Latest news with #U.S.DollarIndex
Saba Yemen
6 hours ago
- Business
- Saba Yemen
U.S. Dollar Declines Against Japanese Yen for Fourth Consecutive Session
Singapore - Saba: The U.S. dollar declined on Thursday against the Japanese yen and the euro, marking its fourth consecutive session of losses against the yen, falling by 0.3% to 146.01. The U.S. Dollar Index dropped to 97.15, while the yen maintained its gains following progress in trade agreements between the United States and its key trading partners, which improved market sentiment. The euro approached its highest level in nearly four years, stabilizing at $1.1776, close to its peak of $1.1830. Meanwhile, the British pound held steady at $1.3581. The Australian dollar rose to its highest level in eight months at $0.66135, while the New Zealand dollar gained 0.11% to reach $0.6053. Whatsapp Telegram Email Print more of (International)
See - Sada Elbalad
4 days ago
- Business
- See - Sada Elbalad
Silver Continues Rally Amid Global Tensions and Rate Cut Expectations
Waleed Farouk Silver prices witnessed notable fluctuations in the local market over the past week, influenced by volatile movements on global exchanges. The metal touched its highest level in over 14 years before retreating due to profit-taking by some investors. Local Market Performance In the local market, the price of 800-purity silver ranged between EGP 52 and EGP 53 per gram before settling back at EGP 52 by the end of the week. The 999-purity silver was priced at EGP 65 per gram, while 925-purity silver stood at EGP 60. The price of a silver pound coin (925) is recorded at around EGP 480. Global Market Movements Globally, silver opened the week at $38.32 per ounce, rose to a peak of $39.13 — the highest since 2011 — then declined to $37.65, and finally closed the week at $38.11, marking a slight weekly drop of $0.11. Strong Performance Year-to-Date Since the beginning of 2025, silver prices have surged 27% in the local market, with the 800-purity silver rising by EGP 11 after starting the year at EGP 41. On the global front, the metal has jumped 32%, climbing from $29 to $38.11 per ounce, outperforming most other precious metals over the same period. Despite the recent slight pullback, the overall trend remains bullish. Silver is currently trading above short-term price averages, indicating continued buying momentum in the market. External Drivers Supporting Silver's Rally Several external factors have contributed to silver's upward trajectory this week, including: Falling U.S. Bond Yields The yield on 10-year U.S. Treasuries fell to 4.42%, while 2-year yields dropped to 3.87%, reducing the opportunity cost of holding non-yielding assets like precious metals, and boosting silver's appeal among institutional investors. Rising Expectations of Rate Cuts Federal Reserve Governor Christopher Waller called for early action on interest rate cuts, possibly as soon as July, citing signs of weakness in the private labor market. Markets are now pricing in a 45-basis-point cut by year-end, with the first move expected in September. Dollar Weakness The U.S. Dollar Index closed at 98.462, down 0.16% in the last session, despite weekly gains. The decline was driven by falling bond yields, mixed inflation data, and growing political pressure on Fed Chair Jerome Powell. Escalating Global Trade Tensions President Donald Trump reignited trade fears by threatening to impose tariffs of 15% to 20% on European goods. Additionally, trade negotiations with both Japan and Indonesia remain stalled, adding to global economic uncertainty. Can Silver Sustain Its Momentum? According to analysts at Citibank, silver's strong rally, especially since April, points to further upside potential. The bank forecasts prices reaching $40 within the next 6 to 12 months, and possibly hitting $46 by Q3 2025, supported by increasing industrial demand, tightening global supply, and ongoing geopolitical and monetary uncertainty. Some analysts also argue that silver remains undervalued based on the gold-to-silver ratio, which currently stands at around 87.3 compared to the historical average of 53. A return to this average, assuming gold prices remain steady, would suggest silver should trade above $63 per ounce — a 65% increase from current levels. Historically, silver's 1980 peak would equate to around $197 per ounce in today's dollars, while its 2011 surge saw prices near $71, implying that silver still has substantial room to rise from current levels near $38.40. 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 Arts & Culture "Jurassic World Rebirth" Gets Streaming Date 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
See - Sada Elbalad
5 days 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
See - Sada Elbalad
10-07-2025
- Business
- See - Sada Elbalad
Liquidity Shortage Curbs Local Gold Prices Despite Global Support from Weak Dollar and Mounting U.S. Deficit
