Tag Archives: Gold prices

Gold Extends Gains Amid Rising Geopolitical Tensions in Europe

Gold Extends Gains Amid Rising Geopolitical Tensions in Europe

Gold prices continued to rise on Tuesday, supported by escalating geopolitical tensions in Europe,
despite diminished expectations for a Federal Reserve interest rate cut at its next meeting.

 

Contents

  • Gold
  • Japan
  • Artificial Intelligence

 

 

 

 

 

 

Gold

Gold futures for December delivery increased by 0.31% ($8.1), reaching $2,622.7 per ounce,
after gaining 1.75% in the previous session, marking the highest level since November 11.

Spot gold also rose by 0.27% to $2,618.96 per ounce,
while silver futures for December delivery gained 0.31% to $31.32 per ounce.
Platinum spot prices remained steady at $968.15 per ounce.

These movements came amid reports suggesting the Biden administration has allowed Ukraine to use
U.S.-made weapons for strikes deep inside Russian territory, raising concerns over potential military escalation in Europe.

 

 

 

 

 

Japan

Japanese Stocks Rise Amid Rate Hike Speculations and Monetary Policy Adjustments

Japanese stocks closed higher on Tuesday, driven by expectations that the Bank of Japan may raise interest rates
in December following the yen’s weakness.

The Nikkei index gained 0.51% to reach 38,414 points, while the Topix index climbed 0.68% to 2,710 points.

The Bank of Japan announced it would conduct a comprehensive review of its monetary easing tools
next month to assess their effectiveness over the past 25 years, without directly altering current policies.

Market expectations for a 25-basis-point rate hike rose to 54%, with the yen stabilizing at 154.64 against the dollar.
The banking sector also saw significant gains, with Tokyo Bank shares surging 13% over the past two weeks.

 

 

 

Artificial Intelligence

IBM and AMD Collaborate to Enhance AI Performance and Offer Innovative Enterprise Solutions

IBM has announced a partnership with AMD to improve the performance and
energy efficiency of generative AI models for enterprise clients.
According to a statement from IBM on Monday, AMD Instinct MI300X accelerators will be integrated into
IBM Cloud services starting in the first half of 2025.

The collaboration will also provide support for AMD Instinct MI300X accelerators within IBM’s Watsonx AI platform and data center.

AMD CEO Philip Guido emphasized that as businesses continue integrating AI models and databases into their operations, they require accelerators capable of handling intensive computational workloads with high performance and scalability.

 

 

 

Gold Extends Gains Amid Rising Geopolitical Tensions in Europe

Slowing Wage Growth and Rising Unemployment in the UK

Slowing Wage Growth and Rising Unemployment in the UK Support the Case for Monetary Easing by the Bank of England

Wage growth in the UK slowed during the quarter ending in September,
while the unemployment rate increased,
boosting the likelihood that the Bank of England will continue its monetary easing policies as the labor market loses some of its strength.

 

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UK

 According to data released by the Office for National Statistics on Tuesday,
the average weekly wage in the UK rose by 4.8% year-on-year in the three months to September,
compared to a 4.9% increase in the previous period ending in August,
and growth of about 8% during the same period last year.
The data also showed that the unemployment rate increased to 4.3% from 4.1%, with the number of unemployed rising by 210,000.

 

 

 

 

Euro 

Economic confidence in Germany and the Eurozone fell in November to levels lower than expected. Germany’s ZEW Institute released its economic sentiment indicators for both Germany and the Eurozone on Tuesday, which came in negative and below market expectations. According to the data, the ZEW economic sentiment index for Germany dropped to 7.4 points, below the expected rise to 13.2 points in September, and lower than October’s reading of 13.1 points. The ZEW economic sentiment index for the Eurozone also fell to 12.5 points in September, well below the expected 20.5 points and lower than October’s 20.1 points.

 

 

 

 

 

Gold 

Gold continues to drop near its 7-week low due to the rising dollar and Bitcoin boom.
Gold prices continued to decline in early Tuesday trading, reaching their lowest level in nearly seven weeks,
pressured by the rising U.S. dollar and the surge in Bitcoin, which has reduced demand for dollar-priced commodities, including gold.
This decline comes amid market expectations that the U.S. Federal Reserve under Trump will not rush to cut interest rates.
Additionally, Bitcoin’s record rise, surpassing $89,000, has drawn capital away from gold, further reducing demand for the precious metal. Markets are now awaiting the release of U.S. inflation data for October on Wednesday, which is expected to significantly impact the trajectory of U.S. monetary policy and, consequently, gold prices. In trading, spot gold contracts fell by 0.68%, losing about $17 in value to reach approximately $2,606.58 per ounce, while December gold futures fell by 0.37% to record $2,607.90 per ounce.

