Price of gold surges to all-time high on the back of falling US dollar

Published

2 years ago

December 6, 2023

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The price of gold struck an all-time high on Monday, surging as much as 3% to trade at $2,135 per troy ounce as the US dollar fell.

Though gold futures have since dipped slightly — to roughly $2,080 in early morning trades — the price of the precious yellow metal hasn’t these levels since August 2020, when it hit its previous record-setting price, $2,072.49 per troy ounce.

Gold’s gains are part of a rally that began in November 2022 and has since worked in opposition with the US dollar, which has weakened as the world has become more volatile because of the conflicts in Ukraine and Israel.

The dollar experienced a 3.1% month-over-month dip on Monday against a basket of six other currencies, according to the Financial Times — a rate just slightly above its four-month low.

The fall, which has happened simultaneously alongside a drop in US Treasury yields, comes as investors have grown more confident that the Federal Reserve will slash interest rates soon.

It’s a similar view held by hedge fund billionaire Bill Ackman, who predicted that the benchmark federal funds rate could fall from its current 22-year high — between 5.25% and 5.5% — as early as the first quarter.

He told Bloomberg last week that such a move would be necessary to avert a real risk of a hard landing for the US economy.

Ackman, whose made his name building up Pershing Square Capital Managements $17 billion portfolio, insisted that hes not convinced the US economy is headed for a soft landing, in which the Fed would be able to continue its tightening regime while staving off a recession.

He acted on this belief back in August, when he shorted 30-year Treasury bonds a move that netted Ackmans fund a profit of about $200 million.

JPMorgan chief Jamie Dimon, meanwhile, has warned Wall Street to brace for a recession.

He forecasted at the New York Times DealBook Summit in New York on Wednesday that the threat of rising interest rates even as inflation slows is looming over the economy.

A lot of things out there are dangerous and inflationary. Be prepared, Dimon said. Interest rates may go up and that might lead to recession.”

Dimons comments suggest that he doesnt forecast a rate cut following the next two-day Federal Open Market Committee meeting on Dec. 11 and 12.

Economists have been divided on what central bankers next move is and whether it means the US economy is in for a soft or hard landing.

Those predicting that an interest rate cut is forthcoming have cited a weaker-than-expected jobs report in October, when the Bureau of Labor Statistics reported that the US economy added 150,000 jobs.

The unemployment rate is now 3.9%, the agency said, above the Feds 3.8% year-end forecast.

Inflation has also trended weaker than central bankers estimates as Americans see some reprieve from the Feds aggressive tightening cycle, which began in March 2022.

Those forecasting a recession have noted that interest rates have since increased at a pace not seen in 40 years, and the Fed hasnt cut interest rates in over a year despite falling inflation.

US inflation slowed to 3.2% in October , the latest Consumer Price Index showed, which tracks changes in the costs of everyday goods and services.

The figure marked a deceleration from Septembers 3.7% advance — and was the first time since June that inflation had slowed month-over-month — though it’s still uncomfortably above the Federal Reserves 2% target.

UK

US-UK trade deal ‘done’, says Trump as he meets Starmer at G7

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2 hours ago

June 17, 2025

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US-UK trade deal 'done', says Trump as he meets Starmer at G7

The UK-US trade deal has been signed and is “done”, US President Donald Trump has said as he met Sir Keir Starmer at the G7 summit.

The US president told reporters in Canada: “We signed it, and it’s done. It’s a fair deal for both. It’ll produce a lot of jobs, a lot of income.”

Sir Keir said the document “implements” the deal to cut tariffs on cars and aerospace, describing it as a “really important agreement”.

“So this is a very good day for both of our countries – a real sign of strength,” the prime minister added.

Mr Trump added that the UK was “very well protected” against any future tariffs, saying: “You know why? Because I like them”.

However, he did not say whether levies on British steel exports to the US would be set to 0%, saying “we’re gonna let you have that information in a little while”.

What exactly does trade deal being ‘done’ mean?

The government says the US “has committed” to removing tariffs (taxes on imported goods) on UK aerospace goods, such as engines and aircraft parts, which currently stand at 10%.

That is “expected to come into force by the end of the month”.

Tariffs on car imports will drop from 27.5% to 10%, the government says, which “saves car manufacturers hundreds of millions a year, and protects tens of thousands of jobs”.

The White House says there will be a quote of 100,000 cars eligible for import at that level each year.

But on steel, the story is a little more complicated.

The UK is the only country exempted from the global 50% tariff rate on steel – which means the UK rate remains at the original level of 25%.

That tariff was expected to be lifted entirely, but the government now says it will “continue to go further and make progress towards 0% tariffs on core steel products as agreed”.

The White House says the US will “promptly construct a quota at most-favoured-nation rates for steel and aluminium articles”.

Other key parts of the deal include import and export quotas for beef – and the government is keen to emphasise that “any US imports will need to meet UK food safety standards”.

There is no change to tariffs on pharmaceuticals for the moment, and the government says “work will continue to protect industry from any further tariffs imposed”.

The White House says they “committed to negotiate significantly preferential treatment outcomes”.

