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 US Dollar (USD) is trading higher on Monday after spending most of its time in red numbers at the start of this week. The turnaround comes on the back of a very upbeat release in the preliminary S&P Global Services Purchase Managers Index (PMI) release for December. A print of 58.5 against the previous 56.1 and the concensus 55.7 is smashing it out of the park and is providing the needed tailwind for the Greenback to get out of its disappointing performance earlier this Monday. The first move on Monday was initiated after Chinese Retail Sales came in at 3.0% for November, below...
The dollar index edged above 107 on Monday, hitting a three-week high, as traders awaited the Fed's interest rate decision and assessed key economic data. The Fed is widely expected to cut the federal funds rate by another 25 basis points, but investors will be closely monitoring the latest economic projections, particularly the prospect of rate cuts by 2025, with markets currently pricing in just three cuts. On the data front, the S&P Global Flash PMI showed surprisingly strong growth in private sector activity this month led by a surge in services while the manufacturing downturn...
Gold (XAU/USD) started the week on a relatively positive note, with the US dollar (USD) weighed down by a slight decline in US Treasury yields and weaker-than-expected US manufacturing figures. However, the precious metal remains close to recent lows after a 2.5% sell-off late last week. US Treasury yields fell on Monday after a sharp rally last week, taking some of the recent bullish pressure off the US dollar. Investors appear cautious about placing directional US dollar bets as they prepare for the all-important Federal Reserve (Fed) monetary policy decision on Wednesday. The market is...
Crude Oil is testing vital support around $70.00, after selling pressure emerged on the back of Chinese Retail Sales data for November which dampened hopes for a speedy recovery in the region. The 3% growth was far below consensus and the situation is set to deteriorate further as tanker rates on key routes to China are falling to the lowest level this year, pointing to even more sluggish demand ahead. Source: FXStreet
Silver Prices (XAG/USD) are trading in a mild positive bias on Monday, trimming some losses after the rejection from levels above $32.00 last week. A mild retreat in US Treasury yields is supporting precious metals on Monday but the overall picture shows the pair vulnerable. The daily chart reveals a sharp reversal pattern last week, which triggered a more than 4% sell-off in the last half of the week. Upside attempts are looking feeble so far, with previous support at $30.85 likely to challenge bulls. Source: Fxstreet
EUR/USD surrendered intraday gains and returned below the psychological 1.0500 level in the European session on Monday as a large number of European Central Bank (ECB) policymakers, including President Christine Lagarde, have supported further policy easing and a gradual move towards the neutral interest rate, which they expect to be around 2%. "Will cut interest rates further if incoming data confirm that disinflation is on track," Lagarde said at the Annual Economic Conference in the European session on Monday. Lagarde's dovish remarks on the policy outlook were supported by the...
Gold edged higher ahead of the Federal Reserve's final interest rate decision of the year, with traders also weighing the outlook for 2025 policy. The bullion's gains followed a 2.6% decline in the previous two sessions on the back of mixed U.S. data last week — including rising wholesale inflation and higher-than-expected jobless claims. The Fed is widely expected to cut rates by 25 basis points at its meeting on Wednesday, and swaps traders are pricing in a total of three quarter-point cuts over the next 12 months. Lower interest rates are usually positive for gold, since it doesn't pay...
The dollar hovered close to a three-week peak versus major peers on Monday, ahead of a week of central bank meetings in which markets expect the Federal Reserve to cut interest rates but signal a measured pace of easing for 2025 Bitcoin soared above $105,000 for the first time, buoyed by signs President-elect Donald Trump will go ahead with a potential strategic bitcoin reserve. The euro was up 0.13% on the day at $1.0517, after dipping to $1.0453 at the end of last week, its weakest since Nov. 26, hampered by ratings agency Moody's (NYSE:MCO) unexpectedly downgrading France 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....