Friday, 12 September 2025
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Gold slips as the US Dollar gains on hawkish Fed and trade optimism
Monday, 7 July 2025 19:43 WIB | GOLD |GOLD

Gold (XAU/USD) is currently under pressure as markets await more news of trade deals ahead of Wednesday's tariff deadline.

In the European session, Gold is trading around $3,300 at the time of writing.

Liquidity and trade volumes are increasing on Monday as the US returns to financial markets following Friday's Independence Day holiday.

US yields have also firmed after Thursday's Nonfarm Payrolls (NFP) report revealed a resilient labour market. This reduced the prospects that the Federal Reserve (Fed) would lower interest rates in July. The positive economic data has eased fears of a slowing economy, lifting the US Dollar.

Expectations that interest rates will remain at higher levels for longer do not bode well for non-yielding assets such as bullion.
Gold awaits details on trade deals, FOMC Minutes

Reporters spoke to US President Donald Trump at the Morristown Airport on Sunday about the trade negotiations. "I think we will have most countries done by July 9, either a letter or a deal," he said.

Letters outlining the tariffs that will be charged to 12-15 countries are expected to be sent by noon on Monday. The remaining notifications are to be dispatched before Wednesday. Reciprocal tariffs are set to take effect starting August 1.

Trump has written a post on Truth Social stating that "Any country aligning themselves with the Anti‑American policies of BRICS, will be charged an ADDITIONAL 10 % tariff. There will be no exceptions to this policy."

The BRICS summit in Rio de Janeiro is currently underway, and the emerging market nations that established the bloc are beginning to reduce their reliance on the United States. This initiative includes moving away from using the US Dollar as a receiving currency, a concept known as de-dollarization.

BRICS is an acronym that stands for an association of five major emerging economies: Brazil, Russia, India, China, and South Africa. This group was formed to enhance economic cooperation and promote development in these countries.

BRICS nations collaborate on various issues, including trade, investment, finance, and sustainable development. They aim to increase their influence in global economic and political affairs. The bloc also holds annual summits to discuss and coordinate strategies for mutual support and growth.

The World Gold Survey in June showed that demand for bullion has been on the rise, especially with tensions between the US and China escalating in recent years.

The Federal Open Market Committee will release the Minutes from its June Meeting on Wednesday. This report outlines the reasons for maintaining interest rates at the current range of 4.25% to 4.50% in June. It also provides insight into the perspective of the Board of Governors members regarding the prospects of the US economy. This influences expectations of when the Fed may cut interest rates

Source: Fxstreet

RELATED NEWS
Gold Price Forecast: XAU/USD edges lower below $3,650 on profit-taking ...
Friday, 12 September 2025 07:42 WIB

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 slips as traders book profits despite increasing Fed dovish bets...
Friday, 12 September 2025 02:00 WIB

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 ...

Gold Trims Losses as Mixed US Data Strengthens Bets on Fed Rate Cut...
Thursday, 11 September 2025 20:40 WIB

Gold trimmed losses after US inflation and labor market data strengthened bets that the Federal Reserve will cut interest rates next week. Consumer prices excluding food and energy rose 3.1% last mont...

Gold Eases Slightly On Dollar Recovery, Focus On US CPI Data ...
Thursday, 11 September 2025 16:33 WIB

Gold weakened slightly on Thursday (September 11), but held near record highs well above $3,600, as a modest dollar recovery and profit-taking weighed on prices, while investors awaited US consumer in...

Gold Steady at $3,645; Fed Rate Cut Speculation Strengthens...
Thursday, 11 September 2025 08:06 WIB

Gold held steady just below its record, around $3,645/oz, after an unexpected decline in US producer prices (PPI) fueled hopes of Fed policy easing. The market now awaits the release of US CPI data Th...

LATEST NEWS
Gold Strengthens, Poised for Fourth Weekly Gain

Gold prices continue to approach $3,650 per ounce and are poised for a fourth weekly gain. This was fueled by expectations that the Federal Reserve will cut US interest rates, as inflows into gold-backed ETFs increased. Silver also rallied,...

Hong Kong Stocks Set to Log Solid Weekly Gains

Hong Kong shares surged 375 points, or 1.4%, to 26,405 on Friday morning's trade, reversing losses in the prior session and hitting their highest in over four years. The rally was broad-based, tracking a global rally after Wall Street's S&P 500...

Jobless Claims Surge, Dollar on the Brink

The US dollar weakened on Friday after a surge in jobless claims and a moderate rise in inflation made markets increasingly confident that the Fed would cut interest rates next week—and possibly further thereafter. The dollar index stood at 97.585,...

POPULAR NEWS
Fed seen on course for rate cuts after PPI data
Thursday, 11 September 2025 01:30 WIB

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...

Breaking News: US Annual PPI Inflation Falls to 2.6% in August, Compared to an Expected 3.3%
Wednesday, 10 September 2025 19:39 WIB

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...

US Nonfarm Payrolls benchmark revision points to 911,000 decrease in March 2025 level of employment
Tuesday, 9 September 2025 21:13 WIB

The US Bureau of Labor Statistics reported on Tuesday that the preliminary estimate of the Current Employment Statistics (CES) national benchmark...

IMF says Fed has scope to lower interest rates
Friday, 12 September 2025 01:38 WIB

The International Monetary Fund on Thursday said the Federal Reserve has scope to lower interest rates because of the weakening U.S. labor market,...