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Economic Times
29-05-2025
- Business
- Economic Times
Gold price today in the U.S. dips sharply—Is this an economic earthquake, which Trump tariff ruling triggered it, and what should investors watch out for next?
Why are gold prices falling despite inflation concerns? How much is gold worth right now in different units? Per Ounce: Around $3,268.50, down from $3,271.17 the previous day. Around $3,268.50, down from $3,271.17 the previous day. Per Gram: Roughly $106.50. Roughly $106.50. Per Kilogram: Close to $106,500. Are gold etfs showing the same trend? SPDR Gold Shares (GLD) is up 0.5%, trading at $305.45. iShares Gold Trust (IAU) has risen 0.5% to $62.50. abrdn Physical Gold Shares ETF (SGOL) is up 0.4%, now at $31.61. Live Events What's the impact of the court ruling on the dollar and gold? Where are gold prices headed next? What are investors watching now for gold direction? U.S. core PCE Price Index (due Friday) – The Fed's preferred inflation gauge could influence interest rate expectations and gold pricing. Weekly jobless claims and revised GDP numbers – Any surprises here may swing market sentiment quickly. Fed policymakers' speeches – Their tone could give hints about the next policy moves. U.S.-China trade headlines – With talks of new tech restrictions on China surfacing from the New York Times, geopolitical tensions could add further volatility. Is this a buying opportunity for gold investors? FAQs: (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Gold prices in the U.S. have slipped as of May 29, 2025, driven by renewed economic concerns and shifting investor sentiment. Spot gold is now hovering around $3,268.50 per ounce, reflecting a 0.6% decline from the previous day, with the market reacting to a mix of legal, economic, and geopolitical often seen as a hedge against inflation and economic instability, has taken a step back recently. The immediate trigger? The U.S. economy shrank by 0.2% in Q1 2025, raising questions about growth prospects and diminishing gold's appeal as a safe-haven asset, according to the same time, a U.S. federal court ruling on May 28, 2025, struck down a series of Trump-era tariffs, strengthening the U.S. dollar. A stronger dollar tends to put downward pressure on gold, making it more expensive for foreign buyers and reducing overall gold ETFs haven't followed the same path as spot prices. As of today:This slight uptick may suggest that long-term investors still see gold as a valuable asset, especially during market U.S. Court of International Trade ruled that several tariffs introduced under President Trump were unlawful, claiming they exceeded presidential authority, according to Reuters. This legal decision boosted the U.S. dollar, which has been recovering steadily, putting pressure on have shifted attention toward riskier assets, as this ruling is viewed by some as a positive step for global trade. The dollar's climb has made gold less attractive, especially as inflation pressures appear to ease futures for June 2025 are currently priced around $3,283.70 per ounce, per Yahoo Finance, and MarketWatch. Analysts believe that $3,250 could act as a strong support level, while resistance sits near $3, the gold market is in a short-term downtrend. The 14-day Relative Strength Index (RSI) is slipping below midline (near 49.50), and buyers recently failed to hold the $3,295 level, which was key prices fall further, watch for potential support around $3,230 and $3,168 — both crucial levels tied to previous Fibonacci retracement patterns. On the upside, a clear break above $3,350 would be needed to revive the bullish with short-term weakness, some analysts say this dip could be a buying opportunity for long-term holders. With gold still trading above key support zones, and market uncertainty far from over, many see gold as a smart always, market timing is tricky—but for those betting on inflation risks, global conflict, or dollar volatility, gold's current levels might offer prices are falling due to a stronger U.S. dollar and weak GDP see support near $3,250 and resistance close to $3,300 in 2025.
Time of India
29-05-2025
- Business
- Time of India
Gold price today in the U.S. dips sharply—Is this an economic earthquake, which Trump tariff ruling triggered it, and what should investors watch out for next?