 

 

Slowing Wage Growth and Rising Unemployment in the UK

Stability of Oil and Gold Prices as U.S. Elections

Stability of Oil and Gold Prices as U.S. Elections and Middle East Tensions Approach

Oil and gold prices have remained stable in the markets amid escalating geopolitical tensions in the Middle East
and anticipation of the U.S. presidential elections.
Market movements reflect concerns about the election results and their potential impact on global economic policy,
as well as the effect of political decisions on energy supplies and precious metals.

 

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Oil:

Oil Price Stability: 

Oil prices stabilized after a 3% rise, with West Texas Intermediate (WTI) trading near $72 per barrel.
This stabilization followed a significant surge in the previous session, driven by OPEC+’s decision to delay increasing oil supply,
along with rising tensions in the Middle East, particularly after Iranian Supreme Leader Ali Khamenei warned of harsh responses to the country’s enemies.

Since the end of June, U.S. crude oil has dropped by about 12%,
due to weak Chinese demand and increased production from the Americas, particularly the United States.
As a result, the OPEC+ alliance decided to postpone its plan to restore production levels,
leaving markets cautiously awaiting the U.S. elections and their potential impact on oil prices and global energy policies.

 

Gold:

Gold Prices Await Elections:

 Gold prices remained steady as the decisive U.S. elections draw near, with the race between the main candidates still tight. This political uncertainty enhances gold’s appeal as a safe-haven asset, especially amid expectations that a win by Donald Trump could lead to rising inflationary pressures due to his promises of significant tariff hikes.

Gold prices have risen by about 33% this year, supported by accommodative monetary policies and central banks’ gold purchases. Geopolitical tensions have also contributed to this increase. Although gold stabilized at $2,736 per ounce, it remains about $50 below its highest level this year.

 

 

 

 

 

 

Outlook: 

The Federal Reserve is widely expected to cut interest rates by a quarter percentage point in its upcoming meeting,
which could further support gold prices in the future.
Meanwhile, all eyes are on the outcome of the U.S. elections and their potential impact on global markets,
particularly in the energy and precious metals sectors.

 

Conclusion: 

With geopolitical tensions persisting and uncertainty surrounding the U.S. election results,
markets are likely to remain volatile in the coming period.
Investors will continue to seek clarity on global economic policies and their effects on oil and gold.

 

 

Stability of Oil and Gold Prices as U.S. Elections

Gold Prices Decline as U.S. Interest Rate Cut Expectations Ease

Gold Prices Decline as U.S. Interest Rate Cut Expectations Ease

Gold prices retreated as traders scaled back their expectations for a U.S. Federal Reserve rate cut, following stronger-than-expected U.S. jobs data. Bullion was trading near $2,643 per ounce, still close to its record high of $2,685.58, which it reached late last month.

 

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Details

U.S. Treasury yields returned to 4% after Friday’s robust jobs report dampened the chances of a significant rate cut by the Federal Reserve in November. Money markets are now pricing in a rate reduction of less than a quarter-point next month.

Lower interest rates are often seen as supportive for non-yielding gold. Upcoming U.S. inflation data, expected later this week, could provide further insight into the trajectory of interest rates.

Additionally, Federal Reserve officials, including Alberto Musalem, are scheduled to speak at various events later on Monday.

 

 

U.S. Treasury Yields

Impact of U.S. Treasury Yields on Gold Prices

Gold prices were directly impacted by the return of U.S. Treasury yields to the 4% level, which led to a decline in gold’s positive momentum. The reduced expectations of a rate cut contributed to the rise in bond yields, negatively affecting gold.

 

 

 

 

 

 

Gold’s Performance

Gold’s Performance This Year and Support from Central Banks

Gold has surged by approximately 28% this year, marking a series of record highs, fueled by optimism surrounding interest rate cuts. The precious metal has also been supported by strong buying from central banks and demand for a safe haven amid ongoing conflicts in Ukraine and the Middle East.

