Gold fell further from last week's record high, as traders unwound positions on signs the metal's explosive rally may have run too hard and too fast.
Bullion dipped 0.4% to near $3,305 an ounce in early Asian trading, and is down more than 5% since peaking above $3,500 on Wednesday. Shifts in options positioning — which last week saw trading volumes on the SPDR Gold Shares ETF surpass a record 1.3 million contracts — could point to an overheated market in the short term as prices run ahead of fundamental drivers including the dollar and real rates, according to Barclays Plc.
"We think that gold is going to come down," Barclays' Stefano Pascale said in an interview. "Technicals are starting to be a little bit stretched."
Meanwhile, hedge fund managers cut their net long futures and options positions on the metal to the lowest level in 14 months, the latest Commodity Futures Trading Commission data show.
Still, the precious metal is up more than 25% this year — outperforming nearly ever other major asset class this month — as US President Donald Trump's aggressive trade policy and fears about the global economy spurs demand for haven assets. The gains have also been supported by inflows into bullion-backed exchange-traded funds, as well as central-bank buying, as well as signs of strong demand in China, including from retail investors.
Investors were also closely watching for more developments on the global trade front, after Trump on Friday suggested another delay to his higher "reciprocal" tariffs was unlikely. The president also said that he would not drop tariffs on China unless Beijing offers "something substantial" in return.
Last week, Bloomberg reported that China is considering the suspension of its 125% tariff on some US imports, people familiar with the matter said. Meanwhile, officials in the second-biggest economy plan to hold a press conference later Monday about measures to stabilize employment and ensure stable growth.
Gold for immediate delivery fell 1.1% to $3,281.60 an ounce at 10:15 a.m. in Singapore, after declining 0.2% last week. The Bloomberg Dollar Spot Index was up 0.1%. Silver and palladium fell, while platinum was little changed.
Source : Bloomberg
Gold prices rise over 0.44% during Friday's North American session as weaker than expected jobs market data increased the chances that the Federal Reserve (Fed) will cut interest rates next week. At t...
Gold (XAU/USD) trims a part of its intraday gains, though it sticks to positive bias through the first half of the European session on Friday and remains close to the record high touched earlier this ...
Gold prices rose on Friday and were set for a fourth consecutive weekly gain, as mounting concerns over a weakening U.S. labour market eclipsed inflation worries ahead of a widely expected Federal Res...
The Gold price (XAU/USD) edges lower to around $3,630 during the early Asian session on Friday. The precious metal retreats from a record high on some profit-taking. Nonetheless, the rising bets of th...
Gold price trimmed some of its earlier losses on Thursday, yet it remains negative in the day, down over 0.14% as the latest print of consumer inflation was aligned with estimates. Nevertheless, jobs ...
EUR/USD remains steady during the North American session on Friday, poised to end the week with modest gains of over 0.18% as traders brace for the next week's monetary policy decision by the Federal Reserve (Fed). At the time of writing, the pair...
U.S. Treasury Secretary Scott Bessent met with BlackRock Inc executive Rick Rieder in New York on Friday, as the Trump administration continued its search for a new chair for the Federal Reserve, a source familiar with the matter said. Bessent has...
Oil prices rose on Friday after a Ukrainian drone attack suspended loadings from the largest port in western Russia, but gains were capped by concerns about U.S. demand. Brent crude futures settled at $66.99 a barrel, up 62 cents, or 0.93%. U.S....
The International Monetary Fund on Thursday said the Federal Reserve has scope to lower interest rates because of the weakening U.S. labor market,...
The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday...
Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), fell to 2.6% annually in August from 3.3% in...
Annual inflation in the United States (US), as measured by changes in the Consumer Price Index (CPI), rose to 2.9% in August from 2.7% in July, the...