Why are gold prices falling despite inflation concerns? How much is gold worth right now in different units? Per Ounce: Around $3,268.50, down from $3,271.17 the previous day. Around $3,268.50, down from $3,271.17 the previous day. Per Gram: Roughly $106.50. Roughly $106.50. Per Kilogram: Close to $106,500. Are gold etfs showing the same trend? SPDR Gold Shares (GLD) is up 0.5%, trading at $305.45. iShares Gold Trust (IAU) has risen 0.5% to $62.50. abrdn Physical Gold Shares ETF (SGOL) is up 0.4%, now at $31.61. Live Events What's the impact of the court ruling on the dollar and gold? Where are gold prices headed next? What are investors watching now for gold direction? U.S. core PCE Price Index (due Friday) – The Fed's preferred inflation gauge could influence interest rate expectations and gold pricing. Weekly jobless claims and revised GDP numbers – Any surprises here may swing market sentiment quickly. Fed policymakers' speeches – Their tone could give hints about the next policy moves. U.S.-China trade headlines – With talks of new tech restrictions on China surfacing from the New York Times, geopolitical tensions could add further volatility. Is this a buying opportunity for gold investors? FAQs: (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Gold prices in the U.S. have slipped as of May 29, 2025, driven by renewed economic concerns and shifting investor sentiment. Spot gold is now hovering around $3,268.50 per ounce, reflecting a 0.6% decline from the previous day, with the market reacting to a mix of legal, economic, and geopolitical often seen as a hedge against inflation and economic instability, has taken a step back recently. The immediate trigger? The U.S. economy shrank by 0.2% in Q1 2025, raising questions about growth prospects and diminishing gold's appeal as a safe-haven asset, according to the same time, a U.S. federal court ruling on May 28, 2025, struck down a series of Trump-era tariffs, strengthening the U.S. dollar. A stronger dollar tends to put downward pressure on gold, making it more expensive for foreign buyers and reducing overall gold ETFs haven't followed the same path as spot prices. As of today:This slight uptick may suggest that long-term investors still see gold as a valuable asset, especially during market U.S. Court of International Trade ruled that several tariffs introduced under President Trump were unlawful, claiming they exceeded presidential authority, according to Reuters. This legal decision boosted the U.S. dollar, which has been recovering steadily, putting pressure on have shifted attention toward riskier assets, as this ruling is viewed by some as a positive step for global trade. The dollar's climb has made gold less attractive, especially as inflation pressures appear to ease futures for June 2025 are currently priced around $3,283.70 per ounce, per Yahoo Finance, and MarketWatch. Analysts believe that $3,250 could act as a strong support level, while resistance sits near $3, the gold market is in a short-term downtrend. The 14-day Relative Strength Index (RSI) is slipping below midline (near 49.50), and buyers recently failed to hold the $3,295 level, which was key prices fall further, watch for potential support around $3,230 and $3,168 — both crucial levels tied to previous Fibonacci retracement patterns. On the upside, a clear break above $3,350 would be needed to revive the bullish with short-term weakness, some analysts say this dip could be a buying opportunity for long-term holders. With gold still trading above key support zones, and market uncertainty far from over, many see gold as a smart always, market timing is tricky—but for those betting on inflation risks, global conflict, or dollar volatility, gold's current levels might offer prices are falling due to a stronger U.S. dollar and weak GDP see support near $3,250 and resistance close to $3,300 in 2025.
Mint
22-04-2025
- Business
- Mint
Gold is beating everything. How to get a piece of the action.
