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Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
Gold jumps after Israel launches strikes on Iran's nuclear sites
Spot gold was 0.9% higher at US$3,416.21 an ounce as of 8.18am in London. (File pic) LONDON : Gold spiked after Israel conducted airstrikes targeting Iran's nuclear sites and military leadership, raising fears that hostilities between the two nations may spiral into a wider regional conflict. Bullion climbed as much as 1.7% on haven demand from investors, before paring some gains. Israeli Prime Minister Benjamin Netanyahu said the operation would continue until the 'threat' was removed. Iran vowed a 'severe response' to the airstrikes, which also targeted the nation's nuclear scientists. The US wasn't involved in Israel's attacks, according to secretary of state Marco Rubio, but Iran said it would respond against America. Gold is trading around US$90 below a record of US$3,500.10 an ounce reached in April. 'The risk of Iranian retaliation, including threats to US bases, adds to the uncertainty and supports haven flows,' said Charu Chanana, a strategist at Saxo Capital Markets Pte. 'With markets already on edge and risk sentiment deteriorating, gold is likely to stay bid as a hedge – not just against conflict risk, but also a possible spillover into inflation and volatility,' Chanana said. The move higher extended a two-day gain, after weak US inflation and jobs data fueled bets that the Federal Reserve will lower interest rates later this year. Yesterday's report showed US producer price inflation remained muted in May, while a separate print showed recurring applications for unemployment benefits rose to the highest since the end of 2021. Gold has rallied 30% this year, with investors increasingly seeking safety in the haven asset due to concerns over President Donald Trump's aggressive trade policies and geopolitical tensions, including in Ukraine. Strong demand from central banks and sovereign institutions has also supported prices. Israel's attack on Iran followed repeated warnings from Netanyahu about striking the Opec producer and crippling its atomic programme. The US and Iran were meant to meet for their next round of nuclear talks on Sunday in Oman, but it's unclear if those negotiations will happen now. Iran launched 100 drones in retaliation for the attack, according to Israel. Iranian state television reported that the head of the Islamic Revolutionary Guard Corps, Hossein Salami, and Armed Forces chief of staff Mohammad Bagheri were both killed in the strikes. Spot gold was 0.9% higher at US$3,416.21 an ounce as of 8.18am in London. The Bloomberg Dollar Spot Index rose 0.3%. Silver, platinum and palladium fell. In energy, Brent oil rallied as much as 13% before paring most of the gains.
Yahoo
05-02-2025
- Automotive
- Yahoo
FTSE 100 LIVE: Stocks head lower as Trump's trade war pushes gold prices to record high
The FTSE 100 (^FTSE) and European stocks were lower on Wednesday as gold prices (GC=F) rose another 0.8% to trade above $2,850 (£2,276) per ounce for the first time. The safe-haven asset is up by more than 8% in the past month, adding to the record levels seen during 2024. Charu Chanana, an analyst at Saxo Capital Markets, said: 'Who doesn't like a safe-haven in this scenario? 'No good news on US-China talks and more geopolitical angst with the Gaza news would continue to provide a further boost to gold, irrespective of where the US dollar goes.' It comes as investors are hedging against geopolitical risks, particularly on fears over the impact of a US-China trade war. All eyes were on Washington and Beijing yesterday after they renewed their trade spat, though analysts said China's apparently more measured approach provided some hope that a full-blown crisis could be avoided. Trump's tariff announcement against China included the removal of an allowance, used by China's e-commerce firms, that exempted small packages worth less than $800 from duties. The suspension does not involve letters and flat mail. Meanwhile, there was a sigh of relief that US President Donald Trump had reached a deal to delay 25% duties on imports from Canada and Mexico. London's benchmark index (^FTSE) was flat in early trade Germany's DAX (^GDAXI) dipped 0.5% and the CAC (^FCHI) in Paris headed 0.3% into the red The pan-European STOXX 600 (^STOXX) was down 0.1% Wall Street is set for a negative start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the red. The pound was 0.3% up against the US dollar (GBPUSD=X) at 1.2514 Follow along for live updates throughout the day: New car registrations fell in the UK in January, according to the latest data on Wednesday, due to slower demand from both fleet and private buyers. The Society of Motor Manufacturers and Traders (SMMT) said that overall registrations declined to approximately 137,000 units during the month, down 2.7% from 140,786 in December, with over a fifth of those being electric vehicles. Total registrations for 2024 were up by 2.6%. Ian Plummer, commercial director at Auto Trader, reported an increase in interest in electric cars, which could help the UK hit its target of banning the sale of new petrol and diesel cars by 2035. Gold prices (GC=F) rose another 0.8% to trade above $2,850 per ounce for the first time after the additional 10% tariffs on Chinese goods entering the US came into effect. The safe-haven asset is now up by more than 8% in the past month, adding to the record levels seen during 2024. Charu Chanana, an analyst at Saxo Capital Markets, said: Meanwhile, the dollar, another place