Mr Trump also praised Sir Keir as a “great” prime minister, adding: “We’ve been talking about this deal for six years, and he’s done what they haven’t been able to do.”

He added: “We’re very longtime partners and allies and friends and we’ve become friends in a short period of time.

“He’s slightly more liberal than me to put it mildly… but we get along.”

Sir Keir added that “we make it work”.

As the pair exited a mountain lodge in the Canadian Rockies where the summit is being held, Mr Trump held up a physical copy of the trade agreement to show reporters.

Several leaves of paper fell from the binding, and Sir Keir quickly stooped to pick them up, saying: “A very important document.”

The US president also appeared to mistakenly refer to a “trade agreement with the European Union” at one point as he stood alongside the British prime minister.

Mr Trump announced his “Liberation Day” tariffs on countries in April. At the time, he announced 10% “reciprocal” rates on all UK exports – as well as separately announced 25% levies on cars and steel.

In a joint televised phone call in May, Sir Keir and Mr Trump announced the UK and US had agreed on a trade deal – but added the details were being finalised.

Ahead of the G7 summit, the prime minister said he would meet Mr Trump for “one-on-one” talks, and added the agreement “really matters for the vital sectors that are safeguarded under our deal, and we’ve got to implement that”.

Entertainment

Doctor to plead guilty to giving Matthew Perry ketamine before Friends star suffered fatal overdose

Published

4 hours ago

June 16, 2025

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Doctor to plead guilty to giving Matthew Perry ketamine before Friends star suffered fatal overdose

A doctor in the US has agreed to plead guilty to giving Friends actor Matthew Perry ketamine in the lead up to his death from a fatal overdose, prosecutors have said.

Dr Salvador Plasencia, who will admit to four counts of distribution of ketamine, faces up to a maximum of 40 years in prison.

He is among five people charged in connection with the death of Friends star Perry, who was found dead in his hot tub by his assistant in October 2023.

The medical examiner ruled that ketamine and other factors caused him to lose consciousness and drown.

The actor, 54, had been using the drug through his regular doctor in a legal treatment for depression, but had begun seeking more ketamine than his doctor would give him.

Plasencia is accused of supplying the bulk of Perry’s ketamine in his final weeks. He and three other defendants, including another doctor, agreed to plead guilty in exchange for their cooperation.

Jasmine Sangha, who prosecutors allege was a major ketamine dealer, is alleged to have provided the dose that killed the actor and is the only defendant who has pleaded not guilty.

About a month before the actor’s death, Perry found Plasencia, a doctor who allegedly asked another doctor, Mark Chavez, to obtain the drug for him, according to court filings in the Chavez case.

“I wonder how much this moron will pay,” Plasencia texted Chavez, according to court filings from prosecutors.

The pair who practised in California met up the same day and exchanged at least four vials of ketamine, the filings said.

After selling the drugs to Perry for $4,500 (£3,314), Plasencia allegedly asked Chavez if he could keep supplying them so they could become Perry’s “go-to” prosecutors said.

Perry struggled with addiction for years, dating back to his time on Friends, when he became one of the biggest stars of his generation as Chandler Bing.

He starred alongside Jennifer Aniston, Courteney Cox, Lisa Kudrow, Matt LeBlanc and David Schwimmer for 10 seasons from 1994 to 2004.

Technology

OpenAI wins $200 million U.S. defense contract

Published

4 hours ago

June 16, 2025

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OpenAI wins 0 million U.S. defense contract

OpenAI CEO Sam Altman speaks during the Snowflake Summit in San Francisco on June 2, 2025.

Justin Sullivan | Getty Images News | Getty Images

OpenAI has been awarded a $200 million contract to provide the U.S. Defense Department with artificial intelligence tools.

The department announced the one-year contract on Monday, months after OpenAI said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for “national security missions.”

“Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains,” the Defense Department said. It’s the first contract with OpenAI listed on the Department of Defense’s website.

Anduril received a $100 million defense contract in December. Weeks earlier, OpenAI rival Anthropic said it would work with Palantir and Amazon to supply its AI models to U.S. defense and intelligence agencies.

Sam Altman, OpenAI’s co-founder and CEO, said in a discussion with OpenAI board member and former National Security Agency leader Paul Nakasone at a Vanderbilt University event in April that “we have to and are proud to and really want to engage in national security areas.”

OpenAI did not immediately respond to a request for comment.

The Defense Department specified that the contract is with OpenAI Public Sector LLC, and that the work will mostly occur in the National Capital Region, which encompasses Washington, D.C., and several nearby counties in Maryland and Virginia.

Meanwhile, OpenAI is working to build additional computing power in the U.S. In January, Altman appeared alongside President Donald Trump at the White House to announce the $500 billion Stargate project to build AI infrastructure in the U.S.

The new contract will represent a small portion of revenue at OpenAI, which is generating over $10 billion in annualized sales. In March, the company announced a $40 billion financing round at a $300 billion valuation.

In April, Microsoft, which supplies cloud infrastructure to OpenAI, said the U.S. Defense Information Systems Agency has authorized the use of the Azure OpenAI service with secret classified information.

WATCH: OpenAI hits $10 billion in annual recurring revenue