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ASIA GOLD-India switches to discount after festivals, premiums elsewhere rise as prices ease
This week, gold was sold in India at a discount for the first seven weeks as demand dropped after major festivals. Premiums in other Asian hubs also increased following a drop in global rates which boosted activity. Indian dealers offer a discount The premium is now down to up to $12 an ounce, including 6% import duties and 3% sales taxes, compared to the previous week's up to $25. Ashok Jain is the owner of Mumbai's gold wholesaler Chenaji Narsinghji. He said that price volatility has caused a drop in demand. Some investors have taken advantage by selling coins at a profit. After reaching a record-high of 132 294 rupees in the first half of this month, domestic gold prices have fallen to around 121 500 rupees for 10 grams. Global spot gold prices are on course for their second consecutive weekly decline. During the eight-week period between Dhanteras (the festival of lights) and Diwali, buying gold was considered auspicious. It was also one of the busiest days for gold purchases in India. A Mumbai-based private bank dealer said that jewellers saw a dramatic drop in footfall after the festival rush. This led them to reduce the amount of stock they build for the wedding season, which begins in November. Bullion was traded in China, the world's largest consumer of gold at a premium up to $4 per ounce over global benchmark spot prices . Last week, bullion was sold at a range of discounts ranging from $20 to a premium $8 per ounce. In Singapore Gold in Hong Kong traded at par or a $3 premium. Hong Kong Gold Was sold at par with a premium of $1.60 Brian Lan, the managing director of GoldSilver Central in Singapore, said: "We have seen investors come to buy, particularly when prices fell this week." In Japan, gold The spot price was $1 higher than the sale price. Reporting by Brijesh Patel in Bengaluru, and Rajendra Jadhav from Mumbai; editing by Harikrishnan Nair
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L&T Joins Hitachi Energy to Support TenneT’s 2GW Offshore Wind Grid Scheme
India’s EPC contractor Larsen & Toubro (L&T) has been hired to deliver High Voltage Direct Current (HVDC) converters in support of the Dutch-German transmission system operator (TSO) TenneT’s 2GW offshore wind grid program in the North Sea.Collaborating with Hitachi Energy, a global technology leader in electrification, L&T has been nominated by TenneT to deliver HVDC converter stations, as part of the initiative that aims to accelerate the integration of large-scale renewable energy into the European power grid, particularly across the German and Dutch sectors of the North Sea.The collaboration brings together complementary strengths in advanced technology, engineering excellence, and end-to-end project execution.“Partnering with TenneT and Hitachi Energy for this pioneering program underscores the confidence our customers place in L&T’s growing capability to execute complex, technology-intensive infrastructure projects,” said S N Subrahmanyan, Chairman & Managing Director - L&T.To remind, TenneT recently terminated Petrofac’s cope for the 2 GW offshore wind grid project, that was supposed to be delivered in collaboration with Hitachi Energy.Petrofac’s scope included the engineering, procurement, construction, and installation (EPCI) of offshore platforms and elements of the onshore converter stations.Shortly after, Petrofac filed for administration.Petrofac Goes into Administration after TenneT’s OW Contract Termination
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FLOWRA, ClassNK to Collaborate on Floating Offshore Wind Technology Development
The Floating Offshore Wind Power Technology Research Association (FLOWRA) of Japan and Nippon Kaiji Kyokai (ClassNK) have signed a Memorandum of Understanding to explore technology development cooperation in the field of floating offshore wind. FLOWRA is a technical research association that works with overseas organizations to research and develop common basic technologies for floating offshore wind to reduce costs and risks.ClassNK is an independent, non-profit international classification society, ensuring maritime safety and environmental protection through comprehensive inspection and certification services across a global network.
