Weekly News Recap 13 – 17 January 2025

News for 13 January 2025

Gold Rises at the End of Last Week Due to Uncertainty Over Trump’s Policies

Last Friday, gold prices increased and closed at $2,689/oz due to uncertainty surrounding the policies of President Donald Trump, which boosted demand for gold as a safe-haven asset.

The market is now focused on the upcoming U.S. inflation data to be released mid-week, which may influence price movements. It is anticipated that gold prices will continue to rebound.

U.S. Job Growth Surpasses Expectations in December with 256,000 Positions Added

The U.S. Department of Labor reported that non-farm payrolls increased by 256,000 in December, exceeding analysts’ expectations of 154,000. This figure also showed an increase from November’s 212,000 jobs, reflecting a robust labor market heading into the end of the year.

TSMC Begins Production of 4nm Chips in the U.S., Strengthening Biden’s Semiconductor Strategy

The U.S. Secretary of Commerce revealed to Reuters that TSMC, a leading chipmaker for artificial intelligence (AI), has commenced production of 4nm chips for U.S. clients at its Arizona facility. This marks a significant milestone in the Biden administration’s semiconductor strategy, aiming to enhance technological security and domestic manufacturing.

Zuckerberg Meets Trump as Meta Shifts Direction on Controversial Topics

Semafor reports that Meta CEO Mark Zuckerberg met with U.S. President-elect Donald Trump at Mar-a-Lago on Friday, December 10. 

Meta has canceled its fact-checking program in the U.S. and reduced restrictions on discussions of controversial topics, such as immigration and gender identity, in response to criticism from conservative groups.

J&J Considers Acquiring Intra-Cellular Therapies to Expand Biopharma Portfolio

Bloomberg reported on January 12, citing inside sources, that Johnson & Johnson (J&J), a leading pharmaceutical company, is considering making an offer to acquire Intra-Cellular Therapies, a biopharmaceutical company specializing in innovative treatments for psychiatric disorders.

ECB Signals Willingness to Ease Policy, Aiming for Balance to Avoid Recession

On January 13, the Chief Economist of the European Central Bank (ECB) told Austrian media that the ECB is ready to further ease monetary policy this year. The bank aims to strike a balance between stimulating the economy and controlling inflation, in an effort to avoid a recession and prevent delayed inflation control measures.

News for 14 January 2025

Gold Remains Stable, Outlook on Sideway Up Trend

On January 13, gold prices dipped, closing at $2,662/oz, due to the strengthening of the dollar, rising U.S. government bond yields, and signals from Federal Reserve officials suggesting caution in rate cuts for this year.

On January 14, at 20:30 UTC, the U.S. will release its Producer Price Index (PPI), expecting a 0.4% increase.

The dip in gold prices is seen as a temporary adjustment, and the outlook remains stable. A sideway-up strategy is recommended, with support at $2,660/oz and resistance at $2,680/oz.

UnitedHealth Shares Surge 3.93% Following Biden’s Support for Increased Medicare Payouts

UnitedHealth Group’s shares rose 3.93% after the Biden administration proposed a 2.2% increase in payouts for the Medicare Advantage program for 2026. This program, which operates through private insurance companies, is expected to impact the health insurance sector positively.

Energy Stocks Surge Following U.S. Sanctions on Russia’s Oil Industry

Energy stocks surged in line with the rise in WTI oil prices after the U.S. imposed sanctions on Russia’s oil industry. Chevron rose 1.4%, Exxon Mobil climbed 2.58%, and ConocoPhillips increased by 2.29%. 

Additionally, Exxon Mobil announced the successful discovery of a natural gas field off the coast of Egypt, from drilling in the Mediterranean Sea.

EC Reassess Investigations of Apple, Meta, and Google Following Appeal to Trump

The European Commission (EC) is set to reassess its investigations into tech giants Apple, Meta, and Google after these companies appealed to then-presidential candidate Donald Trump to intervene in the enforcement of EU regulations, which they argue are overly stringent. This move has sparked further scrutiny of the companies’ operations in Europe.

News for 15 January 2025

Gold Experiences a Rebound

Gold prices rose and closed at $2,677/oz, driven by the U.S. Producer Price Index (PPI) coming in below expectations at 0.2%. This led to a weaker U.S. dollar, which supported the price increase for gold.

