Gold consolidated gains from a day earlier, holding above $4,000 an ounce as traders weighed a US-China trade truce that failed to quash concerns about long-term competition between the world's two largest economies. Bullion edged higher on Friday, after climbing 2.4% in the previous session to halt a four-day losing streak. While talks between Presidents Donald Trump and Xi Jinping appeared to resolve – for now – months of brinkmanship, a one-year pause is likely only to stabilize relations while buying each side time to reduce strategic dependence. The détente...
The US Dollar Index (DXY) held steady around 99.50 during the Asian session on Friday (October 31st). The greenback's movement was slight as market expectations for a Fed interest rate cut strengthened. According to the CME FedWatch Tool, the probability of a December rate cut is at 71%, up from 66% the day before, although still down from a peak of nearly 91% after Fed Chair Jerome Powell emphasized that further action would be data-dependent given the limited official data due to the US government shutdown. At its Wednesday meeting, the Fed cut interest rates by 25 basis points to...
EUR/USD weakened slightly as markets again doubted the chances of aggressive Fed easing. Powell's cautious comments prompted investors to seek refuge in the dollar, especially as global risk sentiment improved somewhat following news of the US-China trade war. Meanwhile, Europe is still awaiting new evidence on inflation and growth before the ECB dares to change its policy tone—as a result, the euro lacks a strong catalyst for a rebound. From a fundamental perspective, the Fed's "data-dependent" stance makes the dollar's direction sensitive to the next US economic release. If signs of a...
Gold held steady near $4,000 an ounce, as traders weighed a US-China trade truce that failed to quell concerns about a long-term rivalry between the world's two largest economies. Spot gold pared losses after falling as much as 0.9% an ounce on Friday during Asian trading hours. Chinese leader Xi Jinping called for stable supply chains in his first public speech after meeting with US President Donald Trump. The talks between the two leaders appeared to resolve—for now—the months-long dispute, but the one-year pause will likely only stabilize relations and give each side time to reduce...
Oil prices headed for a third straight monthly decline, falling on Friday (October 31st) due to a stronger US dollar, weak Chinese data, and rising supply from major global producers. Brent crude futures fell 38 cents, or 0.6%, to $64.62 a barrel at 10:08 GMT, while U.S. West Texas Intermediate crude was at $60.19 a barrel, down 38 cents, or 0.6%. The U.S. dollar is nearing a three-month high against major currencies, making dollar-denominated commodities like oil more expensive. Meanwhile, sources told Reuters that Saudi Arabia, the world's largest oil exporter, may lower its December...