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Gold prices rise after Trump's firing of Fed Cook
The dollar fell after U.S. president Donald Trump announced that he would remove Federal Reserve Governor Lisa Cook. Gold spot rose 0.2%, to $3,371.28 an ounce at 0309 GMT after reaching its highest level since the August 11 session earlier in that session. The price of U.S. December gold futures remained unchanged at $3,418.90. Tim Waterer, KCM Trade's chief market analyst, said that Trump had once again put traders on edge with his comments regarding Fed Governor Cook. This has led to gold receiving additional safe-haven flows today. There is a feeling that Trump could reshape the Fed to a more dovish-leaning body. Any resulting depreciation of the dollar or move down in yields will likely suit gold. Gold is less attractive for overseas buyers as the U.S. Dollar Index fell by 0.2%. Trump fired Lisa Cook on Monday, the first African American woman to hold the position of Federal Reserve Governor, for alleged mortgage lending irregularities. Jerome Powell, Fed chair, hinted at a possible rate reduction during the U.S. Central Bank's next-month meeting. He said that the risks for the U.S. job market had increased, but that inflation was still a concern and that the decision was not final. Gold that does not yield tends to increase in value when interest rates are low, which lowers the opportunity costs of owning bullion. The Fed's preferred inflation indicator, the Personal Consumption Expenditures price index, is due to be released on Friday. This will provide more information on the U.S. interest rate path. SPDR Gold Trust is the largest gold-backed ETF in the world. Its holdings increased 0.18% on Monday to 958.49 tons from 956.77 tonnes on Friday. Other than that, spot silver increased 0.3% per ounce to $38.67, platinum remained flat at $1.341.83 while palladium rose 0.8% to $1.095.
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Iron ore demand is sluggish as Trump's tariffs fuel concerns
The price of iron ore futures was subdued Tuesday as new tariff threats by U.S. president Donald Trump fueled concerns about demand prospects. As of 0159 GMT on China's Dalian Commodity Exchange, the most traded January iron ore contract was unchanged at 782.5 Yuan ($109.40), after reaching its highest level since August 14, on Monday. As of 0149 GMT, the benchmark September iron ore price on Singapore Exchange was down by 0.45% to $102.8 per ton. Trump stated on Monday that China must give magnets to the United States or "we will have to charge a 200% tariff" or something similar, amid a dispute over trade between the two countries. Trump has also threatened to impose "subsequent tariffs" on goods of countries with digital taxes if they do not repeal the legislation. These threats were made after the U.S. concluded trade agreements with several countries and areas after multiple rounds. This eased fears of a recession in the world that would hurt commodity demand. The price of iron ore has fallen in the last year due to a decline in demand from China, its largest consumer. China is struggling with deflation as well as low consumer confidence. The lower iron ore price has squeezed the profits of major miners. Fortescue, a mining company in Australia, reported its lowest annual profit in 6 years. BHP's profit was the lowest it has been in 5 years. The Shanghai Futures Exchange saw a decline in most steel benchmarks. Rebar fell 0.41%. Hot-rolled coils and wire rods both dropped 0.15%. Stainless steel gained 0.16%. The DCE's coking coal and other steelmaking components, such as coke, continued to gain, with gains of 1.25% and 0.4% respectively. This was due to lingering concerns about possible supply reductions. $1 = 7.1529 Chinese Yuan (Reporting and editing by Amy Lv, Lewis Jackson)
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Sources say that RPT-China Sinochem will sell two bankrupt refineries in the Philippines to local operators.
