Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer tone made the market a little more willing to take risks, thus easing the pressure to buy gold as a safe haven. However, the big picture hasn't changed: gold remains in high territory because the world remains filled with uncertainty. Trade wars could resurface at any time, geopolitical tensions haven't completely subsided, and investors are...
Spot gold prices rose 1% to a two-week high on Friday (November 28th), as expectations that the Federal Reserve will cut interest rates next month boosted demand for the non-yielding asset, while silver hit a new record high. Spot gold prices rose 0.9% to $4,192.78 an ounce at 10:09 a.m. ET (1510 GMT), the highest since November 14th, and are expected to post a weekly gain of 2.9%. Bullion prices, which are expected to gain 4.6% this month, are on track for their fourth consecutive monthly gain. Silver rose to a new record high of $55.33 an ounce, up 3.5% for the session and 13% for the...
The U.S. dollar strengthened slightly on Friday, but the greenback is still facing its sharpest weekly drop since July as traders assess the probability of a rate reduction by the U.S. Federal Reserve next month. Traders have raised the odds of a quarter-point Fed cut at its December 9-10 meeting to around 87% from roughly 40% a week earlier, a swing that has knocked the dollar lower and trimmed bond yields. The shift was driven by benign U.S. data and some dovish comments from Fed policymakers, although other officials have called for a more cautious approach to rate changes due to a lack...
Brent crude oil futures inched up on Friday as drawn-out Russia-Ukraine peace talks kept geopolitical risks elevated, while traders kept one eye on the outcome of an OPEC+ meeting on Sunday for clues about potential output changes. However, U.S. West Texas Intermediate crude futures were frozen after a system outage at exchange operator CME Group. Traders said they were informed by CME just before 0300 GMT of the halt due to a cooling issue at its CyrusOne data centres, which affected trading of all futures and options contracts on Globex. Brent oil trades on the Intercontinental Exchange,...
Gold (XAU/USD) sticks to intraday gains near a two-week top heading into the European session on Friday, with bulls awaiting a sustained move beyond the $4,200 mark before placing fresh bets. The increasing likelihood of another interest rate cut by the US Federal Reserve (Fed) in December turns out to be a key factor that continues to benefit the non-yielding yellow metal. The intraday move up could also be attributed to technical buying above the $4,170-4,175 hurdle. Meanwhile, the US Dollar (USD) looks to build on the overnight bounce from an over one-week low and acts as a headwind for...
The US dollar weakened and is heading for one of its worst weeks since mid-year as markets increasingly believe the Federal Reserve will cut interest rates in December. Expectations of this policy easing arose after a series of data showed inflation starting to tame, retail sales slowing, and consumer confidence declining. Fed interest rate futures now project a probability of a 25 bps rate cut at over 80%, much higher than a week earlier. In such a situation, US bond yields tend to fall, weakening the dollar's appeal as a yield-bearing asset. Dovish comments from several Fed officials have...
Silver (XAG/USD) remains near its highest level since mid-October, supported by a combination of expectations for global interest rate cuts and a weakening US dollar. The prospect of lower interest rates makes non-yielding assets like silver and gold relatively more attractive than bonds. At the same time, concerns about the global economy and geopolitical uncertainty are driving some investors to seek "safe haven alternatives" to gold, and silver is also benefiting from these inflows. Fundamentally, silver has a dual advantage: it is not only a precious metal that hedges against inflation...
The EUR/USD pair traded flat on Thursday, trading around 1.1596, as market liquidity thinned during the US Thanksgiving holiday. Despite the limited movement, pressure on the US dollar remained as expectations mounted that the Federal Reserve would cut interest rates soon. The combination of declining inflation, weak retail sales data, and declining consumer confidence has made the market increasingly confident that borrowing costs in the US will fall. According to the CME FedWatch Tool, the market now prices around an 85% chance of the Fed cutting interest rates by 25 basis points. This...
Global oil prices are still trending lower and are now heading for their longest monthly decline in more than two years. West Texas Intermediate (WTI) is hovering around $59 per barrel, slightly above Wednesday's close before the Thanksgiving holiday in the US, while Brent is holding above $63 per barrel. The US oil benchmark is already on track for its fourth consecutive monthly decline in November, the longest since the first quarter of 2023. This price pressure reflects market concerns about demand and future supply policies. Meanwhile, market participants' attention is also focused on...
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....