Latest news with #USPersonalConsumptionExpenditures
Observer
26-05-2025
- Business
- Observer
Market optimism grows as Trump extends EU tariff deadline
Sock futures moved higher this morning following US President Donald Trump's decision to extend the deadline for proposed EU tariffs. The move has fueled optimism among investors that recent trade tensions may be easing. Investor sentiment has strengthened notably over the past month, driven by growing signs of Trump's openness to negotiation. Recent trade truces have helped markets look beyond the immediate noise of tariff disputes, with many now believing that the worst of the disruption could be behind us. 'Markets are effectively looking past the trade war noise, and the prevailing view is that the worst of the tariff turmoil may now be behind us,' said Josh Gilbert, Market Analyst at eToro. 'Going forward, much will depend on how the negotiations develop beyond the current truces.' While the agreements with China and the EU are still provisional, they represent a step in the right direction. The willingness of the U.S. administration to engage in dialogue is a positive sign. However, these remain temporary pauses rather than permanent resolutions. Without concrete structural changes to tariff policy, the potential for further escalation remains. Looking ahead, key economic data – including Nvidia's upcoming earnings report and the latest US Personal Consumption Expenditures (PCE) figures will be closely watched. These indicators will play a crucial role in determining whether market optimism can be sustained in the coming weeks. Despite the improved sentiment, last week's unexpected threat of new tariffs on Apple was a stark reminder of the unpredictable nature of trade policy under the Trump administration – a dynamic that has characterized his presidency since day one. 'Despite the ongoing uncertainty, any progress in trade negotiations will continue to support risk assets,' added Gilbert. 'We've seen some rotation out of the 'Magnificent Seven' tech stocks recently, but their earnings results reaffirm why these names remain dominant within investor portfolios at eToro. When prices pull back, investors are still quick to buy the dip.' As global markets continue to monitor developments in trade policy, future momentum will hinge on the outcome of negotiations and the direction of key economic indicators.
Business Insider
30-04-2025
- Business
- Business Insider
Gold prices dip as US dollar strengthens and tariff tensions ease
Gold prices fell on Wednesday, weighed down by a stronger US dollar and signs of easing trade tensions, as investors await key US economic data that could shape the Federal Reserve's next move on interest rates. Spot gold fell 0.4% to $3,302.58/oz by 4:30am GMT, while US gold futures declined 0.7% to $3,310.70/oz. Gold prices fell due to a stronger US dollar and signs of easing trade tensions Spot gold fell to $3,302.58/oz, while US gold futures declined to $3,310.70/oz The US dollar index gained 0.1%, making gold more expensive for holders of other currencies The US dollar index gained 0.1% against a basket of major currencies, making gold more expensive for holders of other currencies and applying downward pressure on bullion. 'There was a minor recovery in broad dollar strength, which led to a little bit of retracement in gold,' said Nicholas Frappell, global head of institutional markets at ABC Refinery. The decline follows a recent rally that saw gold prices reach an all-time high of $3,500.05/ounce on April 22, driven by global economic uncertainties and market volatility. The pullback in gold comes after US President Donald Trump signed a pair of executive orders aimed at easing the impact of auto tariffs. Meanwhile, the US trade team announced its first agreement with a foreign partner since the new tariff wave began. 'Even though the Trump administration is watering down tariffs, they are still high, and the confidence in US assets has been shaken — arguably permanently,' said Kyle Rodda, market analyst at Investors now await the release of key data points, including the US Personal Consumption Expenditures (PCE) price index later today and the nonfarm payrolls report on Friday. 'The PCE data is expected to show further moderation in prices and keep the door open for further Fed cuts,' Rodda added. 'If we get an upside surprise, then those odds may diminish and that could weigh on gold prices.' Markets currently anticipate a total of 95 basis points in Fed rate cuts by the end of the year. Other Precious Metals Silver fell 0.7% to $32.72/oz Platinum dropped 0.6% to $971.75/oz Palladium slipped 0.2% to $932.40/oz
New Straits Times
28-04-2025
- Business
- New Straits Times
Gold sinks over 1pct as easing US-China tensions curb safe-haven demand
KUALA LUMPUR: Gold prices dropped more than 1 per cent on Monday as easing US-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 per cent at US$3,272.89 an ounce, as of 0220 GMT. Bullion hit a record high of US$3,500.05 on April 22. US gold futures eased 0.4 per cent to US$3,283.70. The US dollar rose 0.3 per cent 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 US-China trade deal may eventuate, which has caused safe haven demand for assets such as gold to subside." US 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 US 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, US 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 per cent to US$32.70 an ounce, platinum eased 0.6 per cent at US$965.70 and palladium lost 1 per cent to US$939.00.
