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Gold's lightning run rains down on India's wedding seasons, China offers discounts
The stellar rise in global gold prices has cast a dark shadow over jewellery purchases during India's wedding season. Dealers in China have offered discounts to entice buyers. This week, benchmark gold prices reached a record of $2,942.70 per ounce as investors flocked to the safe haven due to fears about a possible global trade war sparked by new U.S. Tariffs. Customers are hesitant to purchase gold during the wedding season because of rising prices. "They keep calling us asking when prices will go down and when is the best time to buy", B Muthuvenkatram said, a jeweller in Coimbatore. In India, weddings are the main reason for gold purchases. Bullion in the form jewellery is a key part of brides' attire and a very popular gift. The jewellery market is currently suffering a major decline, with a 70-80% drop. Jewellers across the country are experiencing slow sales, said Surendra Mehta. He is the secretary of the India Bullion and Jewellers Association. The domestic gold price in India, which is the second largest gold consumer in the world and also a major gold importer, reached an all-time record of 86.360 Indian rupees (993.81 dollars) per 10 grams Tuesday. The price of gold has risen by more than 10% in 2025, after rising by more than 21% last year. Indian dealers have offered a discount due to the recent price spike that has dampened demand. In the last four months, official domestic prices have been reduced by $30 to $38 per ounce (inclusive of 6% import duties and 3% sales taxes) compared to what they were in the previous weeks. "Demand for the product is negligible." In normal circumstances, the discounts would have been over $100 per ounce. However, due to a shortage of supplies, they are now only about $25 per ounce. "Consumers need time to adjust these record-high price levels." Last week, China's top gold consumer offered gold at a discounted price of $7 to $10 per ounce compared with spot prices. Record prices had dampened appetite. "We saw a rise in demand before the Chinese New year, but it should have been holiday-related." The demand is weaker now that the price has increased," said a China-based merchant. According to the World Gold Council's (WGC) data, India's jewellery demand will surpass China's in 2024 at 563.4 tons. China and India combined account for more that half of the global gold consumer demand. Edward Meir, Marex analyst, said that the high gold price has certainly impacted physical demand, particularly in China and India. However, we have seen good ETF purchases as well as central banks buying, which is offsetting this. Ross Norman, an independent analyst, said: "Now that Chinese new year is over, we've seen a clear easing of demand and the offtake for gold in China has dropped sharply." He added that "gold prices, reflecting the overall weaker demand for physical gold, have fallen from a premium of $20 over Chinese New Years to an 18% discount against the international market price."
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Scatec CEO: Cheaper solar panels and batteries will expand renewables' role on the power market
Scatec's CEO, who is a developer of renewables, said that cheaper solar power and batteries are increasing the role of these technologies in stabilising the energy system and offering more opportunities to renewables. Scatec, a Norwegian company, builds and owns renewable energy plants. Scatec has 4.2 gigawatts (GW) in operation, another 0.8 GW is under construction and 2 GW are near-term projections. Equinor is its largest shareholder. Scatec CEO Terje Piskog stated in an interview that solar panel prices had dropped by 66% and battery system prices by 58% over the past two years. This dramatic change has made renewable projects cheaper. He added: "Now renewables are able to be used in more situations, and they can assume a greater, I would call it, responsibility within a power system." Solar is the most cost-effective energy source in many countries, even though the situation is different in Europe. He said that the power could be used as baseload, or in capacity. He said that Scatec was the winner in South Africa over other technologies for a tender to supply a stable system capacity. Its combined solar and batteries plant offers a stable supply of 16.5 hours per day. Scatec develops a majority of its projects in emerging markets, and in many cases receives a subsidy or a capacity payment. However, Scatec says that this is still cheaper than countries relying on fossil fuels. Pilskog stated that Scatec has helped Cameroon save between $35 and $40 million by leasing solar plus battery systems. Egypt is another example, where the company has built a 1 gigawatt project in order to meet domestic demand. He added that this would allow the country's natural gas to be sold on the global market, instead of using it at home for the generation of electricity. Nora Buli reported. (Editing by Jane Merriman.)
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The Eurozone industry shrinks faster in December than expected
The euro zone's industrial production declined more than expected in the month of December, showing that the two-year slump is still far from over, even though some figures on sentiment and orders have indicated a bottoming out. Eurostat data showed that the output of the 20 countries sharing the euro fell by 1.1% from December to the previous month. This was below expectations of a 0.6% decline, as Germany, the industrial powerhouse, shrank by 2,9%, and Italy by 3,1%. The industry has been a drag for Europe since years, as high energy prices, weak Chinese demand, increased global competition and old-fashioned car models are all factors that have a negative impact on orders. The production of capital goods dropped by 8.0%, which was a huge drop compared to the previous year. Even though some indicators point to a stabilisation of the industry, the new U.S. steel and aluminum tariffs, compounded with the threat of additional trade barriers are likely to have a negative impact on the sector. Some economists worry that tariffs on China will also be a drag for Europe because Chinese products are likely to search out new markets, and may crowd out local items. Comparing November to December, the output of capital goods fell by 2.6%, while that of intermediate goods was down by 1.9%. This decline in output has been partially offset by an increase in output for consumer goods. The growth of the euro zone has stagnated for most of the last year, as consumers save their surplus cash. This is partly due to the worrying news about the health of the industry, which is a major employer.
