Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
News
Wednesday, August 27, 2025
What’s happening: Gold prices surged to more than two-weeks high on Tuesday, driven by safe-haven demand.
What happened: US President Donald Trump removed Federal Reserve governor Lisa Cook, which sparked concerns around the independence of the central bank and uncertainties around what the government may do next.
Weakness in the US dollar also provided a boost to gold prices.
Why it matters: The ousting of the Fed governor signals a sharp escalation of Trump’s battle against the central bank. The US President has been pushing the Fed to cut interest rates to stimulate the economy, while the central bank has expressed concern around inflation triggered by the government’s latest tariff policy.
The latest move fuelled concerns around the Fed’s independence and ability to conduct monetary policy without government interference.
Last week, Federal Reserve Chairman Jerome Powell indicated an interest rate cut at the central bank’s upcoming meeting in September. The appeal for non-yielding gold generally rises in a low-rate environment and during times of economic uncertainty.
Meanwhile, data released on Tuesday showed that US durable goods orders contracted by 2.8% to $302.8 billion in July, following a 9.4% decline in the previous month. The decline was better than market expectations of 4%.
Weakness in the US dollar lent support to the yellow metal on Tuesday, as a softer greenback makes metals cheaper for foreign currency holders. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell more than 0.2% to 98.23.
US gold prices for December delivery rose 0.5% to settled at $3,433 an ounce on Tuesday. The safe-haven metal extended gains this morning, rising by around 0.1%.
In other metals trading, silver prices settled at $38.606 an ounce, copper prices fell to $4.5330, platinum closed at $1,349.4 and palladium closed at $1,094.40.
What to watch: Investors now await the release of data on GDP growth rate on Thursday and core PCE price index on Friday. The core PCE price index in the US, which rose by 2.8% year-over-year in June, is expected to surge by 2.9% in July. Analysts expect the US economy to expand by an annualised 3.1% in the second quarter, following a 0.5% decline in the previous quarter.
Investors will also continue monitoring tariff-related announcements from the Trump administration.
Context: The AUD/USD forex pair edged higher this morning as investors assessed the latest economic data.
Details: Data released this morning showed that the Westpac-Melbourne Institute Leading Economic Index for Australia rose by 0.1% in July, following a flat reading in the previous month. Total construction work in Australia surged by 3.0% in the second quarter, rebounding from a revised 0.3% downturn in the previous quarter. The figure also topped market estimates of a 0.7% rise.
However, Australia’s monthly Consumer Price Index climbed 2.8% year-over-year in July, accelerating from 1.9% in the previous month. The figure also came in higher than market expectations of a 2.3% rise.
The Reserve Bank of Australia indicated further interest-rate cuts ahead, while the pace of cuts would depend on upcoming economic releases, including inflation and the labour market.
Strength in the US dollar weighed on the AUD/USD forex pair this morning. The US dollar index, which measures the greenback’s performance versus a basket of major peers, rose around 0.1% to 98.36.
The AUD/USD pair rose slightly to 0.6490 this morning, while the S&P/ASX 200 added 0.19% to reach 8,952.20.
What to watch: Investors await the release of data on building capital expenditure (0530 UAE Time), plant machinery capital expenditure (0530 UAE Time) and private capital expenditure (0530 UAE Time) from Australia on Thursday. Private new capital expenditure on buildings and structures, which rose by 0.9% in the first quarter, is expected to grow by 0.4% in the second quarter.
Analysts expect private new capital expenditure on equipment, plant, and machinery to rise by 1% in the second quarter, following a 1.3% decline in the previous quarter. The total new capital expenditure in Australia is projected to grow by 0.7% in the second quarter, compared to a 0.1% decline in the first quarter.
Other Markets: European indices closed lower on Tuesday, with the FTSE 100, DAX 40, CAC 40 and STOXX Europe 600 Index down by 0.60%, 0.50%, 1.70% and 0.83%, respectively.
Ukraine’s military forces acknowledged for the first time that Russian troops had entered the eastern industrial region of Dnipropetrovsk. The news sent the RUB/USD pair higher in forex trading this morning.
China’s industrial profits declined 1.7% year-over-year to 4.02 trillion yuan in the first seven months of the year. This represented an easing from the 1.8% plunge recorded in the first half of the year and lent some support to the CNY/USD forex pair.
Argentina’s central bank increased the reserve requirements for banks by 3.5%, which sent the ARS/USD pair lower in forex trading this morning.
Thailand’s Tourism Ministry reported that foreign tourist arrivals declined by 7.14% year-over-year from January 1 to August 24, exerting pressure on the THB/USD forex pair.
Taiwan’s consumer confidence index declined to 63.31 in August, from 64.38 in the previous month. However, the TWD/USD pair rose in forex trading this morning.
UK’s Treasury Gilt 2028 auction (1300 UAE Time) and CBI distributive trades (1400 UAE Time), Italy’s 6-month BOT auction (1310 UAE Time), Germany’s 7-year Bund auction (1330 UAE Time), France’s unemployment benefit claims (1400 UAE Time) and jobseekers total (1400 UAE Time), US MBA mortgage applications (1500 UAE Time), EIA crude oil stocks change (1830 UAE Time), EIA gasoline stocks change (1830 UAE Time), EIA Cushing crude oil stocks change (1830 UAE Time), EIA distillate stocks change (1830 UAE Time), 17-week Bill auction (1930 UAE Time), 2-year FRN auction (1930 UAE Time) and 5-year Note auction (2100 UAE Time), Brazil’s bank lending (1530 UAE Time), Mexico’s balance of trade (1600 UAE Time), Canada’s 10-year Bond auction (2000 UAE Time), as well as Russia’s unemployment rate (2000 UAE Time), business confidence (2000 UAE Time), corporate profits (2000 UAE Time), industrial production (2000 UAE Time), real wage growth (2000 UAE Time) and retail sales (2000 UAE Time).
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
