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Gold prices fall as markets consider Middle East instability and inflation risks
Gold prices fell on Monday, as concerns about inflation and the war in the Middle East remained. The markets will also be watching the U.S. Federal Reserve policy direction this week. Spot gold dropped 0.3% per ounce to $4,030.34 by 2:00 pm EDT (1800 GMT), and U.S. gold futures for delivery in August settled at $4,090.50, a 0.4% decline. Gold has been in a trading band for over a month, roughly between $4,000 and $4200. The fact that the market may be anticipating a rise in inflation is a positive factor, particularly in July when fresh data are expected to reverse much of the decline in June," Marex analyst Edward Meir stated. Three Fed officials, who dissented at last week's meeting and voted in favor of a rate increase, said that delaying the higher borrowing costs could keep inflation over the Fed's target of 2%. New York Fed President John Williams stated that the central bank is ready to increase rates if inflation pressures do not ease. Brent futures rose by more than 20% in the last month as a result of renewed fighting between Iran and the U.S., and after attacks on tankers near Oman raised?security concerns. The expectation that the Fed would keep rates high to combat inflation is exacerbated by higher energy prices, which weighs on gold. Iran said on Monday that there are no ongoing talks with the U.S., and?no plans?for any meetings. This contradicts President Donald Trump's claim that talks would be held to justify calling off a?attack. This week, market participants will closely monitor a number of U.S. jobs reports. These include the ADP Employment Report and the Nonfarm Payrolls Data. South Korea's central banks said that they would buy gold from local producers in order to diversify their sources of supply, and increase their holdings of precious metal. Silver spot was unchanged at $57.63 an ounce. Platinum fell 1.6% to $1.615.25, while palladium declined 1.7% to 1,252.62. (Reporting by Sukanya Mitra in Bengaluru; Editing by Sahal Muhammed)
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Chevron gives staff special bonuses following earnings blowout
Chevron is giving its employees a bonus for their operational performance so far in this year. This follows the U.S. Oil Producer's record earnings on Friday, which was?boosted by the high oil prices due to the ongoing war?in Iran. In an internal message that was seen by?, CEO Mike Wirth praised Chevron employees for meeting cost reduction targets, achieving deal synchronizations from the Hess purchase ahead of schedule, and operating safely amid the?geopolitical turmoil this year in Venezuela, and the Middle East. Wirth wrote, "Results such as these in an year like this one are not normal." They reflect an extraordinary effort in extraordinary circumstances. Email stated that the bonus would be equal to half of the monthly base pay for many employees. The cash announcement came as U.S. President Donald Trump continued his criticism of oil companies, calling on them to lower their gasoline prices. He also called out Wirth in a Sunday Fox News TV interview for failing to credit the administration with the company's successes. Get your retail (consumer!) "Oil Prices MUST DROP NOW!" Trump wrote in a blog post on Truth Social. Chevron did not respond immediately to a comment request about the statement. Sheila Dang reported from Houston. Nathan Crooks, Mark Potter and Nathan Crooks edited the report.
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Trump to attend mining executives' event amid critical minerals drive
Donald Trump is expected to participate in a roundtable with?mining executives on Friday, hosted by the United States. According to two people who are familiar with the plans, State Department. The event is a part of the Trump Administration's efforts to increase domestic and allied supply of critical minerals required for energy, defence and advanced technology. According to sources, the agenda, participants, and other details are fluid and could change. The administration has prioritized securing vital minerals supply chains, and is taking steps to increase domestic production, decrease reliance on China, and strengthen partnerships with its allies. It argues that to expand the sector, it will not only require investment in mines and processing facilities, but also an increase of skilled workers. This includes engineers, geologists miners, and technicians, since companies are facing a shortage of talent for future projects. According to a person who has direct knowledge of the plans, the U.S. Department of Energy will also host a Friday event focused on workforce training. The event will feature?representatives of all 14 accredited U.S. Mining Schools, and is intended to increase awareness about mining as a profession while?highlighting that more students are needed to enter this field, according to the?source. China's extensive network of mining school has made it the world's leading minerals producer. White House, Department of Energy and State Department have not responded to requests for comment. Ashley Burke, a representative of an industry trade association, said: "We are looking forward to working with the administration on solutions that will responsibly develop our nation's vast resource, secure our supply chains, and create the mining workforce of tomorrow."
