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 AUD/USD pair surged near the key 0.6300 level in the European session on Wednesday (February 5). The Australian currency pair strengthened as investors' risk appetite improved amid expectations that the trade war would not be global and would be confined to the United States (US) and China. S&P 500 futures fell slightly during European trading hours but have recovered their losses significantly. The US Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, fell sharply to near 107.50, its lowest level in more than a week. Market participants are...
EUR/USD strengthened above 1.0400 in the European session on Wednesday (5/2). The major currency pair strengthened as the US Dollar (USD) extended its decline for the third trading day. The US Dollar Index (DXY), which tracks the Greenback against six major currencies, fell near 107.50 as it lost some risk premium, with investors assuming that the scope of the trade war will not widen. Market participants expect the trade war to be mainly between the United States (US) and China because China has retaliated with 10% tariffs on various US exports, including farm equipment, some cars, and...
Gold's price (XAU/USD) has no limit and rallies for a fifth consecutive day in a row on Wednesday, accounting for more than 2% of gains this week and hitting fresh all-time highs near $2,870. Softer economic data from the United States (US), which further supports the case for another rate cut from the Federal Reserve (Fed), together with quickly fading tariff fears, is lifting Gold to higher levels day by day. On the economic data front, the calendar could become an additional tailwind for Gold to stretch even higher. This Wednesday, US Purchasing Managers Index (PMI) data for January will...
The dollar fell versus all Group-of-10 peers as tariff risks remain in the background, while the yen led gains following data pointing to more interest rate increases by the Bank of Japan. The Bloomberg Dollar Spot Index drops 0.3% to its lowest since Jan. 27; the yield on 10-year Treasuries slips 3bps to 4.48%. The move reflects unwinds of longs built on tariff risks and meets spillover of yen strength. USD/JPY drops 1.1% to 152.65, its lowest since Dec. 13; one-week risk reversals are little changed at 140bps, puts over calls Japan nominal wages rose 4.8% in December from a year...
Silver surged above $32 per ounce on Wednesday, hitting a three-month high as global trade and economic uncertainties fueled safe-haven demand for precious metals. The metal also benefited from a sharp pullback in the dollar. Earlier this week, the US delayed its planned 25% tariffs on Mexico and Canada for one month but proceeded with the imposition of 10% tariffs on China. Beijing retaliated with its own tariffs on select US exports and targeted several US firms for potential sanctions. On the supply side, the Silver Institute recently forecasted a fifth consecutive year of significant...
After weakening against its major peers on improving risk sentiment and disappointing US data on Tuesday, the US Dollar (USD) struggled to maintain its position on Wednesday morning. Later in the session, the US economic calendar will feature the ADP Employment Change and ISM Services Purchasing Managers' Index (PMI) data for January. Investors will also continue to watch comments from central bank officials throughout the day. The USD index fell about 0.4% on Tuesday after the US Bureau of Labor Statistics reported that JOLTS Job Openings fell to 7.6 million in December, below market...
Oil prices fell on Wednesday as rising US inventories and market concerns about a renewed China-US trade war offset President Donald Trump's renewed push to eliminate Iranian crude exports. Brent crude fell 21 cents, or 0.28%, to $75.99 a barrel by 0701 GMT. US West Texas Intermediate (WTI) crude fell 11 cents, or 0.15%, to $72.59. Crude prices traded in a wide range on Tuesday, with WTI down at one point as much as 3%, the lowest since December 31, after China announced tariffs on US oil, liquefied natural gas and coal imports in retaliation for US levies on Chinese exports. But prices...
The Japanese Yen (JPY) maintained its bullish bias through the early European session on Wednesday (February 5), with the USD/JPY pair holding just above the 153.00 mark, its lowest level since December 13. A rise in Japanese real wages reaffirmed bets that the Bank of Japan (BOJ) will raise interest rates again, which in turn, provided a strong boost to the JPY. Moreover, prospects for further policy easing by the Federal Reserve (Fed) would result in a further narrowing of the interest rate differential between the US and Japan. This turned out to be another factor driving flows towards...
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....