Waleed Farouk Gold prices declined in Egypt's local markets on Thursday, even as global spot prices rose, supported by a weakening U.S. dollar and expectations of a potential interest rate cut by the Federal Reserve later this year. Investors are closely watching for more clarity on U.S. President Donald Trump's trade policy. According to market data, local gold prices dropped by approximately EGP 5 per gram compared to Wednesday's close, with the 21-karat gold falling to EGP 4,620. Meanwhile, the global spot price climbed by $26 to reach $3,329 per ounce. In other categories, 24-karat gold registered EGP 5,280 per gram, 18-karat at EGP 3,960, and 14-karat at EGP 3,080. The gold pound (8 grams of 21-karat) was priced at EGP 36,960. On Wednesday, gold prices had seen an upward move of EGP 5, with 21-karat gold opening at EGP 4,620 and closing at EGP 4,625. Globally, gold rose by $13 during the session, starting at $3,303 and ending at $3,316. Despite the global uptrend, the local price dip was attributed to liquidity shortages and growing secondary market reselling activities, market observers noted. Later today, Egypt's Central Bank is expected to announce its decision on interest rates. Analysts largely predict no change in the current rates, despite a slight cooling of inflation for the first time in three months. The Central Agency for Public Mobilization and Statistics (CAPMAS) reported on Wednesday that urban inflation eased to 14.9% in June on an annual basis, down from 16.8% in May, primarily due to slower rises in food and beverage prices. In its previous meeting in May, the Central Bank of Egypt cut the overnight deposit and lending rates as well as its key policy rate by 100 basis points, bringing them to 24.00%, 25.00%, and 24.50%, respectively. The discount rate was also reduced to 24.50%. Gold prices globally rose after the release of the Federal Reserve's June meeting minutes, which reinforced expectations of a rate cut later this year. The minutes from the June 17–18 meeting showed that several committee members anticipated a reduction in interest rates, although they warned of heightened inflation risks stemming from trade tensions and new tariffs introduced by the Trump administration. The Federal Open Market Committee (FOMC) voted unanimously to keep interest rates unchanged at the June meeting, with the next policy review scheduled for July 29–30. Concerns over new inflationary pressures emerged after Trump escalated his tariff policy, imposing a 50% levy on copper imports and Brazilian goods starting August 1, along with 20–40% tariffs on other countries. While global equity markets largely shrugged off the developments, continued tariff uncertainty could fuel gold's appeal — especially if energy prices rise due to geopolitical supply risks. The U.S. Dollar Index dropped 0.2% amid rising expectations of a Fed rate cut. IMF data showed the dollar's share of global reserves fell to 57.7%, while currencies like the Swiss franc and euro gained, reflecting a broader shift in global capital. A weaker dollar generally boosts gold demand by making the metal cheaper for holders of other currencies. In a report issued today, the World Gold Council (WGC) stated that gold prices are poised to benefit from the growing U.S. deficit and increasing fiscal instability — even in the absence of an immediate crisis. 'With the passage of the so-called 'One Big, Beautiful Bill,' the U.S. faces an additional $3.4 trillion in debt over the next decade and a $5 trillion debt ceiling increase — unless the Trump administration's ambitious growth forecasts are met,' the WGC analysts wrote. They noted that such fiscal uncertainty has already triggered a global reallocation of capital. The weakening U.S. dollar has fueled both rising gold prices and U.S. Treasury yields. 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 Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language
Yahoo
10-07-2025
- Business
- Yahoo
Bitcoin Could Get a Boost as U.S. Dollar Hits 21-Year Weakness Milestone
Bitcoin may be on the edge of another bullish breakoutand this time, it's not about halving cycles or ETF flows. The catalyst? A slumping U.S. dollar. According to data from CryptoQuant, the U.S. Dollar Index is now trading over 6.5 points below its 200-day moving averagea technical breakdown not seen in 21 years. That's notable because Bitcoin has long shared an inverse relationship with the dollar: when one falls, the other tends to rise. The DXY touched 96.377 on July 1, its lowest point since early 2022, and has shed more than 10% year to date. On-chain analysts say this kind of dollar weaknessespecially when paired with soaring U.S. debt levelshas historically signaled risk-on rotations from traditional investors. And risk-on often means Bitcoin (BTC-USD). While the U.S. debt reaches a new all-time high, the DXY has just hit a historically weak level, wrote CryptoQuant contributor Darkfost, adding that this environment tends to benefit risk assets like Bitcoin. But curiously, Bitcoin's price hasn't fully reactedyet. While BTC is hovering above $111,000, analysts are watching for signs of a delayed upside response. A chart shared by CryptoQuant shows that during previous dips below the DXY's 365-day moving average, Bitcoin prices have followed with strong upward momentum. That hasn't happened so far, but macro watchers say it might just be a matter of time. Darkfost explains that as the dollar loses its safe haven appeal, institutional portfolios start tilting toward alternative assetsincluding crypto. Adding to that view, macro economist Lyn Alden told Cointelegraph that if the supply of dollars and systemwide credit continues expanding, Bitcoin becomes useful to own over the longer termespecially as fiat weakens structurally. For now, the dollar's breakdown is a chart watchers' red flagbut for Bitcoin bulls, it may be a green light. This article first appeared on GuruFocus.
