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Yahoo
an hour ago
- Business
- Yahoo
Dollar and Gold Slide on Hopes of De-Escalation in Israel-Iran Conflict
The dollar index (DXY00) today is down by -0.16%. The dollar is under pressure today on an easing of safe-haven demand as stocks rose after Reuters reported that the Iranian government said it is ready to discuss limitations on its uranium enrichment levels. Also, President Trump said he is willing to give diplomacy more time and won't decide to strike Iran for another two weeks. In addition, dovish comments today from Fed Governor Waller weighed on the dollar when he said, "I think we have room to bring interest rates down as early as July." The dollar remained lower on the weaker-than-expected Philadelphia Fed business outlook report. Dollar and Gold Slide on Hopes of De-Escalation in Israel-Iran Conflict Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. The US June Philadelphia Fed business outlook survey was unchanged at -4.0, weaker than expectations of an increase to -1.5. US May leading economic indicators index fell -0.1% m/m, right on expectations, and the sixth consecutive month that the LEI has declined. Fed Governor Waller said, "I think we have room to bring interest rates down as early as July, and then we can see kind of see what happens with inflation." The markets are discounting the chances at 15% for a -25 bp rate cut after the July 29-30 FOMC meeting. EUR/USD (^EURUSD) today is up by +0.10%. The euro is moving higher today due to weakness in the dollar. However, gains in the euro are limited after the Eurozone's June consumer confidence index unexpectedly fell and after German May producer prices posted their biggest decline in eight months, which were dovish factors for ECB policy. The Eurozone June consumer confidence index unexpectedly fell -0.1 to -15.3, weaker than expectations of an increase to -14.9. German May PPI fell -1.2% y/y, right on expectations and the biggest decline in 8 months. Swaps are discounting the chances at 7% for a -25 bp rate cut by the ECB at the July 24 policy meeting. USD/JPY (^USDJPY) today is up by +0.31%. The yen gave up overnight gains and fell to a 3-week low against the dollar today as an easing of Middle East tensions curbed safe-haven demand for the yen. Reuters reported that the Iranian government said it is ready to discuss limitations on its uranium enrichment levels, and President Trump said he's willing to give two weeks to see if diplomacy will work before attacking Iran. Higher T-note yields today are also weighing on the yen. The yen initially moved higher today after Japan's May national CPI excluding fresh food and energy rose more than expected, the most in 16 months, a hawkish factor for BOJ policy. Also, comments from BOJ Governor Ueda were positive for the yen when he said the BOJ will raise the benchmark interest rate if its economic outlook is realized. Japan's May national CPI rose +3.5% y/y, right on expectations. May national CPI ex-fresh food and energy rose +3.3% y/y, stronger than expectations of +3.2% y/y and the largest increase in 16 months. BOJ Governor Ueda said Japan's real interest rate is significantly low, and the BOJ will raise the benchmark interest rate if its economic outlook is realized. August gold (GCQ25) today is down -21.00 (-0.62%), and July silver (SIN25) is down -0.923 (-2.50%). Precious metals are retreating today, with gold sliding to a one-week low and silver falling sharply to a two-week low. An easing of Middle East tensions sparked long liquidation in precious metals after President Trump signaled he wants to give diplomacy a chance and will wait two weeks before deciding if the US would strike Iran. Precious metals also fell on today's report from Reuters that the Iranian government said it is ready to discuss limitations on its uranium enrichment levels, a sign that Iran may want to negotiate its way out of war with the US. In addition, hawkish comments from BOJ Governor Ueda undercut precious metals when he said the BOJ will raise the benchmark interest rate if its economic outlook is realized. Today's dollar weakness is supportive of metals prices. Also, dovish comments today from Fed Governor Waller boosted demand for gold as a store of value when he said, "I think we have room to bring interest rates down as early as July." In addition, Thursday's report from Bloomberg that said senior US officials are preparing for a possible strike on Iran boosted safe-haven demand for precious metals. Industrial metals demand concerns also weighed on silver prices due to the weaker-than-expected US Jun Philadelphia Fed business outlook survey and the weaker-than-expected UK May retail sales report. Fund buying of silver continues to support prices as silver holdings in ETFs rose to a 2-1/4 year high Thursday. UK May retail sales ex-auto fuel fell -2.8% m/m, weaker than expectations of -0.7% m/m and the biggest decline in nearly 1-1/2 years. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
