Markets are expecting 54 basis points of rate cuts this year, with the reductions now seen starting from October
Published Mon, May 19, 2025 · 09:25 AM
[BENGALURU] Gold prices rose more than 1 per cent on Monday (May 19) as the US dollar weakened and as US Treasury Secretary Scott Bessent reaffirmed US President Donald Trump’s tariff threats, boosting safe-haven demand amid renewed trade tensions.
Spot gold was up 1.4 per cent at US$3,247.40 an ounce as at 0025 GMT. US gold futures gained 2 per cent to US$3,251.90.
On Friday, gold shed more than 2 per cent and posted its worst week since November, as increased risk appetite from the US-China trade agreement weighed.
The US dollar slipped 0.3 per cent on Monday, making greenback-priced gold cheaper for overseas currency holders.
Trump will impose tariffs at the rate he threatened last month on trade partners that do not negotiate in “good faith” on deals, Treasury Secretary Scott Bessent said in television interviews on Sunday.
Trump’s ongoing trade wars have severely disrupted global trade flows and roiled financial markets as investors grapple with what Bessent has called the Republican president’s “strategic uncertainty”, in his drive to reshape economic relationships in the US’ favour.
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In April, US producer prices fell unexpectedly and retail sales growth slowed, while consumer prices rose less than expected, data showed.
Markets are expecting 54 basis points of rate cuts this year, with the reductions now seen starting from October.
Gold, traditionally considered a safe-haven asset during political and economic uncertainty, tends to thrive in a low-rate environment.
Spot silver firmed 0.8 per cent to US$32.52 an ounce, platinum rose 0.6 per cent to US$993.70 and palladium gained 0.7 per cent to US$966.98. REUTERS
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