Tag Archives: Trade Gold

Gold Holds Above $2,900 Amid Rate & Trade Tensions

Gold Holds Above $2,900 Amid Rate & Trade Tensions: Gold prices remained near record levels as traders balanced
rising inflation in the United States with increased demand for safe-haven
assets amid escalating trade tensions following new tariffs imposed by U.S. President Donald Trump.

 

Contents

Rising U.S. Commodity Prices

Gold Could Test the $3,000 Barrier Soon

Strong Inflows into Gold-Backed Funds

Latest Market Moves

 

 

 

Rising U.S. Commodity Prices

Gold traded above $2,900 per ounce after a Wednesday report revealed that
U.S. commodity prices had risen more than expected, leading traders to price in only one interest rate cut by December.
Treasury yields also climbed, increasing pressure on the non-yielding precious metal.
This caused a 1.2% drop before rebounding as market concerns
over Trump’s aggressive trade policies boosted gold buying as a safe-haven asset.

At the same time, investors monitored statements from Federal Reserve Chairman Jerome Powell,
who told lawmakers on Wednesday that the central bank
would base its interest rate decisions on economic developments.
He added that the latest data shows the economy is nearing the inflation target but has not yet reached it.
On Tuesday, Powell reiterated before the Senate that the Fed would exercise patience before further easing monetary policy.

 

Gold Could Test the $3,000 Barrier Soon

Gold has seen substantial gains this year, reaching consecutive record highs,
and may soon test the $3,000 per ounce mark.
This surge is driven by growing demand for safe-haven assets
amid rising uncertainty about the U.S. economy and monetary policy.
Investors are evaluating whether the new U.S. administration’s policies
on trade and immigration could reignite inflation and impact economic growth.

 

 

 

Strong Inflows into Gold-Backed Funds

The latest rally in gold has been accompanied by significant inflows into gold-backed exchange-traded funds (ETFs).
According to Bloomberg calculations, global holdings have risen by more than 1% this year,
reaching their highest levels since November.

 

Latest Market Moves

At 8:07 AM Singapore time, spot gold rose 0.1% to $2,907.63 per ounce
after hitting a record high of $2,942.68 on Tuesday.
Meanwhile, the Bloomberg Dollar Index remained steady, silver and palladium prices increased, and platinum prices remained stable.

 

Gold Holds Above $2,900 Amid Rate & Trade Tensions

Gold Surges Over $30 per Ounce Amid Geopolitical Tensions

Gold Surges Over $30 per Ounce Amid Geopolitical Tensions: Gold prices significantly recovered during Monday’s trading,
marking the first rise since November 7. They had suffered the worst weekly losses since 2021.

 

Content

A decline in Youth Unemployment

Gold Surges Over

 

 

 

 

A decline in Youth Unemployment Rate in China Reflects Improvement in the Job Market 

The youth unemployment rate in China declined in October,
indicating a relative improvement in the labor market of the world’s second-largest economy.
Beijing introduced a series of supportive measures to stimulate the slowing economic growth.
According to data released by the National Bureau of Statistics on Monday,
the unemployment rate for the 16-24 age group,
excluding university students, dropped to 17.1% in October compared to 17.6% in September.  

On the other hand, the unemployment rate for the 25-29 age group saw a slight increase,
rising to 6.8% from 6.7% during the same period.
These figures reflect the ongoing challenges in the labor market despite
government efforts to stimulate the economy following a noticeable slowdown.

 

 

 

 

Gold Surges Over $30 per Ounce Amid Geopolitical Tensions  

Gold prices notably recovered during Monday’s trading,
marking the first rise since November 7, after experiencing the worst weekly losses since 2021.
Spot gold contracts increased by over $30 per ounce,
reaching a peak of $2,597.26 early in the session before settling around $2,585.20 per ounce,
up 0.84%. December gold futures rose 0.7% to reach $2,588.10 per ounce.  

This surge was supported by several factors,
most notably the recent geopolitical escalation between the United States and Russia.
Washington authorized Ukraine to use American weapons in its military operations against Russia,
eliciting strong reactions from Moscow,
which warned that this development could lead to the outbreak of World War III.
Russia intercepted around 30 drones,
further escalating tensions and boosting demand for gold as a safe-haven asset.