12 hours ago
- Business
- Reuters
Gold heads for weekly fall as fewer Fed rate cut prospects weigh
June 20 (Reuters) - Gold prices fell on Friday and were on track for a weekly decline, as an overall stronger dollar and the prospect of fewer U.S. interest rate cuts offset support from rising geopolitical risks in the Middle East. Spot gold slipped 0.5% to $3,355.49 an ounce, as of 0245 GMT, and was down 2.2% for the week so far. U.S. gold futures shed 1% to $3,371.80. "Right now there's a lot of fluid situation in the Middle East that causes traders not to take any aggressive position both on the long side and the short side of the trades of the spectrum," said Kelvin Wong, a senior market analyst, Asia Pacific at OANDA. The conflict in the Middle East intensified on Thursday when Israel bombed Iran's nuclear sites, while Iran fired missile and drone strikes on Israel, including an overnight attack on an Israeli hospital. Neither side has signalled an exit strategy. President Donald Trump will decide in the next two weeks whether the U.S. will get involved in the Israel-Iran air war, the White House said on Thursday, raising pressure on Tehran to come to the negotiating table. Meanwhile, Trump reiterated his calls for the Federal Reserve to cut interest rates, saying the rates should be 2.5 percentage points lower. The Fed held rates steady on Wednesday, and policymakers retained projections for two quarter-point rate cuts this year. "Macroeconomic developments, particularly steady yields and renewed USD strength, have not supported the (gold) price," analysts at ANZ said in a note. "Rising inflation expectations and the Fed's cautious stance have weighed on market expectations around the number of rate cuts this year." The dollar was set to log its biggest weekly rise in over a month on Friday. A stronger greenback makes gold more expensive for other currency holders. Elsewhere, spot silver slipped 1.6% to $35.82 per ounce, while palladium fell 0.7% to $1,042.92. Platinum fell 1.5% to $1,287.47, but was heading for its third straight weekly rise.
Zawya
12 hours ago
- Business
- Zawya
Gold heads for weekly fall as fewer Fed rate cut prospects weigh
Gold prices fell on Friday and were on track for a weekly decline, as an overall stronger dollar and the prospect of fewer U.S. interest rate cuts offset support from rising geopolitical risks in the Middle East. Spot gold slipped 0.5% to $3,355.49 an ounce, as of 0245 GMT, and was down 2.2% for the week so far. U.S. gold futures shed 1% to $3,371.80. "Right now there's a lot of fluid situation in the Middle East that causes traders not to take any aggressive position both on the long side and the short side of the trades of the spectrum," said Kelvin Wong, a senior market analyst, Asia Pacific at OANDA. The conflict in the Middle East intensified on Thursday when Israel bombed Iran's nuclear sites, while Iran fired missile and drone strikes on Israel, including an overnight attack on an Israeli hospital. Neither side has signalled an exit strategy. President Donald Trump will decide in the next two weeks whether the U.S. will get involved in the Israel-Iran air war, the White House said on Thursday, raising pressure on Tehran to come to the negotiating table. Meanwhile, Trump reiterated his calls for the Federal Reserve to cut interest rates, saying the rates should be 2.5 percentage points lower. The Fed held rates steady on Wednesday, and policymakers retained projections for two quarter-point rate cuts this year. "Macroeconomic developments, particularly steady yields and renewed USD strength, have not supported the (gold) price," analysts at ANZ said in a note. "Rising inflation expectations and the Fed's cautious stance have weighed on market expectations around the number of rate cuts this year." The dollar was set to log its biggest weekly rise in over a month on Friday. A stronger greenback makes gold more expensive for other currency holders. Elsewhere, spot silver slipped 1.6% to $35.82 per ounce, while palladium fell 0.7% to $1,042.92. Platinum fell 1.5% to $1,287.47, but was heading for its third straight weekly rise. (Reporting by Brijesh Patel and Anmol Choubey in Bengaluru; Editing by Eileen Soreng and Rashmi Aich)
