Gold tapers off record highs
Gold prices fell on Tuesday away from record highs even as the dollar dipped against most major rivals.
Investors also await important US inflation data later this week for January to gather clues on the path ahead for Fed’s monetary policies.
Federal Reserve Chair Jerome Powell said during his biannual Congressional testimony ahead of the Senate that US inflation remains above the 2% target, but he praised the recovery of the US economy, and noted the durable strength of the labor sector.
He asserted the Fed’s continuous mission to combat inflation, adding that Fed officials are not in a hurry to cut interest rates.
He noted that monetary policies are less restrictive now than before, and the economy remains strong, so the need to accelerate rate cuts isn’t there.
Otherwise, the dollar index fell 0.3% today as of 20:06 GMT to 107.9, with a session-high at 108.4, and a low at 107.7.
On trading, gold spot prices fell 0.2% today to $2928 an ounce away from a record high at $2968.
Fed Chair: We're not in a hurry to cut rates
Federal Reserve Chair Jerome Powell said during his biannual Congressional testimony ahead of the Senate that US inflation remains above the 2% target, but he praised the recovery of the US economy, and noted the durable strength of the labor sector.
He asserted the Fed’s continuous mission to combat inflation, adding that Fed officials are not in a hurry to cut interest rates.
He noted that monetary policies are less restrictive now than before, and the economy remains strong, so the need to accelerate rate cuts isn’t there.
Powell warned that hurrying rate cuts would hurt efforts to control inflation, however maintaining rates at high levels for more than needed would damage economic activities and the labor market.
US stock indices stabilize as investors analyze corporate results
Most US stock indices were little changed on Tuesday as investors analyze the latest corporate earnings results for the last quarter of 2024.
US President Donald Trump announced plans to impose 25% tariffs on all steel and aluminum imports starting in March.
Investors also await important US inflation data later this week for January to gather clues on the path ahead for Fed’s monetary policies.
On trading, Dow Jones rose 0.1% as of 16:48 GMT, or 53 points to 44,524 points, while S&P 500 was little changed at 6066 points, as NASDAQ dipped 0.1%, or 26 points to 19,683 points.
Oil prices reach two-week peak amid global supply concerns
Global oil prices rose in American trade on Tuesday on track for the third straight profit, hitting a two-week high amid concerns about global shortages as Russian and Iranian crude exports face US sanctions.
Now traders await initial data on US crude stocks later today from the American Petroleum Institute, expected to show a buildup for the fourth straight week.
Prices
US crude rose 1.7% today to $73.64 a barrel, the highest in two weeks, with a session-low at $72.33.
Brent rose 1.6% today to $77.25 a barrel, a January 28 high, with a session-low at $75.94.
On Monday, US crude rose 2.1%, while Brent added 1.9% after fresh US sanctions on Iranian crude exports.
Global Supplies
Russian crude shipments to China and India were disrupted last month after new US sanctions targeting oil tankers and their insurers.
Similarly, US sanctions on Iranian crude exports to China have raised supply tensions as well, as President Donald Trump reinstated the policy of maximum pressure on the Iranian oil industry.
US Stocks
Later today, initial data on US crude stocks from the American Petroleum Institute will be released, expected to show a buildup for the fourth straight week.