China Boosts Gold Purchases to Record Levels Amid Tensions

China Boosts Gold Purchases to Record Levels Amid Tensions:
Amid escalating geopolitical tensions and an ongoing trade war with the United States,
China is adopting a clear hedging strategy by ramping up gold
purchases at an unprecedented pace.
According to data from the World Gold Council,
China’s demand for gold, through both exchange-traded funds (ETFs)
and official reserves have reached record levels during the first half of 2025.
This move reflects a strategic effort to reduce reliance on the U.S. dollar
and enhance economic stability in a volatile global landscape.

 

Contents

China Increases Gold Purchases

U.S. Natural Gas Prices Rise

 

 

 

China Increases Gold Purchases

As global geopolitical tensions escalate and the trade war between the U.S. and China intensifies,
Beijing has recorded a sharp surge in gold buying, a strategic shift toward
Hedging and reducing dependency on the dollar.

According to the World Gold Council,
China’s demand for gold ETFs reached a record 45 metric tons in Q2 2025,
up from 18 tons in Q1.
This brought the total demand in the first half of the year to 63 tons—the highest ever recorded.
Thanks to this strong growth, China’s ETF gold holdings soared by 74% year-over-year to reach 200 tons.

In parallel, the People’s Bank of China (PBOC) boosted
its official gold reserves by 2 tons in June,
bringing total reserves to a record 2,299 tons.

Goldman Sachs estimates that China also made unofficial purchases
of 15 tons of gold from the London market in May, eight times more than the amount officially reported.

Notably, China is the world’s largest gold producer,
accounting for about 10% of global production.
However, it consumes nearly three times what it produces,
making it the world’s largest gold importer as well.

As of the end of May, China’s total gold reserves stood at 73.83 million ounces,
up from 73.77 million ounces in April.
Despite the increase in volume, the dollar value of the reserves fell to $241.99 billion at the end of May,
down from $243.59 billion in April, due to fluctuations in global gold prices and the dollar exchange rate.

 

 

 

 

U.S. Natural Gas Hits 3-Week High Amid Soaring Electricity Demand Due to Heatwave

Natural gas prices in the United States rose at Friday’s close,
hitting their highest level in three weeks.
The rally was fueled by a sharp increase in electricity consumption
Driven by high temperatures across much of the country.

August gas futures on the New York Mercantile Exchange (NYMEX) climbed by 0.60%,
or 2.3 cents, to settle at $3.565 per million British thermal units (MMBtu)
The highest closing level since June 27.
The contracts also posted strong weekly gains of about 8%.

Temperatures are expected to remain above seasonal norms across the U.S. at least through August 2,
with next week projected to be the hottest of the summer so far,
keeping electricity demand at elevated levels.

 

China Boosts Gold Purchases to Record Levels Amid Tensions

U.S. Bond Yields Fall Amid Expectations of a July Rate Cut

U.S. Bond Yields Fall Amid Expectations of a July Rate Cut:
U.S. bond yields declined following fresh remarks by Christopher Waller,
a member of the Federal Reserve Board of Governors,
who renewed his call for an interest rate cut in July.
This coincided with data showing improved consumer inflation expectations,
While stock indexes recorded mixed performances as the earnings season kicked off.
Meanwhile, President Donald Trump signed a law regulating stablecoins
a move seen as a victory for the cryptocurrency industry.

Contents

Short-Term Bonds

Inflation

Interest Rate Cut

Consumer Confidence

Market Outlook
Tariffs

Supporting Factors

 

 

 

 

Short-Term Bonds Lead Gains

Short-term U.S. Treasury bonds posted notable gains after Waller
signalled he was willing to dissent from the majority within the Federal Reserve
If they decided to keep rates unchanged.
This was accompanied by data from the University of Michigan,
which showed that consumer inflation expectations for the year ahead
fell to 4.4% from 5% the previous month.
Meanwhile, the S&P 500 remained largely unchanged,
while the U.S. dollar slipped slightly but ended the week with gains.

