عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Gold Steady as Investors Assess China's Stimulus Plans

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
TT
TT

Gold Steady as Investors Assess China's Stimulus Plans

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk

Gold prices held steady on Monday as investors assessed China's weekend stimulus announcement, while also focusing on US Federal Reserve officials' comments for further rate cut cues.
Spot gold was little changed at $2,657.93 per ounce by 0548 GMT. Bullion rose nearly 1% in the previous session, Reuters said.
US gold futures were flat at $2,675.00.
The potential commitment to fiscal stimulus from China suggests a healthier economy, which bodes well for gold demand but the market needs to see more concrete measures, said Tim Waterer, chief market analyst at KCM Trade.
China on Saturday said it would "significantly increase" debt to revive its sputtering economy, but left investors guessing on the overall size of the stimulus package.
Investors will watch out for comments from Fed officials this week for more hints on the upcoming rate cuts, along with US retail sales data.
"If the Fed speakers this week create some further doubt over how many rate cuts could occur between now and year-end, any resulting upside in the dollar could see gold support levels around $2,600 again being tested," Waterer said.
Data on Friday showed unchanged US producer prices last month, cementing the case for quarter-point US interest-rate cuts at upcoming Fed policy meetings.
Traders see a roughly 89% chance of the Fed cutting rates by 25 basis points at its November meeting, and an 11% chance of it leaving rates unchanged.
The zero-yielding bullion is preferred in a low-interest rate environment.
The dollar index rose 0.1%, putting pressure on greenback priced-metals. A stronger dollar makes them less attractive to other currency holders.
Spot silver fell 0.4% to $31.39 per ounce and platinum shed 1% to $974.88. Both were set to snap a two-session winning streak.
Palladium extended its decline, falling 0.9% to $1,058.98.

Most Viewed

 
 
Business

Saudi Arabia Grants Civil Aviation Authority Financial Independence

King Khalid International Airport in Riyadh (Asharq Al-Awsat) 
King Khalid International Airport in Riyadh (Asharq Al-Awsat) 
TT
TT

Saudi Arabia Grants Civil Aviation Authority Financial Independence

King Khalid International Airport in Riyadh (Asharq Al-Awsat) 
King Khalid International Airport in Riyadh (Asharq Al-Awsat) 

The Saudi government has approved a new regulatory framework for the General Authority of Civil Aviation (GACA), granting it expanded powers to achieve financial sustainability and operate independently from the state budget.

Under the new structure, approved recently by the Council of Ministers, GACA will gradually transition to self-funding through revenue generated from its services. While it will initially receive allocations from the state budget, the long-term goal is for the authority to maintain its own independent annual budget and a reserve fund equal to twice its previous year’s expenditures.

The move is part of Saudi Arabia’s broader strategy to modernize and privatize key sectors, in line with the national transport and logistics strategy. GACA’s updated mandate includes regulating and developing the civil aviation sector, improving oversight, and making the industry more attractive to private investment.

GACA is now authorized to invest its revenues to support its financial goals. The Minister of Transport and Logistics—who also chairs the authority’s board—and the Minister of Finance will jointly oversee how these investments are managed.

The authority can also impose service fees for activities and operations it oversees. However, these fees must be coordinated with the Ministry of Finance and the Center for Non-Oil Revenue Development, until a broader regulatory framework for government service charges is finalized.

The new structure empowers GACA to set policies, draft regulations, and monitor compliance across the aviation sector. This includes oversight of airport operations, enforcement of safety and performance standards, and ensuring alignment with the civil aviation strategy.

GACA will also handle flight permits for scheduled, charter, military, and diplomatic flights, and approve commercial agreements involving domestic and international carriers. It will set unified standards for smart airport technologies to improve passenger experience, in collaboration with the Communications, Space and Technology Commission.

Environmental protection will also fall under GACA’s jurisdiction, including the design and supervision of aviation-related sustainability programs, while agreements between Saudi and foreign airlines operating to and from the Kingdom must comply with international treaties and reflect economic, social, and security priorities.