Give gold bugs their due. The yellow metal has been a light in the investing darkness. At a recent $3,406 per troy ounce, it's up 30% this year, to the envy of stock, bond, and Bitcoin holders. Cash-flow purists will call this a flash in the pan, but they should look again. Over the past 20 years, SPDR Gold Shares, an exchange-traded fund, has surged 630%—85 points more than SPDR S&P 500, which tracks shares of the biggest U.S. companies. That isn't supposed to happen. If businesses couldn't be expected to outperform an unthinking metal over decades, shareholders would demand that they cease operations and hoard bullion instead. So, what's going on? If this were gasoline or Nike shoes or Nvidia chips, we would look to supply versus demand. With immutable gold, nearly every ounce that has ever been found is still around somewhere, so price action is mostly about demand. That has been ravenous and broad since 2022. That year, the U.S. and dozens of allies placed sweeping sanctions on Russia, including its largest banks, and China went on a bullion spree. Its buying has since cooled, but other central banks have stepped in. Perhaps this is unsurprising, in light of a decadeslong diversification by finance ministers away from the U.S. dollar, which is down to 57% of foreign reserves from over 70% in 2000. But the recent uptick in gold stockpiling looks to JPMorgan Chase, the world's largest bullion dealer, like a debasement trade. Investors are nervous about President Donald Trump's tariffs, his browbeating of the Federal Reserve Chairman over interest rates, and blowout U.S. deficits. It isn't just bankers. Demand among individuals for gold bars and coins has been surging, with some dealers experiencing sporadic shortages. Gold ETFs were bucking the trend, but flows there have turned solidly positive since last summer, including recently in China. All told, there is now an estimated $4 trillion worth of gold held by central banks, and $5 trillion by private investors. Calculated against $260 trillion for all financial assets, including stocks, bonds, cash, and alternatives, that works out to a global gold portfolio allocation of 3.5%, a record. What's next? BofA Securities says that central banks have room for much more gold buying, and that China's insurance companies are likely to dabble, too. RBC Capital Markets analyst Chris Louney says ETFs could drive demand growth from here, especially if angst reigns. 'Gold is that asset of last resort…the part of the investing universe that investors really look for when they have a lot of questions elsewhere," he says. Russ Koesterich, a portfolio manager for BlackRock, a major player in ETFs including the iShares Gold Trust, says that gold has proven itself as a store of value, and deserves a 2% to 4% weighting for most investors. 'I think it's a tough call to say, 'Would you chase it here?' " he says. 'There have been some pullbacks. Those might represent a good opportunity, particularly for people who don't have any exposure." Daniel Major, who covers materials stocks for UBS, points out that gold miners mostly haven't wrapped themselves in glory in recent years with their dealmaking and asset management. As a result, a major index for the group is trading 30% below pre-Covid levels relative to earnings. UBS increased its 2026 gold price target by 23%, to $3,500 per troy ounce, before gold's latest lurch higher. Many miners are producing at a cost of $1,200 to $2,000. Major has bumped up earnings estimates across his coverage. 'I think we're gonna see further upward revisions to consensus earnings," he says. 'This is what's attractive about the gold space right now." Major's favorite gold stocks are Barrick Gold, Newmont, and Endeavour Mining. More on those in a moment. We also have thoughts on how not to buy gold—and what not to expect it to do: Don't count on it to keep beating stocks long term, or to provide precise short-term protection from inflation spikes and stock swoons. But first, a little history, chemistry, and rules of the yellow brick road. The first gold coins of reliable weight and purity featured a lion and bull stamped on the face, and were minted at the order of King Croesus of Lydia, in modern-day Turkey, around 550 BC. But by then, gold had been used as a show of riches for thousands of years. Ancient Egyptians called gold the flesh of the gods, and laid the boy King Tutankhamun to rest in a gold coffin weighing 243 