Globe and Mail
2 days ago
- Business
- Globe and Mail
Market Analysis: June 18th, 2025
Global Markets Canadian Markets Canada's main stock index rose modestly on Wednesday, as investors and traders digested the comments from the Bank of Canada, which opted to 'Hold' its key interest rate steady recently. The BoC cited an 'unpredictable' economic environment as the primary reason for the pause in rate cuts. Although inflation has cooled somewhat, policymakers remain concerned about mixed signals in consumer spending, business investment, and global economic trends. The BoC emphasized it will remain data-dependent in future decisions. American Markets U.S. markets traded mixed as investors digested the latest Federal Reserve policy update. The Fed held its benchmark interest rate steady at 4.25%-4.5% , marking the fourth consecutive meeting with no change. The central bank reiterated its projection for two interest rate cuts by year-end, a signal that it still sees room to ease monetary policy in the second half of 2025—provided inflation continues to cool. On the labor front, new data from the U.S. Department of Labor showed that jobless claims fell slightly to 245,000 from 250,000 the week prior. Though marginally better than expected, the number remains relatively elevated, suggesting softening in the job market—a potential relief for the Fed's inflation concerns, but also a sign of slowing economic momentum. European Markets European stocks closed broadly lower. Sentiment was weighed down by concerns over France's economic growth, with projections now showing only a 0.6% GDP expansion for 2025. The tepid outlook comes amid rising political uncertainty following recent election results and elevated public debt levels. In the United Kingdom, markets fared slightly better, where markets closed marginally higher, buoyed by in-line inflation data. The U.K.'s annual inflation rate slowed to 3.4% in May, matching economist expectations. This reinforced speculation that the Bank of England may be nearing a pivot toward rate cuts, possibly as early as the next few months, providing some support for consumer-facing sectors and rate-sensitive industries. Corporate News American Airlines Inc Bernstein cut price target from $15 to $14 due to rising jet fuel costs impacting Q3 margins. Blackstone Inc Cirsa (owned by Blackstone) to raise €460M in Madrid IPO: €400M new shares, €60M secondary. Proceeds to fund growth and reduce debt. Boeing Inc & General Electric Co Investigators believe emergency system was engaged in Air India crash. Raises questions about engine performance; aircraft used GE GEnx engines. Definity Financial Corp RBC initiates with Outperform rating, target C$87, citing benefits from Travelers acquisition. Delta Air Lines Inc Bernstein lowers target from $61 to $60, citing weak demand and pressure to reduce flight capacity. General Mills Inc Will eliminate artificial colors and dyes from all U.S. retail and school foods by end of 2027. Goldman Sachs Group Inc Revamps Asia operations, unifying teams to expand investment banking presence and boost deal flow in the region. Groupe Dynamite Inc RBC raises target to C$27 from C$23 after stronger-than-expected Q1 earnings. Hasbro Inc Cuts 3% of global staff (~150 roles) to reduce exposure to China tariffs; speeding up sourcing diversification. Jabil Inc JPMorgan lifts target to $214 from $180 citing strong performance in AI strategy and execution. Keyera Corp Buying Plains' Canadian NGL business for C$5.15B, adding infrastructure across Alberta, Saskatchewan, Manitoba, Ontario. Deal closes Q1 2026. Meta Platforms Inc OpenAI CEO says Meta offered staff up to $100M bonuses to switch jobs; called Meta a top AI rival. Nvidia Corp Malaysia investigates reports of Chinese firms using Nvidia chips for AI model training in local data centers. Sarepta Therapeutics Inc TD Cowen cuts target to $24 from $62, citing expected FDA revocation of Elevidys approval. TC Energy Corp
Bloomberg
2 days ago
- Business
- Bloomberg
New Zealand's Economic Recovery Gathers Pace as Exports Jump
New Zealand's economic recovery from a 2024 recession gathered pace in the first quarter as the central bank lowered interest rates and exports surged. Gross domestic product rose 0.8% in the three months through March, accelerating from a downwardly revised 0.5% growth in the fourth quarter, Statistics New Zealand said Thursday in Wellington. The result was slightly better than the 0.7% growth expected by economists.