Seven trade sources and auction documents indicate that China's state owned Sinochem Group is selling two more bankrupt refineries to local refiners in eastern Shandong Province for much less than their value via auctions which closed on Friday. The new owners would increase crude imports, reopen the troubled refineries, and boost oil purchases in the top importer of the world. The refineries, Zhenghe Group, which operates a 100,000-barrels-per-day refinery, and Huaxing Petrochemical, which has a 140,000-bpd plant, were listed for sale on last Monday, according to the Shandong Property Right Exchange Centre. Sources with knowledge in the matter have said that Shandong Qicheng Petrochemical should acquire Zhenghe, while Shandong Qirun Petrochemical would take over Huaxing. All three are located in Dongying. Sinochem, when contacted by a reporter from, said that the company would not comment on speculation in the market. Qicheng Qirun have not responded to any requests for comment. Sinochem will be leaving Shandong where most Chinese independent refiners are located, commonly known as teapots. These teapots account for about a fifth of China’s crude oil imports. Sinochem acquired the refineries in Shandong via a state-planned merger with ChemChina. Local courts declared the plants bankrupt last year due to debts and unpaid taxes. Documents on the website of the Shandong Property Right Exchange Centre showed that Zhenghe's minimum transfer price was 2.62 billion Yuan ($365.12 millions), while its valuation was 6.3 billion Yuan. Documents show that Huaxing's minimum transfer price was 3.24 billion Yuan, while its valuation was 8.7 billion Yuan. The website didn't reveal the names of bidders, and it wasn't immediately clear if these deals would be completed at those prices. The Shandong Property Right Exchange Centre refused to comment. Sinochem sold Changyi Petrochemical in March to Shandong Hongrun Petrochemical. The acquisition will allow Qicheng's and Qirun’s refinery capacities in Dongying to increase from 170,000 bpd to 184,000 bpd respectively, thereby improving their economies-of-scale. Three sources said that the two Shandong refiners will also receive a government quota for crude oil imports of approximately 3.56 million tons (26 millions barrels) in the remainder of 2025 after purchasing Sinochem's factories. A fax sent to the Ministry of Commerce for comment was not returned. Changyi has recently re-opened its operations, and purchased crude oil from Brazil and Canada with the 2025 import quota. Reporting by Chen Aizhu in Singapore, Siyi LIu and Trixie YAP from Beijing Newsroom. Editing by Florence Tan, Helen Popper and Florence Tan.
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Fortescue, Australia's largest iron ore producer, reports its lowest annual profit in six years due to lower iron ore price
Fortescue, an Australian company, reported on Tuesday its lowest full-year profit for six years. The results met analyst expectations and the dividend was maintained. Fortescue also reaffirmed its commitment to renewable energy following a refocus of its growth strategy. According to the fourth largest iron ore mining company in the world, net profit attributable after taxes was $3.37 billion during the year ending June 30. This is down from $5.68billion a year earlier. This compares to the average analyst estimate of $3.43billion, according data compiled by LSEG. Fortescue has had its worst performance since fiscal 2019. Fortescue has been pushing hard for green hydrogen over the last few years. Last month, it halted two projects in Arizona & Australia because of higher than expected production costs. Fortescue’s new CEO for green energy, growth and innovation, however, has reaffirmed the company’s commitment to renewable energy, and in particular, green hydrogen. Gus Pichot, CEO of Fortescue Growth and Energy, said that the company would continue to explore global opportunities for metals, critical mineral, energy and technologies. Green energy and green hydrogen are key to Fortescue's future. We will also continue to develop new green technologies in order to accelerate the decarbonisation of Fortescue as well as other companies. Fortescue intends to produce green-iron using hydrogen in its Western Australian operations by the end of this year. The Perth-based mining company declared a final A$0.60 dividend per share. This brings its dividend for the full year to A$1.10 each. The dividend payout ratio of 65% of profit matched the fiscal year 2023. This was the lowest payout in years.
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The US dollar rises after the stock market's Friday jump
The dollar rose on Monday, after major stock indexes had gained on Friday. Powell said that a rate cut in September was "likely but not certain" and the dollar declined. Dollar fell after Powell's remarks made at the annual Fed symposium in Jackson Hole Wyoming. U.S. Treasury rates were higher on Monday. Barclays BNP Paribas, Deutsche Bank and other major brokerages now expect the Fed to cut rates by 25 basis points in September. Fed funds futures are pricing 84% odds that a rate cut will occur in September, according to CME Group's FedWatch Tool. On Friday, there was much excitement about Powell indicating there might be a rate reduction. Peter Cardillo is the chief market economist of Spartan Capital Securities, New York. "I believe that we will see a rate reduction, but it won't be by more than 25 basis point, and much depends on the PCE price index this Friday." The Fed could still be influenced by data for August that is due to arrive before its meeting on September 16-17. Fed's preferred measure of inflation is the U.S. consumer prices reading due Friday. The fact that U.S. producer prices were higher than expected last month has raised questions about the certainty of any cut. Investors will also be eager to hear the results of AI chipmaker Nvidia, which are due on Wednesday. The Dow Jones Industrial Average dropped 349.27, or 0.7%, to 45.282.47. The S&P 500 declined 27.59, or 0.4%, to 6,439.32. And the Nasdaq Composite was down 47.24, or 0.22% to 21,449.29. Nvidia was the last company in the S&P 500 to release its most recent quarterly report. The overall results have been better than expected, and this has helped support the stock market. According to LSEG, the estimated growth in earnings for S&P 500 from one year ago was 12.9% on Friday. This is a sharp increase over 5.8% at July 1. The MSCI index of global stocks fell by 2.33 points or 0.24% to 952.96. The pan-European STOXX 600 fell by 0.44%. U.S. beverage giant Keurig Dr Pepper will create a global coffee company to compete with market leader Nestle by acquiring JDE Peet’s for $18 billion. This is Europe's biggest acquisition in over two years. London's markets were closed on Monday for a holiday. This lowered the overall trading volume in Europe. Donald Trump, the U.S. president, said Monday that he would like to meet North Korean leader Kim Jong Un in this year. He also stated that he is open to more trade discussions with South Korea despite criticizing the Asian ally. The Korean won has weakened by 0.5% in relation to the dollar. The dollar index (which measures the greenback in relation to a basket of currencies) rose by 0.56%, while the euro fell 0.79%, at $1.1623. The dollar gained 0.5% against the Japanese yen to reach 147.67. As traders prepare for the auctions, U.S. Treasury rates also increased. Treasury will be selling short- and intermediate dated debt this coming week. The yield on the benchmark U.S. 10 year notes increased 1.9 basis points, to 4.277%. Euro zone bond yields rose earlier, too, after falling late on Friday. The oil prices continued to rise as traders awaited more U.S. sanction on Russian oil, and Ukrainian attacks against Russian energy infrastructure which could disrupt supply. U.S. crude oil futures rose $1.14, settling at $64.80 per barrel. Brent futures increased $1.07, settling at $68.80. Spot gold dropped 0.21% to $3364.47 per ounce.
