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Business Recorder
6 days ago
- Business
- Business Recorder
Gold nudges higher after US inflation data
NEW YORK: Gold prices edged higher on Tuesday after US inflation data sustained expectations of Federal Reserve interest rate cuts, while attention turned to other key economic data due this week. Spot gold rose 0.2 percent at $3,349.60 an ounce at 12:06 p.m. EDT (1606 GMT). The dollar eased, making bullion cheaper for buyers holding other currencies. The US Consumer Price Index rose 0.2 percent last month after gaining 0.3 percent in June. For the 12 months through July, the CPI advanced 2.7 percent. Economists polled by Reuters had forecast the CPI rising 0.2 percent in July and increasing 2.8 percent year-on-year. "Inflation numbers appear mixed but are supportive of rate cuts," said RJO Futures market strategist Bob Haberkorn. "Traders remain cautious as we're at a critical point and awaiting further economic indicators." Traders maintained bets on September and December US rate cuts after the CPI data. Other data due this week includes the US Producer Price Index, weekly jobless claims, and retail sales. Meanwhile, the United States and China have extended a tariff truce for 90 days, staving off triple-digit duties on each other's goods. Prices remain range-bound between key support and resistance levels as investors digest recent tariff developments, said Razan Hilal, market analyst at Lower interest rates boost the appeal of gold, which yields no interest. Gold also tends to perform well during periods of uncertainty, as it is viewed as a safe-haven asset. US gold futures for December delivery dipped 0.1 percent to $3,399.70 an ounce. Prices dropped more than 2 percent on Monday after US President Donald Trump said on social media that he would not impose tariffs on imported bullion. A report that Washington had imposed tariffs on imports of 1 kg bullion bars sent US gold futures to record highs on Friday. Among other metals, spot silver gained 0.9 percent at $37.95 an ounce, platinum firmed 0.6 percent to $1,335.39, while palladium dropped 0.2 percent to $1,132.22.
Mint
6 days ago
- Business
- Mint
Gold nudges higher after US inflation data
US consumer price index rose 0.2% last month US and China extend tariff truce by 90 days PPI, retail sales data due later this week Gold prices edged higher on Tuesday after U.S. inflation data sustained expectations of Federal Reserve interest rate cuts, while attention turned to other key economic data due this week. Spot gold rose 0.2% at $3,349.60 an ounce at 12:06 p.m. EDT (1606 GMT). The dollar eased, making bullion cheaper for buyers holding other currencies. The U.S. Consumer Price Index rose 0.2% last month after gaining 0.3% in June. For the 12 months through July, the CPI advanced 2.7%. Economists polled by Reuters had forecast the CPI rising 0.2% in July and increasing 2.8% year-on-year. "Inflation numbers appear mixed but are supportive of rate cuts," said RJO Futures market strategist Bob Haberkorn. "Traders remain cautious as we're at a critical point and awaiting further economic indicators." Traders maintained bets on September and December U.S. rate cuts after the CPI data. Other data due this week includes the U.S. Producer Price Index, weekly jobless claims, and retail sales. Meanwhile, the United States and China have extended a tariff truce for 90 days, staving off triple-digit duties on each other's goods. Prices remain range-bound between key support and resistance levels as investors digest recent tariff developments, said Razan Hilal, market analyst at Lower interest rates boost the appeal of gold, which yields no interest. Gold also tends to perform well during periods of uncertainty, as it is viewed as a safe-haven asset. U.S. gold futures for December delivery dipped 0.1% to $3,399.70 an ounce. Prices dropped more than 2% on Monday after U.S. President Donald Trump said on social media that he would not impose tariffs on imported bullion. A report that Washington had imposed tariffs on imports of 1 kg bullion bars sent U.S. gold futures to record highs on Friday. Among other metals, spot silver gained 0.9% at $37.95 an ounce, platinum firmed 0.6% to $1,335.39, while palladium dropped 0.2% to $1,132.22. (Reporting by Ashitha Shivaprasad in Bengaluru Editing by David Goodman, Rod Nickel and Tasim Zahid)
Business Recorder
05-08-2025
- Business
- Business Recorder
Gold extends gains on US rate cut expectations
NEW YORK: Gold prices rose for a third straight session on Monday after last week's economic data fueled expectations of interest rate cuts by the US Federal Reserve. Spot gold rose 0.3% to $3,373.22 per ounce as of 0915 a.m. ET (13:15 GMT), its highest level since July 24. US gold futures gained 0.8% to $3,427.10. 'The odds are stronger now for a rate cut in September and even stronger for another rate cut in December. That coupled with the headwinds of inflation, I think is pretty bullish for gold,' said Daniel Pavilonis, senior market strategist at RJO Futures. Last week, data showed that US employment growth was weaker than expected in July while the nonfarm payrolls count for the prior two months was revised down by a massive 258,000 jobs, suggesting a sharp deterioration in labour market conditions. Additionally, the Fed's preferred gauge, US PCE inflation data, increased 0.3% in June after an upwardly revised 0.2% gain in May as tariffs started raising the cost of some goods. According to the CME FedWatch tool, traders now see an 85% chance of a September rate cut, up from just over 63% a week ago. Bullion typically performs well in a low-interest-rate environment and is regarded as a hedge against inflation. The tariffs US President Donald Trump imposed last week on scores of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said in comments aired on Sunday. Trump set rates including a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland, according to a presidential executive order.