pounds. The Old Testament says that under King Solomon, gold in Jerusalem was as common as stone. Allow for literary license; silicon, an element in most stones, is 28.2% of the Earth's crust, whereas gold is 0.0000004%. Marco Polo described palace walls in China covered with gold. Mansa Musa I of Mali in West Africa, on a pilgrimage to Mecca in 1324, is said to have splashed so much gold around Cairo on the way that he crashed the local price by 20%, and it took 12 years to recover. To Montezuma, the Aztec king whose gold lured Cortés from Spain, the metal was called, as it still is by some in Central Mexico, teocuitlatl—literally, god excrement. Golden eras, gold medals, the Golden Rule, and golden calf—so deep is the historical association between gold and wealth, excellence, and vice that it seems to have a mystical hold on humanity. In fact, it's more a matter of chemical inevitability. Trade and savings are easier with money. Pick one for the job from the 118 known elements. Years ago on National Public Radio, Columbia University chemist Sanat Kumar used a process of elimination. Best to avoid elements that are cumbersome gases or liquids at room temperature. Stay away from the highly reactive columns I and II on the periodic table—we can't have lithium ducats bursting into flame. Money should be rare, unlike zinc, which pennies are made from, but not too rare, unlike iridium, used for aircraft spark plugs. It shouldn't be poisonous like arsenic or radioactive like radium—that rules out more elements than you might think. Of the handful that are left, eliminate any that weren't discovered until recent centuries, or whose melting points were too high for early furnaces. That leaves silver and gold. Silver tarnishes, but rarer, noble gold holds its luster. It is malleable enough to pound into sheets so thin that light will shine through. And, despite the best efforts of Isaac Newton and other would-be alchemists, it cannot be artificially created—profitably, anyhow. Technically, there is something called nuclear transmutation. If you can free a proton from mercury's nucleus or insert one into platinum's, you'll end up with a nucleus with 79 protons, and that's gold. Scientists did just that more than 80 years ago using mercury and a particle accelerator. But what little gold they produced was radioactive. If you think you can do better, you'll likely need a nuclear reactor to prove it, but a large gold mine is one-fifth the cost, and we have to believe the permitting is easier. We passed over copper due to commonness, but it has become too valuable to use for pennies. The 95% copper content of a pre-1982 penny is worth about 3 cents today. The equivalent amount of silver goes for $3.10, and gold, more than $320. But the three trade in different units. A pound of copper is up 17% this year, at $4.72. Silver and gold are typically quoted per troy ounce, a measure of hazy origin and clear tediousness, which is 9.7% heavier than a regular ounce. A troy ounce of silver is $32.70, up 13% this year. Confused? This won't help: The purity of investment gold, called its fineness, is measured in either parts per thousand, or on a 24-point karat scale. A karat is different from a carat, the gemstone weight, but our friends in the U.K.—who adopted troy ounces in the 15th century—often spell both words with a 'c'. Gold bricks like the ones central banks swap are called Good Delivery bars, and weigh 400 troy ounces, give or take, worth more than $1.3 million. If you buy a few, lift with your legs; each weighs a little over 27 regular pounds (as opposed to troy pounds, which, it pains us to note, are 12 troy ounces, not 16). Engineers set off explosions in a pit at Newmont's Yanacocha gold mine in Cajamarca, Peru. There are many options for smaller players, like Canadian Maple Leaf coins, which are 24-karat gold; South African Krugerrands, at 22 karats, and alloyed with copper for durability; and Gold American Eagles, 22 karats, with some silver and copper. Proof coins cost extra for their high polish, artistry, and limited runs, and may or may not become collectibles. Humbler-looking bullion coins are bought for their metal value. Prefer the latter if you aren't a coin hobbyist. Avoid infomercials and stick with high-volume dealers. Even so, markups of 2% to 4% are common. Costco Wholesale, which sells gold in single troy ounce Swiss bars, charges 2%, but often runs out, and limits purchases to