Lebanon: Retailers to Shut Down amid Debilitating Crisis

Anti-government protesters carry Lebanese flags and burn tires as they block the main highway north of Beirut during a protest over deteriorating living conditions. EPA
Anti-government protesters carry Lebanese flags and burn tires as they block the main highway north of Beirut during a protest over deteriorating living conditions. EPA
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Lebanon: Retailers to Shut Down amid Debilitating Crisis

Anti-government protesters carry Lebanese flags and burn tires as they block the main highway north of Beirut during a protest over deteriorating living conditions. EPA
Anti-government protesters carry Lebanese flags and burn tires as they block the main highway north of Beirut during a protest over deteriorating living conditions. EPA

Major retailers in Lebanon announced on Thursday they will temporarily shut down in the face of an increasingly volatile currency market and their inability to set prices while the Lebanese pound plunges against the dollar.

Later in the day, owners of the businesses rallied in central Beirut to denounce the government’s inability to handle a deepening economic and financial crisis, and urging others to join them.

“The company is losing and ... (the customers) think we are robbing them," Samir Saliba, owner of sportswear retailer Mike Sport, told The Associated Press. “We want a clear economic policy to know how to move forward and not buy our dollars from the black market and be humiliated with the brokers and money changers."

The protesters called on the government to resign and urged other stores to join their protest shutdown.

The Lebanese pound recorded a new low Thursday, selling at nearly 10,000 for a dollar and maintaining the downward slide that saw the national currency lose about 85% of its value over the past months.

Despite government and central bank efforts to regulate the foreign currency rate, a parallel market has thrived and inflation is soaring as the dollar becomes increasingly scarce.

Amid the tumbling pound, prices and inflation have soared. Power cuts have also increased, as the government struggles to secure fuel and diesel, while grocery stores began imposing a limit on how many items customers can buy amid a rush to hoard basic goods.

The country is experiencing an unparalleled economic meltdown, rooted in years of mismanagement and excessive public spending.

On Thursday, embattled Prime Minister Hassan Diab accused “local and external parties” of seeking to besiege Lebanon and make his government fail. He also accused internal forces he did not name of causing the currency crisis.

“The dollar game has become exposed and visible,” he told a Cabinet meeting. Diab also claimed foreign countries were “blatantly interfering in Lebanon's affairs,” aided by internal powers to “drag Lebanon into the region's conflicts.” He did not elaborate.



Gold Holds Ground as Jobs Data offsets Safe-haven Demand

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
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Gold Holds Ground as Jobs Data offsets Safe-haven Demand

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)

Gold prices held steady on Wednesday as stronger US jobs data countered safe-haven demand driven by simmering trade tensions between the US and China.

Spot gold was steady at $3,349.19 an ounce, as of 1145 GMT. US gold futures were unchanged at $3,373.10.

"US labor data gave markets a bit of relief yesterday, causing a small dip in gold prices. However, tensions between the US and China are still keeping risks high and gold prices supported," said Zain Vawda, market analyst at MarketPulse by OANDA.

Job openings in the US rose in April, though layoffs surged to their highest level in nine months, economic data showed, hinting at softening labor market conditions, Reuters reported.

Donald Trump said on Wednesday that Chinese President Xi Jinping is tough and "extremely hard to make a deal with," days after the US President accused China of violating an agreement to roll back tariffs and trade restrictions.

Washington doubled its tariffs on steel and aluminium imports on Wednesday, the same day the Trump administration expects trading partners to make "best offers" to avoid other punishing import levies from taking effect in early July.

The focus will be on Friday's US non-farm payrolls data for more cues on the Federal Reserve's policy path. Federal Reserve's policy path. Fed officials have reiterated their cautious policy stance, citing risks from trade tensions and economic uncertainty.

"If the data is stronger than expected, interest rate cut expectations are likely to wane, which would weigh on the gold price," said Commerzbank analyst Carsten Fritsch.

"We see gold trading in a range between $3,300 and $3,400 per troy ounce in the short term."

Gold, a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment.

Elsewhere, spot silver fell 0.5% to $34.32 an ounce, platinum rose 1.1% to $1,085.50 and palladium lost 0.5% to $1,005.11.