Latest news with #ProducerPriceIndex
See - Sada Elbalad
13 hours ago
- Business
- See - Sada Elbalad
Fed Hints at Monetary Easing as Gold Awaits July Clarity
Waleed Farouk Gold prices saw a slight dip in local markets during Saturday trading, coinciding with the weekend closure of global exchanges. This came after a modest 0.1% decline in international spot prices over the past week, which was marked by volatility and conflicting pressures from monetary policies and geopolitical tensions. Gold lost around EGP 5 per gram on Saturday compared to Friday's close, with 21-karat gold priced at EGP 4,645 per gram. Meanwhile, spot gold dropped by approximately $5 per ounce during the week to settle at $3,350. The price of 24-karat gold recorded EGP 5,309 per gram, 18-karat gold stood at EGP 3,981, while 14-karat gold reached EGP 3,097. The gold pound was priced at EGP 37,160. On Friday, gold prices had climbed by EGP 10 during the session, with 21-karat gold opening at EGP 4,640 and closing at EGP 4,650. Globally, spot prices rose by $10, opening at $3,340 and closing at $3,350 per ounce. Last week, global markets remained in a state of cautious anticipation, driven by speculation of potential political interference in the U.S. Federal Reserve's operations and renewed trade tensions, particularly from the U.S. toward the EU and Asian economies. The U.S. Dollar Index slipped by 0.16% on Friday to 98.462 points, despite posting a 0.61% weekly gain. This decline came amid a week of sharp fluctuations triggered by mixed inflation data, political pressure on Fed Chair Jerome Powell, and escalating trade frictions. While the Consumer Price Index rose, the stagnation in the Producer Price Index cast doubt on the Fed's monetary trajectory, especially as inflation risks from tariffs persist — reducing the likelihood of a near-term rate cut. Fed Governor Christopher Waller expressed support for a rate cut in July, citing weaker labor data as justification for a preemptive move. Concerns over the Federal Reserve's independence resurfaced following reports that President Donald Trump may be considering replacing Fed Chair Jerome Powell. Although officially denied, such speculation undermines market confidence in the neutrality of U.S. monetary policy, reinforcing gold's status as a safe haven. Adding to this, the University of Michigan's July survey revealed an improvement in U.S. consumer sentiment alongside a slight decline in long-term inflation expectations. This potentially provides the Fed with greater flexibility in its policy approach. The survey showed five-year inflation expectations falling to 3.6% from a previous 4%, while one-year expectations dropped to 4.4% from 5%. Market expectations currently indicate a total of 45 basis points in rate cuts before year-end — a backdrop that favors gold as a store of value in a low-yield environment. However, the Fed's cautious stance, with only two rate cuts projected in 2025, continues to limit gold's momentum as a non-yielding asset. Trump's renewed threats to impose tariffs on EU imports, coupled with stalled trade negotiations with Japan and Indonesia, have added further uncertainty to the markets. This has pushed more investors into gold for safety. Despite gold's relative resilience amid high Treasury yields and a strong dollar, analysts warn of potential pullbacks due to profit-taking after heavy speculative buying in recent months. Still, a major sell-off is seen as unlikely. The dollar remains supported by expectations that the Fed will hold rates steady throughout the summer unless there is a significant deterioration in economic data — a scenario that diminishes prospects for gold in the short term. Over the longer term, political tensions may ultimately favor gold. Eroding trust in U.S. financial institutions, particularly in the context of Trump–Powell disputes, could weaken the dollar and drive further inflows into precious metals. Looking ahead, next week's U.S. economic calendar includes housing data, global flash PMI readings from S&P, jobless claims, and durable goods orders. Despite minor declines in both local and global gold prices, the yellow metal remains attractive as a hedge in an increasingly volatile world. U.S. monetary policy remains the most critical driver of gold's direction — balancing the strength of the dollar against the Fed's gradual shift toward easing. With rising geopolitical risks, uncertainty surrounding the Fed's leadership, and mixed consumer sentiment, gold is expected to maintain a prominent position in investor portfolios heading into Q3 2025. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" Sports Get to Know 2025 WWE Evolution Results News Flights suspended at Port Sudan Airport after Drone Attacks Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language
Yahoo
2 days ago
- Business
- Yahoo
Construction costs rise as tariff clock ticks
