Gold prices surged by 1.0% to a new high of $2,842.71 as the U.S. dollar weakened, driven by easing concerns over tariffs and a miss in U.S. job openings, according to Morgan Stanley's latest Global Macro Commentary. The U.S. Dollar Index (DXY) fell by 0.9% to 108.01, amplifying gold's appeal as a safe-haven asset. The report highlights that the U.S. job openings rate unexpectedly dropped to 4.5%, signaling
Amid a backdrop of disappointing corporate updates from tech giants Alphabet and AMD, and looming regulatory concerns over a potential antitrust probe into Apple, investors are shifting their focus towards haven assets. This shift is evident as US equity futures decline, with Nasdaq futures down 1% and S&P contracts falling 0.6%. The uncertainty surrounding these major tech companies has dampened investor c
Amid renewed US-China trade tensions and the US Postal Service's suspension of inbound packages from China and Hong Kong, commodities have faced a challenging session. However, gold has emerged as a standout performer, benefiting from its status as a safe-haven asset. The geopolitical uncertainties have driven investors to seek refuge in gold, pushing spot prices to record highs above $2,850 per ounce. This
The market's response to recent tariff announcements has been marked by a notable shift in investment strategies, with a bear flattener in the yield curve indicating short-term inflation concerns and long-term growth apprehensions. Investors are increasingly turning to longer-dated Treasuries as a hedge against anticipated inflation, driving up their prices and causing yields to fall. Concurrently, the rise
Citi analysts forecast a bullish outlook for gold, projecting prices to reach $3,000 per ounce within 6-12 months, following President Trump's imposition of a 25% import tariff on Canada and Mexico, effective February 4, 2025. The tariffs, which also include a 10% levy on energy imports from Canada and China, are expected to significantly impact U.S. metal pricing, particularly for copper, silver, and gold.
Citi's latest analysis underscores the impact of rising gold prices on the Thai Baht (THB), prompting the bank to close its short position on the THB/KRW currency pair. "THB has outperformed notably in recent weeks, with higher gold prices providing further tailwinds for the Thai Baht," Citi analysts note. The correlation between THB and gold has strengthened, as evidenced by Citi's THB Nominal Effective Ex
The announcement of 25% tariffs on Canada and Mexico by President Trump has injected a fresh wave of uncertainty into the markets, particularly affecting sectors reliant on cross-border trade. US automakers are facing potential profitability challenges as the increased trade costs could disrupt supply chains and raise production expenses. Meanwhile, the Bloomberg Dollar Index has strengthened against the Me
According to a recent Citi Research report, asset managers overseeing over $20 trillion in assets have increased their gold allocations, marking a significant shift in global asset allocation strategies. The report highlights that gold has regained its status as a consensus overweight position among managers, alongside long positions in U.S. equities and the U.S. dollar. "The precious metal (Gold) overweigh
Gold's traditional role as a safe-haven asset is being tested amid an AI-led stock selloff, as the metal struggles to capitalize on the haven rally. Despite a weakening dollar, which typically supports gold by making it cheaper for foreign investors, extreme market positioning is creating a precarious situation. Hedge funds have increased their net long positions to a three-month high, but the long-short ra
Citi's latest Global Asset Allocation report highlights a continued bullish stance on gold, driven by persistent central bank purchases and rising tariff uncertainties as the U.S. approaches a new presidential inauguration on January 20, 2025. The report underscores that "central bank buying will continue to dominate traditional fundamentals," supporting gold prices despite potential headwinds from U.S. Tre
Citi's latest analysis suggests a bullish outlook for gold (XAU) as geopolitical and economic factors align to support its price. The report highlights the potential impact of a "gradual tariff" plan proposed by President Trump's economic team, which could lead to a stronger U.S. dollar policy to counteract inflationary pressures from rising tariffs. Citi notes that gold's correlation with U.S. yields is be
Gold prices are under pressure as rising U.S. Treasury yields and a stronger dollar weigh on the precious metal. The recent U.S. Nonfarm Payrolls report, which exceeded expectations with 256,000 jobs added in December, has reinforced the view that the Federal Reserve may maintain higher interest rates for longer. This has led to a spike in U.S. yields, with the 10-year Treasury yield reaching 4.79%, its hig
Citi's latest Global Macro Strategy report forecasts a bullish outlook for gold, projecting prices to reach $2900 per ounce by the end of 2025, significantly above the median consensus of $2675. This optimistic view is underpinned by robust investment and industrial demand, which is expected to drive prices higher. "Central bank demand, particularly from emerging markets, is likely to remain robust, and the
Gold's remarkable performance in 2024, its best year in over a decade, has been driven by central banks diversifying away from the dollar and geopolitical uncertainties bolstering its status as a safe-haven asset. Despite the rise in real yields and a stronger dollar, gold has maintained its purchasing power, serving as a hedge against fiat currency debasement due to unchecked government fiscal policies. Th
Citi's latest report forecasts a bullish outlook for gold, predicting prices could approach $3,000 per ounce by the end of 2024. This projection is driven by a combination of factors, including a deteriorating U.S. labor market, persistently high interest rates impacting economic growth, and increased demand for gold ETFs. Despite recent adjustments in Federal Reserve expectations, Citi remains optimistic a
Citi Research has reaffirmed its bullish stance on gold, projecting a target price of $3,000 per metric ton, as outlined in their December 19, 2024, Global Macro Trade Ideas Radar report. Analyst Charlie Massy-Collier recommends buying XAUUSD spot at $2,609.85/mt, with a stop at $2,480/mt, citing the recent selloff as positioning-led and aligning with Citi's post-election base case. "Central banks remain co
The SPDR Gold ETF (GLD) closed on December 31st at $242.13, up 0.62%, as gold prices rose 0.77% to $2,638.30 per ounce amid year-end positioning and economic uncertainty. Gold's upward movement was fueled by traders adjusting their portfolios for the new year, with the metal gaining traction as a safe haven amid inflation concerns and geopolitical tensions. The strong performance of gold in 2024, with a 23%
The SPDR Gold ETF (GLD) closed on December 26th at $243.07, up 0.68%, as gold prices rose to $2,653.70, marking a 0.69% increase. The rise in gold prices was supported by a combination of factors, including a weaker U.S. dollar and expectations of fewer interest rate cuts by the Federal Reserve in 2025, as indicated by softer-than-expected PCE inflation data. This has increased the likelihood of additional
The SPDR Gold ETF (GLD) closed on December 24th at $241.44, up 0.2%, as gold prices experienced a modest increase of 0.18% to $2,632.80. This uptick in gold prices comes amid a backdrop of mixed market signals and investor sentiment. Despite a bearish outlook dominating the gold market, with resistance at key moving averages and potential downside targets, the metal managed to hold its ground. The recent co
Gold is expected to trend higher despite the Federal Reserve's hawkish stance following its December meeting, according to Citi's latest analysis. The Fed's decision to lower interest rates for the third time in 2024, coupled with a hawkish outlook projecting only two 25 basis point cuts for 2025, has created a complex macroeconomic environment. Citi notes that "Gold generally trades higher on skips regardl