Author: Fiona Craig

Gold prices remained mostly flat during Wednesday’s Asian trading session as investors navigated ongoing uncertainty over U.S. trade relations and awaited the Federal Reserve’s policy decision expected later in the day.

Spot gold dipped slightly by 0.1% to $3,323.66 per ounce, while gold futures also edged down 0.1% to $3,378.62 per ounce as of 02:18 ET (06:18 GMT).

The metal had recorded modest gains in the previous session, buoyed by concerns around trade tensions ahead of the August 1 tariff deadline set by President Donald Trump.

However, gold has softened over recent weeks, as progress in U.S. trade negotiations has dampened demand for traditional safe-haven assets.

Gold pressured by trade developments and a robust dollar

Last weekend, a U.S.-EU trade framework was announced, reducing tariffs on most European goods to 15%, down from the originally threatened 30%. This easing of trade tensions has lessened fears of an intensifying trade war but has simultaneously strengthened the U.S. dollar.

A firmer dollar tends to weigh on gold prices by increasing the metal’s cost for buyers using other currencies. The Dollar Index maintained its strength on Wednesday following notable gains earlier this week.

Despite some trade progress, markets remain cautious ahead of the August 1 tariff deadline. This uncertainty limits broad market optimism but continues to support gold’s appeal as a haven, albeit mildly.

Analysts noted that trade deals linked to tariffs usually favor the dollar, reducing gold’s attractiveness as risk appetite improves.

Precious metals dip ahead of Fed decision

Investor attention is focused on the conclusion of the Federal Reserve’s two-day policy meeting on Wednesday, where interest rates are expected to be held steady within the 4.25%–4.50% range.

Market participants will closely examine the Fed’s commentary for clues about possible rate changes later this year, with some speculating a rate cut in September.

In addition, a wave of U.S. economic data is scheduled for release this week, including PCE inflation figures and the monthly jobs report, which will further influence market sentiment.

Meanwhile, platinum futures declined 0.3% to $1,415.05 per ounce, and silver futures fell 0.4% to $38.15 an ounce.

Copper prices also retreated, with benchmark copper futures on the London Metal Exchange dropping 0.3% to $9,781.45 per ton, and U.S. copper futures down 0.5% to $5.64 per pound.

This week, U.S. copper prices were hit by sharp declines after Chile’s finance minister announced the country would seek an exemption from the planned U.S. tariff on copper imports.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

The U.S. dollar edged down modestly on Wednesday, retreating from earlier gains recorded this week ahead of the Federal Reserve’s upcoming policy decision. Meanwhile, the euro is poised to record its first monthly loss of 2025.

At 03:00 ET (08:00 GMT), the Dollar Index, which measures the greenback against six major currencies, slipped 0.1% to 98.542. The index remains close to a one-month peak and is on track for its first monthly advance this year.

Fed’s Policy Meeting Nears Conclusion

The dollar has enjoyed strong momentum this month, supported by the U.S.-EU trade agreement, strategic positioning shifts, and month-end market flows. Yet, analysts at ING caution, “these factors should start to fade now, shifting all the attention to data and the Fed.” They add, “Before diving into the U.S. calendar, it’s worth noting that the positioning squeeze means the dollar is in a less oversold position and therefore faces more balanced risks.”

The Federal Reserve wraps up its two-day meeting later Wednesday. While interest rates are widely expected to remain steady, investors will closely scrutinize Chair Jerome Powell’s remarks for clues on future policy direction — especially amid persistent pressure from U.S. President Donald Trump for rate cuts.

Data released Tuesday revealed declines in U.S. job openings and hiring for June, suggesting a cooling labor market ahead of the critical July jobs report due Friday. Later Wednesday, markets will digest private payrolls figures for July and the flash estimate of Q2 GDP. Economists forecast a rebound with growth near 2.5% for April to June, following a 0.5% contraction in Q1.

Euro Faces Pressure for Monthly Loss

In European markets, EUR/USD inched up 0.1% to 1.1553, trading just above its one-month low from the previous session, and set for its first monthly decline in 2025. Although the euro has gained more than 11% this year, buoyed by dollar weakness tied to Trump’s unpredictable trade policies, it now faces some headwinds.

The flash Q2 growth estimate for the eurozone, due later Wednesday, will be closely watched for signals on the European Central Bank’s next moves. Earlier data showed the French economy expanded 0.3% in Q2, beating expectations as household spending surged. Conversely, Germany’s economy, the eurozone’s largest, contracted 0.1% over the same period.

Overall, the eurozone is expected to report flat growth for Q2 as the export boost seen in Q1 fades. ING analysts note, “The stark divergence in growth news between the US and Europe should underpin EUR/USD bearish momentum in our view, and there is a good chance of a break below 1.150.”

GBP/USD climbed 0.1% to 1.3363, with sterling holding just above a two-month low.

BOJ Meeting in Focus

USD/JPY fell 0.4% to 147.87 after recent sharp gains, as attention turns to the Bank of Japan’s Thursday meeting. The BOJ is widely anticipated to keep rates unchanged and maintain a cautious stance on tightening amid economic and political uncertainties.