 

 

Market Trends

Fund Managers’ Positions in the Gold Market

At the same time, fund managers reduced their net bullish positions on gold to the lowest level in three weeks as of October 1, according to data from the Commodity Futures Trading Commission (CFTC) released on Friday. This decline reflects investors’ concerns about market volatility.

 

 

Market Analysis

Market Analysis and the Performance of Other Metals

Ole Hansen, head of commodity strategy at Saxo Bank, wrote in a note: “Gold and silver markets have experienced net selling as traders locked in profits amid signs of exhaustion in the rally of both metals.” He added: “In gold, both long and short positions were reduced as short sellers became wary of price increases driven by geopolitical tensions, while long positions continued to take profits.”

Spot gold fell 0.4% to $2,642.88 per ounce as of 4:22 p.m. in New York. The Bloomberg Dollar Spot Index held steady, while the yield on 10-year U.S. Treasuries rose. Palladium prices increased, while platinum and silver prices declined.

 

 

 

Gold Prices Decline as U.S. Interest Rate Cut Expectations Ease

Gold Prices Stabilize as Investors Assess Middle East Tensions

Gold Prices Stabilize as Investors Assess Middle East Tensions and Interest Rates

Gold prices have stabilized as investors closely monitor the escalating tensions in the Middle East, alongside the impact of a stronger-than-expected U.S. jobs report, which has dampened expectations of a significant interest rate cut by the Federal Reserve.

 

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Price Movements Details

  • Bullion Prices: Gold prices dipped slightly to $2,651.57 per ounce in the morning session in Singapore.
  • Historical Level: Prices remain below the all-time high of $2,685.58 per ounce, recorded in September.

 

Key Influencing Factors

  1. Geopolitical Tensions:
    Tensions in the Middle East have escalated as Israel sent its forces into northern Gaza following an Iranian missile attack, which has increased demand for safe-haven assets like gold.
  2. U.S. Jobs Report:
    The latest jobs report exceeded expectations, reducing the likelihood of an interest rate cut in November, which negatively affects gold as it yields no interest.

 

 

Performance of Other Markets

 

Outlook

Investors expect that gold prices will continue to be influenced by developments in geopolitical tensions and U.S. economic indicators, especially with the potential for future adjustments to interest rates.

 

 

Gold Prices Stabilize as Investors Assess Middle East Tensions and Interest Rates

 

Chinese Stocks Achieve Best Performance in Four Years, Rising Over 4%

Chinese Stocks Achieve Best Performance in Four Years, Rising Over 4%

Chinese stock markets saw strong gains by the close of trading on Tuesday, following an announcement from the central bank about a new package of monetary easing measures aimed at helping China reach its targeted growth rate of around 5%.

 

 

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China:

In addition to supporting the struggling real estate sector, which has faced ongoing crises recently, People’s Bank of China Governor Pan Gongsheng announced that the bank would cut the main interest rate by 20 basis points and reduce the reserve requirement ratio for banks by 50 basis points. It will also lower lending rates and mortgage loan rates. As a result, the real estate sector’s CSI 300 index rose by 1.69%, while the broader CSI index climbed by 4.33%.

 

 

 

Gold:

Gold is trading near its all-time highs.
It prices remained stable near $2,630 per ounce due to the geopolitical tensions in the Middle East. Additionally, market expectations that the U.S. Federal Reserve will continue cutting interest rates in the coming period have supported gold’s upward momentum, as investors turn to gold amid the anticipated weakness in the U.S. dollar.

 

 

 

 

 

 

 

European Central Bank:

ECB Member Hints at Possible Rate Cut in October
Madis Müller, European Central Bank member and Governor of the Bank of Estonia, stated on Tuesday that a rate cut during the October monetary policy meeting is possible, although it is still too early to make a clear decision. Müller added that it might be easier to make a decision in December. He also emphasized the need for a further slowdown in inflation within the services sector. Markets have been expecting the ECB to consider a rate cut in December, following a 60-basis-point cut in its last meeting.

 

 

Chinese Stocks Achieve Best Performance in Four Years, Rising Over 4%

 

Gold Prices Near Record High Amid Data Supporting Rate Cuts

Gold Prices Near Record High Amid Data Supporting Rate Cuts: Gold prices remained near a record high,
as upcoming U.S. data is expected to provide clues on
whether the Federal Reserve’s 50 basis point rate cut last week will be the first in a series of significant reductions.

