Weekly News Recap 3 – 7 February 2025

News for 3 February 2025

Gold Faces Downward Pressure This Morning

At the end of last week, gold prices rose and closed at $2,798/oz, driven by the U.S. Core PCE data, which came in line with expectations at 0.2%, boosting safe-haven assets.

On February 3 at 10:00 PM, the U.S. Manufacturing PMI data was announced, with expectations of 49.3.

Meanwhile, on the morning of February 3, the U.S. dollar strengthened and reached 109.00 again due to the U.S. imposing a 25% tariff on Mexico and Canada and a 10% tariff on China. It is expected that gold prices may face pressure in a sideways-down pattern.

India Removes Import Tax on Mobile Components to Boost Domestic Production

Nirmala Sitharaman, India’s Finance Minister, announced in the annual budget on February 1 that the government has removed import duties on key components used in mobile phone manufacturing. This move aims to boost the domestic manufacturing industry. The measure is expected to benefit major tech companies such as Apple and Xiaomi, which have manufacturing bases in India.

OpenAI Launches “Deep Research” AI for Advanced Research

OpenAI, a leader in Generative AI, introduced a new AI tool called “Deep Research” on Sunday, February 2. This tool is designed to assist in multi-step research and data analysis across the internet, supporting complex research tasks. It is expected to be highly beneficial for scholars, analysts, and anyone seeking efficient access to in-depth information.

BOJ Discusses Possibility of Interest Rate Hike Amid Inflation and Yen Weakness Risks

The Bank of Japan (BOJ) released its summary of the board members’ discussions on February 3, highlighting that during their meeting on January 23-24, members discussed the potential for further interest rate hikes. Some members expressed concerns about the risk of inflation accelerating, as well as the weakening of the yen, which could impact the country’s economy.

Ontario Retaliates Against the U.S. by Removing American Alcohol from Store Shelves

The government of Ontario, Canada, announced the removal of American-imported alcoholic beverages from store shelves starting on Tuesday, February 4. This move is in response to U.S. President Donald Trump’s decision to impose a 25% tariff on goods imported from Canada. The measure reflects rising trade tensions between the two countries and could have an impact on the U.S. alcohol industry.

Goldman Sachs Predicts Trump’s Tariffs Will Have Minimal Short-Term Impact on Oil and Gas Prices

Goldman Sachs forecasts that the new import tariffs announced by President Donald Trump on Canada, Mexico, and China will have a limited impact on global oil and gas prices, and the effects are expected to be short-lived. Investors continue to monitor energy market trends and other economic factors that could play a significant role in shaping future energy price outlooks.

News for 4 February 2025

Gold Hits All-Time High

Gold prices surged to an all-time high, closing at $2,814 per ounce, driven by market relief following President Trump’s decision to delay the implementation of a 25% tariff on imports from Mexico for another month. This move led to a weakening of the U.S. dollar, which in turn supported the rise in gold prices.

On February 4 at 10:00 PM, U.S. job openings data is expected to be released, with a forecast of 8.01 million openings. The outlook for gold remains bullish, continuing its upward trend.

U.S. Manufacturing PMI Surges to 50.9 in January, Highest in 16 Months

The U.S. Manufacturing Purchasing Managers’ Index (PMI) rose to 50.9 in January, marking its highest level since September 2022 and surpassing analysts’ expectations of 49.8. This represents an increase from 49.2 in December. A reading above 50 signals that the U.S. manufacturing sector has returned to expansion, suggesting a potential economic recovery and stronger demand.

Apple Criticizes EU’s Digital Policy After Pornographic Apps Appear on iPhone

Apple issued a statement on Monday, February 3, expressing concern over the appearance of pornographic apps on iPhones in the European Union (EU). The company stated that the EU’s digital policies were undermining consumer confidence in Apple. The company emphasized its commitment to maintaining user security and privacy amid ongoing regulatory changes in Europe’s technology landscape.

Trump Signs Executive Order to Establish National Wealth Fund, Could Be Used to Acquire TikTok in the U.S.

President Donald Trump signed an executive order on Monday, February 3, to establish a National Wealth Fund by next year. The order suggests that the fund could potentially be used to acquire TikTok’s operations in the United States. This move reflects the U.S. government’s efforts to regulate foreign social media platforms amid concerns over data security.