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Dollar to rise for third consecutive month as Fed caution on rate increases boosts gold
Gold prices fell Friday as the dollar strengthened on fears of further Federal Reserve rate reductions, but bullion is still on course for its third consecutive monthly gain. As of 0240 GMT, spot gold was down 0.5%, at $4,004 an ounce. Bullion is up 3.9% this month. U.S. Gold Futures for December Delivery remained unchanged at $4,016.70 an ounce. Tim Waterer, Chief Market Analyst at KCM Trade, said that the Fed Chairman's hawkish stance this week did not do gold any favors. The prospect of a December rate cut is now much less certain than previously believed, which has helped boost the dollar and made things more difficult for gold in terms of yield. Dollar index nears its highest level for three months compared to its rivals. This makes bullion expensive for holders of other currencies. The U.S. Central Bank cut interest rates on Wednesday by a quarter percentage point, for the second consecutive time in this year. This brings the benchmark overnight rate down to a range of target of 3.75%-4.00%. After comments from Fed Chairman Jerome Powell, traders reduced their bets on the Fed cutting rates again in December at its next policy gathering. According to CME Group's FedWatch, the markets now price in a probability of 74.8% for a 25 basis-point reduction from the Fed by December. This compares with a chance of 91.1% a week earlier. Donald Trump, the U.S. president, said that he and Chinese President Xi Jinping had agreed to reduce tariffs against China in exchange for Beijing crackingdown on illicit fentanyl trafficking. He also stated that the U.S. would resume its soybean purchases as well as continue exporting rare earths. SPDR Gold Trust is the largest gold-backed ETF in the world. Its holdings increased 0.42% on Thursday to 1,040.35 tonnes from 1,036.05 on Wednesday. Spot silver remained at $48.94 an ounce. Platinum rose 0.2% to 1,614.53, and palladium increased 1.7% to $1469.63. (Reporting and editing by Subhranshu sahu, Mrigank dhaniwala in Bengaluru)
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Sources say that Indian Oil purchases Russian crude oil from entities not sanctioned by the United Nations.
Indian Oil Corp, the top refiner in India, has purchased five cargoes from non-sanctioned companies for delivery in December. Traders said that India had resumed purchases despite Washington's pressure to stop purchasing Russian oil. Washington imposed sanctions last week on Rosneft, and Lukoil - the two largest Russian oil companies - in an effort to increase pressure on President Vladimir Putin for the end of the war in Ukraine. Since then, Indian refiners, including the state-run Mangalore Refinery & Petrochemicals Ltd., HPCL Mittal Energy Ltd. and Reliance Industries (the operator of the largest refining facility in the world) have stopped buying Russian oil. Anuj Jain is the head of finance at IOC. He has stated that his company will buy Russian oil as long as it is in compliance with the sanctions. The European Union (EU), the United Kingdom (UK) and the U.S. imposed sanctions on Russia, including those that affect shipping, for its involvement in the Ukraine conflict. The sanctions forced Russia to offer its oil at steep discounts. India is now the largest buyer of Russian crude oil by sea. One of the sources in the trade said that IOC had purchased about 3.5 millions barrels of ESPO for delivery to an eastern Indian port by December at a price similar to Dubai's. One of the sources said that they did not know who the sellers were. IOC didn't immediately respond to an outside-of-working hours request for comment. The majority of Russian ESPO crude oil exports from Kozmino, a port on the Pacific coast, are usually shipped to China. The demand for ESPO crude from China has decreased after U.S. sanctioned state refiners stopped purchasing, and independent Chinese refineries have used up their import quotas. The price of ESPO has dropped, which makes it more attractive to Indian buyers.
