Latest news with #U.S.PersonalConsumptionExpenditures
International Business Times
5 days ago
- Business
- International Business Times
Gold Prices Dip as Dollar Strengthens and Tariff Uncertainty Persists
Gold prices dropped on Friday, ending May with their first monthly loss of 2025. The dip was attributed to a firmer U.S. dollar and continued uncertainty over trade tariffs. Spot gold dropped 0.6 percent to $3,297.09 per ounce by 9:38 a.m. ET, a decline of 1.8 percent for the week. U.S. gold futures also fell 0.7% to $3,295.40. The dollar index gained 0.2%, which made gold more expensive for holders of other currencies. A federal appeals court has temporarily reinstated sweeping tariffs that US President Donald J. Trump, had placed on imported solar panels. The move followed a U.S. trade court decision, a day earlier, that had found Trump had overstepped his authority when imposing those duties. The resurrection amplified market swings and investor unease. "It doesn't look like initially gold will be so much in favor since there's a little bit less need for safe haven, but there are going to be significant restraints on Trump, and that ultimately will pop up prices," said David Meger, director of metals trading at High Ridge Futures. In economic news, the U.S. Personal Consumption Expenditures (PCE) Price Index increased 2.1% y/y in April, below expectations of a 2.2% rise. This relatively benign inflation data helped keep alive hopes that the Federal Reserve may yet cut interest rates in the coming months. Lower rates are generally good for gold, which doesn't offer a yield and stands to be pressured as the opportunity cost of holding the metal lessens. In India, gold continued to be unattractive this week as prices domestically grew higher and the wedding season came to an end. Dealers cut discounts to $31 an ounce from $49 a week ago. In the domestic market, gold was trading at around ₹94,900 per 10 grams after falling to a one-month low. Spot silver fell 0.6% to $33.14 an ounce. Platinum fell 1.6 percent to $1,065.50, and palladium lost 1 percent to $963.57.
Zawya
28-04-2025
- Business
- Zawya
Gold sinks over 1% as easing US-China tensions curb safe-haven demand
Gold prices dropped more than 1% on Monday as easing U.S.-China trade tensions boosted investors' risk appetite and dented demand for safe-haven assets such as bullion, while a stronger dollar also piled on the pressure. Spot gold was down 1.4% at $3,272.89 an ounce, as of 0220 GMT. Bullion hit a record high of $3,500.05 on April 22. U.S. gold futures eased 0.4% to $3,283.70. The U.S. dollar rose 0.3% against a basket of currencies, making bullion more expensive for overseas buyers. "It's probably fair to say that financial markets and risk-assets in particular are feeling slightly better about the tariff picture now compared to the frantic first week in April," said Tim Waterer, chief market analyst at KCM Trade. "Comments last week from the White House have fuelled optimism that a U.S.-China trade deal may eventuate, which has caused safe haven demand for assets such as gold to subside." U.S. President Donald Trump has said talks on tariffs were taking place with China. The Trump administration signalled openness last week to de-escalating a trade war between the world's two largest economies that has raised fears of recession. On Friday, China exempted some U.S. imports from its steep tariffs, though China quickly knocked down Trump's assertion that negotiations were underway. Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low interest rate environment. Meanwhile, many participants in the International Monetary Fund and World Bank Spring Meetings said Trump's administration was still conflicted in its demands from trading partners hit with his sweeping tariffs. Key data releases this week include the job openings report on Tuesday, U.S. Personal Consumption Expenditures on Wednesday, and the non-farm payrolls report on Friday. These reports may provide more insight into the Federal Reserve's monetary policy outlook. Among other metals, spot silver dropped 1.2% to $32.70 an ounce, platinum eased 0.6% at $965.70 and palladium lost 1% to $939.00.
Business Recorder
28-04-2025
- Business
- Business Recorder
Gold sinks over 1% as easing US-China tensions curb safe-haven demand
Gold prices dropped more than 1% on Monday as easing U.S.-China trade tensions boosted investors' risk appetite and dented demand for safe-haven assets such as bullion, while a stronger dollar also piled on the pressure. Spot gold was down 1.4% at $3,272.89 an ounce, as of 0220 GMT. Bullion hit a record high of $3,500.05 on April 22. U.S. gold futures eased 0.4% to $3,283.70. The U.S. dollar rose 0.3% against a basket of currencies, making bullion more expensive for overseas buyers. 'It's probably fair to say that financial markets and risk-assets in particular are feeling slightly better about the tariff picture now compared to the frantic first week in April,' said Tim Waterer, chief market analyst at KCM Trade. 'Comments last week from the White House have fuelled optimism that a U.S.-China trade deal may eventuate, which has caused safe haven demand for assets such as gold to subside.' U.S. President Donald Trump has said talks on tariffs were taking place with China. The Trump administration signalled openness last week to de-escalating a trade war between the world's two largest economies that has raised fears of recession. On Friday, China exempted some U.S. imports from its steep tariffs, though China quickly knocked down Trump's assertion that negotiations were underway. Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low interest rate environment. Meanwhile, many participants in the International Monetary Fund and World Bank Spring Meetings said Trump's administration was still conflicted in its demands from trading partners hit with his sweeping tariffs. Gold extends gains on Fed rate cut, but heads for weekly fall Key data releases this week include the job openings report on Tuesday, U.S. Personal Consumption Expenditures on Wednesday, and the non-farm payrolls report on Friday. These reports may provide more insight into the Federal Reserve's monetary policy outlook. Among other metals, spot silver dropped 1.2% to $32.70 an ounce, platinum eased 0.6% at $965.70 and palladium lost 1% to $939.00.