This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. Dive Brief: Construction input prices ticked up 0.2% in June, driven by increases in key materials such as copper and fabricated structural metal products, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics' Producer Price Index data. Input costs now sit 2.1% higher overall and 2.5% higher for nonresidential construction compared to a year ago, according to the report. Through the first half of 2025, nonresidential prices climbed at a 6% annualized rate. The June data predates the steepest tariffs set to take effect Aug. 1, leaving contractors bracing for more volatility as additional duties loom. Dive Insight: Contractors absorbed another round of steady cost increases in June, even before the most aggressive tariffs take hold later this summer, according to the Associated General Contractors of America. Aluminum mill shapes climbed 6.3% over the past year, steel mill products rose 5.1% and lumber and wood products increased 4.8%, according to the report. More extreme increases hit certain structural steel components, including a 22.5% spike in fabricated metal for bridges and 8.3% for bar joists and rebar. 'The fact that construction materials prices are rising even before the steepest proposed tariffs have taken effect doesn't bode well for what will happen in August if the promised new tariffs are implemented,' said Ken Simonson, AGC chief economist. 'Rising construction costs and economic uncertainty are already causing some owners to put projects on hold, which will only get worse if costs jump again.' The Trump administration raised steel and aluminum tariffs to 50% last month and plans to impose a similar 50% duty on copper on Aug. 1. Broader import restrictions also still remain under consideration. At the same time, inflation appears once again to be gaining momentum. Core good prices, excluding automobiles, increased at their fastest pace since late 2021 in the June Consumer Price Index report, signaling additional risk for contractors on the horizon, said Anirban Basu, ABC chief economist. 'Nonresidential input price escalation has accelerated in 2025," said Basu. 'While it is unclear how and when trade policy will affect construction materials prices, the impact was evident in June's CPI release.' Nevertheless, Basu said many contractors remain upbeat about their margins. That outlook may reflect federal tax changes under the One Big Beautiful Bill Act, which made 100% bonus depreciation permanent and helped offset some pressure from rising input costs. 'Economic uncertainty remains extraordinarily elevated,' said Basu. 'What is all but certain is that the Federal Reserve will not be cutting interest rates at its July meeting. Despite higher-for-longer interest rates and rising input prices, contractors remain relatively optimistic.' Still, AGC officials warn confidence may erode if tariff-driven increases persist. If costs spike too sharply, more developers may choose to delay or cancel projects outright, according to the report. 'The construction industry is poised to benefit from greater tax certainty as well as the administration's efforts to streamline permitting and reduce needless regulatory burdens,' said AGC CEO Jeffrey Shoaf in the release. 'Finding a way to provide greater certainty on materials prices is the best way to make sure the new tax and regulatory approach have the best possible impact on economic activity.' Recommended Reading Construction costs jump at a 6% annualized rate
United News of India
3 days ago
- Business
- United News of India
Latest US inflation report shows pullback in travel spending, increase in cost of goods
New York, July 17 (UNI) The muted US wholesale inflation in June has presented a better-than-expected outcome amidst President Donald Trump's hefty tariffs on global trading partners. However, a steep drop-off in travel and other services masked an increase in the cost of goods. The Producer Price Index, which measures the average change in prices paid to producers, was unchanged from May, and the annual rate of wholesale-level inflation slowed 2.3 percent, staying lower in part because of base effects (as the year-ago period experienced higher inflation), reports CNN. Economists had expected that prices would rise 0.2 percent on a monthly basis and 2.5 percent annually, according to FactSet. A report from the Bureau of Labor Statistics showed yesterday that prices have relatively cooled down for producers as compared to in May. Core PPI, which excludes the volatile components of food and energy, also held flat from May. The report comes on the heels of a more concerning monthly inflation report, the Consumer Price Index, which showed that prices moved higher in June, lifted in part by more expensive goods in tariff-sensitive industries. It creates a complicated picture of the US economy as Trump's trade war unfolds, forcing businesses, consumers and the central bank to scramble to manage the impact. The overall index was distorted by a 2.7 percent drop in airline passenger services, a likely consequence of international travellers pulling back on their visits to the United States, Joe Brusuelas, chief economist at RSM US, said. Travel accommodation services prices (hotels and motels) sank 4.1 percent. Although gas prices went up in June, falling services prices — particularly at hotels, airlines and car dealerships — drove the overall index lower. Travel and leisure prices have been lower, indicating that consumers have reined in some discretionary spending amidst a period of high economic uncertainty. UNI XC SS
CNN
3 days ago
- Business
- CNN
Latest US inflation report shows a pullback in travel spending and an increase in the cost of goods
