Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more "noise" than signals of a short-term surplus. As of 3:50 PM WIB, Brent was at $69.60/barrel (+0.29%) and WTI was at $64.83/barrel (+0.31%). The gains were moderate, but enough to keep prices near the psychological $70 level for Brent. From a geopolitical perspective, market focus is on the potential for escalation in the Middle East. Recent reports...
The EUR/USD pair has opened the week with a moderate pullback from Friday's highs, at 1.1742. The pair is trading at 1.1700 at the European session opening on Monday, as the US Dollar picks up from the low levels reached after the Federal Reserve (Fed) Chairman Jerome Powell opened the door for monetary easing. Powell surprised investors with an unexpected dovish tone at the Jackson Hole Symposium, warning that "downside risk to employment is rising" and that if those risks materialize, they could quickly lead to a strong increase in unemployment. More specifically, he affirmed that the...
Gold price (XAU/USD) drifts lower to around $3,350 during the early European session on Monday(25/8), pressured by a stronger US Dollar (USD). Nonetheless, rising optimism of a September rate cut following comments by Federal Reserve (Fed) Chair Jerome Powell at the Jackson Hole symposium might cap the downside for the yellow metal. The Fed's Powell has opened the door to a rate reduction in the September meeting, but that position could become complicated if inflation pressures continue to rise. Powell added that the US economy is facing a "challenging situation," with inflation risks now...
Silver prices held steady around $38.8 per ounce on Monday, hovering near their highest levels since 2011 amid bets on US Federal Reserve policy easing. The metal rallied about 2% on Friday after Fed Chair Powell signaled that the central bank is likely to cut rates at its next meeting. Powell noted that while unemployment remains low, risks to the labor market are increasing and policy remains "restrictive," suggesting that adjustments may be warranted. Markets are now pricing in an 87% probability of a 25 bps rate cut in September, up from about 75% at some point last week. On the...
Gold slipped on Monday from a near two-week high, as the dollar crept higher, although increased expectations of U.S. interest rate cuts following Federal Reserve Chair Jerome Powell's dovish pivot last week lent some support to bullion. Spot gold was down 0.2% at $3,364.29 per ounce, as of 0256 GMT, after hitting its highest since August 11 on Friday. U.S. gold futures for December delivery eased 0.3% to $3,409.60. The U.S. dollar index (.DXY), opens new tab rose 0.2% against its rivals after dropping to a four-week low, making gold less attractive to overseas buyers. "There's a decent...
The Australian Dollar (AUD) loses ground against the US Dollar (USD) on Monday after registering more than 1% gains in the previous session. The AUD/USD pair gained ground as the US Dollar depreciated amid the rising likelihood of a Federal Reserve (Fed) interest rate cut in September. Fed Chair Jerome Powell said at the Jackson Hole symposium on Friday that risks to the job market were rising, but also noted inflation remained a threat and that a decision wasn't set in stone. Powell also stated that the Fed still believes it may not need to tighten policy solely based on uncertain...
USD/JPY appreciates after registering around 1% losses in the previous session, trading around 147.40 during the Asian hours on Monday. However, the upside of the pair could be limited as the Japanese Yen (JPY) may regain ground after hawkish comments from the Bank of Japan (BoJ) Governor Kazuo Ueda at the Jackson Hole symposium on Saturday. BoJ Governor Ueda signaled his optimism that conditions for another interest rate hike were taking shape. He stated that wage hikes are spreading from large enterprises to small and medium enterprises and are likely to keep accelerating due to a...
Gold prices held firm as momentum for a US interest rate cut solidified after Fed Chairman Jerome Powell opened the door to a September rate cut. Gold reached nearly $3,370 per troy ounce, extending Friday's 1.1% gain when Powell raised risks to the labor market at Jackson Hole despite lingering inflation concerns. The 2-year Treasury yield—which is sensitive to policy—fell, while the dollar strength index weakened after the comments, boosting non-yielding, USD-priced gold. Derivatives market participants now rate the probability of a September rate cut above 85%, but the policy direction...
Oil steadied after a weekly gain as traders tracked tensions over supplies, as well as the wider mood for risk assets after the Federal Reserve signaled a return to interest-rate cuts. Brent traded near $68 a barrel after rising almost 3% last week, while West Texas Intermediate was above $63. The US has threatened to double a tariff on all imports from India to 50% in retaliation for the nation's purchases of Russian oil. Ahead of the penalty — which is set to take effect on Wednesday — Indian diplomats have said local processors would continue taking crude from...
Gold rises in the early Asian trade. There's a broad commodities uptrend, driven by macro uncertainty, a weaker dollar, and persistent demand for "hard" assets, says Fawad Razaqzada, market analyst...
Oil extended declines after OPEC+ agreed to a bigger-than-expected production increase next month, raising concerns about oversupply just as US tariffs fan fears about the demand outlook.
Brent...
The Japanese Yen (JPY) weakened against its US counterpart and reversed part of Friday's recovery from the lowest level since July 23 following Bank of Japan (BOJ) Governor Kazuo Ueda's remarks....