China Responds to U.S. with New Tariffs While Filing WTO Complaint

On February 4, the Chinese Ministry of Commerce announced that China had filed a dispute with the World Trade Organization (WTO) to challenge the U.S. decision to impose an additional 10% tariff on Chinese imports. A spokesperson for the Ministry of Commerce criticized the U.S. for acting unilaterally without negotiations, a move condemned by most WTO members. China firmly opposed the U.S. actions and called for the U.S. to rectify its mistake immediately.

Additionally, the Chinese Ministry of Finance announced new tariffs on various U.S. products, including coal and liquefied natural gas (LNG) at 15%, as well as crude oil, agricultural equipment, and certain vehicles at 10%. These measures will take effect starting February 10, marking a clear counteraction to the U.S. tariff strategy amid ongoing trade tensions between the two countries.

OpenAI Partners with Kakao to Strengthen Presence in Asia and Expand into Education

On February 4, OpenAI announced a strategic partnership with Kakao, a South Korean tech giant, marking its second major collaboration in Asia within just two days. Under this agreement, Kakao will integrate OpenAI’s technology into its various products, including its popular messaging app, KakaoTalk, which holds a dominant 97% market share in South Korea. The goal is to enhance user experience and improve service efficiency.

In addition, OpenAI is expanding the reach of its ChatGPT technology to the education sector. The company plans to offer a special version of ChatGPT for educational purposes to approximately 500,000 students and staff within the California State University network. This move is a key strategy in OpenAI’s competition with Alphabet and its efforts to increase AI influence in the education industry.

News for 5 February 2025

Gold Price Surges Following China’s Countermeasure Against the U.S.

On February 4, the price of gold surged, closing at $2,842/oz, driven by China’s decision to retaliate against the U.S. by imposing a 15% import tariff on U.S. goods. As a result, gold, considered a safe-haven asset, saw a significant increase.

On February 5, at 20:15, the U.S. is set to release its private sector employment data, with an expected figure of 148k jobs. Later at 22:00, the U.S. Services Purchasing Managers’ Index (PMI) is expected to come in at 54.2.

Market Driven by Strong Earnings from S&P 500 Companies

The market continues to be driven by the strong earnings of listed companies. According to the Q4 2024 earnings report from 211 companies in the S&P 500 index, 76.8% of these companies reported earnings that exceeded analysts’ expectations, which signals the strength of the economy and company growth during this period.

PepsiCo Shares Drop 4.5% After Q4 2024 Revenue Misses Expectations

PepsiCo’s shares fell 4.5% after the company reported Q4 2024 revenue that was lower than analysts’ forecasts. This decline was attributed to decreased demand for beverages and snacks in North America, which has continued to decline for the fifth consecutive quarter. This has been a significant factor affecting the company’s growth during this period.

Grab Considers Merger with GoTo Group Worth Over $7 Billion

Bloomberg reported on February 4, citing anonymous sources, that Grab Holdings Ltd. is considering a merger with its competitor GoTo Group valued at over $7 billion. If the merger goes through, it will create a larger entity in the Southeast Asian technology and services market.

China Starts Antitrust Investigation into Google in Response to U.S. Restrictions

China’s market regulator has initiated an investigation into Google for alleged market monopoly, as a countermeasure to the U.S. tax and export restrictions. The investigation accuses Google of violating China’s antitrust laws. This probe could further escalate trade tensions between the two countries.

Trump Not in a Rush to Negotiate with Xi Jinping Amid New Trade War

U.S. President Donald Trump stated on Tuesday, February 4, that he is not in a hurry to negotiate with Chinese President Xi Jinping to resolve the new trade conflict between the two largest economies in the world.

Earlier, the White House suggested that the two leaders might have a phone call within the week to discuss retaliatory tariff measures imposed by both sides. However, Trump’s statement reflects the U.S.’s tough stance amid the escalating tensions between the two nations.

WGC Forecasts Strong Gold Demand in 2025, Leading Banks Predict Prices Could Reach $3,000

The World Gold Council (WGC) released its gold demand outlook report on February 5, stating that geopolitical and economic uncertainties will remain high in 2025, prompting central banks worldwide to continue holding gold as a strategic asset to maintain financial stability.