Reuters
28-04-2025
- Business
- Reuters
Gold sinks over 1% as easing US-China tensions curb safe-haven demand
April 28 (Reuters) - Gold prices dropped more than 1% on Monday as easing U.S.-China trade tensions boosted investors' risk appetite and dented demand for safe-haven assets such as bullion, while a stronger dollar also piled on the pressure. Spot gold was down 1.4% at $3,272.89 an ounce, as of 0220 GMT. Bullion hit a record high of $3,500.05 on April 22. U.S. gold futures eased 0.4% to $3,283.70. The U.S. dollar (.DXY), opens new tab rose 0.3% against a basket of currencies, making bullion more expensive for overseas buyers. "It's probably fair to say that financial markets and risk-assets in particular are feeling slightly better about the tariff picture now compared to the frantic first week in April," said Tim Waterer, chief market analyst at KCM Trade. "Comments last week from the White House have fuelled optimism that a U.S.-China trade deal may eventuate, which has caused safe haven demand for assets such as gold to subside." U.S. President Donald Trump has said talks on tariffs were taking place with China. The Trump administration signalled openness last week to de-escalating a trade war between the world's two largest economies that has raised fears of recession. On Friday, China exempted some U.S. imports from its steep tariffs, though China quickly knocked down Trump's assertion that negotiations were underway. Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low interest rate environment. Meanwhile, many participants in the International Monetary Fund and World Bank Spring Meetings said Trump's administration was still conflicted in its demands from trading partners hit with his sweeping tariffs. Key data releases this week include the job openings report on Tuesday, U.S. Personal Consumption Expenditures on Wednesday, and the non-farm payrolls report on Friday. These reports may provide more insight into the Federal Reserve's monetary policy outlook. Among other metals, spot silver dropped 1.2% to $32.70 an ounce, platinum eased 0.6% at $965.70 and palladium lost 1% to $939.00.
Yahoo
26-02-2025
- Business
- Yahoo
Gold hits one-week low as investors cash in, trade war fears persist
By Anmol Choubey (Reuters) - Gold prices dropped to their lowest level in over a week on Tuesday, as investors booked profits after a record high in the previous session on ongoing fears of instability around U.S. President Donald Trump's tariff plans. Spot gold fell 1.4% to $2,909.59 an ounce as of 01:46 a.m. (1846 GMT), having hit its lowest level since February 17 earlier in the session. Gold hit its highest level at $2,956.15 on Monday. U.S. gold futures settled 1.5% lower at $2,918.80. "You are seeing profit-taking as well as people looking to get to the sidelines and to re-establish positions at a lower price," said Bob Haberkorn, senior market strategist at RJO Futures. Safe-haven gold has hit eleven record highs this year so far, surpassing the significant $2,950/oz milestone. Trump said on Monday that tariffs on Canadian and Mexican imports were "on time and on schedule" despite efforts by the countries to beef up border security and halt the flow of fentanyl into the U.S. ahead of a March 4 deadline. "I still think that there's enough uncertainty out there associated with tariffs (and) trade more generally... dips are going to continue to be viewed as buying opportunities," said Peter Grant, vice president and senior metals strategist at Zaner Metals. Gold speculators cut net long positions by 13,605 contracts to 201,962 in the week to February 18. [CFTC/] Meanwhile, investors and economists expect the U.S. Federal Reserve to respond "strongly and systematically" to changes in inflation and the labor market, according to research published on Monday by the San Francisco Fed. Higher inflation may force the Fed to keep rates higher, tarnishing non-yielding gold's appeal. Investors now await Friday's release of the U.S. Personal Consumption Expenditures report, the Fed's preferred inflation gauge, for insights into the central bank's rate-easing path and monetary policy. Spot silver shed 2.3% to $31.61 an ounce, platinum dropped 0.5% to $962.15 and palladium lost 1.9% to $922.39. Platinum and palladium prices dropped to their lowest levels since January 30 and January 9, respectively, earlier in the session. Sign in to access your portfolio
