Gold gains on dollar pullback; investors weigh Fed rate hike prospects
Updated 17 April 2023
Reuters
RIYADH: Gold rose on Monday as the dollar eased slightly, but prices were off one-year highs hit last week, as mixed economic data prompted investors to reassess the US Federal Reserve’s interest rate hike trajectory, according to Reuters.
Spot gold was up 0.5 percent at $2,012.62 per ounce as of 0646 GMT. US gold futures rose 0.4 percent to $2,024.70.
The dollar index was 0.1 percent lower, making bullion cheaper for overseas buyers.
Gold is likely to trade with “positive bias but can see some initial correction...a major downfall” in prices is not expected as uncertain global economic and geopolitical tensions support its safe-haven status, said Hareesh V, commodity research head, Geojit Financial Services.
Gold dropped 2 percent on Friday after data showed resilience in US core retail sales in March.
Other data showed households expected inflation to rise over the next 12 months. Separately, production at US factories fell in March but eked out a modest gain in the first quarter.
“Gold also maintains a strong correlation with real yields, and price action continues to be sensitive to US inflation and employment data,” Standard Chartered analyst Suki Cooper said in a note.
On Friday, Fed Governor Christopher Waller said US central bankers still need to move interest rates higher. On the other hand, Atlanta Fed President Raphael Bostic said one more quarter-percentage-point hike could allow the Fed to end its tightening cycle.
The CME FedWatch tool shows markets are pricing in an 82.2 percent chance of a 25 basis point hike in May, dimming non-yielding bullion’s appeal.
“While $2,075-$2,100/oz remains a key hurdle...we remain biased for a grind higher,” Citi said in a note, adding financial stability stress presents positive tailwinds for long-duration safe-haven assets such as gold.
Spot silver rose 0.5 percent to $25.45 per ounce, platinum dipped 0.3 percent to $1,042.01 and palladium fell 0.5 percent to $1,496.41.
Supplier hub to anchor Saudi car industry, says TASARU CEO
Updated 09 February 2026
Nada Alturki
RIYADH: Saudi Arabia’s Public Investment Fund is stepping up efforts to localize automotive manufacturing, with its portfolio company TASARU announcing partnerships with five Tier-1 global suppliers to localize advanced component manufacturing in the Kingdom.
The agreements were announced at the fourth PIF Private Sector Forum in Riyadh. TASARU also revealed plans to establish a new Supplier Hub in the King Salman Automotive Cluster in King Abdullah Economic City, designed to support next-generation vehicle development and strengthen the national automotive ecosystem in alignment with Vision 2030.
TASARU also revealed plans to establish a new Supplier Hub in the King Salman Automotive Cluster in King Abdullah Economic City. Supplied
Speaking to Arab News on the sidelines of the forum, Michael Mueller, CEO of TASARU, said: “You cannot build cars without having the right partners from the supplier side, and with that, together with the OEMs, we selected the partners that we just announced today to localize them.”
He added that the presence of large international suppliers is expected to attract smaller Tier-2 and Tier-3 manufacturers, helping the ecosystem scale.
The five partners include Shin Young for metal stamping and body structures, JVIS for exterior plastics, and BENTELER for chassis and hot-formed steel components. Guangxi Fangxin will supply interior systems, while Lear Corp. completes the group, with all expected to establish manufacturing operations in the Kingdom.
Founded more than three years ago, TASARU was established to introduce new technologies into Saudi Arabia’s mobility sector. The company has prioritized localizing smaller OEM and supplier businesses while bringing next-generation solutions into the Kingdom.
Mueller said visible progress on factory construction by Ceer, Lucid and Hyundai is shifting perceptions about the sector’s viability.
“A lot of people on the sideline watched whether automotive is really happening,” he said. “Now they recognize that the factories … are under construction, so that’s the first signal that it’s not just the bubble. It’s not just PowerPoint. It’s getting real now on the ground.”
The CEO shares that KAEC is positioned as a hub for Saudi Arabia’s automotive industry, making it a strategic location for the TASARU Supplier Hub. The facility is designed to support OEMs and next-generation vehicles, including Ceer and Lucid Motors, through a shared, just-in-time manufacturing model with integrated logistics and regulatory support.
TASARU will provide infrastructure and operational support, while partners bring technical expertise and gradually develop training centers to build a local workforce, Mueller said.
He positioned Saudi Arabia as an attractive base for global suppliers because of its access to minerals and rare earth resources, energy availability and coordination across PIF portfolio companies and government entities.
“They have access to minerals. They have access to rare earth. They can benefit from what is already existing. They have stable energy solutions. I think this footprint might benefit from the whole ecosystem as it is, not just automotive,” he said.
Companies without a Saudi footprint risk missing a “huge opportunity,” Mueller added.
He said advancing the industry will require clearer regulatory frameworks, including defined trigger points and licensing pathways that allow companies to execute their mandates.
“Of course, you need to have more or less the regulatory framework to allow autonomous cars, sooner or later, on the streets. But it's happening, and this is a huge chance also for Saudi Arabia,” Muller said.
He added: “If you are advanced in bringing such regulations onto a fast track, then you have a huge opportunity to be one of the first countries that establish this.”
With rising traffic levels in Riyadh, Mueller said emerging mobility technologies could help solve first- and last-mile transportation challenges.
“If the Metro is already full, that is good because people are using it. Now, you have to connect the dots. You have to finally make sure that people get from home to the metros and or to the bus station. So this first last-mile transportation is something where new technologies might help to bridge that,” he said.
The CEO said the project is expected to take roughly one and a half to two years for suppliers to go live. More broadly, the initiative reflects Saudi Arabia’s transition from investment attraction to full-scale industrial localization, strengthening local content, private-sector participation, and long-term industrial resilience in line with Vision 2030.
