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Gold drops 1% after in-line U.S. inflation data
Gold prices extended losses on Wednesday after U.S. Inflation?data came in largely line with?expectations, increasing bets that the Federal Reserve will raise interest rates next month. Investors also awaited comments from Chairman Kevin Warsh. Gold prices fell by 1% at 1310 GMT (9.10 am EDT) after they had reached their highest level since May 14, on Tuesday. U.S. Gold Futures fell 0.6% to $4667.10. Dollar rose by 0.2% making greenback bullion prices more expensive for holders of other currencies. Peter Grant, vice president and senior metals analyst at Zaner Metals, said that the gold price movement up until today's data had been a profit-taking move.?PCE came in in line with expectations so we are consolidating in yesterday's range," he added. The Personal Consumption Spending?Price index, which is used by the Fed to set its target price, rose 3.7% over the past 12 months, according to the Bureau of Economic Analysis of the Commerce Department. Economists polled had predicted a reading 3.6%. According to CME FedWatch Tool, traders now expect a 40% increase in interest rates next month compared to a 36% rise before the data. They also price in a 60% likelihood that the Fed won't change its rate. In an environment of high interest rates, gold that does not yield often loses appeal. "I believe the gold uptrend is starting to re-establish itself." Grant added that gold could reach new all-time heights in the second quarter 2027. Iran and Oman reached an agreement over their share of revenues from the Strait of Hormuz, but the waterway won't be opened if the U.S. doesn't accept their conditions. (Reporting by Pablo Sinha in Bengaluru; Editing by Jonathan Ananda) (Reporting and editing by Jonathan Ananda in Bengaluru)
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Revolutionary Guards: Iran and Oman have reached an agreement on the Strait of Hormuz
Iran and Oman reached an agreement over their share of the Strait of Hormuz, and its revenues. However, the waterway won't reopen if the U.S. doesn't accept their conditions. Iran and Oman held intermittent talks about the control of traffic through the Strait. The strait handled one-fifth the global oil and LNG shipments prior to the start of the war in February. Tehran and Washington both imposed separate blockades to try to gain control of the channel. This has led global energy prices up. The Strait of Hormuz is owned by Iran and Oman... After a month of negotiations, we reached a result that was acceptable to both parties," said Hossein Mohebbi, spokesman for the Islamic Revolutionary Guard Corps. Mohebbi said, "Agreements have been reached in these negotiations regarding the share each country has in the waters of Strait as well as the share Iran and Oman receives in its revenue." The IRGC claimed that the United States was trying to 'obstruct negotiations between Iran and Oman', which had delayed the agreement. If the United States ceases to obstruct and returns the agreement, then we can open up the Strait of Hormuz in the framework of what was agreed upon. The Strait of Hormuz won't be opened if the United States doesn't accept our conditions," Mohebbi stated. A THREAT ON SHIPPING Although the U.S.-Iran hostilities have been largely reduced in recent weeks diplomatic efforts to reach a peace agreement have stagnated and continued attacks on ships make passage through the Strait of Hormuz dangerous. Iran published a list of 45 ships on Sunday in an apparent attempt to "stop ship-to -ship transfers" used by Gulf producers to avoid the Iranian blockade. Sources said that some companies intend to stop using vessels listed on the blacklist. The United States threatened this week to penalize countries who continue to do business with Iran. However, it said that penalties would not be imposed immediately. The sanctions didn't include Chinese financial institutions suspected of facilitating Iranian oil exports that have been cut by the U.S. ban. Iran denounced U.S. efforts to isolate its economy, calling it "gross criminality", and expressed confidence that other countries would not follow suit. The oil price fell for the third day, falling more than $2 per barrel, to a 2-week low. This was after signs of renewed attempts to find a mediated solution to the conflict that began February 28 when U.S., Israeli and other strikes were launched against Iran. (Additional reporting from bureaux, Writing by Aidan Lewis and Gareth Jones, Editing by Sanjeev MIglani and Conor Humphries.)
