Live Markets: Gold: loading the spring
22/07/2025 11:35
STOXX 600 down 0.6% Trade concerns persist Chemicals stocks underperform after earnings Wall St futures lower Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com GOLD: LOADING THE SPRING Since peaking at $3,500 an ounce in April, spot gold XAU= has held in a range, but ETF provider WisdomTree believes a return to new highs could occur in the first half of next year. "We see the current period as a 'loading the spring' phase, setting the stage for a powerful upward movement in gold prices," writes Nitesh Shah, WisdomTree's head of commodities and macroeconomic research. Shah notes five macro reasons that are supportive for the yellow metal: 1/ Trade uncertainty 2/ Debt trajectory 3/ Institutional quality (concerns over Fed independence) 4/ Geopolitical risks 5/ Ambiguous dollar policy Under their consensus scenario, Shah sees inflation remaining persistently above the Fed's target, while the dollar is expected to experience a "modest depreciation". Bond yields are seen relatively stable as Fed rate cuts are offset by rising concerns over fiscal indebtedness. "Under the consensus scenario, gold prices are anticipated to moderate over the next six months, before accelerating to a new all-time high in Q1 2026 and advancing further thereafter to reach $3,850 an ounce," Shah says. (Samuel Indyk) ***** EARLIER LIVE MARKETS POSTS: US TREASURY YIELDS IN A POWELL EXIT SCENARIO CLICK HERE EUROPE BEFORE THE BELL: FUTURES LOWER AS MARKETS WATCH EARNINGS, TRADE TALKS CLICK HERE EUROPE INC BRACES FOR PAIN FROM A STURDY EURO CLICK HERE The euro has surged 15% against the dollar this year https://reut.rs/3Ufh8TV Expectations of Q2 2025 STOXX 600 earnings' year-on-year growth rate https://reut.rs/3GMUQFY European stocks suffer nervy start https://reut.rs/3Unoyo7 DBUST https://tmsnrt.rs/4o1Lp6q