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Silver reaches new highs after Fed rate cuts; gold holds steady
Gold was stable on Thursday after the 'U.S. Federal Reserve reduced borrowing costs by a quarter percent but indicated a pause on further rate cuts. Silver surged to a new record high. As of 10:05 am, spot gold was up by 0.1% to $4,233.39 an ounce. ET (1505 GMT), while U.S. Gold Futures for February Delivery gained 0.1% per ounce to $4,262.60. Daniel Pavilonis is a senior market strategist with RJO Futures. He said that investors are in a waiting-and-see-mode following the Fed's much-anticipated decision to reduce interest rates during its Wednesday meeting. Pavilonis said that prices are likely to rise towards $4,300/oz at the end of this year and could reach $4,500/oz in April 2019. The Federal Reserve announced its third quarter-point reduction in a row on Wednesday. Policymakers also signaled that they would likely take a pause from further reductions while they continue to monitor the labor market and inflation, which "remains elevated." Gold is more attractive when interest rates are lower, since it's a non-yielding investment. Donald Trump, the U.S. president, has been advocating for lower interest rates ever since he began his second term. His nominee to be the next Federal Reserve Chair is expected maintain this stance. White House economic advisor Kevin Hassett has been deemed the 'leading candidate' for this position. Investors are now awaiting the release of the U.S. Non-Farm Payrolls Report, scheduled for December 16th. This report will provide new clues about the Fed's future policy. Spot silver was up 1.5% last to $62.66 per ounce. It hovered around a new record high of $62.98. "We're at the first level of resistance at around $63... Pavilonis stated that adding the retracement to the upside would equal just under $68 in silver. India's pension regulator approved Wednesday investments in gold and Silver ETFs by the country's retirement funds. Palladium, meanwhile, fell by 0.2%, to $1.473.55. Platinum gained 0.1%, to $1.671.56. (Reporting by Sarah Qureshi in Bengaluru; Editing by Alison Williams)
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US CPC: La Nina will fade in the first half of next year and neutral Pacific conditions are likely.
The U.S. Climate Prediction Center said on Thursday that La Nina will likely continue for a month or two more before giving way to neutral Pacific weather conditions between January 2026 and March 2026. This is a probability of?68%. Climate Prediction Center reported on Thursday. The CPC's monthly update noted that "La Nina could still be a factor in the Northern Hemisphere early spring 2026, even after equatorial Pacific SSTs transition to ENSO neutral." Why it's important La Nina is a part of El Nino and the Southern Oscillation, which affects the water temperatures in central and eastern Pacific Ocean. La Nina causes cooler water temperatures which increases the risk of flooding and droughts, which could impact crops. When ENSO neutral, water temperature stays around?average, leading to more consistent weather and possibly better crop yields. KEY QUOTES Jason Nicholls is the lead international forecaster for AccuWeather. Nicholls said excessive rainfall in southern Brazil was a cause for concern, but added: "I don't really expect widespread drought problems in many of the global croplands over the next few months." Donald Keeney of Vaisala Weather's agricultural meteorologist said that conditions in the Pacific had?warmed up, with temperatures currently "on the threshold?of neutral and weak La Nina." Keeney predicts that La Nina will fade and wetter weather conditions will prevail in southern Brazil and Argentina. However, he warns: "The main threat to the U.S. hard-red wheat crop in the near term is the dryness of the central and south Plains." Matthew Biggin is a senior analyst with BMI, an Fitch Solutions company. He said that while there are isolated market challenges, they will be limited due to the expectation of a weak "La Nina" which won't persist for the entire crop season. CONTEXT According to a World Meteorological Organization forecast published last week, a weak La Nina could affect global weather patterns in the next three month. WMO stated that even though the La Nina pattern is expected to temporarily cool temperatures in the central and eastern Pacific Oceans, many regions will still be warmer than normal, increasing the chances of flooding and droughts which can affect crops. The Japanese weather bureau reported on Wednesday that it is currently experiencing conditions similar to the La Nina phenomena, but said such conditions will likely fade quickly towards the end the Northern Hemisphere's winter. Indian farmers are planting winter crops such as wheat, chickpea and rapeseed. The soil is moist enough to allow for cultivation in areas that would normally be left fallow. (Reporting and editing by Deepa Babyington in Bengaluru)
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After US pressure, the EU has simplified its rules for complying with the methane laws