 

Gold Surges Over $30 per Ounce Amid Geopolitical Tensions

Gold Reaches New All-Time High

Gold Reaches New All-Time High: Gold prices significantly increased during Monday’s trading session,
continuing their gains for the third consecutive session.
The Gold rose by over $10, contributing to a new record level for the second time.
Despite the rebound in U.S. Treasury yields and the rise of the U.S. dollar, gold continued to strengthen,
reflecting its appeal as a haven for investors amidst economic tensions.

 

Content

Gold  

People’s Bank of China

 

 

 

 

Gold Reaches New All-Time High

Gold prices significantly increased during Monday’s trading session, continuing their gains for the third consecutive session.
The Gold rose by over $10, contributing to a new record level for the second time.
Despite the rebound in U.S. Treasury yields and the rise of the U.S. dollar, gold continued to strengthen,
reflecting its appeal as a haven for investors amidst economic tensions. 

In trading details, spot gold prices rose by 0.45% to reach $2,733.84 per ounce,
while December gold futures increased by 0.60% to $2,746.50 per ounce.
This strong performance comes amid expectations of continued demand for safe-haven assets,
especially with growing concerns about a global economic slowdown and inflationary pressures. 

This increase in gold prices demonstrates the precious metal’s resilience in the face
of global economic pressures as investors continue to turn to gold as a hedge against potential market volatility.

 

 

 

People’s Bank of China Lowers Lending Rates

The People’s Bank of China announced a reduction in its central lending rates,
including the benchmark mortgage loan rate, to stimulate China’s slowing economy and support the real estate sector.
This decision followed statements by the bank’s governor, Pan Gongsheng, during a financial conference last week.

In the bank’s monthly meeting on Monday, the one-year lending rate
used as a reference for commercial and consumer loans—was cut by 25 basis points (0.25%) to 3.10%.
The five-year lending rate, the benchmark for mortgage loans, was also reduced by the same amount to 3.6% from 3.85%.

This marks the first time since July that China’s central bank has lowered these rates.
The move is part of a monetary stimulus plan announced at the end of September.
The plan will support the struggling real estate sector and the broader Chinese economy.

However, Shane Oliver, Chief Economist at AMP, noted that China’s reduction
in borrowing costs alone would not stimulate the economy,
explaining that the core issue is weak demand for funds,
which requires additional fiscal measures to support economic recovery.

 

Gold Reaches New All-Time High

 Gold Resumes Its Gains as Middle East Tensions Offset High Inflation

Gold Resumes Its Gains as Middle East Tensions Offset High Inflation: The price of gold is turning towards an increase again,
addressing the effects resulting from regional tensions and the repercussions of inflation in the United States.
Gold, considered a haven, is experiencing increased demand in light of expectations for security incidents against
targets in Israel that Iran may carry out, as the outcomes of US inflation exceed expectations.

 

Content

Escalation of Geopolitical Tensions

US Inflation Data

Commodities Volatility

 

 

 

 

Escalation of Geopolitical Tensions 

The price of gold is resuming its rapid increase,
surpassing the concerns that the US Federal Reserve might decrease interest rates
by less than expected this year, due to the escalation of tensions in the Middle East.
The United States and its allies are anticipating the possibility that Iran or its proxies
might launch significant attacks using missiles or drones on military and government targets in Israel.
This could represent a significant expansion of the conflict that has been ongoing for 6 months,
according to sources familiar with the intelligence information.
Typically, the demand for gold as a safe haven increases
during rising geopolitical tensions, as investors seek secure investments.

 

US Inflation Data 

Gold saw a significant drop on Wednesday, the largest in nearly a month, following the release
US inflation data that came in higher than expected prompted traders
to reassess their expectations for interest rate cuts within the year.
s are still close to the record high they reached last Tuesday, supported by increased purchases by central banks.
In their discussions with Bloomberg, investment fund managers expect the current increase in the price of gold,
about 20% since mid-February, to lead to further increases.
They base their strategies on analyzing the impact of political and economic events on the market.

 

 

Commodities Volatility

Spot gold prices increased 0.3%, reaching $2,341.58 per ounce.
The Bloomberg dollar index remained unchanged, staying close to its highest levels since last November.
Meanwhile, silver prices stabilized after reaching a three-year high.
Platinum and palladium prices also increased.

