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Gold falls 3% after Fed remarks that are hawkish spark a market sell-off
Gold prices fell 3% on the Friday, as a result of a wider market sell-off sparked off by hawkish comments from U.S. Federal Reserve officials. This dimmed hopes for an interest rate reduction in December. As of 02:33 pm, spot gold dropped 1.9%, to $4,092.72 an ounce. ET (1933 GMT) after falling more than 3% earlier in session. But bullion has gained 2.3% this week. U.S. gold futures for December delivery settled 2.4% lower at $4,094.20. David Meger is the director of metals at High Ridge Futures. He said that the idea that there will be a lower likelihood of a Fed cut in December has taken some of the wind from the silver and gold markets. The equity markets fell after the global sell-off caused by Fed hawkish signals. The Fed and traders are now in the dark ahead of the next policy meeting due to the longest U.S. shutdown. Investors were hoping that fresh data would indicate a slowing of the economy, giving the Fed the room to reduce rates in December. This would boost the appeal for non-yielding metals like gold. These expectations dwindled as more Fed policymakers took a cautious approach to additional monetary ease. The FedWatch tool of CME Group showed that market expectations for a rate cut of 25 basis points next month dropped to almost 46% from 50% earlier in the week. Gold that does not yield tends to do well in periods of economic instability and low interest rates. When margin calls or liquidations occur, traders will close all positions to release margin. In this environment of risk-off, even gold prices are down. This is partly explained by Fawad Rasaqzada's note, a market analyst for City Index and FOREX.com. The demand for physical gold in major Asian markets has been subdued over the past week. Silver spot fell 2.8%, to $50.84 an ounce, but is still on course for a 5.2% weekly gain. Palladium fell 2.8%, to $1,387.25, while platinum dropped 2.1%, to $1,547.30. Both metals have been on the rise for this week. (Reporting from Noel John in Bengalur; Additional reporting by Sarah Qureshi, Editing by Leroy Leo & Diane Craft).
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BBVA Research: Argentine mining exports may exceed $25 billion in 2033
According to a BBVA Research study released on Friday, lithium and copper could drive Argentina's mining sector to more than 25 billion dollars by 2033. The report stated that mining represents less than 1 percent of Argentina's gross domestic product (GDP) and only 6% of its exports. However, Argentina has one of the most important project portfolios of critical minerals in the world. Key Context The report stated that Argentina, Bolivia, and Chile, which are all part of the "Lithium Triangle", could provide up to 20% global supply by 2033. In 2024, lithium will surpass silver in terms of exports and represent about 14%. Argentina hasn't produced copper since 2018, but there are projects worth $35 billion. The mining industry could grow by more than $11 billion a year if these projects are realized. The RIGI incentive program provides stability to large-scale investments in this sector. The country's mining chamber CAEM expects Argentina to achieve record exports this year of $5 billion, an increase of 14% over 2024. Lucila Sigal is reporting, Inigo Alexander is writing, and Daina Beth Sool is editing.
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Official: Swiss gold refiners are interested in setting up operations in the US
A senior Swiss official in economic affairs said at a Friday press conference that Swiss gold refiners were interested in opening up in the United States. This was after Washington and Switzerland reached a tariff agreement. In 2024, Switzerland exported gold worth nearly 53 billion Swiss Francs ($66.83billion) to the United States. This was a significant contributor to the European country’s overall surplus of 39 billion Swiss Francs with the U.S. Helene Budliger Artieda is the director of SECO, and she said that gold was not profitable for Switzerland. The margins were "very, very low" at 1% or even less. "But I think it's important to them." Budliger said that the U.S. must strengthen its gold markets. Tariffs on the precious metal remain exempt for imports to Switzerland of other precious metals, and then resized by Swiss jewelers for the U.S. According to the Swiss government, under a new trade framework agreement that includes a commitment by Swiss companies to invest 200 billion dollars in the U.S. before the end of 2028 the United States will lower its tariffs for goods coming from Switzerland from 39% to 15%. The United States will reduce its tariffs on goods from Switzerland to 15%, down from a crippling 39% under a new framework trade agreement that includes a pledge by Swiss companies to invest $200 billion in the U.S. by the end of 2028.