 

Content

Gold Prices
Asian Stocks
Oil Prices 

 

 

 

 

Gold Prices Near Record High Ahead of Data That Could Bolster Major Rate Cuts

Gold prices hovered near a record high as markets anticipated upcoming U.S. data.
to provide clues on whether the 50 basis point rate cut by the Federal Reserve
last week will be the first in a series of significant reductions.
On Friday, bullion traded near $2,620 per ounce after hitting a record high of $2,625.77 per ounce.
A batch of economic data, including the U.S. personal consumption expenditure gauge and jobless claims,
is set to be released later this week.
Federal Reserve Board member Christopher Waller said on Friday that he will likely support

quarter-point cuts at the central bank’s upcoming policy meetings
in November and December if the economy evolves as expected.
However, he noted that another half-point cut could occur if the labor market weakens.

 

 

Asian Stocks Rise Amid Anticipation of Stimulus to Support Chinese Economy

Asian stocks rose amid expectations that China may introduce more stimulus
to revive the world’s second-largest economy after the U.S. started a monetary easing cycle,
while gold prices are approaching a record high.
The MSCI Asia Pacific Index advanced, with stocks rising in China, Hong Kong, and South Korea.

U.S. stock futures also climbed. On Tuesday,
China announced a rare economic briefing by three top financial regulators as it cut one of its short-term interest rates,
fueling speculation that a new stimulus plan could be announced.

 

 

 

 

Oil Prices Rise After Weekly Gains Amid Escalating Middle East Conflict

Oil prices rose after a second consecutive week of gains

as the market focused on the escalating conflict between Israel and Hezbollah.
Brent crude neared $75 per barrel after gaining 4%,
marking its most significant weekly rise since April,

while West Texas Intermediate (WTI) was traded above $71 per barrel.
Hezbollah launched around 115 rockets, shells, and drones toward northern Israel on Sunday,
prompting counterattacks against the Iran-backed group in Lebanon.
The escalation—and concerns it could draw in Iran (a member of OPEC)—brought back the risk premium in oil,
helping Brent surge more than 8% from its lowest level since 2021, which it reached earlier this month.
However, hopes that the Federal Reserve’s rate cut last week would boost consumption remained
subdued due to concerns over the deteriorating outlook for fuel demand,

which has made hedge funds the most bearish on diesel ever.

 

Gold Prices Near Record High Amid Data Supporting Rate Cuts

Rising Gold Prices

Rising Gold Prices

Global gold prices rose during Monday’s trading session as geopolitical tensions in the Middle East escalated amid expectations of a US interest rate cut in September.

 

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Gold

Attention has shifted to the Federal Reserve’s monetary policy meeting scheduled for later this week.
The Federal Open Market Committee (FOMC) of the US central bank is expected to keep interest rates unchanged at 5.25%-5.50% during its meeting on July 30-31.
However, weaker US job data in June, along with comments from senior Federal Reserve officials,
have led the futures market to fully price in a 25 basis point cut in September.

 

 

 

 

 

 

Oil

Oil Price Stability: 

It prices remained stable during Asian trading on Monday,
despite rising concerns about escalating conflict between Israel and
the Lebanese Hezbollah group following a missile strike on Israeli-occupied territories.
However, oil gains were limited due to potential weak demand and a possible oversupply in the coming months,
causing sharp losses in crude oil markets.
As of 12:24 PM Riyadh time, Brent crude futures for September delivery rose by 0.08% to $81.05 per barrel,
while West Texas Intermediate (WTI) crude futures fell by 0.31% to $76.92 per barrel.

 

 

 

 

 

Debt

US Debt Increase: 

The US federal debt reached a new record high, coming just $2.5 billion short of surpassing
the $35 trillion mark for the first time in history.
Since 2019, US federal debt has increased by $13 trillion.
The United States has added debt equivalent to 45% of the GDP for the second quarter of 2024 over a five-year period.
This has raised the debt-to-GDP ratio to 122%,
an increase of 19 percentage points over five years.

 

 

Rising Gold Prices

 

Rises in Gold Prices

Rises in Gold Prices:

Global gold prices rose for the third consecutive session on Thursday,
as investors await U.S. inflation data due later today for further guidance on the Federal Reserve’s interest rate path.
The weakening dollar made gold more attractive to investors holding other currencies.

