Latest news with #TaiWong
International Business Times
2 days ago
- Business
- International Business Times
Gold Prices Rebound as Soft Jobs Data Fuels Rate Cut Expectations
Gold prices shot up Thursday on weaker-than-expected U.S. jobless claims data and a key court ruling that struck down most of former President Donald Trump's proposed tariffs. These events have driven an increase in investor demand for gold as a safe-haven asset. Spot gold gained 0.9% to $3,319.22 an ounce by 09:37 ET (13:37 GMT), bouncing from session lows. Gold futures in the United States were flat at $3,294.60. The U.S. Labor Department said in its weekly report that initial jobless claims rose by 14,000 to a seasonally adjusted 240,000 for the week ending May 24, topping economists' forecast of 230,000. The increase indicates a potential weakening in the labor market — a factor that may impact the monetary policy plans of the Federal Reserve. "Gold is rallying on a jump in weekly initial jobless claims, which may be an early sign of a softening labor market and the market starting to price in rate cuts more rapidly by the Federal Reserve," said Tai Wong, an independent metals trader. In a parallel ruling, the U.S. Court of International Trade decided that former President Donald J. Trump had overstepped his authority when he imposed widespread tariffs under the International Emergency Economic Powers Act of 1977. However, the tariffs on auto, steel, and aluminum imports—based on Section 232 of the Trade Expansion Act of 1962—remain in place. The Trump administration said it would appeal the decision, and the case could eventually reach the Supreme Court. Analysts said while the ruling introduced new uncertainty, it wasn't fundamentally likely to change the overall trading relationship with the important partners. Investors are also looking forward to the U.S. Personal Consumption Expenditures (PCE) data, due Friday, that might offer more clues about which way inflation trends are headed and what it might mean for the Federal Reserve policy. Other precious metals also gained: silver added 0.9% to trade at $33.28 an ounce, platinum climbed 1% to $1,085.59, and palladium gained 0.6% to $968.43.
Khaleej Times
2 days ago
- Business
- Khaleej Times
Gold holds firm as markets digest court roadblock on tariffs
Gold prices rose in volatile trading on Thursday, aided by softer jobs data, while market participants also digested a court ruling that blocked most of U.S. President Donald Trump's tariffs. Spot gold reversed course to rise 0.9% to $3,319.22 an ounce, as of 09:37 ET (1337 GMT), after hitting its lowest since May 20 earlier in the session. U.S. gold futures were steady at $3,294.60. Data showed that the number of Americans filing new applications for unemployment benefits increased more than expected last week. "Gold is rallying on a jump in weekly initial jobless claims which could be a harbinger of a weakening labor market, which would get the Federal Reserve to cut (interest rates) more quickly," said Tai Wong, an independent metals trader. According to released minutes of the Federal Reserve's May 6-7 session, Fed officials acknowledged they could face "difficult tradeoffs" in coming months in the form of rising inflation alongside rising unemployment, an outlook buttressed by Fed staff projections of increased risks of a recession. Bullion is viewed as a hedge against uncertainty and inflation, and it tends to perform well in low-interest rate environments, as it does not generate interest. Market focus is also on the U.S. Personal Consumption Expenditures data due Friday, which will be closely analysed for signals on future U.S. monetary policy. "Equally impressive is gold's sharp recovery overnight, (with the market) deciding that Trump will ultimately prevail against the trade court's ruling," Wong added. A U.S. trade court ruling that blocked most of Trump's tariffs and found he had overstepped his authority triggered some relief on financial markets, while adding to the uncertainties weighing on the global economy. His administration immediately said it will appeal and analysts said investors will remain cautious as the White House explores its legal avenues. Spot silver rose 0.9% to $33.28 an ounce, platinum was up 1% at $1,085.59 and palladium firmed 0.6% to $968.43.
International Business Times
23-05-2025
- Business
- International Business Times
Gold Prices Climb as Tariff Threats and Weaker Dollar Boost Safe-Haven Demand
Gold prices rallied on Friday to score the largest weekly gain in more than a month. Investors flocked to the precious metal as a safe haven on the back of mounting trade tensions and a falling U.S. dollar. Spot gold was up 1.6% at $3,345.99 per ounce as of 0952 ET (1352 GMT), having touched its highest since Oct. 23 at $3,351.22 with a 2% gain. U.S. gold futures also rose 1.6% to $3,346.60. Bullion rose 4.5% for the week, its best performance since early April. The increase came after President Donald Trump proposed a 50% tariff on imports from the European Union beginning June 1 if trade talks are not successful. He also said he would impose a 25% tax on any iPhones made abroad and sold in America — a move that could have a direct impact on companies such as Apple. The surprise moves roiled global markets, sending major stock indexes lower and pushing investors toward the safety of gold. "The return of the tariff issues ahead of a long weekend has ratcheted up market volatility," said Tai Wong, an independent metals trader. "That kind of uncertainty does tend to bring investors to gold." The U.S. dollar index slid 0.6%, which makes dollar-denominated gold more affordable for investors who use other currencies. Gold's appeal as an investment increases in periods of a weaker dollar. In addition to those worries, the U.S. House of Representatives approved a massive tax and spending bill on Thursday. Analysts say the bill would add massively to the national debt, further eroding confidence in U.S. fiscal health. During geopolitical and economic uncertainty, Gold's status as a safe haven is further enhanced. A trade dispute and fiscal worries have made it more attractive to investors seeking a refuge. Elsewhere in the precious metals market, platinum rose 0.3 percent to $1,078.15 after rising to its highest since May 2023. Spot silver remained relatively stable at $33.08 per ounce, while palladium experienced a 2.4% decline to $990.93. Silver and platinum are also on track to post gains this week. Going forward, trading sentiment is expected to be driven by the U.S.-EU trade negotiations and local fiscal policies. " The course of gold prices may depend on these things as well as the chart of the dollar and economic indicators overall.
