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Business Recorder
2 days ago
- Business
- Business Recorder
Gold steadies with focus on US-China talks
NEW YORK: Gold prices held nearly steady on Tuesday as markets turned their focus to upcoming US-China talks and the Federal Reserve's policy decision. Spot gold steadied at $3,313.63 per ounce, by 10:05 ET (14:04 GMT). Prices hit their lowest point since July 9 on Monday after a trade deal between the United States and European Union dampened safe haven demand for the yellow metal. US gold futures was unchanged at $3,311.60. 'The lack of clear details and a defined outline of the announced trade deals... continues to keep market participants on edge,' said Zain Vawda, analyst at MarketPulse by OANDA. Vawda added that a break below $3,300 could trigger a decline toward the $3,000 level in the medium term. US and Chinese officials held more than five hours of talks in Stockholm on Monday aimed at extending their trade truce by three months, with discussions set to resume Tuesday. Analysts note that recent US deals with the EU and Japan offered some relief, but talks with China remain far more complex and prolonged. On the US interest rate front, the US central bank's two-day policy meeting kicks off later in the day, with rates widely expected to remain unchanged. Investors will closely scrutinize the Fed's commentary for any signals on the timing and pace of potential rate cuts ahead. Markets are currently pricing in just under 50 basis points of rate cuts by year-end, with October seen as the most likely starting point, said Peter Grant, vice president and senior metals strategist at Zaner Metals. However, dissent from two Fed members could shift expectations toward a September cut, which could potentially boosting gold, he added. Gold tends to benefit in a low interest rate environment as the reduced yield on competing assets makes the non-yielding metal more attractive to investors. Spot silver fell 0.5% to $37.98 per ounce, while platinum was steady at $1,389.85 and palladium slipped 1.2% to $1,232.67.
Asharq Al-Awsat
2 days ago
- Business
- Asharq Al-Awsat
Gold Steadies with Focus on US-China Talks, Fed Meeting
Gold prices held nearly steady on Tuesday as markets turned their focus to upcoming US-China talks and the Federal Reserve's policy decision. Spot gold steadied at $3,313.63 per ounce, by 10:05 ET (14:04 GMT). Prices hit their lowest point since July 9 on Monday after a trade deal between the United States and European Union dampened safe haven demand for the yellow metal. US gold futures was unchanged at $3,311.60. "The lack of clear details and a defined outline of the announced trade deals... continues to keep market participants on edge," said Zain Vawda, analyst at MarketPulse by OANDA, Reuters reported. Vawda added that a break below $3,300 could trigger a decline toward the $3,000 level in the medium term. US and Chinese officials held more than five hours of talks in Stockholm on Monday aimed at extending their trade truce by three months, with discussions set to resume Tuesday. Analysts note that recent US deals with the EU and Japan offered some relief, but talks with China remain far more complex and prolonged. On the US interest rate front, the US central bank's two-day policy meeting kicks off later in the day, with rates widely expected to remain unchanged. Investors will closely scrutinize the Fed's commentary for any signals on the timing and pace of potential rate cuts ahead. Markets are currently pricing in just under 50 basis points of rate cuts by year-end, with October seen as the most likely starting point, said Peter Grant, vice president and senior metals strategist at Zaner Metals. However, dissent from two Fed members could shift expectations toward a September cut, which could potentially boosting gold, he added. Gold tends to benefit in a low interest rate environment as the reduced yield on competing assets makes the non-yielding metal more attractive to investors. Spot silver fell 0.5% to $37.98 per ounce, while platinum was steady at $1,389.85 and palladium slipped 1.2% to $1,232.67.
Reuters
11-06-2025
- Automotive
- Reuters
Platinum surges, palladium lags on narrow demand profile
June 11 (Reuters) - Platinum and palladium prices have both rallied this month, notching a more than four-year and seven-month high respectively, but analysts say they remain more cautious about the outlook for palladium due to its narrower demand base. Spot platinum was trading at $1,272.45 per ounce as of 1545 GMT on Wednesday, its highest level since February 2021, and has risen 41% this year on supply concerns, renewed investor interest following London Platinum Week in May, and increased jewellery demand as high gold prices drive consumers to cheaper alternatives, analysts say. Spot palladium , meanwhile, was trading at $1,078.62/oz, its highest level since November 2024, and has gained 18% this year, but has struggled to reach the high of $1,244.75 hit in October 2024. "The biggest factor is likely the wider appeal which platinum enjoys. Platinum's uses are more diverse, spanning industrial applications, jewelry, and investor demand," said Zain Vawda, market analyst at MarketPulse by OANDA. "This diversification shields platinum from the headwinds palladium faces, such as declining long-term demand from the traditional automotive market due to the EV transition." Palladium is mainly used in catalytic converters for gasoline vehicles, while platinum has broader uses in diesel catalytic converters, jewellery, industrial applications, and emerging hydrogen technologies. Palladium could be considered a "one trick pony", with 90% of its demand coming from car manufacturers, Bank of America said in a note last week. "China's rising EV penetration rates are particularly damaging because it means that palladium-intensive cars with a gasoline engine are now being quickly displaced," the note added. The transition to EVs will also affect platinum in the medium term, but to a lesser extent, analysts told Reuters. "Large commercial vehicles will likely use larger amounts of platinum (relative to palladium) and these vehicles will be slower to electrify. Over time, the hydrogen economy will also absorb some platinum, limiting the downside risk on platinum versus palladium," said Nitesh Shah, commodities strategist at WisdomTree. Global sales of battery-electric vehicles and plug-in hybrids rose to 1.5 million in April. Sales in China were up 32% from the same month of 2024 to 0.9 million vehicles. Platinum, meanwhile, is expected to be moderately supported over the next six to 12 months, although the upside may be capped without a clear rebound in auto demand or meaningful acceleration in hydrogen-related applications, said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. Platinum jewellery demand is likely to continue benefiting from high gold prices, analysts said. "We believe that platinum will retain recent gains and could rise a little further as gold and silver gain. We are less confident that palladium will go much higher until turbulence in the auto industry settles," Shah added. Gold has surged 27% this year, touching multiple record highs, while silver has risen 26% in 2025.