AUD/USD eased 0.1% to 0.6510 following slightly cooler-than-expected inflation figures for Q2. The data showed further easing in inflation from the previous quarter, with core inflation remaining within the Reserve Bank of Australia’s 2%-3% target range. June’s monthly CPI also dropped more than expected. Softer inflation pressures provide the RBA with additional room to cut rates, following its surprise decision to hold steady in July.

USD/CNY moved marginally lower to 7.1764, with Thursday’s PMI data expected to reflect some improvement after recent de-escalation in U.S.-China trade tensions.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Rio Tinto plc (LSE:RIO) delivered resilient financial results for the first half of 2025, with copper equivalent production rising 6% year-on-year. Despite a 13% drop in iron ore prices, the company’s diversified asset base—particularly its aluminum and copper operations—helped drive an underlying EBITDA of $11.5 billion and operating cash flow of $6.9 billion.

The company declared an interim dividend of $2.4 billion and celebrated key project milestones, including accelerated shipments from the Simandou mine and the opening of the Western Range iron ore project. Rio Tinto remains focused on safety, decarbonization initiatives, and strengthening ties with Indigenous communities, all while maintaining a robust balance sheet to support future growth.

Outlook

Rio Tinto’s strong financial performance, positive technical indicators, and strategic corporate initiatives underpin a constructive outlook. Although valuation metrics and earnings call commentary highlight some challenges, the company’s diversified portfolio and growth strategy provide a solid foundation for continued success.

About Rio Tinto

Rio Tinto is a leading global mining group engaged in the discovery, extraction, and processing of mineral resources. Its operations span iron ore, aluminum, copper, and other key minerals, with a commitment to sustainable development and technological innovation.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

GlaxoSmithKline plc (LSE:GSK) reported robust financial results for Q2 2025, fueled by strong sales growth in its Specialty Medicines and Vaccines divisions, with total revenues reaching £8.0 billion. The company marked key advancements in its R&D pipeline, including new product approvals and continued progress in developing treatments for oncology and respiratory conditions.

Reflecting this momentum, GSK has upgraded its 2025 financial guidance, anticipating growth toward the upper range of its previous forecasts. The company also remains committed to enhancing shareholder value through dividends and an ongoing share buyback program.

Investment Outlook

Positive earnings call feedback and an attractive valuation support a favorable view of GSK’s shares. However, neutral technical indicators and concerns over financial leverage add a note of caution.

About GlaxoSmithKline

GlaxoSmithKline is a global pharmaceutical leader specializing in specialty medicines, vaccines, and general healthcare products. The company holds strong positions in respiratory, immunology, oncology, inflammation, and HIV treatment markets.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Aberdeen Group PLC (LSE:ABDN) delivered solid half-year results for 2025, reflecting notable strides in its ongoing strategic transformation. The company reported an adjusted operating profit of £125 million alongside a 45% rise in IFRS profit before tax. The interactive investor division experienced record net inflows and a 25% increase in profits, while the Adviser segment is actively addressing net flow improvements despite lower profitability due to strategic pricing adjustments. The Investments division sustained steady profits driven by operational efficiencies.

Overall, Aberdeen remains well-positioned to achieve its 2026 goals, with promising growth prospects across its core businesses.

Investment Outlook

The company’s strong financial performance and positive technical indicators underpin an optimistic stock outlook. Confidence is further bolstered by a robust balance sheet and encouraging earnings call commentary. Nonetheless, valuation considerations and challenges in select business areas introduce some caution.

About Aberdeen Group

Aberdeen Group PLC is a UK-based wealth and investment firm specializing in investment management and advisory services. The company aims to establish itself as a leading player in the UK wealth sector, focusing on credit, specialist equities, and real assets.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Glencore (LSE:GLEN) announced a 5% increase in copper equivalent production for the first half of 2025 compared to the previous year, boosted by the inclusion of steelmaking coal volumes from EVR. The company also revealed potential cost savings totaling $1 billion and raised its long-term marketing EBIT guidance, despite excluding contributions from Viterra.

Production results varied by commodity: cobalt and zinc output grew notably, while copper and ferrochrome volumes declined. This mixed performance highlights Glencore’s ongoing strategic efforts to streamline its industrial operations and drive value-enhancing growth. The company’s focus on cost efficiency and operational optimization remains central to its outlook.

Investment Outlook

Glencore’s outlook benefits from strong earnings call feedback and positive corporate developments, including a share buyback initiative. However, concerns around profitability pressures and a negative price-to-earnings ratio temper the overall investment sentiment.

About Glencore

Glencore PLC is a global leader in commodity trading and mining, with diversified operations spanning metals, minerals, energy, and agriculture. The company’s portfolio includes significant exposure to copper, cobalt, zinc, nickel, ferrochrome, and coal. Glencore prioritizes optimizing its industrial assets to boost operational efficiency and sustainable growth.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Serica Energy (LSE:SQZ) has reported a slower-than-anticipated progression to steady-state output at the Triton FPSO following its July restart. The hold-up is primarily due to complications with the gas lift system alongside some additional minor maintenance requirements. Production is expected to stabilize by August as these issues are resolved.