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IEA: Russian oil production unaffected so far by US sanctions
The International Energy Agency (IEA), in its latest report on the oil market, said that Russian oil exports may be maintained if workarounds are found to the new U.S. sanction package, following a slight increase in Russian crude production last month. The IEA reported that Russian crude oil production increased by 100,000 barrels per month (bpd), to 9,2 million bpd last month, despite the fact that its energy sector had been hit with extensive sanctions on January 10th. The IEA stated that oil markets had shown resilience and adaptability to major challenges in the past, and it is not likely to change this time. The Paris-based agency said in its previous monthly report that Washington's new sanctions package could disrupt Russian oil supply chain, but held off on changing its forecasts until it was clear what impact they would have. The IEA said that the sanctions announcement pushed oil prices up $8 to five-month-highs by mid-January. However, those gains were almost reversed at the end of January due to growing concerns about the global economy, and the possible impact of emerging trade wars. The IEA continues to forecast that non-OPEC+ supply will grow faster than global demand. The IEA predicts that non-OPEC+ oil production will increase by 1.4m bpd in this year. This is compared to a forecast for demand growth of 1.1m bpd, which was slightly higher than the previous forecast. The IEA stated that China is still the main driver of global oil demand. Its petrochemical industry will be affected by the slowdown in China's demand for conventional transportation fuels. In a sign that structural changes are reshaping Chinese demand for oil, the use of three of the most important fuels, gasoline, jet/kerosene, and gasoil, has declined slightly in 2024. Reporting by Robert Harvey in London and Alex Lawler Editing by David Goodman & Aidan Lewis
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China's Iron and Steel Association warns that US steel tariffs could spark a global trade war.
China Central Television reported that the Iron and Steel Association of China said that the 25% increase in tariffs on all steel and aluminium exports to the United States will have a negative impact on the supply chains of the global industry for steel, including China. U.S. president Donald Trump raised tariffs on imports of steel and aluminum on Monday by a substantial 25%, "without any exceptions or exclusions". He hopes this will help the struggling American industry but it also threatens to spark a multi-fronted trade war. The impact of the United States on China's exports of steel is minimal in the short-term. In the long term, however, the United States could force other countries to follow their lead, thereby reducing China's competitiveness in steel exports," said the association. Last year, China exported 508,000 tons of steel net to the United States. This represents 1.8% of American steel imports. Zhang Longqiang is the deputy secretary-general for the China Iron and Steel Association. He said the association was against the tariff increase and that it did not promote "healthy and fair market competition and trade." He said that the tariff increase would have a negative impact on the global steel industry's industrial chain, and its supply chain, including China. Washington claims that although China only exports a small amount of steel to the United States it is the source of most of the excess steel production in the world. The report says that China's subsidised steel production forces other countries to increase their exports, and this leads to the transshipment of Chinese metal through other countries and into the United States in order to avoid tariffs and trade restrictions. Reporting by Farah master and the Beijing Newsroom; Editing and rewriting by Muralikumar Aantharaman and Emelia Matarise
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Four dead in suspected gas explosion at Taiwan mall
The fire department reported that a suspected gas explosion occurred at a department shop in central Taiwanese Taichung on Thursday. At least four people were killed and 24 injured. In a press release, the department stated that the blast took place on the 12th-floor of the building where construction was underway, and the damage began at the 9th-floor. It was reported that the food court on the 12th-floor of the Taichung Shin Kong Mitsukoshi Department Store had been closed due to construction work. According to the health ministry, one of the injured is in intensive care at the hospital. Taiwan's President Lai Ching Te, in a Facebook post, demanded a rapid investigation into the cause. (Reporting and editing by Jacqueline Wong; Kim Coghill, Michael Perry, and Jacqueline Wong)
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Stocks surge in Russian rouble after Trump-Putin meeting