 

Notable Improvement in Inflation Expectations

Jeff Roach from LPL Financial commented:

“There are positive signs warranting optimism,
with improved inflation expectations that support the market’s outlook.”

Waller clarified that he saw no signs of worsening inflation expectations,
giving the Federal Reserve room to move toward a rate cut.
He emphasised the need to make such a move during the upcoming monetary policy meeting,
pointing to signs of weakening in the U.S. labour market.

 

Rate Cut Still Unlikely

At the same time, most investors still do not expect a rate cut during the July 30 meeting.
Current expectations indicate a total reduction of around 45 basis points by year-end,
down from over 65 basis points earlier in the month.

Andrew Brenner from NatAlliance Securities said Waller was
“right in his forward-looking perspective,”
explaining that the Fed’s role is to anticipate future trends,
Not focus on historical data.
Nevertheless, he does not expect a rate cut to happen this month.

 

 

Consumer Confidence and Spending Recovery

U.S. consumer confidence reached a five-month high at the beginning of July,
hitting 61.8 points compared to 60.7 in the previous month,
According to the University of Michigan data.
This was supported by a recent report showing a broad recovery
In retail sales during June, easing concerns over a slowdown in consumer spending.

 

 

 

 

Market Outlook and Investor Sentiment

Mark Hackett from Nationwide noted that macroeconomic fundamentals continue to support markets, saying:

“Investor sentiment has been positive despite news volatility,
Driven by strong indicators and earnings that reflect resilient consumer spending.”

Chris Senyek of Wolfe Research observed that economic data released
This week outperformed prevailing expectations,
but he warned of persistent risks related to high inflation levels continuing into the second half of 2025.

A Federal Reserve official affirmed that the U.S. economy remains resilient,
though she urged patience during this sensitive period.

 

Tariffs and Trump’s Trade Agenda

In a related development, Trump is preparing to impose new sector-specific tariffs
Within the next two weeks, as part of his efforts
to reshape the United States’ role in the global trade system.
His administration is pushing to include tariffs of no less than 15–20%
In any prospective trade deal with the European Union, according to the Financial Times.

Meanwhile, Japanese Prime Minister Shigeru Ishiba and U.S. Treasury Secretary Scott Besant
expressed optimism about reaching a “good” agreement between the two countries,
though they acknowledged that the process could take more time.

 

Supporting Factors for the Markets

Louis Navellier, Chief Investment Officer at Navellier & Associates, concluded:

“The absence of clear damage from tariffs, combined with strong earnings,
a resilient labour market, and continued consumer spending
all support elevated market valuations.”

 

U.S. Bond Yields Fall Amid Expectations of a July Rate Cut

 

* Image from CHATGBT

Dollar Defies Expectations, Rises for Second Week

Dollar Defies Expectations, Rises for Second Week

The U.S. currency climbs again, unsettling rate-cut bets amid stronger-than-expected economic data.

 

Contents

 

Dollar Rebounds

The U.S. dollar posted gains for the second consecutive week, recovering part of its significant losses since the start of 2025.
This rebound was driven by surprisingly strong economic data,
particularly signs of continued strength in consumer spending and a resilient labor market,
prompting investors to reassess their bets on Federal Reserve rate cuts.
Although the dollar index retreated slightly in the latest session, the currency rose about 1.3% since July 7,
marking its best two-week performance this year. Still, it remains down approximately 8% year-to-date.

Doubts are mounting regarding the Fed’s path toward monetary easing,
especially after interest rate swap contracts showed only a 58% probability of a rate cut in September — a decline fueled by persistent positive data.
According to Skyla Montgomery of Barclays, the dollar was boosted by a combination of strong economic activity and early signs that tariffs are filtering into U.S. inflation, making it increasingly difficult to justify a dovish pivot by the Federal Reserve.

