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Gold price (XAU/USD) rises to a fresh record high near $4,675 during the early Asian session on Monday. The precious metal gains momentum after US President Donald Trump said he would slap tariffs on eight European nations that have opposed his plan to take Greenland.Trump announced a 10% tariff on goods from countries including Denmark, Sweden, France, Germany, the Netherlands and Finland, along with the United Kingdom (UK) and Norway, starting from February 1, until the US is allowed to buy Greenland. The move sparked fears of retaliation from Europe, supporting traditional safe-haven assets such as Gold. European Union (EU)…
EUR/USD drops even though the Dollar pared some of its earlier gains on Friday sparked by solid US economic data releases in the week, which has improved the outlook for the labor market. This trimmed the chances for further easing by the Federal Reserve, a tailwind for the Greenback. The pair trades at 1.1599, down 0.08%.Euro edges lower as strong US labor and production data underpin the Dollar despite fading momentumThe shared currency is poised to end the week negatively, following solid jobless claims revealed on Thursday. This, a spike on factory inflation and US President Trump reluctancy to nominate…
Gold (XAU/USD) registers losses of over 0.70% on Friday as traders take profits, as in the last two weeks, data in the US has shown the labor market is not as weaker as expected. Therefore, traders are turning skeptical that the Federal Reserve (Fed) might go for two cuts, as reflected by the swaps markets. XAU/USD trades at $4,580 at the time of writing.Bullion retreats as resilient US data, easing geopolitical risks push traders to cut aggressive Fed easing betsMarket mood is turning negative as US President Donald Trump shook the markets, as he seems reluctant to nominate the National…
The Australian Dollar (AUD) trades on the back foot against the US Dollar (USD) on Friday, as resilient US economic data and hawkish-leaning Federal Reserve (Fed) rhetoric keep the Greenback firmly supported. At the time of writing, AUD/USD trades around 0.6684, down about 0.20% on the day and poised to end the week with marginal losses.The pair is struggling to attract buying interest after a run of upbeat US releases reinforced expectations that the Fed is likely to stick to a cautious, gradual easing path, diminishing hopes for near-term rate cuts. Data released this week showed that US labour-market conditions…
The US Dollar (USD) lacked directional momentum this week amid geopolitical and local uncertainty. On the one hand, the United States (US) President Donald Trump continued threatening Iran with military interventions, taking down the tone by the week’s end, but noting that all options are still on the table. On the other hand, the Federal Reserve (Fed) is facing problems stemming from the lawsuit against Chairman Jerome Powell, keeping the USD unattractive to investors.USD Index: the US Dollar Index (DXY) ended the week with modest gains and is trading near 99.30, reaching a monthly high.On the datafront, the US will…
USD/JPY trades lower around 158.00 on Friday at the time of writing, down 0.40% on the day, as the Japanese Yen (JPY) regains some traction against the US Dollar (USD). The move reflects increased caution among investors, with intervention risks from Japanese authorities returning to the forefront after several weeks of persistent Japanese Yen weakness.On the US side, the US Dollar continues to be supported by still-robust fundamentals. Recent macroeconomic data confirm the resilience of the US economy, particularly in the labor market and consumer spending. Weekly Initial Jobless Claims published by the US Department of Labor fell to 198,000…
West Texas Intermediate (WTI) US Oil trades around $59.80 per barrel on Friday at the time of writing, up 1.60% on the day. The Crude Oil is recovering part of the ground lost over the previous two sessions as investors reassess geopolitical risks in the Middle East following more cautious remarks from the White House regarding Iran.US President Donald Trump said he had stepped back from the threat of military action after receiving assurances that no further executions would take place and that violence would subside. According to several sources cited by Reuters, Israel and other regional allies also urged…
Federal Reserve (Fed) Vice Chair Michelle Bowman said that, given the risks, the Fed should not signal a pause in its rate-cutting campaign, in a speech at the New England Economic Forum in Foxborough, Massachusetts, on Friday.Key takeawaysGiven risks, Fed should not signal a pause in rate-cutting campaign.US Central Bank should stand ready to cut interest rates again given labor market risks.Risk to Fed’s mandates is asymmetric, with job risks outweighing inflation concerns.Monetary policy is moderately restrictive right now.Inflation pressures are easing as tariff influences abate.Fed policymaking should be forward looking and driven by forecasts.Given risks, Fed policy should be…
The Euro (EUR) turns lower against the US Dollar (USD) on Friday, surrendering intraday gains as renewed demand for the Greenback keeps the pair on the defensive. At the time of writing, EUR/USD is trading flat near 1.1600, after briefly sliding to its lowest level since November 28.The US Dollar draws support from stronger-than-expected US economic data, which has reinforced the view that the Federal Reserve (Fed) can afford to hold off on cutting interest rates in the near term.Further supporting the US Dollar, comments from White House National Economic Council Director Kevin Hassett helped ease investor concerns over recent…
The price of Silver continued its upward trajectory this week, reaching a record high of $93.75 per troy ounce on Thursday morning. As a result, the Gold/Silver ratio briefly slipped below the 50 mark for the first time since March 2012. Since the beginning of the year, Silver has risen in price by around 30%. By comparison, the price of Gold rose by ‘only’ 7% over the same period. Last year, Silver had already significantly outperformed Gold with a price increase of almost 150%, Commerzbank’s commodity analyst Carsten Fritsch notes. Trump talks ease tariff fears, Silver pulls back 7%”Now, US…