 

 Gold Resumes Its Gains as Middle East Tensions Offset High Inflation

The most important weekly economic news


The most important weekly economic news: Many economic events and news await you in the first week of March.
This summary report presents the most important events and developments concerning market movements.

Topics

Economic Calendar

Gold

Oil

Dow Jones Index

GBPUSD

EURUSD

USDJPY

 

 

 

 

Economic Calendar

Tuesday, March 5

U.S. Services Purchasing Managers Index (PMI)
U.S. ISM Non-Manufacturing Prices

Wednesday, March 6
U.S. ADP Nonfarm Employment Change
BOC-Canada Interest Rate Decision

Thursday, March 7

European Central Bank (ECB) -Eurozone Interest Rate Decision
Unemployment complaints rates

Friday, March 8
U.S. Nonfarm Payrolls
Average American hourly wages
US unemployment rate

 

Gold

Inflation data, which declined to 2.8% from 2.9%, supported the continued negativity of the dollar index,
and on the other hand, we saw positive pricing for gold.
The inability of prices to stabilize above the resistance level around $2083-2088
pushes us to the possibility of a downward correction to visit the $2062 level.
If they are broken, the correction may extend to $2040.

 

Oil

Oil prices rose during last week’s trading, as the price of a barrel reached $80,
closing with gains of more than 4%.
It is noted that prices closed below the resistance level,
which will increase the possibility of visiting the resistance area 85.73 – 86.12 if prices hold above it.

Sellers will be in control if prices return below the pivotal level of 76.04,
and it will be possible to visit the main support of $68.00.

 

Dow Jones Index

The Dow Jones Index fell during last week’s trading by approximately 1.00%
before closing the week with a decline of 0.55%.
This week, the markets are awaiting US unemployment data next Friday.
The indicator is currently positioned below the resistance level of 39110.
If it breaks above, the price will head towards the 39400 level.

 

 

 

GBPUSD

The pound stabilized at $1.265 and at neutral levels,
in a price range between support 1.2495 and resistance 1.2830,
if the pivotal level of 1.2675 is breached and the consolidation above it
will stimulate its rise to the next resistance level of 1.2830, reaching 1.3000.

The sellers’ control comes when breaking the last price bottom around 1.2550
will be a negative signal and the possibility of a drop to the 1.2190 – 1.2040 levels.

 

EURUSD

The pair rose during last week’s trading by approximately 0.3% before ending the week at 0.1%.
Markets are awaiting interest rates issued by the European Central Bank next Thursday,
and US unemployment data on Friday.
The price stabilizes above the 200 moving average and the highest support levels 1.0795-1.0810,
targeting 1.0900 levels.

 

USDJPY

Despite the negativity of US inflation data, the Japanese yen maintained
a large portion of its loss against the dollar.
This comes in light of the continuing difference in monetary policy between the two currencies,
with prices above the support level of around 149.35.
The rise will likely continue to retarget 150.25 levels. Breaking it higher we may see 152.00

 

The most important weekly economic news

Geopolitical Tensions critical factor influencing financial markets

Geopolitical Tensions critical factor influencing financial markets: In the ever-changing landscape of global affairs,
the intensification of geopolitical tensions has become a critical factor influencing financial markets.
This report examines recent developments, focusing on the escalating crisis in the Red Sea region
the Houthi rebels and its potential impact on various market sectors.

 

Topics

Geopolitical tensions pressure on the markets

Continuing pressures and their impact on oil

The impact of Red Sea tensions on gold

Australian Inflation

Australian Central Bank

Upcoming US inflation data

The next reduction

Powell’s unenviable position

 

 

 

 

Geopolitical tensions pressure on the markets

The US Central Command reported on the X website (formerly Twitter) that the Houthis shot down about 18 drones,
two unmanned cruise missiles, and a ballistic missile.

Indicating that the worsening crisis is continuing, which may increase pressure on the markets,
and oil is the most affected by the ongoing conflict, especially after many shipping companies changed their
route from the Red Sea to turning around the continent of Africa.