 

Shifting Bets

Despite Fed Governor Christopher Waller reiterating his support for a rate cut this month, markets showed little reaction, and the likelihood of a July cut remained close to zero. At the same time, speculative bets on a stronger dollar increased.
Data from the Commodity Futures Trading Commission showed that non-commercial investors raised their net long positions to $17.5 billion, down slightly from $18.6 billion the previous week. Option contracts also began to reflect a modestly bullish bias, with the 6-month implied volatility skew turning positive — signaling higher demand for call options betting on a rising dollar.

In the bond market, U.S. Treasury yields declined across all maturities. The two-year yield — the most sensitive to Fed policy — settled at 3.87%.
Meanwhile, the yield curve steepened, with the spread between 5-year and 30-year bonds surpassing 100 basis points, highlighting persistent market anxiety. Waller’s recent remarks, including his openness to replacing Jerome Powell as Fed Chair if asked, further fueled concerns — especially amid rising expectations that tariffs will add to inflation later this year. Although former President Trump denied any immediate plans to remove Powell, JPMorgan analysts believe that uncertainty will continue to weigh on long-term Treasury valuations in the months ahead.

 

 

Dollar Defies Expectations, Rises for Second Week

What is the difference between CFDs and Spot Contracts?

What is the difference between CFDs and Spot Contracts?

In the world of trading and investing, traders come across various types of contracts that allow them to benefit from price movements in financial markets. Among the most prominent are Contracts for Difference (CFDs) and Spot Contracts. While both are used to profit from price fluctuations, there are fundamental differences between them in execution, duration, and the nature of the asset.

 

Contents

 

 

Contracts for Difference

 

What are CFDs?
 CFDs are derivative financial instruments that allow investors to speculate on the price movements of assets (such as stocks, currencies, commodities, and indices) without actually owning the underlying asset.

 

Features:

  • No actual ownership of the asset: When trading CFDs, you don’t own the underlying asset. Instead, you enter into a contract based on the price difference between opening and closing the position. 
  • Ability to trade both directions: Traders can open buy or sell positions depending on their price forecasts. 
  • Leverage: CFDs often allow the use of leverage, which increases potential profits but also amplifies risks. 
  • No expiration date: The position remains open until the trader decides to close it or until it’s automatically closed by the broker’s conditions. 
  • Swap fees: If the contract is held overnight, swap fees may apply. 

 

 

 

Spot Contracts

 

What are Spot Contracts?
 Spot contracts are agreements to buy or sell a specific financial asset at the current market price (spot price), with delivery typically occurring within two business days.

Features:

  • Immediate execution: Transactions are executed at the current market price. 
  • Actual ownership: When you buy a spot contract, you take ownership of the asset (e.g., currencies or gold). 
  • No leverage typically used: Trading is done at full value, which limits trade size but reduces risk. 
  • Very short duration: Used for short-term trades or hedging, with quick settlement. 
  • No swap fees: Since the contract settles quickly, there are no overnight holding costs. 

 

 

Comparison

Element CFDs Spot Contracts
Asset ownership No Yes
Execution Flexible – trader’s choice Immediate at market price
Use of leverage Common Rare
Swap fees Yes No
Suitable for Short/medium-term speculation Fast trading or hedging

Which One Suits You More?

If you’re looking for flexibility and the ability to profit from both rising and falling prices, CFDs provide that, along with leverage options.

However, if you prefer actual ownership of the asset or a more conservative trading style, Spot Contracts may be the better fit.

 

 

 

What is the difference between CFDs and Spot Contracts?

How to Use Leverage in Trading: A Complete Beginner’s Guide

How to Use Leverage in Trading: A Complete Beginner’s Guide:
Leverage is one of the most important tools used by traders in financial markets to achieve higher profits with less capital.
However, it is also a double-edged sword, as it can multiply profits or result in significant losses.
In this article, we’ll explain how to use borrowed capital in trading safely and effectively,
focusing on basic concepts and practical tips for beginners.

 

Contents

What is Leverage?
Importance 
How to Use 
Risks
Tips
Conclusion

 

 

 

 

What is Leverage?

Leverage is a financial tool that allows a trader to control a larger trade size
than their actual capital by borrowing part of the funds from the broker.