 

Topic

Details

Jerome Powell

 

 

 

 

Details:

Investors are awaiting the Consumer Price Index (CPI) report for June, set to be released at 3:30 PM Riyadh time,
as well as the Producer Price Index (PPI) report on Friday.
They anticipate that these data will bolster optimism that the Federal Reserve will be able to cut interest rates this year.
Any unexpected decline in the CPI report could weaken the dollar and push gold prices towards the $2400 level.
Meanwhile, Federal Reserve member Lisa Cook stated that inflation in the United States should continue to decline without a significant increase in the unemployment rate.
Another record high could be achieved this year if any geopolitical shock occurs. Gold is considered a hedge against geopolitical turmoil, and its appeal tends to rise when interest rates are low.

 

 

 

 

 

Jerome Powell

Meanwhile, Federal Reserve Chairman Jerome Powell said on Wednesday
that the central bank will make decisions on interest rates “as and when” they are needed.
He told members of the House of Representatives on Tuesday that “more good data” could bolster the case for a rate cut. Powell indicated that the U.S. economy is on track to achieve a soft landing, stating,
“There is a path to returning to full price stability while maintaining a low unemployment rate,
and we are working hard to stay on that path.
” Traders currently estimate a 46% probability that the Federal Reserve will cut interest rates by two steps by the end of the December meeting, and there is a 73% chance of the first cut in September.
As for gold prices, gold futures prices rose during last Wednesday’s trading,
absorbing the content of Federal Reserve Chairman Jerome Powell’s testimony before the House of Representatives.
At present, gold futures are up 0.23% to $2385 per ounce.
Meanwhile, the dollar index is down about 0.05% to 104.670 points.

 

 

Rises in Gold Prices

 

Bitcoin reaches its previous all-time high again

Bitcoin reaches its previous all-time high again

The cryptocurrency markets have seen a significant recovery in the last few hours,
with Bitcoin once again surpassing the $68,000 level amid general market upswings.

 

 

Content:

Bitcoin

Gold

Swiss National Bank

 

 

 

 

Bitcoin

This increase comes after the Federal Reserve kept its forecasts for cutting interest rates three times this year, despite inflation rates exceeding expectations in January and February of the current year.

Bitcoin’s value reached a daily high of $68,240, increasing by more than 10% in the last 24 hours, but it has now fallen to $67,344, an increase of about 6.7% in the last 24 hours.

At the same time, Ethereum also experienced an increase, being the second-largest cryptocurrency by market value, now registering an increase of about 10% in the last 24 hours, reaching a level of $3,540.

 

 

 

Gold

Gold surges to historical levels after the Federal Reserve’s decisions:

it prices globally saw a record increase during Thursday’s trading, due to the weakening of the US dollar and bond yields.
This increase is attributed to the Federal Reserve’s decision to continue its forecasts for cutting interest rates three times this year.

Interest rate cuts reduce the opportunity cost of investing in gold, which yields no return,
and put pressure on the dollar’s value, making gold more attractive to investors holding other currencies.

In yesterday’s session, the Federal Reserve kept interest rates unchanged,
but monetary policymakers indicated that they expect to cut them by three-quarters of a percentage point by the end of 2024.

Federal Reserve Chair Jerome Powell stated that recent readings of high inflation rates have not affected the core vision of inflation in the United States.
Powell affirmed that monetary policymakers are still determined to cut interest rates before the end of the year,
with expectations for continued economic growth.
Additionally, the central bank raised its forecasts for core inflation to 2.6%, compared with previous expectations of 2.4%,
while keeping its inflation rate forecast for the current year at 2.4%.

 

 

 

 

Swiss National Bank

Swiss National Bank cuts interest rates against expectations:

Following its first meeting in 2024, the monetary policy committee of the Swiss National Bank today decided to surprise the markets by cutting the interest rate to 1.50%,
a decision that diverges from expectations that pointed to maintaining the rate at 1.75%.

 

Short-term interest rates are key factors in measuring the currency level, as traders look to other indicators’ results to predict rate changes in the future.
The Swiss National Bank typically announces targeted interest rates for Swiss Franc deposits, and these rates are determined based on the average price.
The interest decision is made based on the central bank’s policy and outcomes that will be revealed later.

 

It’s worth noting that the US Treasury Department has labeled Vietnam and Switzerland as currency manipulators,
placing China and nine other countries on a watchlist in an annual report aimed at preventing countries
from manipulating their currencies to gain unfair trade advantages.

 

 

Bitcoin reaches its previous all-time high again