two bars per member a day. Factor in the cost of storage and insurance, too. ETFs are more economical. For example, iShares Gold Trust costs 0.25%, not counting commissions. For long-term holders, as opposed to traders, there is a smaller fund called iShares Gold Trust Micro, which costs 0.09%. Resist fleeing stocks for gold. The surprisingly long outperformance of gold is mostly a function of its recent run-up. From 1975 through last year, gold turned $1 invested into about $16, versus $348 for U.S. stocks. That starting point has a legal basis. President Franklin Roosevelt largely outlawed private gold ownership in 1933; President Richard Nixon delinked the dollar from gold in 1971; and President Gerald Ford made private ownership legal again at the end of 1974. Gold has been a so-so inflation hedge over the past half-century, and at times a disappointing one. In 2022, when U.S. inflation peaked at a 40-year high of over 9%, the gold price went nowhere. The problem is that high inflation can prompt a sharp increase in interest rates. 'If people can clip a 5% coupon on a T-bill, often they'd prefer to do that than have either a lump of metal or an ETF that doesn't produce cash flow," says BlackRock's Koesterich. Likewise, while gold has generally offset stock declines this year, it hasn't always done so in the heat of the moment. Recall tariff 'liberation day" early this month, which sent U.S. stocks down close to 11% in three days, and pulled gold down nearly 5%, too. 'This isn't an uncommon scenario," says RBC's Louney. 'When investors were losing elsewhere in their portfolio, gold was sold as well to cover those losses." Our top tip on how gold behaves is this: It doesn't. People do the behaving, and they are appallingly unreliable. Use bonds as a stock market hedge. If they don't work, fall back to patience. For inflation protection, think of assets that are a better match than gold for the goods and services that you buy every week. A diversified commodities fund has precious metals but also industrial ones, along with energy and grains. Treasury inflation-protected securities are explicitly linked to the consumer price index, which measures inflation for a theoretical individual whose buying patterns differ from your own, but are close enough. Own a house. Stick with a workaday, reliable car. Yes, cars deteriorate. But so does nearly everything on a long enough timeline. Rely mostly on stocks, which represent businesses, which wouldn't endure if they couldn't turn raw inputs like commodities into something more profitable. There's even a miner, Newmont, in the S&P 500. Speaking of which, UBS' Major recently upgraded both Canada's Barrick and Denver-based Newmont from Neutral to Buy. 'Both very much fall into that category of having a challenging recent track record," he says. Newmont has lost 20% over the past three years while gold has gained 76%, which Major blames on difficult acquisitions and earnings shortfalls. Barrick, down 8%, has been in a dispute with Mali since 2023, when its government instituted a new mining code that gives it a greater share of profits. In recent days, authorities have shut the company's offices in the capital city of Bamako over alleged nonpayment of taxes. These are the sort of headaches that Krugerrands in a safe don't produce. But Major calls expectations 'adequately reset," free cash flow attractive, and guidance achievable. Newmont, at 13 times next year's earnings consensus, is selling assets, and Barrick, at 10 times, has healthy production growth. Major also likes London-based, Toronto-listed Endeavour Mining, up 40% over the past three years and trading at nine times earnings, although he says it has 'higher jurisdictional risk." It is focused on West Africa, especially Burkina Faso, which had a coup d'état in 2022. You'd think the stock would be doing worse amid such political upheaval. Then again, Burkina Faso since 1966 has had eight coups, five coup attempts, and one street ousting of a president who tried to change the constitution to remain in power. That works out to an uprising every four years, on average. Montezuma's scatological name for gold might have been prescient, considering the sometimes-odious consequences for small countries that find it. Write to Jack Hough at Follow him on X and subscribe to his Barron's Streetwise podcast.
Yahoo
11-04-2025
- Business
- Yahoo
Dollar Hits 3-Year Low: Which ETFs Stand to Gain or Lose?