 

Continuing pressures and their impact on oil

In light of the continuing crisis and the Houthis’ control over the navigational course of the Bab al-Mandab Strait,
this may lead to a shortage of oil supplies, which may lead to a shortage of supply in the markets,
which may push oil prices to rise again.

 

The impact of Red Sea tensions on gold

It is unlikely that the geopolitical tensions taking place in the Red Sea will affect the haven,
especially since the damage is concentrated in the weak navigational movement of commercial ships.
The impact will likely be greater on commodities, especially oil.

 

 

Australian Inflation

Australian inflation is declining, a sign of the success of monetary tightening on the small continent

At the beginning of Wednesday’s trading, the markets witnessed important data from Australia and Australian consumer price data on an annual basis,
which was around 4.9%, and experts were expecting 4.4%.
However, today’s data surprised the markets and provided the lowest reading in a long time, at 4.3%.

 

Australian Central Bank

The Australian Central Bank, after the bank’s interest rates, reach the highest levels of around 4.35%,
will greatly benefit from the decline in Australian inflation,
and this decline may lead to the bank’s survival during the next meeting scheduled to be held on February 6. At that time,
the idea will be to keep interest rates unchanged against the backdrop of the fear that the tightening will be exaggerated.
Disasters may occur in the Australian economy, in addition to the fact that the monetary tightening followed in 2023 to combat high levels of inflation has borne fruit.

 

Upcoming US inflation data

This is how the markets will read the upcoming US inflation data.
Data that may put the Federal Reserve in a big dilemma

In its last meeting in 2023, the US Federal Reserve, led by Jerome Powell,
presented to the markets the victory over the high levels of inflation and stated that a reduction in 2024
will be taken into consideration before high-interest rates begin to increase the damage to the US economy.

 

The next reduction

The US Federal Reserve will strengthen its position in overcoming high inflation
and will benefit if the upcoming data proves an actual decline.
Annual US consumer prices are expected to reach 3.2%, while the previous reading was around 3.1%.
In the next reading, if the decline is less than 3.1%, then it may begin. The Fed reduced interest rates by 0.25%.

Powell’s unenviable position

The idea that US inflation will return to rising will be considered the biggest nightmare for the US Central Bank during the current year. At that time, the markets may have many issues, the most important of which is that the Fed will extend the period during which it may cut the high-interest rate in the event of a reading higher than 3.2% or even a reading around 3.2%. It will be an indication that inflation is rising again, which may put Powell in trouble, and that the markets need more monetary tightening, which may bring us closer to the Federal Reserve’s expectations for a decline in economic growth of around 1.4% instead of 1.5%.

 

Geopolitical Tensions critical factor influencing financial markets

The price of gold rises amid anticipation of the US jobs report

The price of gold rises amid anticipation of the US jobs report: Gold prices rose in the trading session on Wednesday,
amid investors’ anticipation of the release of economic data, especially the jobs report,
in an attempt to predict the Federal Reserve’s move regarding the monetary policy it will follow.
Still, the rise in US bond yields made it difficult for gold to continue rising.

 

Content:

Gold price mover

Economic reports and data

Metal prices

 

Gold price mover

Kyle, a senior financial market analyst at Capital.com,
believes that reducing expectations regarding interest rate cuts is the biggest driver of gold’s price,
which will remain so for a few days.

The report of the last Federal Reserve meeting, which was held on December 12 and 13,
indicated that bank officials are convinced of the decline in inflation.
Still, they expressed great doubt regarding interest rates and their reduction.

The dollar index fell, maintaining the rate it reached over 3 weeks in the last session,
while 10-year Treasury bond yields rose and reached 3.9330%.

Economic reports and data

Investors are awaiting the release of the weekly unemployment claims data,
which is expected to be released today, in addition to the non-farm payrolls report, which will be released tomorrow,
Friday, to obtain a clearer picture of the scope available to the US Central Bank to reduce interest rates.

 

Metal prices

The price of gold reached 2043.72 after it rose 0.1% in spot trading,
while the price of gold futures reached $2051 per ounce after it rose 0.4%.

The price of silver stabilized at $22.97 per ounce,
while platinum rose by 0.5% and reached $966.59,
The palladium reached $1066.93 per ounce after rising by 0.1%.

 

The price of gold rises amid anticipation of the US jobs report