|

The Fed’s hawkish signal sparked gold jitters

ByVictoria

The U.S. Federal Reserve jolted markets with an unexpectedly hawkish set of projections for the path of interest rates next year, setting gold prices up for a blow — but analysts told CNBC they still see solid support for the precious metal in 2025.

The Fed’s “dot plot,” a gauge of policymakers’ outlook, now suggests the Fed will cut interest rates twice in 2025, compared with four quarter-point cuts previously expected in September, when concerns about the weakening labor market were front-of-mind. The big concern for the central bank is now whether the policies of incoming President-elect Donald Trump — particularly his threat of sweeping trade tariffs — will prove inflationary.

Source – CNBC

Similar Posts

  • /

    Copper futures up 5%

    ByVictoria
    0 Comments

    U.S. copper futures rallied nearly 5% on Wednesday, rising more than other global benchmarks, after President Trump said imports of the metal would be subject to a 25% tariff; the front-month May Comex contract (HG1:COM) currently +4.6% at $4.76/lb.

    Trump’s comments in last night’s speech to Congress sparked a surge in Comex copper prices in Asian hours, as traders reacted to the possibility that copper tariffs could be larger than expected.

    “A 25% tariff was clearly not what the market was expecting before those comments, and now traders are scrambling to price in the correct level, whatever that might end up being,” Saxo Bank’s Ole Hansen said. “Whatever the final tariff is, the disruption to global trade flows is very real.”

    Source – Seeking Alpha

  • /

    Silver reached a new record high

    ByVictoria
    0 Comments

    New Delhi, Jul 14 (PTI) Silver prices skyrocketed Rs 5,000 to hit a fresh peak of Rs 1,15,000 per kg in the national capital on Monday as investors rushed to safe-haven assets following weakness in the US Dollar amid uncertainties over US tariff threats.

    “Silver prices are surging, reaching a new record high in the domestic market and hitting the highest level in almost 14 years in the international market. This rally is driven by a change in investor interest toward alternatives to gold,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.

    Source – Press Trust of India

  • /

    Freeport-McMoRan shares up 1.6%

    ByVictoria
    0 Comments

    Miner Freeport-McMoRan (FCX.N), beat Wall Street estimates for second-quarter profit on Wednesday, as higher copper and gold prices helped offset lower production.

    The company’s shares rose 1.6% to $40.54 in pre-market trade.

    Freeport could be a big beneficiary, seeing as much as $1.6-billion boost to annual profit, given its position as the largest U.S. producer with more expansion options than rivals.

    Freeport, which supplies about 70% of U.S. refined copper, said it expects to sell 1.3 billion pounds from its domestic mines in 2025.

    Source – Reuters

  • /

    Gold not expected to do well this week

    ByVictoria
    0 Comments

    Gold prices fell on Friday and were poised for their worst weekly performance in more than a month after the Federal Reserve tempered expectations for rate cuts and on a temporary easing of concerns about an imminent U.S. attack on Iran.

    Spot gold slipped 0.7% to $3,347.80 an ounce, as of 1201 GMT, and was down 2.5% for the week so far. U.S. gold futures shed 1.3% to $3,364.00.

    “Gold, silver, and platinum all suffered setbacks as traders booked profits after Wednesday’s FOMC meeting,” said Ole Hansen, head of commodity strategy at Saxo Bank.

    “Gold is likely to extend its current consolidation phase with support around $3,320 followed by $3,245.”

    Source – Reuters

  • /

    Citi’s gold expectations

    ByVictoria
    0 Comments

    Citi expects the price of gold to consolidate around $3,100 to $3,500 per ounce in the third quarter, as prices moderate due to geopolitical de-escalation in the Middle East and an improved global growth outlook, the bank said in a note on Monday.

    “We expect continued price consolidation … and highlight our view that we may have already seen the highs at $3,500/oz in late April as the gold market deficit is peaking soon if not already,” Citi said in the note.

    Source – Reuters