By Kate Abnett BRUSSELS - On December 11, the European Union will ease compliance with its methane emission law for oil and 'gas imports. This could be a boon to U.S. exports of gas to 'the EU, after Trump pressured Brussels to change?the?"policy. In an effort to reduce the emissions of this powerful greenhouse gas, the EU has mandated that importers of gas and oil to Europe monitor and report methane emission associated with these imports. U.S. Energy Sec. Chris Wright has criticized the world's first climate policy, calling it impossible to implement. He has also warned that it could disrupt U.S. Gas Supplies?to Europe. In a document sent to EU member countries, the European Commission stated that it offered two?routes of compliance for situations where the source of the gas was difficult to trace. This could be the case with liquefied natural gas from the United States, in which a single shipment may contain fuels from multiple?gas fields. The document of the Commission stated that "the Commission has identified?solutions to a simple, predictable implementation." Companies could comply with the regulations by purchasing certificates from third party verifiers, who would assign to imported gas a value for emissions at their production site. Second, there is the "trace-and-claim" method. This involves assigning a digital ID to each volume of fuel. The digital identifier is then attached to every sale and purchase agreement as oil and gas move through the value chain, from the producer to the final buyer. The main requirements of the Methane Law remain unchanged -?which will continue to become more strict with time. In 2027, compliance with the methane regulations will be required for all new gas supply agreements. U.S. gas exporters warned that they would have difficulty complying with the new law because of the fragmentation in the industry. The national authorities of EU governments are responsible for the enforcement of methane laws. The Commission asked the countries to confirm what compliance rules they were willing to accept. The plan will be discussed by the energy ministers of all countries in Brussels on Sunday. Kate Abnett is the reporter. Mark Potter (Editing)
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OPEC data indicates a close balance between oil supply and demand in 2026. No glut
OPEC data published on Thursday showed that world?oil supply would match demand closely by 2026. This is in contrast to projections made by the International Energy Agency, and others, who predicted a massive glut. The OPEC+ group, which includes the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other allies, plans to pause the production increases?in the first three months of 2026 amid predictions of an oversupply. In a report released on Thursday, OPEC stated that OPEC+ pumped 43.06 mn bpd of crude oil in November, an increase of 43,000 bpd over the previous month. The report 'forecasts demand for OPEC+ crude to average 43 million bpd by 2026. This is unchanged from the previous month, and very close to what OPEC+ was producing in November. OPEC predicted demand for its crude to be 42.6 million bpd during the first quarter. According to a calculation based upon the OPEC report, if OPEC+ 'kept pumping at its November rate in 2026, and all other things remained equal, production would have been 60,000 bpd more than demand. The IEA had earlier stated that 'global oil supplies will exceed demand by almost 3.84million bpd – an amount equivalent to almost 4% world demand - if next year. In its report, OPEC kept its predictions for world oil demand growth in 2025 and 2026 unchanged. It also said that the global economy remained on a sound footing. Mark Potter and Kirsten Donovan edited the article.
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Silver reaches new highs; gold falls after Fed split vote on rate cuts
Gold edged lower on Thursday, as traders weighed ?the U.S. Federal Reserve's divided vote on a quarter-percentage-point ?interest ?rate cut, while silver climbed to yet another record high. As of 1248 GMT, spot gold dropped 0.3% to $4216.49 an ounce. U.S. Gold Futures for February Delivery gained 0.5%, to $4244.40 an ounce. Ross Norman, an independent analyst, said that the fundamentals of gold remained unchanged. The Fed cut rates by a quarter percentage point in a rare, divided vote on Wednesday. However, officials signaled a pause before further easing. They are assessing the future direction of the job market as well as inflation which "remains slightly elevated." Gold and other non-yielding investments are typically benefitted by lower interest rates. The projections released after the two-day conference showed that most policymakers only see one rate reduction in 2026. Fed Chair Jerome Powell did not give any indication as to when a second rate cut could occur. Donald Trump, the U.S. president, said that on Wednesday the Fed could have cut rates even more. Trump will announce the new Fed Chair early next year. White House Economic Advisor Kevin Hassett is seen as the frontrunner. Investors will be watching for the non-farm payrolls data and unemployment rate figures due on 16th December to get more clues about what next moves the Fed is likely to make. Spot silver increased 0.6% to $62.16 an ounce after hitting a new record high at $62.88 in the previous session. This brings its year-to date gain to 115% due to strong industrial demand, declining stocks and its inclusion on the U.S. Critical Minerals list. Silver's fundamentals are still incredibly strong. The critical minerals list is a huge tailwind, and there's a possibility we could see some stockbuilding. This would increase the market's tightness. Norman said. Palladium dropped 0.9%, to $1.463.97, and platinum rose 0.5%, to $1.665.99. (Reporting and editing by Kate Mayberry, Shalesh Kuber and Pablo Sinha from Bengaluru)
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MOL is close to a deal with MOL to purchase more Azeri Gas, says the Foreign Minister