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Gold prices fall as markets consider Middle East instability and inflation risks
Gold prices fell a little on Monday, as concerns about inflation and the war in the Middle East remained. The markets are also watching the latest job reports to determine the Federal Reserve's next policy move. Spot gold dropped by 0.1% at $4,037.01 an ounce as of 12:37 pm EDT (1637 GMT) while U.S. gold futures for delivery in August fell by 0.3% to $4,000.05. "Gold is stuck in a range of trading for over a month, roughly between $4000 and $4200. The fact that the market may be anticipating a rise in inflation is a positive factor, particularly in July. "New data will likely reverse a large part of the decline in June," Marex analyst Edward Meir stated. Three Fed officials, who were against a rate increase at the policy meeting last week, said that delaying higher borrowing rates could keep inflation above the Fed’s 2% goal. New York Fed President John Williams stated that the central bank is ready to increase rates if inflation pressures do not ease. Brent futures rose more than 20 percent last month as fighting resumed between the U.S.A. and Iran and after attacks on tankers in Oman raised security concerns. The expectation that the Fed would keep rates high to combat inflation is exacerbated by higher energy prices, which weighs on gold. Iran stated 'on Monday that there are no talks in progress with the U.S., and?no plans to meet. This contradicts President Donald Trump, who had used talks as a justification to call off 'attacks. This week, market participants will closely monitor a number of U.S. jobs reports. These include the ADP Employment Report and the Nonfarm Payrolls Data. South Korea's central banks said that it would buy gold from local producers in order to diversify its sources of supply, and increase its precious metal holdings. (Reporting by Sukanya Mitra in Bengaluru; Editing by Sahal Muhammed) (Reporting by Sukanya Mitra in Bengaluru; Editing by Sahal Muhammed)
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Trafigura holds large amounts of LME Zinc as Prices Hit Four-Year High
Two industry sources claim that Trafigura, a commodity trading house, holds a large share of zinc available on the London Metal Exchange. This is despite the fact that the prices of zinc, which is used to galvanize steel, have reached their highest levels in nearly four years. Available, or on-warrant, LME zinc stocks Just 73,850 tons of refined zinc were consumed in the world last year. This is equivalent to two days' global consumption. According to the International Lead and Zinc Study Group, the world consumed 13.8 million tonnes of refined zinc in 2012. LME data shows that three entities have large holdings of LME Zinc warrants, which are title documents conferring ownership. This gives three large entities significant control over the immediate supply of zinc and fuels concerns about availability at?the LME. Trafigura refused to comment. The other two holders' identities are unknown. On Monday, the benchmark three-month zinc price on the LME increased by as much as 1,7% to $3703.50 per tonne, its highest level since August 16, 2022. However, it then lost all gains and fell 0.3% to $3633 at 1500 GMT. A fear of a shortage has created a premium or "backwardation" for contracts that are close to maturity over those with longer maturities. The LME cash zinc?contract trades at about $60 per ton more than the forward three-month contract The premium has eased from $73 a week earlier, but is still?in steep backwardation', which indicates near-term tightness. The premium for August is higher than the forward three-month contract. The spread is now above $63 per ton. This is the highest level since May 20, when the spread began trading. Exchange data 0#MZN FBR> reveal that one market participant had a short position equating to?to 20%-29% of the open interest in the LME August 'zinc contract. This could have been a bet made on lower prices, or a producer protecting its output. Positions?must then be squared, or rolled?over?before contract expires August 19th. The company might struggle to find the zinc it needs for delivery, unless they are a manufacturer. Also, if the supply is tight, rolling the position will be expensive. Reporting by Pratima Dasai and Tom Daly. Mark Potter edited the article.
