After a nine-month pause, the US Federal Reserve is expected to resume its cycle of interest rate cuts this week. The big question is how far will it go? US President Trump has already made it clear that he wants to see cuts to a key interest rate of around 1% (from the current 4.25-4.50%), and probably as quickly as possible. Given the risk of stagflation in the wake of US tariffs, such a sharp easing of monetary policy would be disastrous for the US Dollar (USD), Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes. Trump wants the Fed to help the Treasury finance the...
Gold (XAU/USD) prices are attempting to retest the key psychological level of $3,400, as the US Dollar remains pressured on Thursday. At the time of writing, the yellow metal is battling another major resistance zone above $3,380, a level that coincides with the upper boundary of the rising wedge pattern. The resurgence of bullish momentum can be attributed to several factors. Over the past 24 hours, these have included the release of US inflation data, rising tensions in the Middle East, and the ongoing tariff threats from the US Trump administration. The release of US Producer Price...
Gold (XAU/USD) emerged as a major beneficiary of the US Dollar (USD) weakness, a theme that is expected to drive prices on Thursday (6/12). With prices currently hovering around the $3,380 mark, geopolitical risks and the US fundamental backdrop continue to support the safe-haven demand for Gold. The US Producer Price Index (PPI) data release on Thursday showed that inflation slowed at the wholesale level. The headline PPI showed an annual increase of 2.6% in May, in line with analysts' forecasts, following a 2.5% increase in April. The core PPI, which excludes volatile items, fell to 3%...
Oil prices fell on Thursday, reversing gains seen earlier in Asia, as market participants assessed the U.S. decision to remove personnel from the Middle East ahead of talks with Iran over Tehran's nuclear activities. Brent crude futures fell 73 cents, or 1.1%, to $69.04 a barrel by 0901 GMT, while U.S. West Texas Intermediate crude fell 66 cents, or 1%, to $67.49 a barrel. Both Brent and WTI jumped more than 4% to their highest levels since early April a day earlier. U.S. President Donald Trump said the U.S. was removing personnel because the Middle East "can be a dangerous place." He...
Gold prices rose to a one-week high on Thursday, boosted by softer US inflation data that reinforced expectations of a Federal Reserve interest rate cut this year, while investors eyed a raft of other inflation data for further direction. Spot gold was up 0.2% at $3,360.29 per ounce, as of 0838 GMT, after hitting its highest since June 5 the previous day. U.S. gold futures were up 1.1% at $3,380.00. The U.S. dollar index (.DXY), fell 0.3% to a near two-month low. A weaker dollar makes bullion cheaper for buyers holding other currencies. "Gold remains on the back foot... with a break...
The US dollar was among the weakest G8 currencies on Thursday (6/12). Risk-off sentiment fueled by US President Trump's fresh tariff threats, coupled with higher expectations of a Fed rate cut, pushed the USD lower against the safe-haven Japanese yen. US CPI figures released on Wednesday revealed that inflation grew at a 0.1% pace in May and 2.4% year-on-year, below the 0.2% and 2.5% increases expected by market analysts, respectively. The figures have eased concerns about the inflationary impact of Trump's "Liberation Day" tariffs and raised expectations that the Fed will cut rates again...
President Donald Trump said he would fire Lisa Cook from the Federal Reserve's Board of Governors if she does not resign her post over mortgage-fraud accusations from a top...
The Reserve Bank of Australia (RBA) maintained its cash rate at 4.1% during its April meeting, holding borrowing costs unchanged after slashing 25 bps in the February meeting, aligning with market...