Business Recorder
15-05-2025
- Business
- Business Recorder
Gold prices fall as trade optimism rises
NEW YORK: Gold prices dropped more than 2% on Wednesday, hitting an over one-month low, as rising trade optimism boosted risk appetite, leading investors to shift away from bullion. Spot gold slipped to its lowest since April 11, shedding 1.8% to $3,188.52 an ounce, as of 1011 ET (14:10 GMT). Bullion fell as low as $3,174.62 earlier in the session. US gold futures eased 1.7% to $3,192.80. 'The global relief rally sparked by the steep reduction in US-China tariffs has triggered a correction through technical levels in gold,' said Tai Wong, an independent metals trader. Wall Street's main indexes opened higher, driven by the tariff deal and on expectations of more trade agreements. Washington and Beijing agreed to reduce tariffs drastically and adopted a 90-day pause while the details are being worked out. US President Donald Trump, in an interview on Tuesday, said he could see himself dealing directly with Chinese President Xi Jinping on details of a trade pact. He also said that 'potential deals' with India, Japan and South Korea were in the works. Gold, known as a safe haven in times of geopolitical and economic turmoil, scaled a record high of $3,500.05 last month. Prices are up 21.6% so far this year.
Express Tribune
14-05-2025
- Business
- Express Tribune
Gold dips amid sharp global correction
Listen to article Gold prices in Pakistan dropped on Wednesday, mirroring a significant decline in the international bullion market, where prices fell over 2%, hitting a more than one-month low, as rising optimism over global trade boosted investor appetite for riskier assets. According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola in the local market slipped by Rs2,300 and settled at Rs341,900. Similarly, the rate for 10 grams of gold declined by Rs1,972 to Rs293,124. The decline comes a day after gold saw a sharp rise, with the per-tola rate surging by Rs3,700 on Tuesday to reach Rs344,200. Internationally, gold prices dropped more than 2% on Wednesday, hitting an over one-month low, as rising trade optimism boosted risk appetite, leading investors to shift away from bullion, according to Reuters. Spot gold slipped to its lowest since April 11, shedding 2.1% to $3,180.29 an ounce as of 1145 EST (1545 GMT). Bullion fell as low as $3,174.62 earlier in the session. US gold futures eased nearly 2% to $3,184.20. "The global relief rally sparked by the steep reduction in US-China tariffs has triggered a correction through technical levels in gold," said Tai Wong, an independent metals trader. Commenting on the trend, Adnan Agar, Director at Interactive Commodities, said that gold prices turned downwards, with the metal marking a low of $3,175 and a high of $3,254 during the trading session. He noted that the key support level lay between $3,150 and $3,160. A break below this could potentially send prices down to $3,100 and possibly as low as $3,000. However, Agar also hinted at a possible short-term rebound from the $3,140-3,160 range, citing technical support. "Despite potential short-term gains, the broader outlook for gold is turning bearish," he said. Improvement in the US economy, easing inflation, resolution of Chinese tariff concerns and reduced geopolitical tensions are dampening gold's appeal. Agar suggested that while gold had already seen a correction of nearly $300 globally, a larger correction in the range of $800 to $1,000 may still be on the horizon, contingent on monthly and multi-month closing patterns turning negative. "Gold's bullish momentum will likely be challenged if the metal posts a weak monthly close. A sustained downtrend over two to three months could mark the beginning of a deeper correction," he added. Meanwhile, the Pakistani rupee further declined against the US dollar on Wednesday, slipping by 0.02% in the inter-bank market. By the end of trading session, the local currency closed at 281.72, marking a modest depreciation of five paisa from Tuesday's close at 281.67. On the global front, the US dollar steadied on Wednesday after posting its sharpest drop in over three weeks a day earlier. The decline was triggered by weaker-than-expected US consumer inflation data, which strengthened expectations for potential Federal Reserve rate cuts. Meanwhile, easing global trade tensions also contributed to the dollar's relative stability.