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The gold rally takes a break ahead of US inflation figures
The gold?prices eased Wednesday as they were on track to end a three-session winning streak. However, the focus now shifts to the U.S. Inflation data that will be released later in the afternoon for any indications on the Federal Reserve’s interest rate policy. Spot gold dropped 0.8% by 1114 GMT to $4,618.03 an ounce, after prices rose to their highest level since May 14, on Tuesday, following the U.S. Treasury Department?s recent bond buyback announcement. U.S. Gold Futures fell 0.4% to $4673.90. Nikos Tzabouras is a senior market analyst at Jefferies owned Tradu.com. He said that gold prices were subdued because the rally looked technically stretched. Markets also adopted a cautious approach ahead of important events. The U.S. The U.S. The soft producer and consumer inflation numbers published this month have reduced the likelihood of an interest rate increase in September. According to the CME FedWatch tool, traders are pricing in a 64% probability that the Fed will keep rates the same next month. Due to its lack of yield, gold is often less appealing in an environment with high interest rates. If Warsh is tight-lipped about policy, we can expect a renewed easing of the dollar, and the interest in gold to increase on the basis that there's uncertainty. However, if he is firm with his intentions, gold could be under pressure, said Rhona O’Connell, the head of StoneX's market analysis. Iran has said that it has restarted geopolitical talks with Oman in order to manage the Strait of Hormuz, as it is under increased economic pressure by the United States. Donald Trump is a key player in the conflict. Data released on Tuesday showed that China's net imports of gold via Hong Kong rose by about 11% in July compared to a month ago, thanks in part to an increase in investment demand. (Reporting by Sukanya Mitra in Bengaluru; Editing by Rashmi Aich, Louise Heavens and Ronojojo Mazumdar) (Reporting and editing by Rashmi aich, Louise Heavens, Ronojoy Mazumdar; Sukanya mitra in Bengaluru)
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Palm extends its losses and falls by nearly 2% due to a price rally and a sluggish demand for exports
Malaysian palm futures dropped nearly 2% on Wednesday. This was the second session of losses after a recent rally harmed its competitiveness with rival'soyoil', and sluggish imports fuelled fears over increasing inventories. At the close, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange was down by 93 ringgit or 1.88% at 4,853 Ringgit ($1,206.31). The contract dropped by 1.43% during the previous session. Palm's recent price rise has eroded some demand, as the soybean oil prices in Indian ports are cheaper than palm oil. Meanwhile, refining margins continue to be razor thin. He said that if demand did not pick up, palm inventories were likely to rise. This would be more true as the months of peak production in September and October approached. Palm oil gained 6.54% in five sessions straight through August 21 and closed over 5,000 ringgits for the first since December 2024. Cargo surveyors estimate that Malaysian palm oil exports for August 1-25 were down between 11.4% to 20% from the previous month. Dalian's soyoil contract, which is the most active contract in Dalian, rose by 0.19% while palm oil contract fell by 0.62%. Chicago Board of Trade soyoil prices were down by 1.68%. As they compete to gain a piece of the global vegetable oil market, palm oil monitors price changes. Oil prices dropped more than $2 per barrel, reaching a new two-week low. Talks between Iran and Oman revived hope that the Strait of Hormuz would reopen to ease shipping restrictions in the Middle East. Weaker crude futures make palm less appealing as a biodiesel source. The ringgit - the palm's currency of trade - strengthened by 0.54% against dollars, making it more expensive for buyers with foreign currencies.
