gold prices rise
|

Gold prices rise ahead of US inflation data

Gold prices advanced nearly 1% on Wednesday as investors reduced expectations of further monetary tightening by the US Federal Reserve and turned their attention to upcoming inflation figures that could provide fresh clues about the central bank’s next policy move.

Spot gold rose 0.9% to $4,406.34 per ounce by 0330 GMT, while US gold futures for December delivery gained 0.6% to $4,466.70.

The precious metal remained supported after recording strong gains in recent sessions, although prices faced technical resistance around the 100-day moving average. Gold had climbed to a 10-week high on Tuesday before retreating from the key technical level near $4,387 per ounce, marking its second decline this month.

Market analysts said changing expectations for US interest rates were providing an important boost to bullion.

“The primary driver for gold is the reduction in pricing of rate hikes by the Fed,” said Kelvin Wong, senior market analyst at OANDA.

He added that gold had also benefited from a technical breakout above the $4,200 level late last week, which helped strengthen upward momentum and encouraged further buying.

Weaker jobs data shifts Fed expectations

Gold’s recent rally has been supported by signs of cooling in the US labour market. Bullion recorded its strongest weekly performance since January on Friday after employment data came in weaker than expected, prompting traders to reassess expectations for further interest-rate increases.

According to the CME FedWatch Tool, markets were pricing in roughly a 50% probability of a rate hike in September, compared with about 60% before the release of the jobs report.

Investors are now awaiting the latest US Consumer Price Index figures, due later on Wednesday. The inflation report could have a significant impact on expectations for the Federal Reserve’s upcoming decisions.

A softer-than-expected inflation reading could reinforce expectations for a less aggressive monetary policy stance, potentially providing additional support to gold. Conversely, stronger inflation could revive concerns about higher interest rates and put pressure on non-yielding assets.

Gold typically benefits from lower interest rates because bullion does not generate interest income. When borrowing costs and bond yields decline, the opportunity cost of holding gold tends to fall, making the metal more attractive to investors.

However, Chicago Federal Reserve President Austan Goolsbee has cautioned that inflation remains a key concern. He said he was more worried about inflation remaining excessively high than about weakness in the labour market, highlighting the challenge facing policymakers as they balance price stability against employment conditions.

Geopolitical tensions add to safe-haven demand

Geopolitical developments in the Middle East also remained an important factor for financial markets.

Oil prices extended their gains after the United States and Yemen’s Iran-aligned Houthi movement reported separate attacks involving shipping on Tuesday. At the same time, hopes for an agreement to end the conflict involving Iran appeared to weaken.

Iran has indicated that the Strait of Hormuz would remain closed unless Washington agrees to its conditions, raising concerns over the potential impact on global energy supplies.

The Strait of Hormuz is a critical route for international oil shipments, and any prolonged disruption could increase energy prices and intensify inflationary pressures worldwide. Such uncertainty can also encourage demand for traditional safe-haven assets such as gold.

Silver, platinum and palladium also advance

Other precious metals followed gold higher during Wednesday’s session.

Spot silver gained 1.2% to $65.46 per ounce. The metal remained below Tuesday’s peak, which marked its highest level since June 22.

Platinum also strengthened, rising 0.6% to $1,754.10 per ounce, while palladium advanced 0.8% to $1,370.86.

Similar Posts

  • | |

    China leans on AI forecasting tools as Typhoon Dol…

    China has ramped up investment in artificial intelligence powered weather forecasting as the country works to track a rising number of natural disasters and predict extreme weather events such as powerful typhoons, intense rainfall and prolonged heatwaves tied to climate change. The country has positioned itself as a leading force in data driven meteorology, increasingly running AI systems alongside traditional forecasting methods rather than replacing them outright. As meteorologists monitored Typhoon Dolphin’s approach toward China in recent days, a newer generation of AI weather models operated in parallel with conventional forecasting systems, underscoring China’s expanding role in the broader push to improve storm prediction. Unlike standard numerical weather models, which depend on powerful supercomputers to simulate the physics of the atmosphere, AI based systems instead learn from decades of historical weather data. That approach lets them generate forecasts within seconds or minutes while using only a small fraction of the computing power traditional methods require. According to a state affiliated newspaper, some of China’s most prominent AI forecasting tools include Fengwu, built by the Shanghai AI Laboratory, Huawei’s Pangu Weather system, and Fuxi, developed at Fudan University. These models are increasingly being put through real world testing during East Asia’s intense typhoon season, a period when even modest improvements in tracking a storm’s path can help authorities plan flood responses, coordinate evacuations and manage disruptions to transportation networks. Fengwu in particular has shown strong results in predicting storm trajectories, with researchers noting that AI based systems can produce forecasts far faster than conventional models while matching or, in some cases, surpassing them on certain accuracy measures. The rapid progress in AI driven weather forecasting has sparked growing competition among technology firms, research institutions and national meteorological agencies worldwide, with China establishing itself as one of the sector’s most active players. Even so, meteorologists caution that AI tools currently serve as a complement to physics based forecasting rather than a full replacement. These systems still struggle to accurately capture sudden shifts in storm intensity, and they remain largely untested when it comes to long term climate modeling. As a result, traditional forecasting methods are expected to remain a core part of weather prediction for the foreseeable future, even as AI tools continue to mature and take on a larger role alongside them. The push toward AI assisted forecasting fits into a broader global trend, as governments and research institutions increasingly explore machine learning as a tool for anticipating the growing frequency and intensity of extreme weather linked to a changing climate.