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Iron ore prices fall on rising stocks and falling demand; weekly and monthly gains are expected
Iron ore futures fell on Friday due to dwindling Chinese demand and increasing inventories. However, hopes for a trade agreement between the two largest economies in the world kept prices on course for weekly and month gains. As of 0148 GMT on China's Dalian Commodity Exchange, the most traded January iron ore contract fell 0.93% and was trading at 797 yuan (111.89 dollars) per metric ton. This is a rise of 3.3% for this week. As of 13.8 GMT, the benchmark December iron ore price on the Singapore Exchange dropped 0.61% to $100.8 per ton. This is a 2% increase for this week. Both benchmarks saw a gain of around 2% in the month of March on optimism for a trade agreement during a Thursday meeting between U.S. president Donald Trump and his Chinese equivalent, Xi Jinping. After the meeting, Trump stated that he and Xi had agreed to lower tariffs against China in exchange for Beijing crackingdown on the illicit fentanyl traffic, resuming U.S. soya bean purchases, and maintaining rare earths exports. First Futures analysts said that the macro-driven driving forces have receded since the Trump-Xi summit. Investors shifted their focus to the weakening fundamentals in the steel-making ingredient, as the macro boost was fully priced. Data from Mysteel revealed that the average daily hot metal production, which is a measure of iron ore consumption, dropped 1.5% on a week-on-week basis to 2,36 million tons by October 30. Portside inventories increased 0.8% during this period. A Friday official survey revealed that the decline in China's manufacturing activity for the seventh consecutive month, October, was also pushing up prices. Coke and coking coal, which are used to make steel, both rose by 1.04% apiece. The Shanghai Futures Exchange saw a decline in most steel benchmarks. Rebar fell 0.19%, while hot-rolled coils dropped 0.21%. Stainless steel dropped 0.43%. Wire rod gained 0.12%.
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Australian shares snap a three-day losing streak as Banks and miners drive the Australian share price upwards
Australian shares rose Friday, ending three consecutive sessions of losses. Banks and miners saw gains, while Origin Energy shares fell to a new two-month-low after the company reported a sequential decline in its first quarter revenue. By 0004 GMT, the S&P/ASX 200 Index had risen 0.5% to 8,930.80. The benchmark closed Thursday 0.5% lower. Origin, a power producer, was one of the biggest losers in the benchmark index after it reported a 12% decline in revenue from its stakes in the Australia Pacific LNG Project. This was due to lower LNG prices and volumes. The firm's shares fell 6.3% to A$11.81 in their lowest trading session since April 7. Separately shares of insurance broker Steadfast Group were the biggest losers on the benchmark index, dropping up to 18.9% to A$5.03, their lowest level since November 16, 2022. After the company's bell rang on Thursday, Robert Kelly, its CEO and managing director, announced that he would temporarily step down from his position while an investigation was conducted by an outside party into a complaint lodged against him. On the local stock exchange, the banks rose 0.8% while the "Big Four", which includes the four largest banks, rose between 0.1% to 1.3%. Gold miners rose on the backs of higher gold prices, which boosted their gains by 1.2%. The shares of gold miners Evolution Mining (up 3.5%) and Northern Star Resources (up 3.8%) rose respectively. JB Hi Fi continued to fall for the second consecutive session. The firm had posted on Wednesday a dramatic sequential decline in sales growth for its Australia and New Zealand segment in the first quarter. Shares of Mayne Pharma, a potential acquirer, fell to their lowest intraday performance ever after it was revealed that Australia's Treasurer would block the A$672 ($436.67$) takeover. The benchmark S&P/NZX50 index in New Zealand rose 0.4% to 13,509.0.
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Hastings, Australia, to negotiate an offtake agreement with Ucore on Yangibana Project
Hastings Technology Metals, an Australian company, announced on Friday that its Yangibana joint-venture project in Western Australia had agreed to negotiate a possible offtake agreement with Ucore Rare Metals Inc. of North America. The Yangibana project for rare-earths, niobium, and other metals is a joint-venture with Wyloo Metals of Andrew Forrest, who holds 60%, and Hastings Rare-Earths, which has the remaining 40% via its subsidiary Yangibana Jubilee. Hastings CEO Vince Catania said, "The joint assessment of a downstream Hydromet facility in the U.S. shows the efforts made by Wyloo Ucore and Hastings for accessing the financing and commercial opportunity arising from a rare-earths agreement recently announced by the U.S. government and Australian government to support jointly "ready to go "projects." The deal could cover up to 37,000 tonnes of high-grade rare earth concentrate per year, while both parties evaluate the feasibility of building an downstream hydrometallurgy facility in Louisiana. Hastings stated in a press release that the parties would work to execute a definitive agreement. This is expected be finalised by June 2026. If the current momentum continues, shares of the Australian developer of rare-earths could rise as high as 19.3% and reach A$0.68. This would be their best session in over a week.