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Zinc continues to rise, and hovers at a four-year high due to regional tightness
On Wednesday, zinc?prices reached their highest level in over four years on a combination of speculative and supply concerns. The benchmark three-month price of zinc at the?London Metal Exchange rose 0.4% to $3,907 per metric tonne by 0945 GMT. This was its highest since June 2022. Zinc, which is mainly used for galvanising steel, has suffered from regional disparity. Stocks are eroding at warehouses registered with LME, while they pile up in China. Local shortages of zinc have pushed the cash LME zinc premium over the three-month Futures. To $132 per ton. This is up from $0 in early July, and the highest price since December last year. Some are unsure how long the zinc price increase will last. In a note, broker Sucden Financial stated that "we believe zinc's upward movement is vulnerable to a position unwind when momentum stops." The three-month LME Copper, which is also being affected by declining inventories and concerns about supply, remained unchanged at $14.355 per ton. It had previously reached its highest level in six months, at $14.437. The Shanghai Futures Exchange's most traded copper contract rose 0.6%, to?108.750 yuan (16,182.55) per ton. As markets waited for the U.S. Inflation data, due at 1230 GMT, Dr Copper, a metal that is often used as a barometer to gauge economic health was kept in check. As non-traditional participants such as hedge funds and speculative traders trade on data showing "falling warehouse stock", the uncertainty is offset by a 'price support' from waning LME inventory. David Wilson, BNP Paribas' head of metals strategy, said: "There are many non-traditional sources for trading copper and a large amount of money moves quickly on data releases." Other metals also fell, with aluminium down 0.1% to $3,236 per ton. Nickel dropped 0.3% to $15,990, and tin fell 0.2%, to $55,750. ($1 = 6.7220 Chinese yuan Renminbi)
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The gold rally takes a break ahead of US inflation figures
Gold prices eased Wednesday as they were on track to end a three-session winning streak. The focus now shifts to the U.S. inflation figures due later today to get hints on Federal Reserve's interest rate outlook. Spot gold dropped 0.9% at $4,616.62 an ounce as of 0927 GMT after the recent announcement by the U.S. Treasury Department to buy back bonds. Prices had risen to their highest level since May 14, Tuesday, following this announcement. U.S. Gold Futures fell 0.5% to $4672.10. Nikos Tzabouras is a senior market analyst for Jefferies owned Tradu.com. He said, "Gold prices have been subdued as the rally appears technically stretched and markets are adopting a cautious approach ahead of important events that could shape its trajectory." The U.S. The July Personal Consumption Expenditures Inflation Report is due Friday at 1230 - GMT, along with Fed Chairman Kevin Warsh’s remarks from the Jackson Hole Symposium. The soft producer and consumer inflation numbers published in this month have reduced the likelihood of an interest rate increase in September. According to the CME FedWatch tool, traders are pricing in a 64% probability that the Fed will keep rates the same next month. In a high interest rate environment, gold's non-yielding nature can make it less appealing. If?Warsh is tight-lipped, we can expect a renewed easing of the dollar, and a further interest in gold, on the basis?uncertainty. However, if he's resolutely firm about his intentions, gold could?come into pressure," said Rhona o'Connell. Iran announced that it has resumed discussions with its neighbor,?Oman, to manage the Strait of Hormuz due to increased?economic pressure by U.S. president Donald Trump. Data released on Tuesday showed that China's net imports of gold via Hong Kong rose 11% in July compared to a month earlier. This was largely due to an increase in investment demand. Silver spot fell 0.3% per ounce to $68.46, platinum dropped by 0.3% to 1,852.06, while palladium rose 0.7% to $1335.09. (Reporting and editing by Rashmi aich and Louise Heavens in Bengaluru)
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Over a decade, the Himalayas have seen a number of deadly disasters
Authorities are 'fearing' more casualties after a massive flash flood swept through the Himalayan border areas of Nepal, and adjacent Tibet on Wednesday. The flood washed away villages and damaged roads, bridges, and power projects. Some analysts blame climate change and development for the worst disasters that have occurred in the Himalayas during the past 12 years. AUGUST 2025 In the Indian state Uttarakhand, sudden floods and landslides have killed four people, while dozens are missing. SEPTEMBER 20, 2024 As a result of persistent rains and flooding, at least 66 people have died in Nepal. NOVEMBER 20,23 A collapse trapped?41 workers in a road-tunnel being constructed in Uttarakhand. The men were low-wage employees from some of India's poorest state. They were rescued after 17 days. Authorities gave no explanation for the collapse. OCTOBER 20, 2023 In India's northeastern Sikkim state, torrential rains triggered an outburst of a glacial ice lake that caused devastating floods and killed 179 people. JANUARY 20,23 In the Indian town Joshimath, 200 people were evacuated after cracks appeared in hundreds of buildings. These structures were later demolished because they were unsafe. Residents, geologists, and government officials have blamed rapid building for the deterioration of the buildings. OCTOBER 2020 In Uttarakhand, heavy rains and unseasonal flooding washed out bridges and flooded roads. At least 46 people were killed. FEBRUARY 20, 21 A flash flood in Uttarakhand killed more than 200 people. It swept away two Hydroelectric Projects and sent debris, water, and rocks rushing down the Dhauliganga River Valley. SEPTEMBER 2014 About 200 Indians and 266 Pakistanis were killed in the Kashmir region by unusually heavy rainfall. The Jhelum River, which flows from India into Pakistan, was flooded. (Compiled by Sakshi dayal; edited by YPrajesh, Clarence Fernandez and Clarence Fernandez).