  • |

    ‘Can’t wait to watch Abdullah Shafique in England’, says Ian Bishop

    Former West Indies fast bowler and renowned cricket commentator Ian Bishop believes Pakistan opener Abdullah Shafique has the temperament and technique to succeed in English conditions, saying he is eager to watch the young batter during the upcoming Test series against England. Shafique has emerged as one of Pakistan’s most dependable red-ball batters following his remarkable performances against the West Indies, and Bishop feels the 26-year-old has all the qualities needed to handle one of cricket’s toughest challenges. Speaking about the Pakistani opener, Bishop described Shafique as a calm and composed batter who remains patient even in difficult situations. “Abdullah Shafique is a composed batter who knows how to build an innings under pressure,” Bishop said, adding that such qualities are crucial for success in England, where swinging conditions and disciplined bowling regularly test even the world’s best players. The former West Indies pacer acknowledged that English pitches present a unique challenge but noted that Shafique already has valuable experience after representing Yorkshire in county cricket. Although that exposure will help him adapt more quickly, Bishop stressed that delivering consistently in England remains a demanding task for any international batter. Shafique’s confidence has soared after his outstanding performance in the recently concluded Test series against the West Indies. Drafted into Pakistan’s squad after Shan Masood suffered an injury, the right-handed opener seized the opportunity in spectacular fashion. He remained unbeaten on 160, producing one of the finest innings of his career and becoming the first Pakistani batter in 49 years to score 150 or more runs in a Test innings in the West Indies. The memorable knock not only strengthened Pakistan’s batting lineup but also reinforced Shafique’s reputation as one of the country’s brightest Test prospects. With Pakistan set to face England in a highly anticipated Test series, fans and cricket experts alike will be watching closely to see whether Abdullah Shafique can carry his superb form into English conditions and establish himself among the world’s elite opening batters.

  • | | | |

    Trump reveals why Secret Service changed his plane

    WASHINGTON: US President Donald Trump has confirmed that his surprise plane switch during his departure from Turkey last month was carried out on the advice of the Secret Service, amid concerns over a potential threat linked to Iran. Trump said the aircraft he had initially been expected to travel on could have faced a “greater risk,” adding that he does not trust Iran. His remarks came after reports revealed that his departure from Ankara following the NATO summit involved an elaborate security operation. According to reports, Trump publicly boarded Air Force One in front of cameras, creating the impression that he would fly out of Turkey on the presidential aircraft. However, he was later secretly transferred to a smaller C-32A military aircraft. The move was reportedly carried out using an airport catering truck to conceal his transfer. Journalists and some White House staff reportedly remained under the impression that Trump was aboard Air Force One. Reporters were also instructed to keep their window shades closed, adding to the secrecy surrounding the operation. Trump said he followed the Secret Service’s instructions when the aircraft change was made and did not challenge the security decision. The unusual operation reportedly stemmed from heightened concerns over Iranian threats against the US president. Trump’s latest comments have now confirmed key details of the previously undisclosed flight arrangement. The episode has drawn attention because of the extraordinary measures used to conceal the president’s movements. It also highlights the heightened security concerns surrounding Trump amid continuing tensions between Washington and Tehran. For a president whose movements are normally tracked closely by the media and security officials, the covert transfer from one aircraft to another remains one of the most unusual presidential travel episodes of the year.

  • | |

    Punjab PMS officers oppose plan to create 101 AAC …

    LAHORE: The Provincial Management Service (PMS) Officers Association has strongly opposed the Punjab government’s proposal to create 101 new Additional Assistant Commissioner (AAC) posts, describing the move as unnecessary and harmful to the existing administrative structure. The association argued that the AAC posts had been abolished years ago and their revival was not justified, particularly after the establishment of the Punjab Enforcement and Regulatory Authority (PERA), which was created to strengthen enforcement and regulatory functions across the province. During an executive committee meeting chaired by Association President Qamar Zaman Qaisrani, members unanimously decided to raise their concerns with senior government officials. A delegation of the association is expected to meet the Punjab services secretary and the additional chief secretary to seek a review of the proposed decision. The association warned that if its concerns remain unaddressed, PMS officers across Punjab will begin a province-wide protest campaign. As part of the first phase, officers plan to wear black armbands while performing official duties to register their protest against the government’s decision. PMS officers believe the creation of the new posts would place a significant financial burden on the provincial treasury. According to the association’s estimates, establishing one Additional Assistant Commissioner post, including official facilities, office infrastructure, staff, transport and operational expenses, would cost approximately Rs46.8 million. They claim that creating all 101 posts would require nearly Rs4.73 billion initially, in addition to recurring expenditures on salaries, allowances and other administrative costs. The association further expressed concerns over what it described as long-standing issues within the provincial bureaucracy. These include delays in promotion boards, alleged discrimination in transfers and postings, and the appointment of junior officers to positions traditionally reserved for senior officials. Former administrative secretary Yawar Mehdi also commented on the proposal, saying that efforts to improve public service delivery were welcome if they genuinely strengthened governance. However, he stressed that introducing additional administrative positions should not weaken the existing civil service structure or negatively affect the career progression of Provincial Management Service officers.