According to the WGC report, central banks globally purchased a total of 1,045 metric tons of gold last year, worth approximately $96 billion based on the price on February 4. Poland, India, and Turkey were the largest buyers of gold.

Meanwhile, leading global banks predict that gold prices will continue to rise strongly in 2025, with the potential to reach $3,000 per ounce, driven by increasing demand for gold as a safe-haven asset from investors around the world.

A key factor supporting gold prices is geopolitical uncertainty, particularly the ongoing trade war between China and the U.S., which could impact global economic growth. Investors view gold as a stable choice amid economic instability.

News for 6 February 2025

Gold Continues to Rise as Dollar Weakens

On February 5, the price of gold closed at $2,867 per ounce, driven by the U.S. Services Purchasing Managers’ Index (PMI) falling below expectations at 52.8. Additionally, the weakening U.S. Dollar Index helped push gold prices higher.

On February 6, at 8:30 PM, the U.S. is set to release weekly jobless claims data, with an anticipated figure of 214k.

U.S. Trade Deficit Soars 24.7% in December, Reaches Highest Level in Nearly 3 Years

The U.S. Department of Commerce reported that the U.S. trade deficit in December 2024 rose by 24.7%, reaching $98.4 billion, the highest level in nearly three years.

Imports increased by 3.5% to a record high of $364.9 billion, while exports fell by 2.6% to $266.5 billion, reflecting a trade imbalance amid a volatile global economic environment.

Google Unveils Gemini 2.0 Pro Experimental and New Reasoning Model

On February 5, Google launched the Gemini 2.0 Pro Experimental, a new AI model developed for enhanced performance, marking one of several upcoming AI model releases.

Additionally, Google introduced the Gemini 2.0 Flash Thinking model, designed to improve “reasoning” capabilities. This new model is integrated into the Gemini app, aiming to enhance the processing and decision-making efficiency and accuracy of AI.

BoE Set to Cut Interest Rates to Stimulate Economy Amid Inflation Pressures

The Bank of England (BoE) is expected to reduce its policy interest rate today (February 6), marking the third rate cut since the onset of the COVID-19 pandemic in 2020. The decision aims to stimulate the still-sluggish economy, despite persistent high inflation. The BoE faces the challenge of balancing economic growth stimulation with controlling inflationary pressures.

News for 7 February 2025

Gold Sees a Rebound This Morning

On February 6, gold prices weakened, closing at $2,856/oz. This was due to profit-taking by investors and a slight strengthening of the U.S. dollar, which put downward pressure on gold prices.

On February 7, at 20:30, U.S. non-farm payroll and unemployment rate data will be released, with expectations of 169k jobs and an unemployment rate of 4.1%, respectively.

It is anticipated that gold prices may consolidate within a range, with support at $2,850/oz and resistance at $2,675/oz.

Honeywell Drops 5.6%, Pressuring Dow Jones After Lower-than-Expected Profit Forecast

Shares of Honeywell, a major U.S. industrial company, dropped 5.6% after revealing a lower-than-expected earnings forecast for the fiscal year 2025. This led to the Dow Jones index closing in the red, as investors expressed concerns over the growth prospects of the industrial sector.

IMF Closely Monitoring U.S. Economic Policies, But Says It’s Too Early to Assess Global Impact

The International Monetary Fund (IMF) stated on Thursday, February 6, that it is closely monitoring the U.S. economy, particularly the key policies of President Donald Trump, including executive orders cutting foreign aid and raising tariffs on Chinese imports.

However, the IMF noted that it is too early to assess the impact of these measures on the global economy but will continue to monitor policy developments and potential effects in the coming period.

e.l.f. Beauty Shares Drop Over 20% After Lowering Sales and Profit Forecasts

e.l.f. Beauty shares fell more than 20% in after-hours trading on Thursday, February 6, after the cosmetics company revised its net sales and profit estimates for the full year.

The main reason for the downgrade was the sluggish performance in the mass cosmetics market, which has impacted the company’s sales since the beginning of 2025. Despite e.l.f. Beauty remains a popular brand among consumers, and the slowdown in the beauty industry could pressure the company’s short-term growth.