Example:
 If you trade with $100 and use a 1:100 borrowed capital, you can open a position worth $10,000.

 

Importance of Using Leverage

  • Increased Purchasing Power: Allows you to enter larger trades with smaller capital.
  • Higher Profit Potential: Even small price movements can generate substantial returns.
  • Portfolio Diversification: Trade across multiple assets using the same capital.

 

How to Use Leverage in Trading

Select a reputable broker that offers suitable borrowed capital.

    • Ensure the broker is licensed and regulated.
    • Review leverage terms and limits for each asset.

Start with low leverage

    • High leverage (e.g., 1:500 or 1:1000) is not recommended for beginners.
    • It’s best to start with 1:10 or 1:20 until you master risk management.

Understand the lot size

    • Larger positions carry higher risk.
    • Always calculate the required margin before opening a trade.

Use Stop Loss orders

  • To limit potential losses in volatile markets.

Manage capital wisely

    • Don’t risk more than 1–2% of your balance in a single trade.
    • Avoid opening multiple large positions simultaneously.

 

 

 

Risks of Using Leverage

  • Magnified Losses: Just as it multiplies gains, it can also multiply losses.
  • Margin Calls: If the market moves against you, the broker may ask for additional funds.
  • High Volatility Sensitivity: Leverage increases account sensitivity to small price changes.

 

Golden Tips for Beginners

  • Practice with a demo account before live trading.
  • Read daily analysis and stay updated on economic news.
  • Use clear strategies and avoid random decisions.

 

Conclusion

Using borrowed capital in trading can be a powerful tool for profit, but it must be used cautiously and wisely.
A deep understanding of risk and solid planning are keys to success.
Whether you’re a beginner or experienced trader, always remember:
Capital management and emotional control are the foundation of safe and sustainable trading.

 

How to Use Leverage in Trading: A Complete Beginner’s Guide

European Stocks Rise on Trade Optimism with Washington

European Stocks Rise on Trade Optimism with Washington, Gold Falls as Powell Fears Ease

European stocks rose on Thursday supported by trade optimism, while gold declined as concerns over Powell’s future subsided.

 

Contents

 

 

 

European Stocks

European equities opened higher on Thursday, buoyed by growing optimism in the markets regarding a potential trade agreement between the European Union and the United States before August 1st—an outcome that could help the region avoid a new wave of trade tensions.
 The Stoxx Europe 600 index rose by 0.6% to reach 545 points, although gains were somewhat limited by declines in the utilities and defense sectors.
 Germany’s DAX led the gains with a 0.95% increase to 24,238 points, followed by France’s CAC 40 which also rose by 0.95% to 7,794 points, while the UK’s FTSE 100 climbed 0.3% to reach 8,953 points.
 These movements came after U.S. President Donald Trump stated that the U.S. was “very close” to reaching a trade deal with India, and potentially with Europe as well, according to Reuters. His remarks coincided with a visit by EU Trade Commissioner Maroš Šefčovič to Washington to discuss tariff-related issues.

 

 

 

Gold

Conversely, gold prices declined during Thursday trading after Trump’s statements about Federal Reserve Chair Jerome Powell helped ease some of the uncertainty in the markets. Trump confirmed he had no plans to dismiss Powell, despite renewing his criticism over Powell’s reluctance to cut interest rates.
 August gold futures dropped by 0.7%, or $23.90, to $3,335.20 per ounce, while spot gold fell by 0.55% to $3,329.55 per ounce.
 At the same time, the U.S. dollar index rose by 0.3% to 98.69, increasing pressure on gold and other precious metals.
 Meanwhile, September silver futures held steady at $38.10 per ounce, spot platinum fell by 0.55% to $1,414.25, and palladium declined by 1.55% to $1,217.74.

 

 

 

European Stocks Rise on Trade Optimism with Washington

Gold and Oil Prices Fluctuate Amid Trump’s Remarks

Gold and Oil Prices Fluctuate Amid Trump’s Remarks
 Gold and oil prices experienced sharp volatility due to U.S. political statements and concerns about global inventories.