Yen on intervention watch; Asia shares creep higher
The yen suffered near its weakest in years on Thursday though the danger of intervention from Japanese authorities prevented traders from pressing the currency to a brand-new low, while Asian stocks increased ahead of a crucial U.S. inflation report.
Markets were mainly rangebound ahead of Friday's. much-anticipated U.S. core personal intake expenses. ( PCE) cost index information, the Federal Reserve's preferred procedure. of inflation. Couple of markets will be open to examine and respond to. the brand-new data, however, given the long Easter weekend in lots of. nations.
Heightened focus was likewise on the yen, which was last little. changed at 151.35 per dollar, having slid to a 34-year. low of 151.975 in the previous session.
Japan's 3 primary financial authorities held an emergency situation. conference on Wednesday to talk about the weak yen, and suggested they. were ready to intervene in the market to stop what they. referred to as disorderly and speculative relocations in the currency.
That came after officials ramped up spoken cautions to stem. the yen's fall, with Finance Minister Shunichi Suzuki stating. decisive steps will be taken versus excessive currency relocations.
Japanese authorities last stepped in to support the yen in. 2022, when they also utilized phrases such as deeply worried and. vowed to take definitive steps prior to intervention.
Contrary to popular belief of 152 as the line in the sand,. I believe it's more of the magnitude of the move that may matter,. said Christopher Wong, a currency strategist at OCBC.
There is also a limitation to how far spoken intervention can. go. Nonetheless, the actual intervention danger is still high, if. not higher.
The sliding yen has actually been a boon for Japan's Nikkei,. which is up about 3% for the month so far. It closed more than. 1% lower.
In China, the yuan, which has actually similarly come. under close analysis as it continues to struggle on the weaker. side of the crucial 7.2 per level, steadied at 7.2268. It drew. assistance from a strong fix by the People's Bank of China on. Thursday, as Beijing remains vigilant to any sharp sell-off in. the currency.
The central bank set the midpoint rate, around. which the yuan is allowed to sell a 2% band, 1,311 pips. more powerful than a ' estimate, the best space since November. 2023.
Chinese stocks also reversed losses from the previous day,. buoyed by a firmer yuan and expectations that Beijing will take. more aggressive measures to promote the economy.
The blue-chip CSI300 index and Shanghai Composite. index each rose approximately 0.9%, while Hong Kong's Hang. Seng Index gained 1.45%.
All that raised MSCI's broadest index of Asia-Pacific shares. outside Japan up 0.6%.
S&P 500 futures and Nasdaq futures were. trading little bit altered, while EUROSTOXX 50 futures. added 0.32%. FTSE futures acquired 0.46%.
DOLLAR POWER
In currencies, the dollar was on the front foot, helped in. part by comments from Fed Governor Christopher Waller, who said. late on Wednesday there is no rush to alleviate rates of interest.
While a more than 50% opportunity of a first Fed cut in June. continues to be priced in, traders are putting greater bets for. similar moves by the European Central Bank and the. Bank of England that exact same month.
Sweden's reserve bank on Wednesday signified there was a. likelihood of a series of rate cuts beginning in May if. inflation continued to drop towards its 2% target.
Against the greenback, the euro fell 0.06% to. $ 1.08215, and sterling reduced 0.08% to $1.26305.
The New Zealand dollar was up to its weakest level in. more than 4 months to $0.5981.
( The dollar) is still being swayed by the relative. hawkishness of the Fed, taking all 19 policymakers together, and. other reserve banks, who have slanted a lot more towards dovish in. their tone recently, said Thierry Wizman, international FX and rates. strategist at Macquarie.
The renewed dollar strength stopped a blistering rally in. gold that sent it to a record peak last week. The yellow metal. last got 0.1% to $2,196.69 an ounce.
Oil rates edged up, with Brent getting 39 cents to. $ 86.48 a barrel, while U.S. crude increased 50 cents to $81.85. per barrel.
(source: Reuters)