US wholesale inflation was muted in June, presenting what would seem to be a better-than-expected outcome amid President Donald Trump's hefty tariffs on global trading partners. However, a steep drop-off in travel and other services camouflaged an increase in the cost of goods. The Producer Price Index, which measures the average change in prices paid to producers, was unchanged from May, and the annual rate of wholesale-level inflation slowed 2.3%, staying lower in part because of base effects (as the year-ago period experienced higher inflation). 'Tariffs are raising prices of manufactured goods, but wobbly demand kept broader inflation contained in June,' Bill Adams, chief economist for Comerica Bank, wrote in a note on Wednesday. Economists had expected that prices would rise 0.2% on a monthly basis and 2.5% annually, according to FactSet. Wednesday's report from the Bureau of Labor Statistics showed a tamer pricing environment for producers versus that in May, when PPI rose 0.3% and 2.7% annually, rates that were upwardly revised. Core PPI, which excludes the volatile components of food and energy, also held flat from May while the annual rate slowed to 2.6% from 3.2%. The report comes on the heels of a more concerning monthly inflation report, the Consumer Price Index, which showed that prices moved higher in June, lifted in part by more expensive goods in tariff-sensitive industries. All told, it creates a complicated picture of the US economy as Trump's trade war unfolds, forcing businesses, consumers and the central bank to scramble to manage the impact. Joe Brusuelas, chief economist at RSM US, called Wednesday's report a 'classic head fake.' The overall index was distorted by a 2.7% drop in airline passenger services, a likely consequence of international travelers pulling back on their visits to the United States, Brusuelas said. Travel accommodation services prices (hotels and motels) sank 4.1%. Although gas prices went up in June, falling services prices — particularly at hotels, airlines and car dealerships — drove the overall index lower. Travel and leisure prices have been lower than they typically are, a potential indication that consumers have reined in some discretionary spending amid a period of high economic uncertainty. 'One should not take solace from the fact that foreign customers are opting not to travel to the United States,' said Brusuelas. 'That decline in demand translates into weaker tourism, which spreads out through the retail complex, leisure and hospitality and restaurants.' The 0.1% drop in wholesale services prices masked gains on the goods side. Finished consumer goods prices, for example, were up 0.4% in June, accelerating from a 0.3% increase in May. Another area that applied downward pressure on the overall index was the trade services category, where prices were unchanged. Trade services, which can be volatile, measures profit margins for wholesalers and retailers. Those margins were squeezed in June, an indication that businesses were eating some of the higher costs. 'Rising tariffs are resulting in thinner margins that at some point will necessitate a greater pass-through downstream to customers,' Brusuelas said. 'While you're not seeing that in the airline sector, you are beginning to see it elsewhere.' But just how much businesses are able to pass along to consumers remains to be seen. Skittish consumer demand may be limiting businesses' pricing power, Comerica's Adams noted. PPI serves as a potential bellwether for price changes consumers may see in the months ahead.
The Print
3 days ago
- Business
- The Print
Gold declines Rs 500 to Rs 98,870/10 g; silver falls Rs 1,000 to Rs 1.11 lakh/kg
Meanwhile, gold of 99.5 per cent purity slipped Rs 400 to Rs 98,400 per 10 grams (inclusive of all taxes). It had settled at Rs 98,800 per 10 grams in the previous market session. On Tuesday, the precious metal of 99.9 per cent purity had declined by Rs 200 to close at Rs 99,370 per 10 grams. New Delhi, Jul 16 (PTI) Falling for the second straight session, gold prices depreciated Rs 500 to Rs 98,870 per 10 grams in the national capital on Wednesday due to continuous selling by stockists, according to the All India Sarafa Association. Also, silver prices declined by Rs 1,000 to Rs 1,11,000 per kilogram (inclusive of all taxes) on Wednesday. The white metal had finished at Rs 1,12,000 per kg on Tuesday. In contrast, spot gold rose by USD 16.41 or 0.49 per cent to USD 3,341.37 per ounce in the global markets. 'Gold edged higher to USD 3,346 per ounce, supported by renewed tariff threats from President Donald Trump, who signalled possible levies on pharmaceuticals by the end of the month, with additional duties on semiconductors also under consideration. 'Risk appetite remains subdued as new tariffs targeting 25 countries, including Canada, Mexico, and the EU, are set to take effect on August 1,' Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said. On the global front, spot silver went up nearly 1 per cent to trade at USD 38.05 per ounce. 'Gold has been consolidating while silver has been breaking out. Silver prices pushed as high as USD 39 per ounce, first and foremost reflecting renewed investor interest. 'We have seen continued inflows into physically backed silver products during the past few weeks, and the open interest in the futures market has also been expanding, in particular in China. Technical traders further fuelled the rally after prices broke above important resistance levels,' Carsten Menke, Head of Economics and Next Generation Research at Julius Baer, said. Menke further stated that by judging the strength of the recent rally and the decline of the gold/silver ratio to around 85, silver does not appear particularly cheap anymore in comparison to gold. 'When the ratio was at 100, we highlighted silver's catch-up potential, but this seems to be very much exhausted as of now.' According to Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, investors will be awaiting key US macroeconomic data, including Producer Price Index (PPI) and jobless claims, which will provide further insights for the trajectory of bullion prices. PTI HG HG BAL BAL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