The U.S. dollar briefly touched its lowest level in three years on Friday, impacting gold and currency ETFs, as trade war tensions flared and foreign investors began pulling back from American assets. The dollar tumbled even as U.S. bond yields surged, an unusual divergence that analysts at investment banking advisory firm Evercore described as 'highly abnormal.' In a typical environment, higher yields tend to attract capital and boost the dollar. But recent policy uncertainty and growing trade frictions are spooking global investors. As of midday Friday, the U.S. Dollar Index hovered around 100, the bottom of a trading range that's held since 2022. It's a precarious level, and where the dollar goes from here could have big implications across the ETF landscape. One clear beneficiary of dollar weakness is gold. The yellow metal typically moves inversely to the greenback, and the recent slump has lit a fire under gold prices. On Friday, gold surged to a fresh all-time high above $3,200 per ounce, lifting its year-to-date gains to 23%. That was great news for gold ETFs like the SPDR Gold Trust (GLD) and the iShares Gold Trust (IAU), both of which have seen renewed interest from investors seeking a safe haven amid rising volatility and falling confidence in the dollar. Currency-tracking ETFs are another group impacted by the dollar's fall. Funds like the Invesco CurrencyShares Japanese Yen Trust (FXY) and the Invesco CurrencyShares Euro Trust (FXE) have jumped as their respective currencies rallied against the dollar. Both are up about 9% year to date. Conversely, the Invesco DB US Dollar Index Bullish Fund (UUP)—which aims to profit from dollar strength—has slumped more than 6% so far this year as the greenback lost ground. Currency-hedged ETFs, coveted by investors during the dollar's bull run, are starting to lose their edge. Funds like the WisdomTree Europe Hedged Equity Fund (HEDJ) and the WisdomTree Japan Hedged Equity Fund (DXJ) benefited when the dollar was climbing and currency headwinds ate into foreign stock returns. But now, with the dollar weakening, plain-vanilla international ETFs are outperforming their hedged counterparts. If the dollar breaks down from its multi-year range, that trend could accelerate. Investors may increasingly favor unhedged international ETFs to benefit from currency | © Copyright 2025 All rights reserved Sign in to access your portfolio
Yahoo
11-04-2025
- Business
- Yahoo
Dollar Hits 3-Year Low: Which ETFs Stand to Gain or Lose?
The U.S. dollar briefly touched its lowest level in three years on Friday, impacting gold and currency ETFs, as trade war tensions flared and foreign investors began pulling back from American assets. The dollar tumbled even as U.S. bond yields surged, an unusual divergence that analysts at investment banking advisory firm Evercore described as 'highly abnormal.' In a typical environment, higher yields tend to attract capital and boost the dollar. But recent policy uncertainty and growing trade frictions are spooking global investors. As of midday Friday, the U.S. Dollar Index hovered around 100, the bottom of a trading range that's held since 2022. It's a precarious level, and where the dollar goes from here could have big implications across the ETF landscape. One clear beneficiary of dollar weakness is gold. The yellow metal typically moves inversely to the greenback, and the recent slump has lit a fire under gold prices. On Friday, gold surged to a fresh all-time high above $3,200 per ounce, lifting its year-to-date gains to 23%. That was great news for gold ETFs like the SPDR Gold Trust (GLD) and the iShares Gold Trust (IAU), both of which have seen renewed interest from investors seeking a safe haven amid rising volatility and falling confidence in the dollar. Currency-tracking ETFs are another group impacted by the dollar's fall. Funds like the Invesco CurrencyShares Japanese Yen Trust (FXY) and the Invesco CurrencyShares Euro Trust (FXE) have jumped as their respective currencies rallied against the dollar. Both are up about 9% year to date. Conversely, the Invesco DB US Dollar Index Bullish Fund (UUP)—which aims to profit from dollar strength—has slumped more than 6% so far this year as the greenback lost ground. Currency-hedged ETFs, coveted by investors during the dollar's bull run, are starting to lose their edge. Funds like the WisdomTree Europe Hedged Equity Fund (HEDJ) and the WisdomTree Japan Hedged Equity Fund (DXJ) benefited when the dollar was climbing and currency headwinds ate into foreign stock returns. But now, with the dollar weakening, plain-vanilla international ETFs are outperforming their hedged counterparts. If the dollar breaks down from its multi-year range, that trend could accelerate. Investors may increasingly favor unhedged international ETFs to benefit from currency | © Copyright 2025 All rights reserved Sign in to access your portfolio
