Latest news with #SafeHavenAssets
Zawya
24-07-2025
- Business
- Zawya
Gold extends losses after trade deal hopes curb safe-haven demand
Gold prices extended losses on Thursday from the previous session as easing trade tensions increased risk sentiment and weighed on demand for safe-haven assets. Spot gold was down 0.6% at $3,362.59 per ounce, as of 0930 GMT, after shedding 1.3% in the previous session. U.S. gold futures dropped 0.9% to $3,367.30. Following this week's trade deal between the U.S. and Japan, two European diplomats said on Wednesday the European Union and the U.S. are also edging toward a trade deal that could include a 15% U.S. baseline tariff on EU goods and exemptions. "Gold is down this morning due to the positive news flow around global trade... this is reducing downside risks for global growth and supports the prevailing risk-on mood in financial markets," said Carsten Menke, an analyst at Julius Baer. The trade expectations meanwhile drove risk sentiment in the global financial markets propelling stocks to fresh record highs. "Demand from safe-haven seekers has cooled while central bank buying stays sound, even though not as strong as earlier in the year. We still expect gold to move higher in the longer term," Menke said. A safe-haven asset during times of economic uncertainties, gold also tends to do well in a low-interest rate environment. U.S. President Donald Trump will visit the Federal Reserve on Thursday, the White House said, which could intensify tensions between the administration and the central bank. The Fed's policy meeting, scheduled for July 29-30, is expected to maintain interest rates within their current range. Investors anticipate the central bank will resume rate cuts in September. Elsewhere, the European Central Bank is also expected to keep interest rates steady on Thursday. Spot silver slipped 0.7% to $39.02 per ounce, while palladium dipped 2% to $1,252.70. Platinum fell 2.5% to $1,376.45, its lowest in more than a week.
Reuters
17-06-2025
- Business
- Reuters
FTSE 100 pressured by Middle East tensions; rate decisions in focus
June 17 (Reuters) - British equities opened lower on Tuesday with the ongoing hostilities between Iran and Israel weighing on market sentiment, and causing an investor shift to safe-haven assets. The blue-chip FTSE 100 index (.FTSE), opens new tab was down 0.4% by 0900 GMT after closing very near to record highs on Monday. The domestically focussed midcap index (.FTMC), opens new tab was nearly flat. As the Israel-Iran conflict entered its fifth day, U.S. President Donald Trump departed early from the Group of Seven summit in Canada where he signed a trade deal with British Prime Minister Keir Starmer. The agreement eliminated aerospace tariffs and reaffirmed quotas and tariff rates on British automobiles, while steel and aluminium imports remained unresolved. The Oil, Gas and Coal index (.FTNMX601010), opens new tab gained 1.5% with oil prices ticking higher due to tensions in the Middle East. BP (BP.L), opens new tab and Shell (SHEL.L), opens new tab added over 1% each as the top gainers on the blue-chip. Declines were led by the Travel and Leisure index (.FTNMX405010), opens new tab with Wizz Air (WIZZ.L), opens new tab slipping 2.5% after sources said the airline was nearing a deal with Pratt & Whitney to purchase engines for 177 of its Airbus jets. The spotlight this week will be on central bank meetings, with both Bank of England and the U.S. Federal Reserve expected to keep rates steady. Investors will closely monitor hints regarding further easing of rates after the BoE cut rates by a quarter point in its May meeting. Also being closely monitored are announcements on trade deals as Trump's early July deadline on tariffs comes closer. In individual stocks, construction company Morgan Sindall (MGNS.L), opens new tab hit a record high, rising 17.6%, after forecasting a higher fiscal-year 2025 profit.