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Bill Gates' TerraPower Utah explores nuclear reactor sites amid surge in power demand
On Monday, the Utah Office of Energy Development signed an agreement with TerraPower and Flagship Companies to explore possible sites for an energy storage facility and a nuclear reactor. This is in response to an escalating demand for electricity. The parties expect to present recommendations by the end the year. After decades of stagnation in the U.S., nuclear power is experiencing an resurgence. This is due to the record demand for data centers that are used by artificial intelligence technologies as well as electrification in industries like transportation and manufacturing. In a joint statement, the companies stated that the agreement supports Utah Governor Spencer J. Cox’s Operation Gigawatt. This is a strategic initiative to create an energy eco-system for Utah and Western U.S.A. In late May, President Donald Trump issued executive orders directing the U.S. Nuclear Regulatory Commission (NRC) to reduce regulations and expedite new licenses for power plants and reactors. TerraPower raised $650m in June from Bill Gates, the founder of Nvidia and its venture capital arm. It expects regulatory approval next year for their $4bn nuclear reactor. The $4 billion Natrium nuclear plant is located on the former site of a coal-fired power station in Wyoming. TerraPower, based in Bellevue (Washington), has developed an advanced nuclear reactor using liquid sodium instead of water as a cooling agent. In a statement, the company stated that the Natrium reactor is able to use significantly less water compared to the existing light water reactor fleet, and small modular designs. This makes it ideally suited for regions with water shortages. (Reporting and editing by Alan Barona in Bengaluru, Pooja menon from Bengaluru)
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Chile regulator sets bar for restarting zones closed by Codelco mine failure
According to a document obtained by on Monday, Chile's mining regulator Sernageomin added conditions for Codelco in order to restart affected areas after a fatal collapse occurred at its El Teniente Copper Mine in July. According to a Sernageomin report, the regulator will require a plan of follow-up and surveillance for stability and safety in mining operations at all underground mines of Codelco’s El Teniente. Codelco announced this weekend that it had received permission from Sernageomin for its Andes Norte section and Diamante section of El Teniente to be restarted. However, the document detailing the approval obtained by revealed increased requirements for the sectors still closed by the collapse. Sernageomin already requested an analysis of possible causes and control measure report to prevent future incidents. They also requested a plan for mine recovery and repairs, as well as technical reports assessing current fortification systems and making improvements. Codelco is the largest copper producer in the world. Cut its copper forecast This year, due to the impact caused by the accident that killed six workers. As part of the investigation, the collapse affected primarily the new Andesita project, although Andes Norte which had already begun extracting and Diamante also were halted. (Reporting and writing by Fabian Cambero, Editing by Kylie Madry; Alexander Villegas)
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The US dollar gains after Friday's gains and stocks mostly fall.
