Gold surged near a record high of $3,650 an ounce on Wednesday (September 10) after an unexpected decline in US producer prices reinforced expectations that the Federal Reserve will continue cutting interest rates at its meeting next week. Both headline and core PPI fell 0.1% in August, against projections for a 0.3% increase, driven by a sharp decline in wholesale margins for machinery and vehicles. The data follows a weak labor market report earlier this month that has prompted markets to price in several Fed rate cuts this year. Investors now await Thursday's consumer price inflation...
GBP/USD moved lower after two days of gains, trading around 1.2220 during Asian trading hours on Thursday (16/1). The pound (GBP) came under downward pressure following weaker-than-expected inflation data from the United Kingdom (UK) released on Wednesday. The yield on the benchmark 10-year UK bond fell to 4.73%, retreating from a multi-decade high, after official data showed an unexpected drop in UK headline inflation, raising expectations of a rate cut by the Bank of England (BoE). The UK Consumer Price Index (CPI) rose by 2.5% year-on-year in December, down from 2.6% in November and...
Silver price (XAG/USD) remains stable at around $30.70 per troy ounce during the Asian session on Thursday. The price of the non-yielding metal gained support as December's lower-than-expected underlying inflation in the US sparked speculation that the US Federal Reserve (Fed) might implement two interest rate cuts this year. Meanwhile, 2-year and 10-year US Treasury bond yields stand at 4.27% and 4.66%, respectively, at the time of writing. Both yields dropped by over 2% on Wednesday. Additionally, the US Dollar Index (DXY), which gauges the US Dollar's (USD) performance against six major...
The dollar index held around the 109 level on Thursday (16/1) after declining for three straight sessions, as signs of easing U.S. inflation strengthened expectations for further Federal Reserve interest rate cuts this year. U.S. core inflation rose 3.2% year-on-year in December, slowing from 3.3% in November, which was also the consensus forecast. On a monthly basis, the core reading fell to 0.2% from 0.3%, in line with expectations. The inflation data led to a sharp drop in the 10-year U.S. Treasury yield, which fell about 14 basis points to around 4.65%. Market participants also expect...
The Australian Dollar (AUD) remains stable on Thursday following three consecutive days of gains against the US Dollar (USD). The AUD/USD pair saw modest support as the AUD posted slight gains in response to the Australian Employment report. According to the Australian Bureau of Statistics (ABS), employment increased by 56.3K in December, up from 28.2K in November (revised from 35.6K) and significantly exceeding the market forecast of 15.0K. Meanwhile, the Unemployment Rate rose to 4.0% in December, compared to 3.9% in November, aligning with market expectations.Bjorn Jarvis, head of labor...
West Texas Intermediate (WTI), the US crude benchmark, was trading around $78.85 on Thursday (16/1). WTI prices moved lower on improving prospects of a ceasefire between Hamas and Israel that could ease geopolitical tensions in the Middle East, weighing on WTI prices. According to an official, Israel and Hamas have agreed to a deal to halt fighting in Gaza and exchange Israeli hostages for Palestinian prisoners. An end to the conflict between Israel and Hamas would ease tensions in the Middle East and reduce the threat of disruption to crude supplies in the region. This, in turn, could hurt...
The EUR/USD pair held steady around 1.0295 during the early Asian session on Thursday (16/1). A cooler-than-expected US Consumer Price Index (CPI) inflation data for December raised bets that the US Federal Reserve (Fed) could cut interest rates twice this year, weighing on the greenback. However, growing concerns over the Eurozone economic growth may cap gains for the major currency pair. The US dollar (USD) fell after the US core CPI data came in weaker than expected, fueling expectations that the Fed's easing cycle may not be over yet. Markets now expect the US central bank to deliver 40...
Oil prices rose more than 2% on Wednesday, supported by a large draw in U.S. crude stockpiles and potential supply disruptions caused by new U.S. sanctions on Russia, while a Gaza ceasefire deal limited gains. Brent crude futures settled $2.11, or 2.64%, higher at $82.03 a barrel, the highest since August 2024. U.S. West Texas Intermediate crude (WTI) settled up $2.54, or 3.28%, at $80.04 a barrel, the highest since July. In post settlement trade, Brent rose to the highest since July and WTI gained more than $3 a barrel. U.S. crude oil inventories fell last week to their lowest since...
Gold traded higher mid-afternoon on Wednesday as the dollar and yields fell after a U.S. inflation measure rose more than expected last month. Gold for February delivery was last seen up US$35.80 to US$2,718.10 per ounce, the highest since Dec.11. The U.S. Bureau of Labor Statistics said the Consumer Price Index (CPI) rose by 0.4% in December, up from 0.3% in November and ahead of the consensus estimate for a rise of 0.3%, according to FactSet. Core CPI, excluding food and energy, rose 3.2% annualized, under the consensus outlook for a 3.3% rise. Though the Federal Reserve is still widely...
Gold (XAU/USD) is extending its decline on Wednesday for a second consecutive day as the US Dollar (USD) and US Treasury yields firm ahead of the release of the Federal Open Market Committee (FOMC)...
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....