Time of India
04-06-2025
- Business
- Time of India
Gold price prediction: Will gold stay flat as U.S. jobs data battles trade war fears ahead of Fed signals?
Gold prices steady as strong U.S. jobs data offsets safe-haven demand amid rising U.S.-China trade tensions- Gold prices held their ground on Wednesday, June 4, as fresh U.S. labor data showed unexpected strength, balancing out investor demand for safe-haven assets like gold due to ongoing trade tensions between the U.S. and China. As of 11:45 GMT, spot gold stood firm at $3,349.19 per ounce, while U.S. gold futures were unchanged at $3,373.10. The job market gave investors some relief, yet growing global concerns—especially sharp words and tariff moves from President Donald Trump—kept gold from falling further. "U.S. labor data gave markets a bit of relief yesterday, causing a small dip in gold prices. However, tensions between the U.S. and China are still keeping risks high and gold prices supported,' said Zain Vawda, market analyst at MarketPulse by OANDA. What's holding gold steady despite global uncertainty? While many expected gold to climb on geopolitical stress, stronger U.S. job numbers provided a counterweight. According to new data, U.S. job openings rose in April, signaling continued hiring demand. However, the same report showed that layoffs hit a 9-month high, adding a layer of uncertainty to the picture. These mixed signals suggest the labor market isn't entirely stable. Investors are watching closely to see if interest rate cuts are still on the table—or if the economy is stronger than expected. How are Trump's tariffs and comments on China affecting gold? On the same day gold prices stayed steady, President Donald Trump said Chinese President Xi Jinping is 'extremely hard to make a deal with.' His comment came days after accusing China of backing out of an agreement to reduce tariffs and trade restrictions. Live Events In a sharp move, the U.S. doubled tariffs on steel and aluminum imports on Wednesday. The administration is also pressing trade partners to submit 'best offers' ahead of more penalties expected in early July. This backdrop is adding pressure to global trade flows and supporting demand for gold as a safe-haven asset. Will the U.S. non-farm payrolls data change gold's direction? All eyes are now on the U.S. non-farm payrolls report , due Friday. The data could heavily influence Federal Reserve policy, particularly around interest rates. 'If the data is stronger than expected, interest rate cut expectations are likely to wane, which would weigh on the gold price,' said Carsten Fritsch, analyst at Commerzbank. Gold generally performs well in a low-interest-rate environment. When rates are expected to drop, gold becomes more attractive to investors, since it doesn't yield interest itself. How much movement can we expect in gold prices? For now, analysts expect gold to trade within a fairly tight range. 'We see gold trading between $3,300 and $3,400 per troy ounce in the short term,' Fritsch added. With the market split between upbeat labor signals and global trade worries, gold is likely to stay stuck in a range unless one side clearly tips the scale—either through surprise economic data or an escalation in trade tensions. What's the latest on silver, platinum, and palladium? Other precious metals showed mixed trends: Spot silver dipped by 0.5% to $34.32 an ounce Platinum rose 1.1% to $1,085.50 Palladium fell 0.5% to $1,005.11 These shifts reflect broader market caution as investors look for clarity on rate cuts, global trade, and the strength of the world economy. FAQs: Q1. Why did gold prices stay flat despite rising trade tensions? Stronger U.S. jobs data offset safe-haven demand for gold. Q2. What role does the non-farm payrolls report play in gold prices? It helps predict interest rate policy, which directly impacts gold prices.
Business Recorder
28-04-2025
- Business
- Business Recorder
Gold dips as trade anxiety eases
NEW YORK: Gold prices dipped for a second straight session on Monday as US-China trade tensions eased, and the market awaited data due this week. Spot gold was down 0.6% at $3,297.10 an ounce as of 09:27 a.m. ET (1327 GMT). US gold futures rose 0.3% to $3,307.80. 'Gold prices are still dealing with the improved optimism over a US-China trade deal even though there is a lack of clarity,' Zain Vawda, analyst at MarketPulse by OANDA, said. The hopes that tariff damage was being contained also kept global equity markets at their highest over three weeks. US President Donald Trump says progress has been made with China, and that he has spoken with President Xi Jinping. However, Beijing has denied trade talks are occurring and Treasury Secretary Scott Bessent failed on Sunday to back Trump's assertion that tariff talks with China were under way. Bullion, a traditional hedge against political and financial instability, rose to an all-time high of $3,500.05/oz last week and has gained over 25% so far this year. 'The broader gold forecast and price direction remains constructive, even with some of its haven appeal diminishing,' said Fawad Razaqzada, market analyst at City Index and 'Until we witness clear patterns of lower highs, lower lows, and firm trade agreements rather than more political bluster from the Trump administration, the prospect of fresh highs for gold cannot be dismissed.' The risk is high that the global economy will slip into recession this year, according to a majority of economists in a Reuters poll. Data due this week include the US job openings report on Tuesday, Personal Consumption Expenditures on Wednesday, and the nonfarm payrolls report on Friday. Market participants will scan these to gauge the impact of the latest tariffs on the US economy. Spot silver eased 0.1% to $33.04, platinum gained 1.8% to $988.90 and palladium added 0.8% to $956.35.