  • |

    Benjamin Netanyahu rejects Donald Trump’s 15-point peace plan for Gaza amidst high-stakes diplomatic rift

    A high-stakes rift has emerged between Washington and Jerusalem following Israeli Prime Minister Benjamin Netanyahu’s explicit rejection of Donald Trump’s 15-point proposal for Gaza, with Israel insisting on maintaining a military presence until Hamas is fully disarmed. Under the framework put forward by Trump’s Board of Peace last month, terms were outlined for the reduction or withdrawal of military personnel and weapons across specified zones. Hamas responded by stating that relinquishing its arsenal remains conditional upon Israel ending all forms of aggression and withdrawing its forces from Gaza entirely. Despite an agreement reached last October to pause hostilities in the territory, Israeli strikes inside Gaza have continued. Addressing a cabinet meeting on Sunday, Netanyahu stated that Israel rejects the 15-point document. He stressed that the Israeli military will not execute any troop withdrawals until Hamas undergoes genuine disarmament, adding that forces will continue to counter active threats to safeguard personnel and citizens. Although Trump previously hailed the initiative as a major milestone toward lasting regional stability after Hamas indicated acceptance of a demilitarisation strategy, Netanyahu emphasised that disarmament must precede any Israeli pullback, warning against what he described as a fictitious disarmament process. Netanyahu is engaged in crucial discussions with American officials regarding next steps, marking another hurdle for Trump’s Gaza peace initiative originally unveiled in September last year. The proposed plan centres on establishing a Board of Peace tasked with overseeing the demilitarisation of Hamas, supervising the exit of Israeli troops, and directing reconstruction efforts throughout Gaza.

  • |

    Cambridge to review hiring after Arday resignation

    The University of Cambridge has announced a review of its procedures for appointing senior academics following the resignation of Professor Jason Arday amid allegations of plagiarism and questions surrounding parts of his academic record. Cambridge said an ongoing investigation into Arday’s qualifications, previous appointments and tenure would inform the wider review of how senior academic positions are filled. Arday, a professor of sociology of education and fellow of Jesus College, stepped down after allegations emerged concerning his academic work and claims made about his professional background. He has rejected accusations of deliberate plagiarism and denied fabricating his achievements. The controversy has prompted calls from academics for an independent investigation into how Arday was appointed to a senior position at one of the world’s most prestigious universities. Priyamvada Gopal, a Cambridge professor who is among those calling for an independent inquiry, said the controversy had caused significant reputational damage to the university. She argued that Cambridge should not investigate itself and urged the involvement of academics from outside the institution. Cambridge said it was aware of the concerns surrounding the case and would continue examining the circumstances of Arday’s appointment and tenure. Jesus College welcomed the university’s decision to review its appointment procedures. The college said Arday’s position as a fellow depended on his university appointment and that it relied on Cambridge to verify academic credentials. The University of Glasgow, where Arday served as Professor of Sociology of Education from January 2022 to March 2023, has also launched its own review. The university said the review would establish the facts surrounding his appointment and identify lessons for the future. The controversy began after US researcher Nathan Cofnas raised allegations that sections of Arday’s PhD dissertation had been copied from earlier academic works. Liverpool John Moores University, which awarded Arday his doctorate, said it had investigated the plagiarism allegations last year and rejected them. The university maintained that position and said his PhD remains valid. Further questions have since been raised about some of Arday’s academic publications and claims on his CV. Some institutions where he reportedly claimed to have held academic positions have denied that he occupied those roles. Arday has acknowledged errors in his academic work but denied intentionally plagiarising material. He has suggested that autism and inadequate supervision during the early stages of his academic career may have contributed to mistakes. He has also rejected allegations that he fabricated his personal achievements and has previously argued that some of the criticism directed at him was racially motivated. The controversy has also raised questions about how allegations against Arday were handled. Times Higher Education reporter Jack Grove was investigated by the Metropolitan Police following a complaint of harassment after he contacted Arday about the plagiarism allegations. The investigation was later closed. Metropolitan Police Commissioner Sir Mark Rowley subsequently apologised and said the complaint should have been screened out at an earlier stage. Attention has also turned to Arday’s forthcoming memoir, “Great and Unfortunate Things”, which is scheduled for publication next week. Arday previously claimed in an interview that he had received a £1.4 million advance for the memoir, although he did not specify the currency. Publishing industry figures have questioned the size of the alleged payment. Publisher Simon & Schuster has said it intends to proceed with publication. Reports have also identified differences between an earlier proposal for the memoir and the final manuscript, including changes to the timing and description of some events in Arday’s life.

Leave a Reply

Your email address will not be published. Required fields are marked *