Hungary has signed a framework deal with Azerbaijan to purchase up to 800,000,000 cubic meters of gas over a period of two years. Peter Szijjarto, Hungary's foreign minister, announced this at a press conference on Thursday. Hungary has signed a framework agreement with Azerbaijan for the purchase of up to 800 million cubic meters of natural gas over a two-year period, Peter Szijjarto, the Foreign Minister in Hungary told?a briefing on Thursday. This is a framework contract that allows up to?800 million cubic metres in deliveries to be realized. How much of the agreement will be completed in the next two-years depends on market conditions, Szijjarto explained. Hungarian wholesaler MVM CEEnergy has agreed to purchase 400 million cubic meters of gas per year from a company called. Engie, a French company Between 2028 and 2038. Hungary had earlier agreed to Shell to buy 200 mcm The country will consume around 8 billion cubic meters of gas per year, or around 2.5%. Last Week MVM CEO Karoly Mattrai MVM's chief executive said that the group would be able to provide enough gas for the country even if Russian imports were stopped, but prices are likely to rise. Even after the beginning of the Ukraine war, Hungary's reliance on Russian oil and gas has not changed. Viktor Orban, Prime Minister of Hungary, said that "Hungary imported" a number of products. 7,5 billion cubic meters Gas from Russia? Szijjarto said at the briefing held on Thursday that Hungary's MOL oil and gas company was "close to signing a deal" on participation in Azerbaijan's new large exploration and production project. MOL didn't immediately respond to questions about the possible deal. Reporting by Krisztina than and Anita Komuves, edited by Chizu nomiyama
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EU reaches provisional deal on screening foreign investment
The European Union has reached a provisional agreement on Thursday regarding new rules that will require all of its members to screen foreign investments into the EU?in sensitive sectors like defence, AI, or critical minerals to determine if it threatens economic security. Representatives from the European Parliament and Council, the grouping EU governments, have reached agreement on a draft text for re-evaluating its?existing FDI screen regulations. The text will still need to be approved by both bodies. All EU countries will be required to screen investments and block them if they pose a risk. The screening will extend to investments made within the EU, if an investor is controlled by a foreign firm. The original proposal?did not name any countries,?but contrasts'reliable partners' with 'countries of concern,?and highlights "de-risking", which is the policy of the bloc to reduce economic dependence on China. Export restrictions Rare earths and Chips Foreign investments in critical raw materials and energy, voting systems and databases, and critical raw materials and technologies, such as AI and quantum?technologies, will need to be screened. Included are central counterparties, central securities depositories, operators on regulated markets, payment systems, and systemically significant financial institutions. The screening decisions are still the responsibility of EU member states where the investment is being made. However, the European Commission may give its opinion. Morten Bodskov (Danish Business and Industry Minister), whose country currently holds the rotating EU Presidency, made a statement. (Reporting and editing by Inti, Landauro, and Toby Chopra.)
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Yonhap reports two deaths after collapse on South Korea library construction site
Yonhap News Agency reported that two workers were killed and two others were missing, and believed to be buried, at a library building site in the city of Gwangju, South Korea, on Thursday after an iron structure collapsed. Yonhap reported that authorities found a dead body in a building, citing?Gwangju Fire agency. Fire authorities told reporters in a press briefing that the collapse happened while concrete was?poured on the construction site. A fire official stated that the rescuers are attempting to remove concrete slabs and steel pipes believed to be burying workers.
New Zealand inks 'sustainable' trade handle Switzerland, Costa Rica and Iceland
New Zealand signed a trade offer on Saturday with Switzerland, Costa Rica and Iceland to eliminate tariffs on numerous sustainable goods and services, in a relocation Wellington says will boost the country's export sector.
The Arrangement on Climate Modification, Trade and Sustainability ( ACCTS) was signed at a ceremony during the Asia-Pacific Economic Cooperation (APEC) in Peru on Saturday after being struck in July, Trade and Agriculture Minister Todd McClay stated in a statement.
This contract gets rid of tariffs on key exports including 45 wood and wool items-- 2 sectors that are crucial to achieving our goal of doubling New Zealand's exports by worth in 10 years, McClay said.
It will likewise lower expenses for customers, eliminating tariffs on numerous other items, including insulation materials, recycled paper, and energy-saving items such as LED lights and rechargeable batteries.
The deal prioritised New Zealand's sustainable exports, he said, amidst a roll back by the nation's centre-right federal government of ecological reforms in a quote to increase a flailing economy. Exports comprise nearly a quarter of New Zealand's economy.
(source: Reuters)