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EGA restarts a quarter of Al Taweelah after Iran attack
Emirates Global Aluminium (EGA), announcing on Wednesday that it has brought back to life a quarter of the Al Taweelah Smelter in Abu Dhabi, as part of the company's efforts to recover from damages caused by an Iranian strike in March. After the attack on the Khalifa economic zone, the company reported that 315 reduction cells of the 1,262 total reduction cells at the site were back online. EGA is repairing all three production lines and gradually re-starting the Al Taweelah Smelter, which produces about 1.5 million tons per year. EGA stated that the lines were reactivated between May and august. EGA reported that around 1,000 people were involved in the restoration of production at Al Taweelah. Abdulnasser Bin Kalban, Chief Executive Abdulnasser Bin Kalban, reiterated that the company was on track to restore production at full capacity in the first quarter 2027. The company said that its refinery continues to operate at around 50% capacity while the output of its new recycling facility is increasing as planned, with a full output by the 'final quarter of this year. EGA stated that "the pace of the further ramp-up in?alumina will be determined by supply chain considerations and the optimization of EGA's strategy for alumina sourcing." (Reporting and editing by Kate Mayberry, Elaine Hardcastle, and Pablo Sinha from Bengaluru)
Merz, a German company, aims to inspire confidence through its growth target
Friedrich Merz, Chancellor of Germany, vowed on Wednesday to revive the German Economy - and deliver growth of at 1% or more next year. This will be achieved through business-friendly reforms as well as a planned increase in government spending. Merz, who is also Finance Minister Lars Klingbeil's centre-left SPD junior partner, are trying to project unity. They have also denied suggestions that the government was divided and hindering efforts to turn around a downward trend in opinion polls. Merz, the leader of the conservative CDU, said that he was encouraged by his assessment that the government has the opportunity to achieve GDP growth in the next year.
After the summer holiday, he spoke at a press conference after an off-site Cabinet meeting held at the Neuhardenberg Estate, located about 70 km (44 miles east) of Berlin. In April, the economy ministry cut its growth forecast for 2026 to 0.5% citing increased energy costs related to the war in Iran. Merz's coalition is under pressure after a cabinet restructuring 'angered members of Merz's own party' and raised concerns about the effectiveness of the government as it tries to fight off a far-right challenge at state elections next month. Recent economic data and surveys of business indicate an improvement in the outlook, according to Merz and Klingbeil. After years of weak growth, Europe's biggest economy expanded stronger than originally estimated in the second quarter. Business morale also rose in August to its highest level for a year.
Merz said he also asked federal?ministers for proposals on how to deal with the trade imbalances between China and the European Union. Reporting by Andreas Rinke. Ludwig Burger, Kirsti Knolle and Ludwig Burger wrote the article. Mark Potter (editing)
(source: Reuters)