The Russian rouble, and its stocks, surged Thursday following a phone conversation between U.S. president Donald Trump and Russian president Vladimir Putin. In the call the two leaders discussed how to end the Ukraine War. According to data on the over-the counter market, at 0745 GMT the rouble had risen 3% against the dollar and was trading at 90.90, its highest level since September 2024. During the trading session, the rouble briefly reached the highest level since September 11 at 89.90. The rouble has gained 20% against the dollar since the beginning of the year. The Moscow Exchange index (MOEX), which is a measure of the stock exchange, grew by 5.8% on Tuesday and 4.2% on Wednesday. The moment investors were waiting for is now here. Analysts at Sinara brokerage said that the next step in easing geopolitical conflicts is now. The market was led by Russia's sanctioned companies, such as the gas giant Gazprom whose shares fell after losing the European market for gas, the dominant lender Sberbank, and the liquefied gas producer Novatek. MOEX is not open to foreign investors due to Western sanctions imposed in 2024. All trade in dollars and euro has moved to the OTC market due to sanctions. This makes the yuan, the currency of China, the most traded foreign exchange. (Reporting and editing by Guy Faulconbridge; Gleb Bryanski)
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Steel tariffs and tax concerns overshadow supply problems as iron ore prices decline
Iron ore futures in Dalian ended a two-day rally on Thursday as fears over U.S. Steel Tariffs and possible India taxes trumped supply problems from Western Australia. The May contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 1.52% lower at 808 yuan (US$110.87) per metric ton. After reaching its highest level in almost four months, the benchmark March iron ore traded on the Singapore Exchange dropped 1.59% to $106.1 per ton. Investors are concerned about a potential domino effect caused by Trump's new tariffs, said Zhuo Guqiu. Analyst at Jinrui Futures. H.D. Steel Minister H.D. Kumaraswamy said that India could implement a temporary tariff of 15-25% on Chinese steel in six months due to the "serious threat" posed by cheap imports following Trump's new tariffs. Kumaraswamy stated. This was after U.S. president Donald Trump's steep duties on steel and aluminum imports. Industry insiders warned that this could cause imports to surge as exporters ship to India. Trump said that he would also impose reciprocal duties as early as Wednesday night, increasing fears of an expanding global trade war. Hexun Futures, a Chinese consultancy, said that trade frictions could disrupt the iron ore markets as increased tariffs might aggravate export concerns. Storms affected Australian shipments, tightening supply, Hexun added. Port Hedland closed on Wednesday and the ports of Dampier, Varanus Island, and Varanus Island on Thursday. Coking coal and coke, which are both steelmaking ingredients, have also lost ground. They fell by 1.96% apiece and 1.63% respectively. The Shanghai Futures Exchange saw a decline in most steel benchmarks. Rebar fell nearly 0.5%. Hot-rolled coil dropped 0.32%. Wire rod lost 0.4%. Stainless steel rose 0.61%. $1 = 7.2876 Chinese Yuan (Reporting and editing by Amy Lv, Michele Pek and Subhranshu sahu; Sumana nandy and Subhranshu sahu)
Oil drops as a potential Ukraine peace agreement may ease supply disruptions
The oil prices dropped on Thursday as a result of expectations that a possible peace agreement between Ukraine and Russia will end the sanctions that have disrupted supplies, while crude stocks in the United States grew.
Brent futures fell 68 cents or 0.9% to $74.50 per barrel at 0515 GMT. U.S. West Texas Intermediate crude (WTI), however, dropped 65 cents or 0.9% to $70.72.
Brent and WTI both fell by more than 2% after U.S. president Donald Trump claimed that Russian President Vladimir Putin, and Ukrainian President Volodymyr Zelenskiy had expressed a wish for peace to him in separate telephone calls. Trump also ordered top U.S. government officials to start talks about ending the conflict in Ukraine.
The price of oil has risen because Russia is the third largest oil producer in the world. Sanctions imposed by the United States on Russia's crude exports following its invasion of Ukraine almost three years ago are also contributing to this.
In a Thursday note, ANZ analysts stated that oil prices had eased following the news of potential peace talks due to "optimism" about the risks to crude supply easing. They pointed to the U.S. The sanctions are reducing Russia's production.
They said that signs of a tightening in supply had pushed up the price of oil in recent weeks. The US sanctions against Russian oil companies, and their vessels are believed to have worsened the situation.
The market was also affected by the increase in crude oil stocks in the United States. This is the largest crude oil consumer in the world. The Energy Information Administration (EIA), which released data on Wednesday, showed that U.S. crude oil stocks increased more than expected in the past week.
The EIA reported that crude inventories increased by 4.1 millions barrels, to 427.9million barrels for the week ending February 7. This was higher than the analysts' expectation of a 3-million barrel increase in a survey.
"This recent decline in crude oil futures is the result of a period where there were consecutive stock builds," said Darren Lim a commodities analyst at Phillip Nova.
The price of crude oil could be further impacted by geopolitical developments such as the end of the conflict in Ukraine.
Trump's threat to impose additional tariffs on U.S. trading partners also pushed up prices because of fears that this could reduce economic growth, and therefore oil consumption.
Trump announced that he would begin imposing reciprocal tariffs on Wednesday evening against every country that levies duties on U.S. imported goods. This move has heightened fears of an expanding global trade war, and could accelerate inflation in the United States. (Reporting from Georgina McCartney, in Houston; and Emily Chow, in Singapore; editing by Christian Schmollinger & Clarence Fernandez).
(source: Reuters)