 

Contents

 

 

 

 

Gold

Slight Decline After Easing Powell Concerns

Gold prices dipped slightly after a volatile session, settling near $3,330 per ounce following a 0.7% gain in the previous session. This move came amid speculation that Federal Reserve Chairman Jerome Powell could be dismissed by President Donald Trump. However, Trump later stated that he had “no plans to take any action” against Powell, temporarily easing market tensions.
 Although the threat of Powell’s dismissal has subsided, concerns over potential political interference remain, especially regarding the independence of the Federal Reserve. This has further reinforced gold’s role as a safe-haven asset, particularly as it has risen by nearly 30% since the start of the year, supported by geopolitical tensions, ETF inflows, and central bank purchases.

 

 

Oil

Cautious Rise as Markets Await Inventory Data

Oil prices edged higher after three consecutive days of losses, with Brent crude climbing toward $69 per barrel and West Texas Intermediate (WTI) stabilizing near $67. These gains came as traders awaited U.S. inventory data, which showed a drop in crude stocks but a rise in distillates.
 Meanwhile, Trump escalated his rhetoric on trade tariffs, stating he may impose duties of up to 15% on over 150 countries. While this could potentially weigh on global demand, the market is temporarily supported by low diesel inventories, especially in Europe and the U.S.
 Ongoing tensions in the Middle East, including drone attacks on oil facilities in Iraq’s Kurdistan region, are also supporting short-term prices. However, the return of OPEC+ supplies and weaker summer demand could put downward pressure on prices later this year.

 

 

Gold and Oil Prices Fluctuate Amid Trump’s Remarks

US Senate Passes Budget Cuts Amid Deep Division

US Senate Passes Budget Cuts Amid Deep Division
The U.S. Senate approved a $9.4 billion federal spending cut bill amid sharp partisan division.

 

Contents

 

 

 

United States

U.S. Senate Passes $9.4 Billion “Cuts” Bill Amid Partisan Division
 In the early hours of Thursday morning, the U.S. Senate voted to pass the “Cuts” bill backed by President Donald Trump,
which proposes a $9.4 billion reduction in federal spending.
 The bill passed by a narrow margin of 51 votes to 48,
with two Republican senators voting against it—highlighting a clear partisan split over its implications and potential impact.
 This legislation is considered a limited component of a broader cost-cutting plan introduced by the Department of Government Efficiency (DOGE), a body established by Trump upon assuming office last January, aimed at enhancing the effectiveness of government spending.
 Estimates suggest the bill could lead to significant reductions in programs such as foreign aid and public broadcasting services.
 Previous reports had indicated that Trump preferred passing the bill in its original form without amendments, but the Senate introduced several changes, meaning the bill must now return to the House of Representatives for a final vote before full approval.

 

 

United Kingdom

UK Job Market Shows Signs of Weakness in June as Unemployment Rises to 4.7%
 Official data released Thursday morning by the UK’s Office for National Statistics revealed a decline in labor market conditions in June, with a noticeable increase in unemployment and new jobless claims—indicating a possible slowdown in economic momentum.
 New jobless claims rose by 25.9K in June, significantly exceeding market expectations of a 17.9K increase. Moreover,
the May figure was revised downward to 15.3K from the previously announced 33.1K.
 Regarding the unemployment rate, data showed an increase to 4.7% in the three months ending in May,
up from 4.6% in the previous period, and above market expectations of a steady 4.6%.
 Meanwhile, average wages excluding bonuses grew 5% year-on-year during the same period,
aligning closely with expectations of 4.9%, but marking a slight slowdown from 5.2% in the prior period.

 

 

Australia

Australia’s Unemployment Hits 4-Year High, Fueling Rate Cut Expectations
 Australia’s unemployment rate saw an unexpected increase in June, reaching its highest level in nearly four years and boosting expectations that the Reserve Bank of Australia may lower interest rates in its upcoming meeting.
 According to data from the Australian Bureau of Statistics released Thursday,
unemployment rose to 4.3%—the highest since November 2021—compared to market expectations of it holding steady at 4.1%.
 On the employment front, the data showed a modest gain of just 2,000 jobs in June,
entirely driven by part-time employment, falling short of forecasts for a 20,000 job increase.