of safety for investors, pulled back slightly overnight after its recent surge, with the pound up 0.2% to around $1.25. It comes as investors are hedging against geopolitical risks, particularly on fears over the impact of a US-China trade war. Asian markets mostly stumbled overnight, and gold hit a fresh record, as investors kept tabs on China and the United States after they exchanged tariffs. The Nikkei (^N225) rose 0.1% on the day in Japan, while the Hang Seng (^HSI) fell 0.9% as e-commerce companies took a hit from news that the US Postal Service was suspending inbound parcels from China and Hong Kong. The Shanghai Composite ( was 0.7% down by the end of the session, reopening after a week-long break. All eyes were on Washington and Beijing yesterday after they renewed their trade spat, though analysts said China's apparently more measured approach provided some hope that a full-blown crisis could be avoided. Trump's tariff announcement against China included the removal of an allowance - used by China's e-commerce firms - that exempted small packages worth less than $800 from duties. The suspension does not involve letters and flat mail. The tepid performance in Asia came despite a positive lead from Wall Street, where there was a sigh of relief that US President Donald Trump had reached a deal to delay 25% duties on imports from Canada and Mexico. Across the pond, the S&P 500 (^GSPC) rose 0.7%, while the Dow Jones Industrial Average (^DJI) advanced 0.3%. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) surged 1.4%. Gold (GC=F) hit a fresh peak of $2,861.93 as investors rushed into the safe-haven metal and in the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.5105, from 4.569pc late on Monday. Good morning, and welcome to our markets live blog. As usual we will be taking a deep dive into what's moving markets and all that's happening across the global economy. Here's a quick look at what's on the agenda for today: 7am: GlaxoSmithKline, Trading updates: Banco Santander, DCC, SSE 9am: Eurozone services and composite PMI for January 9am: SMMT data on UK car sales in January 9.30am: UK services and composite PMI for January 12:00pm: US MBA Mortgage Applications 3pm: US services and composite PMI for January 3:30pm: US Crude Oil InventoriesNew car registrations fell in the UK in January, according to the latest data on Wednesday, due to slower demand from both fleet and private buyers. The Society of Motor Manufacturers and Traders (SMMT) said that overall registrations declined to approximately 137,000 units during the month, down 2.7% from 140,786 in December, with over a fifth of those being electric vehicles. Total registrations for 2024 were up by 2.6%. Ian Plummer, commercial director at Auto Trader, reported an increase in interest in electric cars, which could help the UK hit its target of banning the sale of new petrol and diesel cars by 2035. Gold prices (GC=F) rose another 0.8% to trade above $2,850 per ounce for the first time after the additional 10% tariffs on Chinese goods entering the US came into effect. The safe-haven asset is now up by more than 8% in the past month, adding to the record levels seen during 2024. Charu Chanana, an analyst at Saxo Capital Markets, said: Meanwhile, the dollar, another place of safety for investors, pulled back slightly overnight after its recent surge, with the pound up 0.2% to around $1.25. It comes as investors are hedging against geopolitical risks, particularly on fears over the impact of a US-China trade war. Asian markets mostly stumbled overnight, and gold hit a fresh record, as investors kept tabs on China and the United States after they exchanged tariffs. The Nikkei (^N225) rose 0.1% on the day in Japan, while the Hang Seng (^HSI) fell 0.9% as e-commerce companies took a hit from news that the US Postal Service was suspending inbound parcels from China and Hong Kong. The Shanghai Composite ( was 0.7% down by the end of the session, reopening after a week-long break. All eyes were on Washington and Beijing yesterday after they renewed their trade spat, though analysts said China's apparently more measured approach provided some hope that a full-blown crisis could be avoided. Trump's tariff announcement against China included the removal of an allowance - used by China's e-commerce firms - that exempted small packages worth less than $800 from duties. The suspension does not involve letters and flat mail. The tepid performance in Asia came despite a positive lead from Wall Street, where there was a sigh of relief that US President Donald Trump had reached a deal to delay 25% duties on imports from Canada and Mexico. Across the pond, the S&P 500 (^GSPC) rose 0.7%, while the Dow Jones Industrial Average (^DJI) advanced 0.3%. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) surged 1.4%. Gold (GC=F) hit a fresh peak of $2,861.93 as investors rushed into the safe-haven metal and in the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.5105, from 4.569pc late on Monday. Good morning, and welcome to our markets live blog. As usual we will be taking a deep dive into what's moving markets and all that's happening across the global economy. Here's a quick look at what's on the agenda for today: 7am: GlaxoSmithKline, Trading updates: Banco Santander, DCC, SSE 9am: Eurozone services and composite PMI for January 9am: SMMT data on UK car sales in January 9.30am: UK services and composite PMI for January 12:00pm: US MBA Mortgage Applications 3pm: US services and composite PMI for January 3:30pm: US Crude Oil Inventories Sign in to access your portfolio
