise goods prices. Consumers' one-year inflation expectations have soared. The Fed minutes on Wednesday showed some policymakers assessed that the surge in short-term inflation expectations "could make firms more willing to raise prices." They also saw a risk that longer-term inflation expectations "could drift upward, which could put additional upward pressure on inflation."
Mint
3 days ago
- Business
- Mint
US consumer spending slows to 0.2% in April while inflation sees moderate jump
US consumer spending increased marginally in April as a rush to beat higher prices from import duties slowed. Consumer spending, which accounts for more than two-thirds of economic activity, rose 0.2% last month after an unrevised 0.7% jump in March, the Commerce Department's Bureau of Economic Analysis said on Friday. Economists polled by Reuters had forecast consumer spending climbing 0.2%. Pre-emptive buying of goods ahead of President Donald Trump's sweeping import tariffs helped to push spending higher in the prior month. Most of the tariffs have been implemented though higher duties on goods have been delayed until July. Duties on Chinese imports have been slashed to 30% from 145% until mid-August. Economists have argued that Trump's aggressive trade policy will sharply slow economic growth this year and boost inflation, concerns echoed by Federal Reserve officials. Minutes of the U.S. central bank's May 6-7 meeting published on Wednesday noted "participants judged that downside risks to employment and economic activity and upside risks to inflation had risen, primarily reflecting the potential effects of tariff increases." The U.S. central bank has kept its benchmark overnight interest rate in the 4.25%-4.50% range since December. A U.S. trade court on Wednesday blocked most of Trump's tariffs from going into effect in a sweeping ruling that the president overstepped his authority. They were temporarily reinstated by a federal appeals court on Thursday, adding another layer of uncertainty over the economy's outlook. The economy by all measures contracted at a 0.2% annualized rate in the first quarter after growing at a 2.4% pace in the October-December quarter. With the exception of trade data, most official economic reports are yet to show the negative effects of tariffs in a significant way, though sentiment surveys have deteriorated. Economists expect the hit could become evident in June data. Inflation was benign in April, with retailers likely still selling inventory accumulated before the tariffs. The Personal Consumption Expenditures (PCE) Price Index rose 0.1% last month after being unchanged in March, the BEA said. In the 12 months through April, PCE prices increased 2.1% after advancing 2.3% in March. Stripping out the volatile food and energy components, the PCE price index gained 0.1% last month. That followed a similar rise in the so-called core PCE inflation in March. In the 12 months through April, core inflation rose 2.5% after climbing 2.7% in March. The Fed tracks the PCE price measures for its 2% inflation target. Economists expect inflation to accelerate this year as tariffs raise goods prices. Consumers' one-year inflation expectations have soared. The Fed minutes on Wednesday showed some policymakers assessed that the surge in short-term inflation expectations "could make firms more willing to raise prices." They also saw a risk that longer-term inflation expectations "could drift upward, which could put additional upward pressure on inflation." (Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)
Time of India
3 days ago
- Business
- Time of India
US consumer spending slows in April; inflation rises moderately
U.S. consumer spending saw a slight increase of 0.2% in April, following a more substantial 0.7% rise in March, as pre-emptive buying slowed down. This increase was influenced by President Trump's import tariffs. The Federal Reserve expressed concerns that these tariffs could hinder economic growth and increase inflation. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads U.S. consumer spending increased marginally in April as a rush to beat higher prices from import duties spending, which accounts for more than two-thirds of economic activity, rose 0.2% last month after an unrevised 0.7% jump in March, the Commerce Department's Bureau of Economic Analysis said on Friday. Economists polled by Reuters had forecast consumer spending climbing 0.2%.Pre-emptive buying of goods ahead of President Donald Trump 's sweeping import tariffs helped to push spending higher in the prior month. Most of the tariffs have been implemented though higher duties on goods have been delayed until on Chinese imports have been slashed to 30% from 145% until mid-August. Economists have argued that Trump's aggressive trade policy will sharply slow economic growth this year and boost inflation, concerns echoed by Federal Reserve of the U.S. central bank's May 6-7 meeting published on Wednesday noted "participants judged that downside risks to employment and economic activity and upside risks to inflation had risen, primarily reflecting the potential effects of tariff increases." The U.S. central bank has kept its benchmark overnight interest rate in the 4.25%-4.50% range since December.A U.S. trade court on Wednesday blocked most of Trump's tariffs from going into effect in a sweeping ruling that the president overstepped his authority. They were temporarily reinstated by a federal appeals court on Thursday, adding another layer of uncertainty over the economy's economy by all measures contracted at a 0.2% annualized rate in the first quarter after growing at a 2.4% pace in the October-December the exception of trade data, most official economic reports are yet to show the negative effects of tariffs in a significant way, though sentiment surveys have deteriorated. Economists expect the hit could become evident in June was benign in April, with retailers likely still selling inventory accumulated before the tariffs. The Personal Consumption Expenditures (PCE) Price Index rose 0.1% last month after being unchanged in March, the BEA the 12 months through April, PCE prices increased 2.1% after advancing 2.3% in out the volatile food and energy components, the PCE price index gained 0.1% last month. That followed a similar rise in the so-called core PCE inflation in the 12 months through April, core inflation rose 2.5% after climbing 2.7% in March. The Fed tracks the PCE price measures for its 2% inflation expect inflation to accelerate this year as tariffs raise goods prices. Consumers' one-year inflation expectations have Fed minutes on Wednesday showed some policymakers assessed that the surge in short-term inflation expectations "could make firms more willing to raise prices."They also saw a risk that longer-term inflation expectations "could drift upward, which could put additional upward pressure on inflation."