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Gold falls 3% after Fed remarks that are hawkish spark a market sell-off
Gold prices fell 3% on the Friday, as a result of a wider market sell-off sparked off by hawkish comments from U.S. Federal Reserve officials. This dimmed hopes for an interest rate reduction in December. As of 10:45 am, spot gold dropped 2.3%, to $4,072.49 an ounce. ET (1545 GMT) after falling more than 3% earlier during the session. Bullion has risen 2.3% this week. U.S. Gold Futures for December Delivery fell 2.8% to $ 4,075.10 an ounce. David Meger is the director of metals at High Ridge Futures. He said that the idea that there will be a lower likelihood of a Fed cut in December has taken some of the wind from the silver and gold markets. The equity markets fell after the global sell-off caused by Fed hawkish signals. The Fed and traders are now in the dark ahead of the next policy meeting due to a data gap created by Thursday's end of the longest U.S. shutdown. Investors were hoping that fresh data would indicate a slowing of the economy, which would give the Fed the room to reduce rates in December. This, in turn, would boost the appeal for gold, which does not yield. These expectations dimmed when more Fed policymakers took a cautious approach to additional monetary ease. The FedWatch tool of CME Group showed that market expectations for a rate cut of 25 basis points next month dropped to 50% from 64% earlier in the week. Gold that does not yield a return tends to do well in periods of economic instability and low interest rates. When margin calls or liquidations occur, traders will close all positions to release margin. In this environment of risk-off, even gold prices are down. This is partly explained by Fawad Rasaqzada's note, a market analyst for City Index and FOREX.com. The demand for physical gold in major Asian markets has been subdued over the past week. Silver spot fell 2.6%, to $50.95 an ounce, but is still on course for a 6% weekly gain. Palladium fell 0.6% and platinum 1.5%, to $1 418.93. (Reporting and editing by Noel John in Bengaluru, Pablo Sinha)
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Zimbabwe's spodumene imports rise 27% despite low lithium prices
Official statistics show that despite low global lithium prices, Zimbabwean exports of spodumene, a mineral containing lithium and essential to battery production, increased by 27% during the nine-month period ending in September. According to figures obtained on Friday by the Minerals Marketing Corporation of Zimbabwe, Africa's largest lithium producer, exported 1 million metric tonnes of spodumene between January and September. This compares to 784.746 tons in the same period of last year. Oversupply has kept prices for lithium, a component of batteries that power renewable energy technologies, well below the 2022 peak. Prices for lithium carbonate have recently dropped to $11,000 per tonne, down from their highs of $70,000 per tonne in early 2023. The MMCZ stated that "despite the increase in tonnage export value decreased by 11% from $432.4 millions in 2024, to $386.9million in 2025. This is primarily due to the lower international spodumene price." CHINESE FIRMS ARE LEADING ZIMBABWE LITHIUM MINERS China's Zhejiang Cobalt, Sinomine, Chengxin Lithium Group Yahua Group, and Tsingshan Group mine lithium concentrates and export them to China. The MMCZ reports that these companies have collectively spent more than $1.4billion since 2021 on the purchase and development of lithium assets in the nation. Zimbabwe will ban exports of lithium concentrates in 2027, to encourage local processing. Huayou has invested $400 million in a plant in Zimbabwe that will produce 50,000 tons lithium sulphate in 2019. Huayou shipped 400,000 tonnes of lithium concentrate out of the country in 2024. Sinomine also announced plans to build a $500-million lithium sulphate plant at its Bikita Mine in Zimbabwe. (Reporting and editing by Nelson Banya, Rod Nickel, and Chris Takudzwa Muronzi)
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Switzerland receives a 15% tariff rate reduction in US-Swiss trade agreement
According to the Swiss government, a new trade framework agreement will allow the United States to reduce its tariffs from 39% on Swiss goods down from 15%. U.S. trade representative Jamieson Greer had said that the U.S. "basically reached a deal" with Switzerland and would reveal details later on Friday. The Swiss government announced that it would soon announce details. Greer told CNBC that the deal will see Switzerland moving "a lot" of manufacturing to the United States, including pharmaceuticals, gold-smelting and railway equipment. We're excited about the deal, and what it means for American manufacturing. Greer stated that the U.S. will maintain a 15% tariff on Swiss imports in the agreement, but didn't specify what rate. LEVEL PLAYING FIELD WITH EU Swiss industrial groups welcomed this deal. They said it would level the playing field for them with their competitors from the European Union who agreed to a 15 percent tariff on EU exports into the U.S. This is good news for the industrial sector. Since August 1, it was subjected to a tariff of 39%. "For the first time in history, we are able to compete on the U.S. Market with our European counterparts," said Nicola Tettamanti of Swissmechanic. Hans Gersbach is the director of ETH Zurich's KOF Swiss Economics Institute. He said: "It was a relief to have tariffs reduced, but there are still additional risks and economic burdens for Switzerland." Gersbach stated that the biggest relief would be for the Swiss industries of machinery, precision instruments and watchmaking as well as the food sector, which exports to the U.S. KOF predicts Swiss economic growth will be 0.9% by 2026. However, this could increase to 1% if the tariff rate is reduced, he said. The talks had been'very positive' Swiss Economy Minister Guy Parmelin, who returned to Switzerland on Friday following discussions with Greer in Washington said: "We clarified almost everything." Parmelin refused to disclose details of the discussion but said that there would be further communications when "everything is finally clear." Swissmem, the technology industry association, reported that Swiss industry saw its exports to America fall by 14% during the three-month period ending in September. Machine tool makers also saw their shipments drop by 43%. (Reporting and editing by Philippa Feletcher, Lisa Shumaker and Rod Nickel; Additional reporting from Dave Graham, Emma Farge, and Emma Farge.
