The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday after tamer-than-expected producer price inflation last month calmed worries that price pressures would hold the central bank back from policy easing. Traders stuck to bets the Fed will start with a quarter-point reduction at its meeting next week, and continue with same-sized cuts through year-end, based on pricing of futures contracts that settle to the Fed's policy rate. The producer price index increased 2.6% in August from a year earlier,...
Gold prices gained on Friday, helped by a pullback in the dollar, although bullion was headed for a weekly fall as hotter-than-expected U.S. inflation data dented expectations for a super-sized 50-basis-point (bps) Federal Reserve rate cut. Spot gold rose 0.2% to $3,341.90 per ounce as of 0653 GMT. Bullion has lost 1.5% for the week. U.S. gold futures for December delivery gained 0.1% to $3,387.60. "Gold is still grappling with the aftermath of the PPI jump, which raised questions over just how far the Fed may be inclined to reduce rates this year," said Tim Waterer, chief market analyst...
Gold prices are expected to decline for the week on Friday (August 15th), as higher-than-expected US inflation data dampened expectations for a 50 basis point (bps) Fed rate cut in September. Spot gold prices rose 0.1% to $3,339 per ounce at 02:44 GMT. Bullion prices have fallen 1.8% over the week. US gold futures for December delivery were flat at $3,384. "Gold is still grappling with the impact of the surge in PPI, which raises questions about how much the Fed is willing to cut rates this year," said Tim Waterer, chief market analyst at KCM Trade. The US producer price index (PPI) rose...
The Australian Dollar (AUD) remained weak against the US Dollar (USD) on Friday (August 15th), following disappointing key economic data from China, Australia's main trading partner. AUD/USD weakened more than 0.5% in the previous session as the US Dollar strengthened following stronger US economic data. China's Retail Sales rose 3.7% year-on-year (yoy) in July, lower than the 4.6% forecast and 4.8% in June. Meanwhile, Industrial Production increased 5.7% YoY, compared to the 5.9% and 6.8% forecasts. The weakness of the AUD/USD pair is likely limited as the US Dollar weakened amid growing...
Silver prices (XAG/USD) held below US$38 per troy ounce on Friday, after plunging more than 1% in the previous session. Pressure persisted as higher-than-expected US producer price inflation (PPI) dampened hopes for a significant Fed rate cut in September and kept interest in non-yielding assets low. Data-wise, weekly jobless claims came in at 224,000, better than the 228,000 forecast, indicating a still-resilient labor market. The combination of a hot PPI and solid claims has reduced the urgency for aggressive easing, reinforcing the "soft landing" narrative among market...
Gold is headed for a weekly loss, as traders scale back bets on a Federal Reserve interest rate cut next month following rising inflation. Gold bullion traded near $3,335 an ounce, after ending the previous session 0.6% lower following a report showing US wholesale inflation rose in July at its highest pace in three years. Treasury yields and the dollar strengthened after the data, weighing on non-interest-bearing gold as it is priced in that currency. Swap traders now see about a 90% chance the US central bank will cut interest rates in September, having fully priced in such a move...
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...