Looking ahead, the company expects steady production contributions from the Bittern, Evelyn, and Gannet fields, with further output increases anticipated from newly drilled wells in the Guillemot North West and Evelyn areas. Despite this temporary setback, Serica continues to maintain strong output from its other assets and projects a potential total production exceeding 55,000 barrels of oil equivalent per day (boepd) once all Triton-related fields reach full operation. Consequently, Serica has slightly revised its 2025 production forecast to a range of 33,000–35,000 boepd.

Investment Outlook

Serica Energy offers an appealing investment profile supported by a healthy balance sheet, favorable valuation, and recent positive corporate developments. Nevertheless, ongoing challenges with revenue consistency and margin pressures introduce some caution. Technical indicators suggest a steady price movement, reinforcing a broadly positive investment outlook.

About Serica Energy

Serica Energy is a UK-based independent oil and gas company focused on exploration and production within the UK Continental Shelf (UKCS). It accounts for around 5% of the UK’s natural gas production, playing a notable role in the country’s energy transition efforts. The company’s core operations revolve around key hubs including the Bruce, Keith, and Rhum fields in the Northern North Sea, as well as multiple fields connected to the Triton FPSO. Serica also holds interests in the Columbus and Orlando fields and a non-operated stake in the Erskine field.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Aston Martin (LSE:AML) released its interim financial results for the first half of 2025, revealing a 25% drop in revenue largely driven by reduced deliveries of its Specials lineup and complications arising from U.S. tariff measures. Despite these headwinds, the brand sustained a strong core average selling price, underscoring the appeal of its latest model introductions.

Looking ahead, Aston Martin expects a rebound in financial results in the latter half of the year, supported by new model launches and ongoing benefits from its broader transformation initiatives.

Outlook and Market Position

The company continues to face financial pressures, including elevated leverage and strained cash flow. While some short-term technical signals show positivity, the stock’s valuation remains pressured due to negative earnings. Encouraging insights from the recent earnings call and strategic investments provide cautious optimism, though risks tied to market and operational challenges persist.

About Aston Martin Lagonda Global Holdings plc

Aston Martin Lagonda Global Holdings plc is a prestigious manufacturer of luxury sports cars and grand tourers, celebrated for its iconic vehicle designs. The company focuses on bespoke, high-performance automobiles, serving an international clientele with a strong emphasis on personalized luxury.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

SDI Group plc (LSE:SDI) delivered a solid financial performance for the year ending 30 April 2025, navigating a tough global economic backdrop. The company pursued its growth strategy through both organic development and strategic acquisitions, investing notably in product innovation and operational enhancements. Key acquisitions during the year included InspecVision Limited and Collins Walker Limited, which helped drive a modest 0.5% rise in revenue to £66.2 million alongside improved gross margins.

Strong cash flow generation enabled SDI to continue expanding its portfolio, including the recent purchase of Severn Thermal Solutions, further strengthening its market position. Backed by a robust order book and these strategic additions, the group is well-prepared to meet expectations for FY26, with an emphasis on sustainable long-term value creation for shareholders.

Outlook and Market Position

Despite facing revenue pressures and overbought technical signals, SDI benefits from a healthy balance sheet and a positive outlook supported by ongoing acquisitions. Valuation remains attractive, and proactive corporate actions enhance the stock’s investment appeal.

About SDI Group

SDI Group plc specializes in acquiring and developing small to medium enterprises that design and manufacture specialized products for lab equipment, industrial and scientific sensors, and related technologies. Operating across niche growth sectors such as life sciences, healthcare, plastics, packaging, manufacturing, precision optics, and measurement instrumentation, SDI aims to grow by expanding its existing portfolio and acquiring complementary technology firms with strong reputations in international markets.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Hargreaves Services (LSE:HSP) has reported strong revenue and EBITDA growth for the fiscal year ending May 31, 2025. The company marked a successful return to profitability in its HRMS joint venture. Although profits from Hargreaves Land declined, overall revenue rose thanks to increased sales activity in the Blindwells development project.

With a solid order book and a debt-free balance sheet, Hargreaves Services is well-positioned for future expansion, especially in the infrastructure sector, where it has already secured more than 70% of its targeted revenue for the upcoming year. Reflecting its confidence in growth prospects, the company has also proposed an increased final dividend, underscoring its commitment to rewarding shareholders.

Outlook and Valuation

The company’s strong financial results and favorable technical indicators support a positive outlook. Valuation appears reasonable, complemented by an attractive dividend yield. Recent corporate developments signal confidence and highlight the group’s potential for continued strategic growth, contributing to an above-average stock rating.

About Hargreaves Services

Hargreaves Services plc is a diversified organization operating in the environmental, infrastructure, and property sectors across the UK and Southeast Asia. Its business is structured into three segments: Services, Hargreaves Land, and HRMS, a joint venture based in Germany. The Services division delivers materials handling, mechanical and electrical contracting, logistics, and major earthworks, with a focus on clean energy and infrastructure projects. Hargreaves Land specializes in sustainable brownfield site development, while HRMS operates in niche commodity markets and steel waste recycling.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.