Weekly News Recap 17 – 21 February 2025

News for 17 February 2025

Gold Weakens at the End of Last Week

At the end of last week, gold prices weakened, closing at $2,882/oz due to profit-taking and risk reduction. Additionally, a return of capital to riskier assets puts further pressure on gold prices.

On February 17, starting at 21:30, there will be statements from Fed members, which should be closely monitored.

It is still assessed that gold prices have not lost their stability as they are supported by concerns over the global trade war, especially after Trump’s push for retaliatory tariffs.

Japan’s Q4 GDP Growth Surpasses Expectations at 2.8%

The Japanese government revealed that the GDP for Q4 of 2023 grew by 2.8% YoY, marking the third consecutive quarter of expansion and exceeding analysts’ expectations of just 1% growth, as forecasted in a Reuters poll. This indicates a stronger-than-expected economic outlook.

RBA Set to Cut Interest Rates for the First Time in 4 Years Despite Inflation Concerns

Analysts expect the Reserve Bank of Australia (RBA) to lower interest rates for the first time in four years during its meeting on February 18, despite ongoing concerns among RBA board members about inflationary pressures stemming from the global trade war.

News for 18 February 2025

Gold Technical Outlook: Caution on Potential Weakness

On February 17, gold prices fluctuated within a narrow range, closing at $2,899/oz. The market’s lack of trading volume was attributed to the U.S. Presidents’ Day holiday, which led to a slowdown in stock market activity.

On February 18, at 8:30 PM, the U.S. manufacturing index will be released, with a forecast of -1.9.

This morning, the U.S. dollar index showed signs of a rebound, and gold prices failed to close above $2,900/oz yesterday. We expect gold to remain under pressure and potentially weaken further.

Delta Air Lines Aircraft Skids Off Runway in Toronto, At Least 15 Injured

A Delta Air Lines aircraft skidded off a snow-covered runway and flipped over while landing at Toronto Pearson International Airport in Canada on Monday afternoon, February 17, local time. The incident left at least 15 people injured, including one child.

Waller: Fed Should Not Worry About Trump’s New Tariffs Impact on Inflation

Christopher Waller, a member of the U.S. Federal Reserve Board, stated that the new tariff measures from the Trump administration will have only a minor impact on inflation. He suggested that the Fed should disregard this issue when formulating monetary policy.

Tesla Expands into India, Begins Hiring Staff

Tesla Inc is now hiring employees in India, signaling the company’s plans to enter the Indian market in the near future. This move follows a meeting between Elon Musk and Indian Prime Minister Narendra Modi during the latter’s visit to the United States.

xAI Unveils Grok 3 with Major Update Using Massive Data Center

xAI, Elon Musk’s AI company, launched its latest flagship AI model, Grok 3, alongside a new update for the Grok app on iOS and the website on Monday, February 17. According to TechCrunch, xAI used a massive data center in Memphis, USA, equipped with over 200,000 GPUs to train Grok 3, significantly enhancing the model’s capabilities.

RBA Governor Signals Caution After First Interest Rate Cut in 4 Years

Michelle Bullock, Governor of the Reserve Bank of Australia (RBA), addressed the media following today’s (February 18) monetary policy meeting, stating that the RBA would exercise caution in making future interest rate cuts. This came after the RBA reduced the interest rate by 0.25% to 4.10%, marking the first rate cut in over four years, which was in line with market expectations.

News for 19 February 2025

Gold Continues to Rise

On February 18, the price of gold rose, closing at $2,935/oz, driven by investor demand for the precious metal as a safe-haven asset amid concerns over the uncertainty surrounding Trump’s tariff measures.

On February 19, at 9:00 PM, Trump is expected to make a statement. It is anticipated that gold prices may remain within a narrow range, as the current price is near a previous resistance level.

China Welcomes Peace Efforts in Ukraine and Supports US-Russia Talks

On February 18, Chinese Foreign Ministry spokesperson, Hua Chunying, expressed China’s support for all efforts aimed at achieving peace to resolve the crisis in Ukraine. This includes negotiations between the United States and Russia. China hopes that all relevant parties will be involved in the peace process when the time is right.

Trump to Announce Tariffs on Automobiles, Semiconductors, and Other Goods in April

President Donald Trump announced plans to impose tariffs on imported cars “at a level of around 25%” as well as tariffs on semiconductors and pharmaceuticals, which may also have higher rates. The tariffs are expected to be announced on April 2, or possibly sooner.

According to the Japan Automobile Manufacturers Association, the U.S. is the largest export destination for Japanese cars, accounting for about one-third of all exports. In 2023, Japan exported approximately 1.44 million passenger vehicles to the U.S.

USD Weakens to Upper 151 Yen Level After BOJ Signals Possible Rate Hike

The U.S. dollar weakened to the upper 151 yen level in Tokyo morning trading after a member of the Bank of Japan’s (BOJ) policy board indicated that an interest rate hike might be necessary if prices continue to move in line with expectations and companies maintain their wage increases and investment growth.

1 in 5 Americans Increase Purchases Due to Concerns Over Trump’s Import Tariffs

A report from CreditCards, released on Tuesday, February 18, reveals that one in five Americans has been purchasing more than usual due to concerns over President Donald Trump’s proposed import tariffs. This reflects consumer worries about rising prices and economic uncertainty, with the consumer expectations driving inflationary pressures.