On January 7, at 8:30 PM, U.S. Consumer Price Index (CPI) data is set to be released, with expectations around 2.9%.

Given the potential for higher-than-expected U.S. inflation, there could be delays in interest rate cuts, which may strengthen the dollar and put pressure on gold prices.

Market Under Pressure from 14-Month High Bond Yields and Trump’s Tax Concerns

The market continues to face pressure from the elevated yields on U.S. government bonds, with the 10-year bond yield at 4.784%, near its highest level in 14 months. Additionally, concerns over the potential impact of Donald Trump’s proposed trade tariffs remain, as they could lead to higher inflation, further weighing on market sentiment.

U.S. Bans Imports from 37 Chinese Companies Over Forced Labor in Xinjiang

The U.S. government, under President Joe Biden, has announced a ban on imports from 37 additional Chinese companies following the discovery of forced labor practices in the Xinjiang Uyghur Autonomous Region of China. The companies blacklisted include those in industries such as mining, solar energy, and textiles.

News for 16 January 2025

Gold Rises Nearing $2,700/oz

On January 15, gold prices increased to $2,696/oz due to the U.S. inflation index for December coming in as expected at 2.9% YoY, easing market concerns. The U.S. dollar weakened, which supported the rise in gold prices.

On January 16, at 8:30 PM, U.S. retail sales and weekly jobless claims figures will be announced, with forecasts of 0.6% and 210k, respectively.

The outlook suggests that gold prices are starting to trend upward.

TikTok to Shut Down Operations in the U.S. on January 19

Sources have revealed that TikTok plans to cease operations in the U.S. on January 19, the date when the U.S. government’s ban order is set to take effect unless the ban is lifted at the last minute.

BOJ to Discuss Interest Rate Hike Next Week

Kazuo Ueda, Governor of the Bank of Japan (BOJ), stated that the BOJ will discuss the possibility of raising interest rates next week. The decision will be based on new forecasts regarding quarterly economic growth and inflation.

Scott Bessenet Commits to Supporting the Dollar as the World’s Primary Reserve Currency

Scott Bessenet, nominated to serve as the U.S. Secretary of Treasury under Donald Trump’s administration, has pledged to support the U.S. dollar as the primary reserve currency in the global financial system. He also shared his vision for the economy in the Trump era, calling it the “golden age of a new economy.”

News for 17 January 2025

Gold Breaks Above $2,700/oz, Bullish Outlook Continues

On January 16, gold prices rose to close at $2,714/oz, driven by weaker-than-expected U.S. retail sales and weekly jobless claims, which fell by 0.4% and 217k, respectively. As a safe-haven asset, gold saw increased buying interest.

On January 17, the U.S. will release its building permit data, with expectations of 1.46 million permits.

Given the current conditions, the outlook for gold remains bullish, with expectations for continued upward momentum.

U.S. Weekly Jobless Claims Rise, Still Reflecting a Strong Labor Market

The U.S. Department of Labor reported that initial jobless claims increased by 14,000 to a total of 217,000 for the past week. Although this figure surpassed analysts’ expectations of 210,000, it still indicates a robust labor market. The increase is seen as a minor fluctuation rather than a sign of significant weakness, as the overall level remains relatively low.

UnitedHealth Shares Drop 6.04%, Dragging Dow Jones Down After Q4 Revenue Misses Estimates

UnitedHealth, the largest health insurance company in the U.S., saw its stock drop by 6.04%, contributing to a decline in the Dow Jones Industrial Average. The drop came after the company reported fourth-quarter 2024 earnings that fell short of analysts’ expectations. The disappointing results raised concerns about the company’s future performance and weighed on broader market sentiment.

Apple Shares Drop 4.04% After iPhone Shipments Decline in China

Apple’s stock fell 4.04% following a report from research firm Canalys, which revealed a decline in iPhone shipments in China. As a result, competitors like Vivo and Huawei surpassed Apple to become the largest smartphone vendors in China in 2024. This shift in market dynamics has raised concerns about Apple’s market share in one of its key regions, contributing to the stock’s drop.

Trump May Use Executive Order to Implement Import Tariff Policy

CNN reports that after taking office on January 20, 2025, Donald Trump may utilize an executive order under the International Emergency Economic Powers Act (IEEPA) to implement a policy imposing import tariffs. This move would grant him the authority to establish trade barriers without requiring legislative approval, potentially reshaping U.S. trade policies and impacting global markets.