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Beiersdorf says Middle East conflict disrupts Gulf sales, deliveries
Beiersdorf, the maker of Nivea, said that the conflict in the Middle East was disrupting sales and deliveries in key Gulf markets. This highlights how geopolitical tensions continue to impact consumer goods companies in the region. Vincent Warnery, Chief Executive of the company, said that due to the conflict the company was unable to ship some products to Saudi Arabia or the United Arab Emirates. "This is something that impacts not only our costs, but also consumption." We hope the war will end soon so that we can get back to business as usual," he said in a press conference. Beiersdorf warned in April that sales in the Middle East were being adversely affected by conflict. Warnery also said that the company was closely monitoring the oil markets, given the possible impact of higher crude costs on packaging and other input costs. Warnery stated that despite the sharp rise in oil prices following the intensification of the conflict between the United States and Iran, prices have not reached the levels Beiersdorf had predicted. He said that the "good news" was that the sustained increases in oil prices will eventually filter through to the costs of the company because it uses a large amount of plastic packaging. Beiersdorf lowered its full-year outlook on Monday, citing "a difficult market climate and a slower than expected recovery" at its core Nivea product.
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Gold prices fall as markets consider Middle East instability and inflation risks
Gold prices fell on Monday as concerns about inflation and the conflict in the Middle East remained. The markets will also be watching the U.S. Federal Reserve policy direction this week, which is based on a number of employment reports. Spot gold dropped by 0.3% per ounce to $4,029.84 at 10:12 am EDT (1412 GMT) while U.S. gold futures for delivery in August fell 0.5%?to $4.029.00. Gold has been stuck between a range of $4000-$4200 for over a month. Marex analyst Edward Meir stated that the market may be anticipating a rise in inflation in July, when new data is expected to reverse much of the decline in June. Three Fed officials, who dissented at last week's meeting and argued for a rate increase, said on Friday that delaying the higher borrowing costs could keep inflation over the Fed's target of 2%. New York Fed President John Williams stated that the central bank is ready to increase rates if inflation pressures do not ease. Brent futures rose more than 20% in the last month as a result of renewed fighting between Iran and the U.S., and after attacks on tankers near Oman raised security concerns. The expectation that the Fed would keep rates high to combat inflation is exacerbated by higher energy prices, which weighs on gold. Iran said on Monday that there are no ongoing talks with the U.S. and no plans for any meetings. This contradicts President Donald Trump, who had claimed talks would be held as a justification to call off 'attacks. The market participants will closely monitor a series of US jobs reports, including ADP employment report and nonfarm payrolls. South Korea's central banks said that they would buy gold from local producers in order to diversify their sources of supply, and increase their holdings of precious metal. (Reporting by Sukanya Mitra in Bengaluru; Editing by Sahal Muhammed) (Reporting by Sukanya Mitra in Bengaluru; Editing by Sahal Muhammed)
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US construction spending falls unexpectedly in June
U.S. Construction Spending unexpectedly dropped in June, as higher mortgage rates continued to stifle?homebuilding. Census Bureau of the Commerce Department reported on Monday that construction spending had decreased by 0.1%. The?Construction Spending in?May has been?revised. It was not reported that it had increased by 0.1% but was actually unchanged. Economists surveyed by predicted construction spending to rise 0.2%. In June, construction spending fell 3.2% compared to the same month last year. Spending on private construction projects fell 0.2% last month, but only by 0.1% this month. ?Investment in residential construction dropped 0.3%. The spending on single-family housing fell by 0.6%. In June, it decreased by 3.3% year-over-year. Since the U.S. and Israel attacked Iran in February, the