UK Inflation Rises to 10-Month High in January

The UK’s Office for National Statistics (ONS) reported on February 19 that inflation in the UK rose to its highest level in 10 months in January. This increase was driven by higher food prices, airfares, and the imposition of value-added tax (VAT) on private school tuition fees.

News for 20 February 2025

Gold Rebounds This Morning

On February 19, gold prices remained stable within a narrow range, closing at $2,933/oz. This was due to a lack of new driving factors in the market, while the US Dollar index slightly rose, leading to price stability for gold.

On February 20, at 8:30 PM, the US will release its weekly jobless claims data, with a forecast of 215k.

This morning, the US Dollar index slightly weakened, which is seen as a positive factor for gold prices.

PBOC Keeps 1-Year and 5-Year LPR Rates Unchanged, Signaling Focus on Financial Stability

The People’s Bank of China (PBOC) has decided to maintain the 1-year Loan Prime Rate (LPR) at 3.1% and the 5-year LPR at 3.6% as of February 20. The move reflects the Chinese government’s priority on ensuring financial stability rather than further rate cuts to stimulate economic recovery.

Microsoft Unveils Majorana 1: The First Quantum Chip

On February 19, Microsoft announced the launch of its first quantum processing chip, named Majorana 1. The chip features 8 topological qubits, made using Indium arsenide (a semiconductor) and Aluminum (a superconductor). This marks a significant milestone in Microsoft’s quantum computing efforts, leveraging topological qubits for potentially more stable and scalable quantum systems.

Trump Plans to Establish “External Revenue Service” Amid IRS Layoff News

Axios reported that President Donald Trump is planning to establish an “External Revenue Service” (ERS) to handle customs duties and collect revenue from overseas, replacing the Internal Revenue Service (IRS) for domestic tax collection. This announcement came amid reports of significant layoffs within the IRS, with thousands of employees expected to be let go. The move aligns with Trump’s promises to restructure the U.S. tax system.

Japan Prepares for Talks with U.S. After Trump Threatens to Impose Steel and Aluminum Tariffs

Kyodo News reports that Yoichi Muto, Japan’s Minister of Economy, Trade, and Industry, is preparing to visit the United States to request an exemption from President Donald Trump’s proposed import tariffs. Trump has threatened to impose a 25% tariff on steel and aluminum imports from all countries, with the measure set to take effect on March 12. Muto’s visit is aimed at negotiating a potential exclusion from these tariffs before they are enforced.

Amazon Announces Shutdown of Amazon Chime by 2026

Amazon, the leading e-commerce provider in the United States, has announced it will discontinue its enterprise communication platform, Amazon Chime, which was launched in 2017 and developed by Amazon Web Services (AWS). The service will be officially shut down by February 20, 2026, and Amazon has stopped accepting new users as of February 19, 2025.

News for 21 February 2025

Gold Prices Rebound as US Dollar Weakens

On February 20, gold prices saw a slight uptick to $2,939/oz, driven by the release of weaker-than-expected US Philly Fed Manufacturing Index data at 18.1, which caused the US dollar to weaken, supporting the rise in gold prices.

Looking ahead, on February 21 at 21:45, the US will release its PMI data for manufacturing and services, with expectations of 51.3 and 53.0, respectively.

Walmart Lowers 2025 Profit Forecast, Reflecting Weaker Consumer Demand

Walmart has revised its 2025 profit forecast, projecting earnings of $2.50 to $2.60 per share, below analysts’ expectations of $2.76. This suggests a potential weakening in consumer demand in the U.S., which accounts for 70% of the country’s economic activity. The lowered forecast has raised concerns about future consumer spending.

Japan’s CPI Jumps 4%, Supporting BOJ’s Potential Rate Hike

Japan’s Consumer Price Index (CPI) rose by 4% year-on-year in January, marking the highest level since January 2023. This increase may prompt the Bank of Japan (BOJ) to consider raising interest rates. BOJ Governor Kazuo Ueda also mentioned that the central bank is ready to increase government bond purchases if long-term bond yields rise significantly.

Florida Sues Target Over DEI Policy Risk Concealment

The state of Florida has filed a lawsuit against Target, the popular U.S. retailer, accusing the company of concealing risks associated with its diversity, equity, and inclusion (DEI) policies. These policies reportedly triggered a backlash from customers, resulting in a significant decline in the company’s market value by billions of dollars.

Tim Cook Meets Trump Amid US-China Trade War

Tim Cook, CEO of Apple, met with President Donald Trump at the White House on Thursday, February 20. While the details of the meeting were not disclosed, Apple is facing risks from the ongoing US-China trade war. The 10% import tariff on Chinese goods could impact iPhone sales, and China is reportedly considering reviewing Apple’s policies and fees imposed on app developers.

UK Retail Sales Growth Surges 1.7% in January, Boosting GBP

UK retail sales grew by 1.7% in January compared to the previous month, marking the highest increase since May of last year and surpassing economists’ expectations of a 0.3% rise. This growth reflects strong consumer spending power despite economic uncertainties, leading to an immediate appreciation of the British pound following the announcement.