Gold prices continue to trend higher on Friday after the Federal Reserve (Fed) leaned dovish, as commented by the Fed Chair Jerome Powell, who said that "downside risks to the labor market are rising." XAU/USD trades at $3,371 after hitting a daily low of $3,321. The day arrived and Powell hinted that there's a "reasonable base case" to think that tariffs would create a "one-time" increase in prices. Nevertheless, he acknowledged that risks to inflation are tilted to the upside and risks to employment to the downside, a "challenging situation." After his remarks, Bullion prices initially...
Silver soared to $39 per ounce, approaching the 14-year high of $39.5 touched in the end of July amid the outlook of rate cuts by the Fed, while markets assessed the demand for silver's industrial uses. The Fed sees a shift in the balance of risks of a weaker labor market against inflation following the revision to payrolls and higher unemployment, likely warranting an adjustment to monetary policy that will translate to a 25bps rate cut in the upcoming September decision. Additionally, traders moved to place more bets of three total rate cuts this year, supporting non-yielding precious...
Gold strengthened 0.6% to US$3,359/oz in the US session on Friday (August 22nd), as the dollar weakened after Fed Chairman Jerome Powell opened the door to a September interest rate cut. Sentiment turned positive for the precious metal as the prospect of lower interest rates typically reduces the opportunity cost of holding gold. In his Jackson Hole speech, Powell emphasized that unemployment is stable but risks to the labor market are rising. He stated that policy remains in restrictive territory, so "the underlying outlook and shifting balance of risks may require adjustments" to the...
Oil prices held steady as the market weighed the prospects for Russian crude flows to India after the Trump administration stepped up criticism of the trade deal ahead of an expected tariff hike. Brent held above $67 a barrel, on track for its biggest weekly gain since early July. White House trade adviser Peter Navarro again criticized India for continuing to buy Russian oil and said he sees US import levies on the country doubling as planned on August 27. President Donald Trump has threatened to raise tariffs on Indian goods to 50%, half of which is due to purchases of Russian crude....