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Gold prices fall on lower US inflation figures and a firmer dollar
Prices of gold fell on Friday due to lower than expected U.S. inflation figures, which reduced the appeal of bullion as a hedge against rising inflation. As of 0147 GMT spot gold was down by 0.3%, at $4,318.19 per ounce. However, it is expected to finish the week with a 0.4% increase. U.S. Gold Futures dropped 0.4% to $4346.60. Spot silver dropped 0.5% to $65.10 per ounce but was expected to finish the week at a?5% increase after reaching an all-time record of $66.88 an ounce on Wednesday. Silver is up 125% in the past year, surpassing gold, which has seen a rise of 65%. The dollar remained near its one-week-highs, making precious metals priced in greenbacks more expensive to other currency holders. "The softer inflation prints were a double-edged blade (for gold and silver), as it helped justify a more dovish Fed but also meant that they lost some of their appeal in terms of inflation hedges. Tim Waterer, KCM Trade's Chief Market Analyst, says that the dollar is standing firm and creating resistance. Data shows that U.S. consumer price indexes rose by 2.7% in November compared to the same month last year, below the 3.1% rise predicted by economists. Federal funds rate futures?indicate a slightly higher chance that the Federal Reserve will reduce interest rates during its meeting in January, following the data. Goldman Sachs believes that gold prices will?rise 14% to $4900/oz in December 2026, in its base scenario, according to a note it released on Thursday. It also noted upside risks due to the potential diversification of private investors. Platinum rose 0.5% to $1.924.59, after reaching a 17-year high?on Thursday. Palladium dropped 1.1% to $1677.68, after reaching a three-year high Thursday. Both were on track to make weekly gains, while palladium is set to have its best week since Sept. 2024. Waterer said that "precious metals have become popular, and platinum and palladium are now following gold and silver in the fashion world."
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Japan increases rates and Asia stocks rise with Wall Street
The?yen eased on Friday after the Bank of Japan increased interest rates to three-decade-high levels and left the door open for?further easing. The decision to raise rates to 0.75 percent was widely expected and the initial reaction was to sell the yen in anticipation of a more detailed outlook at the media conference by BOJ Governor Kazuo ueda later in the day. The markets had bet on just one rate hike in 2019, to 1.0%. Ueda, however, has said that a neutral rate range would include rates from 1.0% up to 2.5%. Investors should be wary if he suggests that the rates may be raised more than once by 2026. Abhijit Sundera, senior APAC economist for Capital Economics, stated that the BOJ indicated that more tightening would be likely, given that real interest rates are still negative, despite today's increase. He added that he believed the data would more than likely surprise him to the upside, predicting rates of 1.7% by 2027. The core CPI in Japan rose by 3.0% annually in November, the same as it was last month. The dollar has gained 0.3% in the last few days to 156.03yen, and the euro is up 0.3% at 182.96. The yields on Japan's 10 year bonds are now at 1,975%, which is just below a 18-year high. Japan's Nikkei gained 1.3% after following Wall Street's overnight rally. South Korea gained 0.8%, and Taiwan, a tech-heavy country, 1.3%. This was due to the stellar results of chipmaker Micron Technology. The MSCI broadest index of Asia-Pacific shares outside Japan gained 0.7% while Chinese blue-chips gained 0.6%. ByteDance announced that it had reached a deal with major investors in order to create a joint venture for the operation of TikTok’s U.S. App. This was done to avoid an American government ban. ECB AND BoE OFFER DIFFERENT LEVELS of HAWKISHNESS EUROSTOXX Futures and FTSE Futures both fell 0.3% for European bourses. DAX Futures also dropped 0.2%. S&P futures were flat while Nasdaq Futures gained 0.2%. The unexpected slowdown in U.S. inflation rates to 2.7% has boosted sentiment, but analysts warn that the data are clearly distorted by the government shutdown. They cannot be taken at face-value. The Federal Reserve's pricing has only moved marginally. A rate cut was implied in January at 27%. In March, the price increased to 58%. Before the data, it had been 54%. Bond markets welcomed the U.S. CPI figures with caution, as the 10-year Treasury yields remained at 4,126%. This is a far cry from the recent high of 4,209% for the past 3-1/2 months. Overnight, British Bonds?had suffered a blow after the Bank of England lowered rates as anticipated but only following a 5-4 vote. The policymakers have also expressed caution over the pace of future easing. Another cut is not fully priced until June. The European Central Bank, which held rates at 2,0 %, was even more hawkish. It?suggested a probable end to the ease cycle. The markets indicate that there is only a small chance of a reduction for the entire year 2026. The central banks of Sweden and Norway also remained unchanged, although the Norwegians left the door open for one or more reductions. Gold fell 0.3% on the commodity markets to $4,319 per ounce, still below its October peak at $4,381. Silver has seen a drop in price after its meteoric rise, but palladium, platinum and other metals remain in high demand. The possibility of additional U.S. Sanctions against Russia, and the risks of a blockade on Venezuelan oil tankers, helped to support the price of crude. Brent crude fell 0.2%, to $59.71 per barrel. U.S. crude dropped 0.3%, to $56.00 a barrel. (Reporting and editing by Sam Holmes, Jacqueline Wong, and Wayne Cole)
