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Gold demand from China declines
Swiss customs reported a sharp decline in gold exports for August.
Canadian Retail Sales Beat Expectations; PPI Lower
Silver Strengthens as Prices Climb Above $31
Oil Prices See Volatility Amid Middle East Tensions
In a surprising turn, Canadian retail sales for August surged by 0.9% month-over-month (MoM), significantly outpacing the forecasted 0.3% and rebounding from a -0.3% drop in the previous month. Core retail sales also posted a solid gain, rising 0.4% MoM, slightly above the 0.3% expected. Meanwhile, Canada's Producer Price Index (PPI) for August showed a notable drop, coming in at -0.8%, well below the anticipated -0.2% and the flat reading in July.
Gold
Data released by Swiss customs on Thursday revealed a sharp decline in gold exports for August, with no shipments to China for the first time since January 2021. Shipments to Hong Kong were also minimal, and exports to the US nearly halted. In a significant shift, exports to the UK dropped by almost 60%.
Silver
Silver prices continued their upward trend on Friday, trading above $31Cu per troy ounce. This marks a significant 31.17% increase in silver prices since the start of the year, as the precious metal continues to gain traction amid economic uncertainty.
Oil
Crude oil prices experienced a volatile session on Thursday, surging nearly 3% after escalating military actions in Lebanon raised geopolitical tensions. The surge in oil comes as China reportedly purchased nearly 75% of Malaysia’s oil production, tightening supply further. However, by Friday, crude consolidated below $71 per barrel, with market participants bracing for more uncertainty as hopes for a ceasefire in the region remain dim.
Currencies
USD/JPY pair rallied to near 144.00. Japan's national CPI rose to 3% in August, adding pressure on the yen. Meanwhile, expectations that the US Federal Reserve will cut interest rates further by 75 basis points to a target range of 4.00%-4.25% have added to the dollar's momentum against the yen.
EUR/USD pair remains underpinned but has eased off its best levels of the week as short-term yield spreads have corrected slightly from earlier peaks. Traders continue to keep a close watch on upcoming economic data and central bank moves, which could shift market sentiment in the days ahead.
