Markets are kicking around the idea of a Federal Reserve rate cut in September, but Morgan Stanley isn't sure, warning that the odds may be closer to 50-50 despite widespread expectations. Strong economic indicators including solid GDP growth, healthy financial conditions, and low volatility stand in the way of a clear case for easing, the bank said in a recent report. Nominal GDP growth remains robust at over 5%, unemployment holds steady at 4.2%, and retail sales continue surpassing expectations, reflecting an economy far from needing stimulus, Morgan Stanley's economists said. "It cannot...
Front-month gold futures close the day up 0.1% to $2,620.30 an ounce, quickly turning around after the contract posted its largest decline in four years on news of a potential ceasefire between Israel and Lebanon. President-elect Trump's plans for new tariffs are throwing a wrench into thoughts around future interest rate cuts, which could keep rates higher for longer. "These factors may keep these gains fragile," says Samer Hasn of XS.com in a note. SPDR Gold shares are down 0.1% in afternoon trading. Source: Marketwatch
Oil prices rose on Tuesday after falling more than $2 a barrel in the previous session as investors took stock of a potential ceasefire between Israel and Lebanon's Hezbollah, which had weighed on oil's risk premium. Brent crude futures were up 73 cents, or 1%, to $73.74 a barrel as of 1018 GMT. U.S. West Texas Intermediate crude futures were at $69.62 a barrel, up 68 cents, also 1%. Prices fell sharply on Monday after multiple reports that Israel and Lebanon had agreed to the terms of a deal to end the Israel-Hezbollah conflict. A senior Israeli official said Israel looks set to approve a...
Gold futures rise, recouping some ground after a 3.7% drop on Monday. Futures are up 0.4% at $2,629.70 a troy ounce. The precious metal remains under pressure on renewed risk appetite in financial markets, says ActivTrades' Ricardo Evangelista. Trump's nomination of Scott Bessent, viewed as a balanced choice for U.S. Treasury Secretary, has eased fears that a second Trump administration's tariff-heavy policies could reignite inflation and stifle economic growth, Evangelista says in a note. Reports of a potential ceasefire agreement between Israel and Hezbollah have also reduced safe-haven...
Gold steadied after declining earlier as Donald Trump's threat of 25% import tariffs on Canada and Mexico buoyed the dollar. The US president-elect said the import taxes were necessary to clamp down on migrants and illegal drugs crossing America's borders. He also vowed to impose additional 10% tariffs on goods from China. The subsequent strengthening of the dollar made gold more expensive for many buyers. Bullion traded near $2,630 an ounce after slumping 3.4% in the previous session amid a potential easing of tensions in the Middle East. Israel's security cabinet is...
Gold price (XAU/USD) struggles to capitalize on its intraday bounce from the $2,600 neighborhood, or over a one-week low and remains depressed for the second successive day heading into the European session on Tuesday. US President-elect Donald Trump's tariff threat drove some haven flows and provided a modest intraday lift to the safe-haven precious metal. That said, expectations for a less dovish Federal Reserve (Fed) caps the upside for the non-yielding yellow metal. Meanwhile, the growing market conviction that Trump's expansionary policies will reignite inflation and force the Fed to...
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...