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Lundin Mining sells Eagle nickel-copper to Talon Metals at a price of $84 million
Lundin Mining, a Canadian mining company, announced on Thursday its intention to sell the Eagle Nickel-Copper Mine and Humboldt Mill in exchange for Talon Metals shares. This will create a nickel-copper-only American company. According to the?deal?, Lundin's U.S. subsidiary that owns Eagle Mine in Michigan will be transferred to Talon for 275 million Talon Shares, worth approximately $83.7 million at current prices. Lundin will own about 20% of Talon, on a non-diluted base. Eagle is the only nickel mine in operation today in the United States. Since production began, the mine produced 194,000 tons nickel and 185,000 tonnes copper, generating $3.2 billion revenue by 'the third quarter 2025. Talon is now positioned for processing critical minerals in multiple U.S. locations, including the Humboldt Mill, in Michigan, and a planned future facility in Beulah in North Dakota. After the deal, Talon will have a board of 10 directors with two Lundin nominees. Darby Stacey will be appointed Talon's CEO and Director. He is currently the managing director for Eagle Mine?and Humboldt Mill. Lundin stated that the transaction allowed it to streamline its portfolio, and focus on its large copper?operations? in Brazil and Chile. It also retained exposure?to potential upside?through Talon's exploration assets?including the Tamarack Nickel project?in Minnesota. The deal is expected to close early in January 2026. After the completion of the transaction, Eagle's output will no longer be considered in Lundin Mining’s production guidance.
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Official: Suspect gunman found dead in Brown University shooting
A U.S. Attorney said that the suspect in the mass shootings at Brown University at the weekend is dead. Authorities are investigating whether the same individual killed a professor at the Massachusetts Institute of Technology two days after the Brown rampage. Two other federal officials confirmed that?the?suspected Brown Shooter was dead. The body is believed to have been found in a storage facility in Salem New Hampshire, approximately 30 km north of Boston. A large number of police officers were in the area Thursday night, in connection with an investigation into the Brown University shooting. Unnamed Department of Justice officials, who were not authorized by the Department to speak about the matter, stated that the suspect shooter killed himself. Sources did not give more information on the identity of the shooter or why investigators believe the two cases are linked. They said federal prosecutors from Massachusetts, the state where MIT is situated, have drafted charges for an 'individual' they are looking for in this investigation. MANHUNT LEAVES STUDENTS AND RESIDENTS "RESTLESS" AND "EAGER" The manhunt that has been underway since the shooting on Saturday inside a classroom at Brown University in Providence, Rhode Island left residents and students of Providence, Rhode Island feeling "restless and anxious" to make an arrest. This was confirmed by Mayor Brett Smiley. At least eight students were injured and two were killed at the Ivy League School. Nuno Loureiro was shot dead in Brookline, Massachusetts on Monday. Brookline is a Boston suburb located about 80 km (50 miles) north of Brown University's campus. A FBI official said that authorities believed there was no link between the shooting on Saturday at Brown University and the murder of the MIT professor. Loureiro worked at MIT in the departments of physics, nuclear science and engineering as well as plasma science and fusion center. The lack of cameras in the classroom and the surrounding area led investigators to rely heavily on footage from nearby homes. The police released photos and videos of a man wearing a mask, believed to be responsible for the shooting, based on the accounts of survivors. They have asked the public repeatedly for help in identifying the man. The video showed the suspect walking through a nearby neighbourhood both before and after?the assault, including moments where police cars with flashing lights arrived. Oscar Perez, Chief of the Providence Police Department's, said that the suspect could be anywhere. He added that at first authorities didn't know his identity or motive. The police also distributed photos of a second unidentified male seen in the area, stating that they were interested in speaking with him because he could have important information. The authorities initially said a person had been taken into custody the day following the shooting. However, they later released this individual after concluding that he wasn't involved.