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Paris Police shoots and wounds a man with a knife at a rail station
The Paris prosecutor's said that French police wounded a man wielding a knife at the Montparnasse station in Paris on Friday. The prosecutor's statement said that an officer used his weapon on the man who then cut himself. Police source says the man threatened his wife and kids in a Parisian suburb before boarding a train to Montparnasse, where police were waiting. Source: When confronted by officers, the man threatened to commit suicide and was shot in the legs. At least one gunshot has been heard, according to the prosecutor's office. One witness said they heard multiple shots. Photographer at the station said that the police intervention caused the crowd to surge in the concourse. The police evacuated the station that serves commuter trains and high-speed rails heading to the west and southwest of the country. BFM TV reported that another witness heard a loud boom before panic spread around him. It took me about two or three second to realize what was going on. "We need to leave here quickly," people began to say. My heart started racing, and I ran, the witness said. Reporting by Stephane Mahae, Alessandro Parodi, and Inti landauro. Writing by Richard Lough. Editing by Philippa Fletcher.
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Azerbaijan is seeking $500 million in multilateral loans for project financing
Sahil Baibaev, the Finance Minister of Azerbaijan, said that Azerbaijan was in discussions with international financial institutions such as the World Bank in order to secure 850 million manats (500 million dollars) in project funding next year. He also said that the country is in contact with the Asian Development Bank and the European Bank for Reconstruction and Development. Babayev stated that Azerbaijan will use 850 million manats next year to finance projects, with the money coming from loans obtained through international financial institutions. We are in contact with them all, since there are multiple projects involved. The minister stated that negotiations are ongoing on all fronts. "We also do not exclude issuing Eurobonds as a way to finance some projects," he said. Babayev stated that the total debt of Azerbaijan was 25,4 billion manats as of October 1. This is equivalent to 19,5% of GDP. Babayev said that 8.3 billion manats or 32.8% of the total debt was external debt, and 17.1 billion or 67.2% of it was domestic debt. According to government projections, the debt to GDP ratio is expected to reach 21,8% by end-2026. Babayev stated that Azerbaijan is among the twenty countries with the lowest ratio of debt to GDP. Azerbaijani strategic reserves were $81.5 billion as of October 1. This is roughly 17 times more than the external government debt. Babayev believes that the revenues and expenses of the state oil fund in 2026 will be equal, both being around $7.7 billion. At a price of $65 a barrel for oil, there is no expectation that reserves will be reduced. "The country's financial stability is strong," he said. The minister said that as of the same date 28.4% Azerbaijani government external debt was held in Eurobonds, which were issued on the international financial markets. Their volume has been unchanged since the start of the year. Mark Potter edited this article.
Industry group predicts that private oil investment in Colombia will fall by 2026.
The head of Colombia's largest industry group, said Friday, that private oil and gas investments in Colombia are expected to drop again in 2026. However, companies may reverse course after the presidential elections. The leftist president Gustavo Petro, whose term will end in August of next year, has halted all new hydrocarbon exploration agreements as part his efforts to reduce Colombia's dependency on fossil fuels.
Both oil output and investment dropped in 2024, and they are expected to drop again in 2025.
Frank Pearl, President of the Colombian Petroleum Association, (ACP), said that oil companies will spend less on exploration in 2026 and more on fulfilling their obligations under current contracts.
He said that, "with some exceptions," investment would be down next year.
Pearl predicted an 8% increase in investment for hydrocarbon exploration and production in this year. However, the projection won't be met.
Pearl said that there is no way to see a return of exploratory activity, which has fallen by more than 60% in the last three years.
In August, Colombia produced an average of 750,000 barrels of oil per day.
Pearl expects that the oil industry will rebound, based on the proposals of most presidential candidates.
He said that the next year could be divided in two - not by investment flows, because they will arrive too late, but rather by intention and commitment. If a new administration gives clear signals about the revitalization of the sector, investors may start to prepare for investing in contracts that have been suspended or seeking new areas.
Even so, the recovery is likely to be slow due to industry timelines.
Pearl added that Colombia had gone four years with no new contracts. If all goes well, that is likely to happen by 2032. (Reporting and editing by Nia William; Nelson Bocanegra)
(source: Reuters)