Gold Retreats as Dollar Strengthens Yuan at 9-Month High, and European Stocks Start the Week Lower
Global markets kicked off the week with sharp fluctuations as gold prices declined under pressure from a stronger dollar,
the Chinese yuan climbed to its highest level in nine months, and European stocks slipped amid profit-taking.
Topic
Markets
Global markets opened the week’s trading with mixed performance.
Gold prices retreated under the weight of a strong U.S. dollar,
while the Chinese yuan recorded its highest level in nine months.
Meanwhile, European equities leaned lower as investors booked profits.
Gold futures for December delivery fell 0.3% or $9.50 to $3,409 per ounce during Monday’s session,
while spot prices slipped 0.2% to $3,364.33 per ounce.
This decline came despite growing market bets that the Federal Reserve will cut interest rates at its mid-September meeting,
with expectations of a 25-basis-point reduction rising to 87.3%.
Conversely, the U.S. dollar index climbed 0.15% to 97.89 points, putting further pressure on the precious metal.
Silver, platinum, and palladium also posted simultaneous declines.
In currency markets, the yuan advanced to its strongest level since November 2024,
with the dollar easing 0.2% against the Chinese currency to 7.1499 yuan, driven by increased expectations of a U.S. rate cut.
According to the People’s Bank of China,
the reference exchange rate was set at 7.1161 yuan per dollar—stronger than analysts had forecast—reflecting the authorities’ desire to support the currency.
Equities
In equities trading, the European Stoxx 600 index slipped 0.25% to 559 points, while Germany’s DAX fell 0.45% to 24,251 points,
and France’s CAC 40 dropped by a similar margin to 7,934 points.
This decline followed a wave of profit-taking after recent rallies fueled by hopes of a U.S. interest rate cut.
In corporate developments, shares of Dutch coffee company JDE Peet’s surged 17.2% after Keurig Dr Pepper announced an $18.4 billion acquisition.
Conversely, shares of Danish renewable energy company Ørsted tumbled more than 15%
after the administration of U.S. President Donald Trump ordered a halt to an offshore wind project.