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The price of oil is expected to fall for the second consecutive week
Early Friday trading saw oil prices fall and they were expected to close lower than last week as the prospects for a Russia-Ukraine deal outweighed concerns about supply disruptions due to a blockade on venezuelan tankers. Brent crude futures were down 9 cents or 0.2% to $59.73 a barge by 0111 GMT. U.S. West Texas Intermediate crude traded 16 cents or 0.3% less at $55.99 a barge. Both benchmarks are down over 2% on a weekly basis. Donald Trump, the U.S. president, said on Thursday that he believed talks to end the?war? in Ukraine were "getting closer to something". This is ahead of an upcoming U.S.-Russian?officials meeting this weekend. It was not clear, in the case of the second potential geopolitical trigger, how the U.S. could enforce Trump's declaration to blockade oil tankers that enter and leave Venezuela (which?makes 1%?of global supply) under sanctions. The U.S. Coast Guard seized an oil tanker from Venezuela in a historic move last week. Tony Sycamore, IG analyst, said on Friday that "uncertainty about enforcement details and the optimism of a possible U.S. led Ukraine peace deal (are) easing supply concerns in global markets and reducing geopolitical risks premiums." Analysts say that further measures against Russian oil may pose a greater risk to supply than Trump's Venezuelan?blockade on tankers. According to sources familiar with Venezuelan oil export operations, Venezuela authorized on Thursday two very large crude carriers that were not sanctioned by the country?to sail towards China. Analysts at the Bank of America predict that the lower oil price will reduce the supply of oil, preventing a freefall in prices. Sycamore, IG's analyst, said that a rally above the resistance level of $56.70-$56.90ish could strengthen the argument that the selloff this week to the $54.98 bottom was a false breakdown lower. "Conversely a break under $54.98/90ish will reignite the downside momentum and target the psychological $50.00 threshold." (Reporting and Editing by Shri Navaratnam).
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Asia stocks rally with Wall St., but prepare for BOJ hike
Asian share markets recovered on Friday, as a turnaround in the?tech sector lifted Wall Street. Investors are now counting down until a possible interest rate hike from the Bank of Japan which could have a major impact on currencies and bonds. The U.S. consumer prices inflation rate dropped to 2.7% in a "shock" move. Analysts cautioned that the data was clearly distorted by the shutdown of the federal government and should not be taken as a fact. The Federal Reserve's pricing has only moved marginally. A rate cut was implied in January at 27%. In March, the price increased to 58% compared to 54% prior. The markets indicate that there is a 90% probability the BOJ will increase its rate by a quarter-point to 0.75% on Friday. Investors bet on a further 1.0% increase in 2026. Any hint of more could offer the much-needed support for the embattled Japanese yen but also put pressure on government bonds. Analysts at CBA wrote in a report that "the policy rate is still stimulatory and there is a good case for further BOJ policy standardisation." The BOJ has set a 2% inflation target for the next two years. Inflation will increase as the yen weakens sharply in the last two months. The latest figures released on Friday show that Japan's core CPI increased at a rate of?3.0% annually in November, which is the same as it was for the previous month. Japan's Nikkei gained 0.6%. South Korea rose 1.2%, boosted by the stellar results of chipmaker Micron Technology. The broadest MSCI index of Asia-Pacific stocks outside Japan increased by 0.2%. ECB AND BoE OFFER DISTINCT LEVELS of HAWKISHNESS S&P futures and Nasdaq were flat overnight after the overnight bounce. The bond markets welcomed the U.S. CPI figures with caution, as the 10-year Treasury yields remained at 4,126%. This is a far cry from the recent high of 4,209% that was reached three-and-a half months ago. Japan's 10-year bond yield was 1.980%. This is a new high for the past 18 years. British bonds took a big hit overnight after the Bank of England cut interest rates, as expected, but only with a 5-4 vote. The policymakers have also expressed caution over the pace of future easing. Another cut is not fully priced until June. The European Central Bank's hawkish stance was further accentuated by its decision to keep rates at 2,0 %, and signal a probable?end of the easing cycle. The markets indicate that there is only a small chance of a reduction for the entire year 2026. The central banks of Sweden and Norway also remained unchanged, although the Norwegians left the door open for one or more reductions. Both the pound sterling and the euro briefly spiked, but then quickly retreated. The pound was at $1.3378, while the euro was at $1.1725. The dollar's value against the yen was 155.60, which is still within the range between 154.34 and 156.96. Gold was still stuck at $4.333 per ounce, below its October peak of $ 4,381. Silver has seen a drop in price after its meteoric rise, but palladiums and platinums remain in high demand. The possibility of additional U.S. Sanctions against Russia, and the risks of a blockade on Venezuelan oil tankers affecting supply, were the main drivers of the oil prices. Brent crude oil rose by 0.2%, to $62.04 per barrel. U.S. crude oil increased 0.2%, to $58.35 a barrel. (Reporting and editing by Sam Holmes; Reporting by Wayne Cole)
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Japan's Sumitomo Realty bets on Mumbai serviced apartments and Mumbai by Japan's Sumitomo Realty