Asharq Al-Awsat
26-02-2025
- Business
- Asharq Al-Awsat
Gold Holds Steady with All Eyes on Trump's Tariff Plans
Gold prices held steady on Wednesday following a 2% decline in the previous session, while investors focused on US President Donald Trump's tariff plans, which have raised concerns about a trade war. Spot gold was little changed at $2,912.69 an ounce, by 1120 GMT, after hitting a more than one-week low on Tuesday. Trump's trade policies, seen as inflationary and with potential to spark tiffs with trade partners, saw safe-haven gold hitting a record high of $2,956.15 on Monday. US gold futures rose 0.3% to $2,926.70. "The sharp correction in gold followed equities and bitcoin lower, but the bullion market saw some good bargain-hunting on the lows and unlike other asset classes, recovered its composure," independent analyst Ross Norman said, Reuters reported. The dip in prices is "likely to stimulate good physical offtake and provide an entry point for those that may have missed the bull run," he added. Wall Street's main indexes touched a one-month low on Tuesday and bitcoin slumped 5.6%. Trump opened yet another front on Tuesday in his assault on global trade norms, ordering a probe into potential new tariffs on copper imports. Rising price pressures due to tariffs could force the Federal Reserve to keep interest rates higher. Bullion is a preferred hedge against uncertainty and inflation, but higher rates can reduce its appeal as it yields no interest. Focus was also on the US Personal Consumption Expenditures (PCE) report, the Fed's preferred inflation gauge, due on Friday. The recent gains, which took gold within striking distance of $3,000, appeared to run out of steam, suggesting some traders had taken the opportunity to lock in profits, Frank Watson, market analyst at Kinesis Money, said in a note. "Central bank behaviour will be key to gold's fortunes, as they have been an important element for demand in recent years." Spot silver gained 0.1% to $31.77, platinum rose 0.9% to $974.86 and palladium added 1.6% to $942.29.
Asharq Al-Awsat
25-02-2025
- Business
- Asharq Al-Awsat
Gold Eases after Hitting Record, Safe-haven Flows Strong
Gold prices hovered near an all-time high on Tuesday, as fears of a trade war and instability amid US President Donald Trump's tariff plans drove safe-haven flows. Spot gold fell 0.4% to $2,938.63 an ounce by 1125 GMT, after reaching $2,956.15 on Monday — its eleventh record high this year. US gold futures declined 0.3% to $2,953.30. "I would call it a range trading environment in precious metals, driven by uncertainty of if and what tariffs are enacted by the Trump administration as we approach the end of the month," UBS analyst Giovanni Staunovo said, Reuters reported. Trump said on Monday 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 US ahead of a March 4 deadline. "Mexico and Canada are large mine producers of gold and silver, so if both metals are not exempted it would result in a likely further widening of the spread between US and London prices," Staunovo said. Fears of a looming trade war, ignited by Trump's tariff strategy, have sent safe-haven gold soaring past the historic $2,950/oz threshold. Meanwhile, investors and economists expect the US 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 that underscores the current sensitivity of financial markets to US economic data. Higher inflation may force the Fed to keep rates higher, tarnishing non-yielding gold's appeal. Investors now await Friday's release of the US 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 0.6% to $32.14 an ounce, platinum dropped 0.3% to $964.05 and palladium lost 0.3% to $937.44.
