The US dollar weakened against a number of major global currencies as market expectations for the Federal Reserve's (Fed) monetary policy easing increased. Market participants believe inflationary pressures in the United States are beginning to ease, opening room for the central bank to lower interest rates in the near future. These expectations of interest rate cuts are the main factor pressuring the dollar. Lower interest rates make the yields on dollar-denominated assets less attractive, prompting some investors to shift funds to other assets, including emerging market currencies and...
Global gold prices recorded a slight decline in today's US trading session after the release of the latest economic data showing stronger-than-expected US economic growth. Third-quarter US GDP data showed solid expansion, triggering a strong response in financial markets and putting pressure on the precious metal as a safe-haven asset. A strengthening US economy tends to reduce expectations of further monetary easing by the Fed, as high growth often reduces the likelihood of an imminent interest rate cut. This strong data also supported a strengthening US dollar and rising Treasury bond...
Oil prices are expected to end four consecutive days of gains as traders weigh the US crackdown on Venezuelan shipments amid weak demand. West Texas Intermediate (WTI) prices fluctuated near $58 per barrel, while Brent neared $62. The US has boarded one tanker, seized another, and recently pursued a third near Venezuela, as Washington increases pressure on the government of Nicolas Maduro. However, more than a dozen vessels have loaded oil off the country's coast since the Trump administration stepped up efforts to curb Caracas's crude revenues. Trading volumes tend to decrease ahead of...
Silver extended its record rally on Tuesday, reaching the key $70 an ounce mark, while gold pared gains after hitting an all-time high as stronger-than-expected US economic data triggered a decline. Spot silver rose 0.7% to $69.48 an ounce after hitting a record high of $70.66 earlier. Prices are up 123% since the start of the year. "It's essentially the supply and demand realities in a market that's been in deficit for five years, along with rising industrial demand. The safe-haven aspect, expectations of a weaker dollar, and lower yields are all part of that equation," said Peter Grant,...
Gold and silver rallied to fresh all-time highs on escalating geopolitical tensions and prospects for more US rate cuts. Spot silver rose as much as 3.6% to trade above $70 an ounce for the first time. Gold was near $4,500 an ounce, extending gains after its biggest one-day jump in more than a month. Traders are betting the Federal Reserve will follow three straight interest-rate cuts by lowering the cost of borrowing again next year, which would be a tailwind for non-yielding precious metals. Gold's haven appeal has also been amplified in the last week by rising geopolitical...