The dollar rose on Monday, after the major stock indexes had gained on Friday. Federal Reserve chair Jerome Powell said that a rate cut in September was probable but not certain. Last week, the dollar dropped following Powell's comments at Jackson Hole. On Monday, U.S. Treasury rates were higher. Barclays BNP Paribas, Deutsche Bank and other major brokerages now expect the Fed to cut rates by 25 basis points in September. Fed funds futures trader's are pricing in an 84% chance of a cut for September, according to CME Group’s FedWatch Tool. On Friday, there was much excitement about Powell essentially indicating that a rate reduction would be likely. Peter Cardillo is the chief market economist of Spartan Capital Securities, a New York-based brokerage. He believes that the market has overreacted. "I believe that we will see a rate reduction, but it won't be by more than 25 basis point, and much depends on the PCE price index this Friday." The Fed could still change its policy based on data for August that is due before their meeting of September 16-17. Fed's preferred measure of inflation is the U.S. consumer prices reading due Friday. The dollar index (which measures the greenback in relation to a basket of currencies) rose by 0.58%, reaching 98.41. Meanwhile, the euro fell 0.79%, at $1.1622. The dollar gained 0.57% against the Japanese yen to reach 147.78. The Dow Jones Industrial Average dropped 284.09 points or 0.62% to 45,346.99. The S&P 500 declined 11.38 points or 0.18% to 6,455.26. And the Nasdaq Composite rose by 20.31 points or 0.09% to 21,515.66. Investors will also be eager to hear the results of Nvidia on Wednesday. The MSCI index of global stocks fell by 1.70 points or 0.18% to 953.59. The pan-European STOXX 600 fell by 0.44%. London's markets were closed due to a holiday. This lowered the overall trading volume in Europe. Sources told the weekend that they expect the European Central Bank to keep rates unchanged in September. If the economy continues to weaken, discussions about future cuts could resume in the fall. Donald Trump, the U.S. president, criticized South Korea only hours before Monday's summit with its new leader Lee Jae Myung. Both countries are involved in low-level discussions about trade, nuclear energy and military expenditure. The Korean won has weakened by 0.43% in relation to the dollar. As traders prepare for the auctions scheduled this week, U.S. Treasury rates also increased. The yield on the benchmark 10-year U.S. notes increased 1.3 basis points, to 4.271%. Euro zone bond yields rose earlier, too, after falling on Friday. As Russia and Ukraine's peace talks drag on, oil prices rose. U.S. crude oil futures rose by $1.14, to settle at $64.80 per barrel. Brent futures gained an additional $1.07 for a total of $68.80. Spot gold dropped 0.02%, to $3371.39 per ounce. Caroline Valetkevitch reported from New York, Nell Mackenzie contributed additional reporting in London and Andrew Heavens edited the article.
US dollar, Treasuries slide on latest Trump attack on Fed
Dollar and U.S. Treasuries fell in Asian trading Tuesday, after President Donald Trump said he would remove a Federal Reserve Governor. This announcement undermined confidence in U.S. Assets.
After Trump announced on Twitter that he would remove Lisa Cook from the board of directors of the Federal Reserve, it was the latest of a series attacks on the independence of the central bank.
Asian shares fell in tandem with Wall Street, as the prospects of a Fed rate reduction next month became less certain. U.S. Stock Futures declined.
Bart Wakabayashi is the Tokyo branch manager of State Street. He said, "All this, including tariffs, is just one more reason why the U.S. cannot be trusted." "There is no credibility." The U.S. is the safest place to invest in the world because of this. It gives you pause if you are a responsible investor."
The dollar fell 0.4% to 147.24 Japanese yen. The euro rose 0.3% to $1.165.
The yield on 10-year Treasury Notes rose to 4.2887% from its U.S. closing of 4.275% Monday.
In a letter posted by Trump on his Truth Social platform, he said: "I have determined there is sufficient reason to remove you from this position."
Trump claimed that there was sufficient evidence to prove Cook's false statements in mortgage applications.
Trump has repeatedly threatened to fire Fed chair Jerome Powell. Powell was first nominated by Trump in his first term as president and then by Biden for a second tenure. Trump, who does not have the legal authority for firing the Fed Chair except "for cause", is backing away from this threat as Powell approaches the end of his tenure as Fed Chief in May.
Cook's departure from the Fed may accelerate the president's efforts to reshape the Fed. Her term was due to expire in 2038.
MSCI's broadest Asia-Pacific share index outside Japan fell 0.2% after U.S. shares ended the previous session in a mild loss. Japan's Nikkei index sank 1.3%.
Barclays BNP Paribas, Deutsche Bank and other major brokerages now expect the Fed to cut rates by 25 basis points in September. Fed funds futures are pricing 84% odds that a rate cut will occur in September, according to CME Group's FedWatch Tool.
The Fed could still be influenced by data for August that is due to arrive before its meeting on September 16-17. Fed's preferred measure of inflation is the U.S. consumer prices reading due Friday. The Fed's preferred inflation gauge is the U.S. personal consumption prices reading, due on Friday.
U.S. crude oil fell 0.4% to $64.56 per barrel. Gold traded at $3,378.09 an ounce, a slight increase.
The S&P 500 E-mini futures were down by 0.17% to 6,444.5.
(source: Reuters)