 

 

 

 

US Senate Passes Budget Cuts Amid Deep Division

Cryptocurrencies Surge on Institutional Demand and Trump’s Support

Cryptocurrencies Surge on Institutional Demand and Trump’s Support Bitcoin Tops $119K

Cryptocurrencies saw a remarkable rise, fueled by institutional demand and growing political support — led by former President Donald Trump’s increasing endorsement.

 

 

Content:

Political Support
Institutional Momentum

 

 

Political Support

Cryptocurrency prices climbed on Wednesday, driven by rising demand from both individual and institutional investors,
amid growing political support for digital assets from U.S. President Donald Trump.
 Bitcoin — the largest cryptocurrency by market value — rose by 2% to reach $119,004.82 as of 5:12 PM Mecca time,
accounting for approximately 62.9% of the total crypto market capitalization.
 Ethereum also jumped by 3.75% to trade at $3,170.03, while Ripple increased by 3.1% to reach $2.955.
 The total cryptocurrency market capitalization reached around $3.76 trillion,
while total 24-hour trading volume stood at $187.7 billion, according to data from CoinMarketCap.

 

 

 

Institutional Momentum

This positive momentum was further supported by Standard Chartered’s announcement on Tuesday
that it would allow its institutional clients to trade Bitcoin and Ethereum through its UK branch.
This move makes it the first systemically important global bank to offer crypto trading services, according to Reuters.
 Meanwhile, El Salvador’s “Bitcoin Office” revealed that the country purchased seven additional Bitcoin units last week,
raising its total holdings to 6,239.18 BTC — valued at over $742 million — as part of its continued digital asset investment strategy.

 

 

Cryptocurrencies Surge on Institutional Demand and Trump’s Support

Energy and Currency Markets Fluctuate Between Output and Policies

Energy and Currency Markets Fluctuate Between Output and Policies

Russia saw a decline in energy production, while inflation data and trade policies influenced movements in the dollar and the British pound.

 

 

Content:

Oil
Dollar

 

 

 

 

 

Oil

Russia’s Oil and Gas Production Declines in 2025 Amid OPEC+ Commitment

The Russian Ministry of Energy announced a 3.5% decrease in the country’s oil production between January and May 2025,
reaching 211 million tons, equivalent to approximately 10.24 million barrels per day, compared to the same period last year.
 This decline came in the context of Moscow’s adherence to the production cut agreement led by the OPEC+ alliance,
according to Energy Minister Sergey Tsivilev during his address to parliament.
 The ministry’s report showed that Russia produced 516 million tons of oil in 2024,
marking a 2.7% drop from 2023, reflecting the ongoing commitment to reducing supply under the OPEC+ pact to support global market stability.
 Natural gas production also declined by 3% in the first five months of this year, totaling 290 billion cubic meters,
while coal production recorded a marginal increase of 0.1%, reaching 187 million tons, according to the minister’s presentation.

 

 

 

Dollar

Dollar Slips Amid Tariff Concerns; Inflation Data Lifts Sterling

The U.S. dollar index fell on Wednesday, as investors monitored developments in trade negotiations between Washington and its international partners,
amid renewed concerns over the potential impact of tariffs on price levels.
 The dollar index, which tracks the U.S. currency against a basket of six major currencies, slipped 0.1% to 97.52 points.
 In contrast, the euro rose by 0.15% to $1.1619, while the dollar weakened against the Japanese yen by 0.13% to 148.66 yen.
 The British pound gained 0.15% to reach $1.3399, supported by unexpected data showing a rise in the UK inflation rate in June to 3.6% year-on-year,
up from 3.4% in May — boosting expectations that the Bank of England will maintain its tight monetary policies for a longer period.

 

 

 

Energy and Currency Markets Fluctuate Between Output and Policies