|

Weak dollar, gold up nearly 1%

ByVictoria

US Treasury Secretary Scott Bessent offered support for Jerome Powell amid regular attacks from President Donald Trump, saying he sees no reason for the Federal Reserve chair to step down. Trump has maintained his criticism of the Fed chief and stressed his belief that the central bank’s benchmark rate should be 3 percentage points lower.  

Political interference and a potential attempt to oust of Powell before his term ends is throwing the Fed’s independence into question. That’s negative for the dollar, and is helping boost haven demand for gold. 

“The USD is losing its store of value function” and bullion is exceptionally well-placed to benefit, TD Securities senior commodity strategist Dan Ghali said in a note.  

Spot gold was up nearly 1% to $3,430.05 an ounce at 2:16 p.m. in New York. The Bloomberg Dollar Spot Index fell 0.4%. Silver and palladium advanced while platinum slipped.

Source – Bloomberg

Similar Posts

  • /

    President Trump will add copper to trade protection

    ByVictoria
    0 Comments

    U.S. Commerce Secretary Howard Lutnick said nothing would stop President Donald Trump’s expanded 25% tariffs on steel and aluminum until U.S. domestic production is strengthened, and that Trump will add copper to his trade protections.

    “We can’t be in a war and rely on steel and aluminum from some other country. I mean, it’s just not reasonable,” Lutnick said. “So the president wants steel and aluminum in America, and let me be clear, nothing is going to stop that until we’ve got a big, strong domestic steel and aluminum capability. And by the way, he’s going to add copper to that mix too.”

    Source – Reuters

  • /

    JSW Group plans copper smelter by 2028-2029

    ByVictoria
    0 Comments

    India’s steel-to-power conglomerate JSW Group plans to set up a 500,000 metric ton capacity copper smelter in the eastern state of Odisha by 2028/29 with feedstock of copper concentrate from Peru and Chile, a source directly aware of the matter told Reuters on Thursday.

    JSW plans to feed its planned electric vehicle and battery manufacturing facilities with the copper produced at the smelter, the source added. Some of the concentrate supply will come from Hindustan Copper, the source said.

    Source – Reuters

  • /

    Macquarie Group predicts gold will reach $3500

    ByVictoria
    0 Comments

    “Year-to-date, gold has been running ahead of our expectations,” Marcus Garvey, head of commodities strategy at Macquarie, wrote on Thursday. 

    “We are raising our gold price forecast to a 3Q25 quarter average peak of $3,150 per ounce and our single point price high to $3,500 per ounce,” Garvey wrote. 

    “President Trump’s rapid move to announce, if not always to enact, import tariffs has contributed to geopolitical uncertainty and boosted inflation expectations, helping push down front-end real rates and supporting gold in the face of periodic USD strength and initially reduced expectations for Fed rate cuts,” the strategist wrote.

    Source – Yahoo Finance

    Macquarie Group Limited – is an Australian multinational independant investment bank and financial services company. Headquarters in Sydney, Australia. Listed as ASX

  • / /

    Over the Weekend!

    ByVictoria
    0 Comments

    Bitcoin Lags Behind Gold

    Bitcoin has gained just over 3% year-to-date, trailing gold’s 9% jump, according to data compiled by Bloomberg. The precious metal reached a record high of $2,882 an ounce after President Trump on Feb. 4 said the US could take over Gaza — a comment his aides sought to tone down. Bitcoin is currently about 10% below its peak.

    Source – Bloomberg

    Mali gold production  plunges 23%

    Mali’s industrial gold production plunged 23% to 51 metric tons last year from 66.5 tons in 2023, the West African country’s mines ministry said.

    With an estimated 6 tons produced in artisanal mines, Mali’s total gold production in 2024 is expected to reach 58.7 tons, the mines ministry said.

    Source – Reuters

    Michael Oliver says Gold’s Making All-Time Highs, SILVER To Follow

    “I think that once you punch a hole in the stock market… you’re going to have a lot of that money moving,” he predicted, suggesting that a 5-10% drop could trigger a significant shift in investor sentiment, driving capital towards safer havens like gold and silver.

    “Silver didn’t move with commodities in moved with gold,” he asserted, countering arguments that silver has lost its monetary significance.

    Source – The Jerusalem Post / Opinion

  • / / /

    Gold set for eighth weekly gain

    ByVictoria
    0 Comments

    Spot gold shed 0.4% to $2,927.95 an ounce by 1204 GMT. Bullion has gained around 1.6% this week after rising to a record $2,954.69 on Thursday.

    “The non-stop rally since December remains unchallenged unless prices drop to around $2,850,” said Ole Hansen, head of commodity strategy at Saxo Bank.

    “Gold has been displaying resilience with short-lived retracements, as lingering U.S. trade uncertainties reinforce its appeal as a hedge,” IG market strategist Yeap Jun Rong said.

    Spot silver was flat at $32.92 an ounce, and palladium dipped 0.3% to $974.75. Both metals were headed for weekly gains.

    Platinum shed 0.2% to $976.80 and eyed a weekly decline.

    Source – Reuters

  • /

    South African rand strengthens

    ByVictoria
    0 Comments

    South Africa’s rand, stocks and government bonds strengthened on Friday, boosted by higher gold prices as worries over the United States’ worsening fiscal health sent investors into the safe-haven asset.

    At 0929 GMT, the rand traded at 17.9150 against the dollar, 0.5% stronger than Thursday’s closing level.

    Gold prices rose on Friday and were poised for their biggest weekly gain in more than a month, as a softer U.S. dollar and concerns over the country’s fiscal outlook boosted bullion’s safe-haven appeal.

    Source – Reuters