عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Gold Rally Hits Pause ahead of US Inflation Data

Gold prices steadied near a three-month peak. Reuters
Gold prices steadied near a three-month peak. Reuters
TT
TT

Gold Rally Hits Pause ahead of US Inflation Data

Gold prices steadied near a three-month peak. Reuters
Gold prices steadied near a three-month peak. Reuters

Gold prices took a breather from a record-breaking rally on Monday, which was fueled by a cooling US labor market and remarks from the Federal Reserve, with traders awaiting a US inflation report for fresh clues on the timing of rate cuts.
Spot gold was flat at $2,177.24 per ounce, as of 0602 GMT. US gold futures edged 0.1% lower to $2,183.90.
Gold set a record peak of $2,194.99 for the fourth straight day on Friday after data signaled a cooling US labor market.
"With large speculators having increased net-long exposure at their fastest weekly pace in 3.5 years last Tuesday, gold is clearly in demand and not a market to short for any length of time whilst traders expect Fed cuts," City Index senior analyst Matt Simpson said.
COMEX gold speculators raised their net long positions by 63,018 contracts to 131,060 in the week ended March 5, data showed on Friday.
Prices will simply consolidate at lofty levels heading into consumer price inflation (CPI) data for February, due on Tuesday, as that is likely the single biggest driver of gold prices this week, given that the Fed are now in a blackout period, Simpson said.
A cooler reading on the CPI print could help the case for an early rate cut, supporting gold prices. Fed Chair Powell sounded more confident about cutting rates in the coming months in his Congressional testimony last week.
Traders are currently pricing in three to four quarter-point (25 bps) US rate cuts, with a 75% chance for the first in June, as per LSEG's interest rate probability app.
Lower rates boost the appeal of non-yielding bullion.
Spot platinum edged 0.1% higher to $913.16 per ounce, while palladium was steady at $1,019.54, and silver was little moved at $24.30.

Most Viewed

 
 
Business

China's Industrial Profits Narrow Decline but 2024 Likely Worst Year in Decades

An employee works at a carbon fibre production line inside a factory in Lianyungang, Jiangsu province, China October 27, 2018. REUTERS/Stringer
An employee works at a carbon fibre production line inside a factory in Lianyungang, Jiangsu province, China October 27, 2018. REUTERS/Stringer
TT
TT

China's Industrial Profits Narrow Decline but 2024 Likely Worst Year in Decades

An employee works at a carbon fibre production line inside a factory in Lianyungang, Jiangsu province, China October 27, 2018. REUTERS/Stringer
An employee works at a carbon fibre production line inside a factory in Lianyungang, Jiangsu province, China October 27, 2018. REUTERS/Stringer

China's industrial profits fell at a slower clip in November, official data showed on Friday, but the annual decline in earnings this year is expected to be the worst in over two decades due to persistently soft domestic consumption.

The world's second-largest economy has been struggling to mount a strong post-pandemic revival, as business and household appetites for spending and investment remain subdued amid a prolonged housing downturn and fresh trade risks from the incoming US administration of President-elect Donald Trump.

Industrial profits fell 7.3% in November from the same month last year, following a 10% drop in October, National Bureau of Statistics (NBS) data showed, Reuters reported.

The narrower decline in November pointed to improved profits as recent economic stimulus measures start to have an effect, said Zhou Maohua, a macroeconomic researcher at China Everbright Bank.

The profit numbers were also in line with a slower decline in factory-gate prices in November. The producer price index fell 2.5% year-on-year versus the 2.9% drop in October.

The World Bank on Thursday revised up its 2024 economic growth forecast for China slightly to 4.9% from its June forecast of 4.8%.

Still, in the first 11 months of 2024, industrial profits declined 4.7%, deepening a 4.3% slide in the January-October period, reflecting still tepid private demand in the Chinese economy.

China's full-year industrial profits are set to show their biggest drop in percentage terms since 2011. However, when smaller companies are included under a previous compilation methodology, this year's profit decline is expected to the worst since at least 2000.

A spate of economic indicators released this month pointed to mixed results, with industrial output accelerating in November while new home prices fell at the slowest pace in 17 months.

The industrial sector is undergoing an uneven recovery amid insufficient demand, Zhou said, pointing to difficulties facing real estate and some related industries as evidence of this malaise.

China's leaders vowed in a key policy meeting this month to raise the deficit, issue more debt and loosen monetary policy to maintain a stable economic growth rate. The government also recently pledged to step up direct fiscal support to consumers and boosting social security.

Beijing has agreed to issue a record $411 billion special treasury bonds next year, Reuters reported.

Profits at state-owned firms fell 8.4% in the first 11 months, foreign firms posted a 0.8% decline and private-sector companies recorded a 1% fall, according to a breakdown of the NBS data.

Industrial profit numbers cover firms with annual revenues of at least 20 million yuan ($2.7 million) from their main operations.