Sumitomo Realty and Development in Japan, the third largest developer of Japan, is planning to expand into India using an unusual strategy: "focusing on Mumbai and managing rather than selling apartments," executives said. Japanese developers are expanding their presence in India’s $300 billion property market. Attracted by the rising rents and lower construction costs than in Tokyo, New York, or London, they have chosen to focus on Mumbai. Mitsui, a Japanese company, and Blackstone, a U.S. firm, have both expanded in India by partnering with local developers, or purchasing completed buildings. This is due to the slow process of land acquisition. Sumitomo is focused on Mumbai and opting to build from the ground up. In an interview, Niinomi Masato, General Manager of Sumitomo India's business division said that Mumbai is a city with assets and vitality worth focusing on. Sumitomo called Mumbai the "second growth engine" behind Tokyo, where they?manage 240 buildings. Masato said that Mumbai is less vulnerable to geographical risks, such as earthquakes. These can affect assets and cash flow. MAIN BET ?ON MUMBAI Tomoki Iwata said that Sumitomo India's Goisu Realty unit was looking at other cities, but had not found any suitable sites yet in Delhi, Bengaluru, or Chennai. Sumitomo believes that there is a greater supply of prime locations than in Mumbai where the land shortage creates opportunities for rental growth on a long-term basis. Sumitomo has developed five projects in India - all located in Mumbai. Four of these are in the Bandra Kurla Complex, near the international airport and home to many multinational companies. Iwata stated that these four projects will be completed within five years and cash flow will fund future expansion. He said Sumitomo spent a quarter?of its $6.5 billion India commitment but refused to provide details. Servicing, not selling Rents for premium apartments in India have also increased as the country's wealth has grown. According to Cushman & Wakefield, the average rent in south Mumbai was as high as 730,000 rupies ($8,096) a month this year, which is about 20% more than it was three years ago. Luxury homes are typically sold for millions of dollars by local developers such as Oberoi and Godrej Properties. Masato stated that Sumitomo will manage and rent the apartments in one of its "super high-rise" Mumbai project rather than selling them.
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Michigan approves DTE power deals for data center, adds grid safeguards
Michigan regulators approved Thursday special contracts that DTE Energy?s unit?would supply to a data center in Washtenaw County. However, the Michigan Public Service Commission (MPSC) imposed mandatory additional safeguards to protect residential customers and others from having to pay any costs associated with the development and operation of "the data center". DTE Energy, OpenAI and Related Digital are also required to absorb any costs that they cannot recover from Green Chile Ventures. In the event of an emergency, it is important to update the procedures so that service can be restored before any other customers are affected. The rapid expansion of data centers, especially those that support artificial intelligence, is driving a surge in energy consumption. This puts additional strain on already stretched power grids. Michigan requires DTE?Electric cover any costs incurred by Oracle for its planned 1,383 MW Saline?Township Data Center that are not recovered from Green Chile Ventures LLC. MPSC has ordered DTE to submit a proposal within 90 days for a new rate designed for large customers such as data centers. (Reporting by Varun Sahay in Bengaluru; Editing by Shailesh Kuber)
Industry says EU carbon tax changes are not sufficient for metals
Industry representatives say that the proposed changes to the European Union’s carbon border adjustment mechanisms are a step in the correct direction but not an ideal solution for the steel and aluminum sectors of Europe.
The European Commission announced Wednesday proposals to extend the scope of CBAM, which will impose carbon taxes on Europe's steel imports and aluminium as well as a few other commodities starting January 1, to include some downstream products that contain a large amount of these?metals.
It took into account the warnings of metal industry players from Europe about "carbon leakage", or the risk of industries worried about losing their competitiveness moving operations outside of the region in order to avoid the cost of climate policies.
Eurofer, the European steel association, said that the proposals were flawed and failed to provide "a comprehensive?and durable?response to carbon?and jobs?leakage." They described the number of downstream products as being "very limited."
Norsk Hydro, a Norwegian aluminium manufacturer, was the leader in lobbying to expand CBAM so that it would cover downstream and scrap. Norsk Hydro claimed that 35% EU aluminium recycling capacities could be closed if remelted aluminum scrap entered the EU without a carbon tax. It stated on Wednesday that the inclusion of preconsumer waste was a "big leap forward".
"However,?post-consumer scrap ?must also be ?added to the scope," a company spokesman said. "If we don't, then half the scrap loophole remains open."
Post-consumer?metal is the end-of-life metal such as aluminum beverage cans.
The industry association European Aluminium agreed on Thursday that CBAM needs more work.
Paul Voss said that the direction was right but more adjustments were needed to close the remaining loopholes.
"We are committed to working with co-legislators in a constructive manner to produce a CBAM which supports the climate ambitions while maintaining Europe's competitiveness." (Reporting and editing by Barbara Lewis; Tom Daly, Kate Abnett)
(source: Reuters)