The price of Gold opened significantly lower during the Asian session this morning, affected by a mix of worsening global sentiment regarding precious metals, from rising US government bond yields to the improving prospects of US-China trade relations. These developments have diminished Gold’s appeal as a hedge asset, placing prices under continued pressure ahead of the European session.
Here are the data points from Trading Central this afternoon:
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- UK GDP at 13:00; forecast 0.1% vs previous 0.5%
- Eurozone industrial production at 16:00; forecast 1.5% vs previous 1.1%
GOLD
The Gold market is once again facing selling pressure, dropping $34 at the opening of the Asian session today (May 15, 2025), amid rising US government bond yields. This increase reflects expectations that the Federal Reserve may delay any interest rate cuts, fueled by improved economic prospects following a trade truce between the United States and China. Rising bond yields and interest rates typically exert downward pressure on gold since Gold does not generate income like interest-bearing instruments do.
On another note, ongoing progress in US-led trade negotiations is adding bearish pressure to precious metals. On Wednesday, China officially suspended restrictions on rare earth metal exports along with several strategic goods and technologies. This truce between the two largest economies in the world has reduced the attractiveness of Gold as a safe-haven asset, and given this condition, Gold is likely to weaken further during the afternoon European session.
OIL
Oil prices are also declining in the Asian trading session this morning, after receiving pressure from reports showing an unexpected increase in US crude oil inventories. Weekly data from the Energy Information Administration (EIA) revealed that crude oil stocks for the week ending May 9 rose by 3.454 million barrels, contrasting with a decrease of 2.032 million barrels recorded the previous week. This increase has triggered market fears of a potential oversupply amid still unsteady global demand.
Market sentiment is also influenced by reports that Iran is beginning to show an openness to the possibility of reaching a new nuclear agreement with US President Donald Trump. This development could potentially reopen Iran’s oil supplies to the global market, further strengthening investors’ concerns about an influx of crude oil supplies. The combination of rising stock levels and prospects for increased supply keeps Oil prices under selling pressure this afternoon.
EURUSD
EURUSD opened stable at the start of the Asian session this morning, trading around 1.1190 after a slight decline on Wednesday’s trading. So far this week, economic data from the European region has been relatively neutral, not having a significant impact on market movements. Conversely, market participants are focusing on two major inflation data releases from the United States, which will provide considerable material for traders to determine the next direction.
Market attention is now turning to eurozone industrial production data scheduled for release at 16:00 WIB. This data is expected to show more positive results compared to the previous period. If the release meets or exceeds expectations, the EURUSD pair could strengthen. Conversely, if the results are weaker than expected, selling pressure could dominate the movement of this currency pair.
GBPUSD
The GBPUSD currency pair has recorded a bounce back from the lowest area during the Asian session this morning. However, this rise remains limited due to a lack of market catalysts ahead of the release of the UK’s Gross Domestic Product (GDP) data. Projections from Trading Central suggest a lower economic growth estimate, which could put further pressure on the value of the pound if the actual data falls below expectations.
Meanwhile, pressure on the US dollar also appears to be limited. Improving global trade sentiments have eased concerns regarding the risk of recession, lowering the likelihood of the Federal Reserve making aggressive rate cuts. This situation provides additional support for the dollar and could potentially obstruct GBPUSD’s recovery efforts.
USDJPY
The USDJPY currency pair remains under selling pressure as of the Asian session this morning. The Japanese yen (JPY) has maintained its strengthening momentum for three consecutive days against the US dollar (USD), which has seen slight weakening. This pressure has dragged USDJPY back to around the 146.00 range in Thursday morning trading in Asia.
The Yen’s appreciation is driven by heightened concerns over rising and persistent inflation in Japan, as well as hawkish comments from Bank of Japan Deputy Governor Shinichi Uchida earlier this week. These remarks have reinforced market speculation of potential further tightening of monetary policy by the BoJ. The combination of these two fundamentals appears likely to trigger a decline in USDJPY during the European session.
NASDAQ
The Nasdaq continues to maintain gains at the opening of the Asian session this morning, supported by a calming of trade tensions between the US and China, as well as surges in major tech stocks such as Nvidia, Tesla, Meta, Amazon, and Alphabet. Market sentiment also received additional support from Cisco’s quarterly performance exceeding expectations, along with news of Foot Locker’s acquisition, further strengthening investor optimism.
