Latest news with #nonFarmPayrolls
Asharq Al-Awsat
a day ago
- Business
- Asharq Al-Awsat
Gold Holds Ground as Investors Eye US Payrolls Report
Gold prices held steady on Thursday as investors awaited US non-farm payrolls data due on Friday to assess the Federal Reserve's interest rate path, while global trade tensions continued to simmer. Spot gold was steady at $3,373.69 an ounce, as of 0843 GMT. US gold futures were down 0.1% to $3,397.20. "I would say that the path of least resistance remains to the upside, despite today's sort of flat mode for gold trading. But I think this is more due to traders being in wait-and-see mode ahead of non-farm payrolls," said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades. Wednesday's ADP National Employment Report revealed US private payrolls increased far less than expected in May. The more comprehensive non-farm payrolls report on Friday is expected to show that non-farm payrolls increased by 130,000 jobs in May after advancing by 177,000 in April, according to a Reuters survey of economists. US President Donald Trump on Wednesday called for Fed Chair Jerome Powell to lower interest rates. "I think that a weakening in the US labor market will increase bets on a dovish Fed, so on the Fed cutting interest rates, (which) would be positive for gold," Evangelista added. Gold, a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment. Trump described China's Xi Jinping as "tough" and "extremely hard to make a deal with" in a social media post, dampening hopes for a swift end to trade tensions. Meanwhile, his doubling of tariffs on steel and aluminium imports took effect on Wednesday. "We stick to our price targets of USD 3,350 and USD 3,500 in 3 and 12 months time, reflecting first and foremost continued central bank buying as well as sound demand from safe-haven seekers," said Carsten Menke, analyst at Julius Baer. Elsewhere, spot silver fell 0.6% to $34.74 an ounce, but hit its highest level since October 2012. Platinum rose 3.6% to $1,123.15, its highest level since April 2023, and palladium was up 1.7% at $1,017.37.
Reuters
3 days ago
- Business
- Reuters
Rupee caught between US dollar weakness, lack of directional bias
MUMBAI, June 3 (Reuters) - The Indian rupee is likely to open slightly weaker on Tuesday and is expected to hold a narrow range through the day amid a struggling U.S. dollar and the lack of momentum on either side. The 1-month non-deliverable forward indicated an open in the 85.40-85.44 range, versus the close of 85.3825 in the previous session. Non-deliverable forwards suggest the rupee is unlikely to benefit from the up-move in regional peers. The offshore Chinese yuan (CNH=) inched higher past the 7.20 level against the dollar, while the Korean won, Malaysian ringgit, and Indonesian rupiah each rose about 0.3%. "Yesterday, the situation was reverse — the rupee outperformed most Asian peers," said a currency trader at a Mumbai-based bank, adding that overall, the rupee was "simply lacking direction". "We're in a phase where speculative interest has diminished, leading to largely range-bound sessions. Any meaningful move is likely to come only post the two key events on Friday.' On Friday, the Reserve Bank of India is expected to deliver its third successive interest rate cut - a 25-basis-point cut - on the back of benign inflation data. Later in the day, the release of the U.S. non-farm payrolls report for May will offer fresh insight into the health of the U.S. labour market amid ongoing tariff-related uncertainty. Softer non-farm payrolls data could reinforce expectations of a potential Federal Reserve rate cut, keeping the dollar index under mild downward pressure, HDFC Bank said in a note. The U.S. dollar has been under pressure for much of the year, weighed down by policy uncertainty and, more recently, concerns over the fiscal deficit. The dollar index (=USD) is currently trading just 1% above its year-to-date low. Concerns about tariff-related turbulence has resurfaced, adding to the dollar's headwinds. U.S. President Donald Trump signalled plans to double tariffs on steel and aluminium, while U.S.-China trade relations remain uncertain. KEY INDICATORS: ** One-month non-deliverable rupee forward at 85.54; onshore one-month forward premium at 14.25 paisa ** Brent crude futures up 0.5% at $65 per barrel ** Ten-year U.S. note yield at 4.45% ** As per NSDL data, foreign investors sold a net $585.4 million worth of Indian shares on May 30 ** NSDL data shows foreign investors sold a net $712.3 million worth of Indian bonds on May 30