average rate for the popular 30-year fixed-rate mortgage increased by 70 basis points. The average rate reached a record high of 6.66% in the last week according to data provided by mortgage finance agency Freddie Mac. In June, spending on multi-family units, which make up a tiny part of the housing market?declined by 0.7%. The?government announced last week that residential investment had rebounded after declining for five consecutive quarters. Renovations are on the rise as higher borrowing costs have depressed housing demand. In June, investment in non-residential structures like power plants and factories increased by?0.1%. Spending on manufacturing projects fell?1.2%. The second quarter saw a contraction in investment in non-residential buildings, marking the 10th consecutive quarterly?decline. After increasing by 0.6% in May, the investment in public construction projects was unchanged. In June, state and local government construction expenditures remained unchanged. The federal government also spent the same amount on construction projects. Lucia Mutikani, Lucia Simao and Paul Simao (Reporting)
Stocks rise amid hopes for peace with Iran, oil falls; yen firms gain after intervention
On Monday, oil prices?dropped? and major stock indices gained?on signs that U.S. -Iran tensions are easing?again. Meanwhile, the yen?strengthened?against?the euro and dollar?after the?U.S. Japan and the United States confirmed their joint support. Oil prices fell sharply after U.S. president Donald Trump delayed a new attack on Iran, hoping to seal a deal quickly that would boost oil supply from the Gulf. U.S. crude oil was down by 6.07% to $79.53 per barrel at the end of yesterday, and Brent fell to $83.64 a barrel at the close. This is a 4.88% drop on a daily basis. Iran, however, said that no negotiations were underway with the U.S. or any plans to meet. The optimism over earnings has helped support the stock market. LSEG data shows that more than 300 companies in the S&P 500 have already reported their earnings. Approximately 85% of these firms beat expectations. Peter Cardillo is the chief market economist of Spartan Capital Securities, based in New York. "The sharp fall in oil prices due to Trump's cancellation of severe attacks against Iran, and hopes for a diplomatic solution, got things moving this morning," he said. He said that "so many earnings have exceeded expectations" and the guidance is positive. This has also been a positive for stocks. Amazon's market cap surpassed $3 trillion on Monday. This was aided by a strong rally after strong earnings, and signs that AI is driving demand for cloud computing services. The Dow Jones Industrial Average rose 512.69, or 0.98% to?52.998.45. The S&P 500 gained 96.74, or 1.29, points to 7,586.46. And the Nasdaq Composite gained 512.28, or 2.02% to 25,886.13. The MSCI index of global stocks rose 8.86 points or 0.79% to 1,129.37. The pan-European STOXX 600 rose by 0.45%. AstraZeneca shareholders punished the pharmaceutical company on Monday after reports of merger discussions with U.S. competitor Bristol Myers Squibb, which could make it the world's largest drugmaker with a combined valuation of nearly $400 billion.
Japan's Nikkei ended 1% lower while South Korea's KOSPI fell more than 5%. Japan and the U.S. have conducted a coordinated yen buying intervention and won't hesitate to take additional action, Japan’s finance ministry announced on Monday. This confirms a rare bilateral effort to stop the yen’s slide to new 40-year-lows. Trump stated on Sunday that U.S. was helping Japan to prop up the Japanese yen in a show of friendship and for the benefit of the global economy. The dollar index, which measures the greenback in relation to a basket of currencies, including the yen, the euro and others, increased by 0.24%, reaching 99.95. Meanwhile, the euro fell 0.18%, at $1.1506. The dollar fell 0.44% against the Japanese yen to 156.87. Tokyo's unilateral intervention between late April and early may caused only a short yen recovery, while the Bank of Japan rate hike in June provided little support. This highlights the challenges policymakers face due to rising oil prices and an interest-rate gap with other major economies. As oil prices dropped, U.S. Treasury rates also fell. Traders continued to assess the chances of a Federal Reserve rate increase if the war lasted. The yield on benchmark U.S. 10 year notes
(source: Reuters)