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...
The dollar index rose 0.2% to around 106.5 on Wednesday, recovering some losses from the previous session as investors awaited crucial economic data to provide further clarity on the outlook. Markets are focused on the second estimate of fourth-quarter GDP growth, due Thursday, and the PCE price index report, set for Friday. The dollar faced pressure on Tuesday after data revealed US consumer confidence had dropped 7 points to an eight-month low of 98.3 in February, well below the forecasted 102.5, marking the third consecutive monthly decline. Growing economic concerns have led markets to...
Oil prices rose marginally on Wednesday, bouncing off two-month lows hit in the prior session after an industry group reported U.S. crude stockpiles fell last week. Brent crude rose 20 cents, or 0.3%, to $73.22 a barrel by 0430 GMT. U.S. West Texas Intermediate crude oil futures were up 18 cents, or 0.3%, to $69.11. U.S. crude stocks fell 640,000 barrels in the week ended February 21, market sources said on Tuesday, citing American Petroleum Institute data. Official U.S. stockpile data is due later on Wednesday. [API/S] [EIA/S] "If confirmed by the EIA later today, it would mark the first...
EUR/USD retraces its recent gains registered in the previous session, trading around 1.0500 during the Asian hours on Wednesday. The currency pair loses ground as the US Dollar (USD) appreciates amid improving US Treasury yields. The US Dollar Index (DXY), which measures the USD against six major currencies, rises to near 106.50 with 2-year and 10-year yields on US Treasury bonds improving to 4.12% and 4.32%, respectively, at the time of writing.However, weakening US economic data put pressure on the Greenback. The Conference Board's consumer confidence index fell by 7 points in February to...
The Australian Dollar (AUD) remains subdued against the US Dollar (USD) for the fourth consecutive day on Wednesday. The AUD/USD pair remains under pressure after Australia's monthly Consumer Price Index (CPI) showed a 2.5% year-over-year rise in January, matching December's increase. This fell short of market expectations for 2.6% growth. China's Commerce Ministry announced on Wednesday that the country's International Trade Representative and Vice Minister of Commerce, Wang Shouwen, met with US business leaders. The discussions focused primarily on tariffs, though no further details were...
USD/JPY pair rebounds to near 149.30 during the Asian trading hours on Wednesday. However, the global risk-off sentiment and rising bet of more interest-rate hikes from the Bank of Japan (BoJ) might boost the Japanese Yen (JPY) and cap the upside for the pair. The BOJ is anticipated to raise rates from 0.50% to 0.75% this year, which could influence investor sentiment and support the JPY. Overnight index swaps are fully pricing an increase in borrowing costs by September and pricing in a 50% odd move as soon as June, according to Bloomberg. Japan's Services Producer Pricing Index (PPI)...
The Gold price (XAU/USD) recovers some lost ground after reaching a one-week low in the previous session. The uncertainty and ongoing fears of instability around US President Donald Trump's tariff plans provide some support to the yellow metal, a traditional safe-haven asset. Nonetheless, analysts believe that Trump's plans for higher tariffs have raised inflation worries at the US Federal Reserve (Fed), which might convince the US central bank to keep interest rates higher for longer. This, in turn, might cap the upside for the precious metal as higher interest rates tarnish non-yielding...
The U.S. dollar sagged near an 11-week low against its major peers on Wednesday, under pressure from sliding short-term Treasury yields after a run of weak economic data. The safe-haven yen strengthened towards its highest level since October with investor sentiment fragile amid the threat of new rounds of tariffs from the administration of U.S. President Donald Trump, whereas the Canadian dollar hovered near a two-week trough with additional levies due to hit next week. "U.S. data flow on net is now disappointing expectations, calling into question the U.S. exceptionalism narrative that...
Gold edges higher in early Asian trade likely due to a technical recovery after front-month Comex gold futures fell sharply overnight. However, demand for safe-haven assets could keep gold prices near record levels, FlowCommunity's Ruben Ferreira says in an email. Market volatility has increased after U.S. President Trump said tariffs on Mexico and Canada were set to move forward next week, the head of Portuguese Operations says. This has damped hopes for an easing in trade tensions and could drive more bullish sentiment for the precious metal, Ferreira adds. Spot gold is 0.2% higher at...
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....