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 (XAU/USD) strengthened in the Asian session, recovering from a previous sharp decline and returning to $3,341, surpassing a one-week low. This strengthening occurred as the US dollar struggled to maintain its two-day rally as market participants held back ahead of today's release of US consumer inflation (CPI) data. The CPI data will be a key indicator of expectations for a Federal Reserve interest rate cut, which could influence the US dollar's movement and provide fresh impetus for non-yielding gold. Ahead of the data release, speculation that the Fed could cut interest rates...
Silver prices (XAG/USD) strengthened slightly to around $37.90 in Asian trading on Tuesday (August 12th), driven by expectations that the US Federal Reserve will cut interest rates at its upcoming September meeting. This optimism arose after US employment data for July showed weakness, reinforcing the view that the central bank would shift to a more accommodative monetary policy. Dovish statements from Fed officials also weakened the US dollar, thus supporting the strengthening of dollar-denominated commodities like silver. Lower interest rates reduce the opportunity cost of holding...
Oil prices were little changed as investors weighed President Donald Trump's delay of high US tariffs on China against the likely outcome of his meeting with Russia's Vladimir Putin. Brent crude traded near $67 per barrel, while West Texas Intermediate was around $64. Prices remained near two-month lows after a sluggish trading session on Monday and low volumes at the start of the Asian session. Trump signed an order extending a ceasefire with China until November 10, delaying a scheduled tariff increase on Tuesday. Traders were looking ahead to a meeting between Trump and Putin later this...
The Australian Dollar (AUD) held its ground against the US Dollar (USD) on Tuesday ahead of the Reserve Bank of Australia's (RBA) interest rate decision. The AUD/USD pair is likely to strengthen as US President Donald Trump has extended the China tariff deadline for another 90 days. The Reserve Bank of Australia (RBA) is expected to announce a 25 basis point (bps) interest rate cut to 3.6% from 3.85% at its August monetary policy meeting. Traders will likely be watching the Monetary Policy Statement, followed by a press conference by RBA Governor Michele Bullock. The Trump administration...
Gold strengthened in early Asian trading amid a possible technical recovery after its sharpest drop in three months on Monday. The rise came after a post on US President Trump's Truth Social account clarified that the precious metal would not be subject to tariffs. Last Friday, gold surged to an all-time high following reports that bullion might be subject to tariffs. Meanwhile, traders are likely to closely monitor the US July CPI data due later today for clues on the Fed's interest rate direction. Spot gold prices rose 0.2% to $3,347.81/oz. Source: Dow Jones Newswires
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...