Reuters
04-08-2025
- Business
- Reuters
Gold extends gains on US rate cut expectations
Aug 4 (Reuters) - Gold prices rose for a third straight session on Monday after last week's economic data fueled expectations of interest rate cuts by the U.S. Federal Reserve. Spot gold rose 0.3% to $3,373.22 per ounce as of 0915 a.m. ET (13:15 GMT), its highest level since July 24. U.S. gold futures gained 0.8% to $3,427.10. "The odds are stronger now for a rate cut in September and even stronger for another rate cut in December. That coupled with the headwinds of inflation, I think is pretty bullish for gold," said Daniel Pavilonis, senior market strategist at RJO Futures. Last week, data showed that U.S. employment growth was weaker than expected in July while the nonfarm payrolls count for the prior two months was revised down by a massive 258,000 jobs, suggesting a sharp deterioration in labor market conditions. Additionally, the Fed's preferred gauge, U.S. PCE inflation data, increased 0.3% in June after an upwardly revised 0.2% gain in May as tariffs started raising the cost of some goods. According to the CME FedWatch tool, traders now see an 85% chance of a September rate cut, up from just over 63% a week ago. Bullion typically performs well in a low-interest-rate environment and is regarded as a hedge against inflation. The tariffs U.S. President Donald Trump imposed last week on scores of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said in comments aired on Sunday. Trump set rates including a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland, according to a presidential executive order. Elsewhere, spot silver was up 0.8% at $37.33 per ounce. Platinum inched 0.5% higher to $1,322.03, while palladium reached an over two-week low, slipping 1.9% to $1,184.75. Palladium prices still has some upside and are likely to see a rebound with downside support at $1,180/oz and upside breakout at $1,230, Pavilonis said.
Mint
10-07-2025
- Business
- Mint
Safe-haven gold firms on elevated trade tensions
Trump announces 50% US tariffs on copper, Brazilian imports US weekly jobless claims fall unexpectedly in latest week (Updates prices for US early-morning session) By Ashitha Shivaprasad and Anushree Mukherjee July 10 (Reuters) - Gold prices nudged higher on Thursday as rising trade tensions steered market participants toward the safety of bullion, though gains were limited by an uptick in the dollar. Spot gold was up 0.4% to $3,326.48 per ounce by 1307 GMT. U.S. gold futures gained 0.4% to $3,335.10. "I think generally the whole metals complex is up because of the knock-on effects of copper being tariffed," said Daniel Pavilonis, senior market strategist at RJO Futures. "However, there is limited upside seen unless a significant geopolitical escalation occurs." U.S. President Donald Trump launched a further tariff assault on Wednesday, announcing a new 50% tariff on U.S. copper imports and a 50% duty on goods from Brazil, both to start on August 1. There is a "rising appeal for gold among emerging economy nations, which see the metal's counterparty-free qualities as attractive in a world burdened by persistent geopolitical risk," Paul Wong, Market Strategist at Sprott Asset Management said in a note. Minutes from the Federal Reserve's June meeting showed only "a couple" of officials said they felt interest rates could be reduced as soon as this month, with most policymakers remaining worried about the inflationary pressure they expect to come from tariffs. Limiting price upside, the U.S. dollar index drifted 0.2% higher. Gold tends to lose appeal when the U.S. dollar strengthens, as it becomes more expensive for investors holding other currencies. On the data front, the number of Americans filing new applications for jobless benefits unexpectedly fell last week, suggesting employers may be holding on to workers despite other indications of a cooling labor market. Among other metals, spot silver rose 1.4% to $36.82 per ounce. "Breaking above the $35 level increases the likelihood of reaching the $40 target," Wong added. Platinum gained 0.3% to $1,350.95, and palladium climbed 3.5% to $1,144.40. (Reporting by Ashitha Shivaprasad and Anushree Mukherjee in Bengaluru;Editing by Elaine Hardcastle)
