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Gold prices hold steady as investors evaluate US tariff hike
Gold prices held steady after U.S. president Donald Trump announced higher tariffs for imports from Japan and South Korea. A firmer dollar and higher Treasury yields also limited gains. As of 0220 GMT, spot gold was unchanged at $3,334 an ounce. U.S. Gold Futures are unchanged at $3.344.20. Trump told trade partners on Monday that the U.S. would begin imposing tariffs of 25% on all goods imported from Japan and South Korea on August 1. This marks a new phase in his trade war, which he began earlier this year. Trump stated that the deadline of August 1, 2018 for the implementation of tariffs is firm, but he will consider extensions if other countries make proposals. The "reciprocal tariffs", which were set at 10%, remained in place until the 9th of July to allow time for negotiations. However, only agreements have been reached with Britain and Vietnam. Tim Waterer, KCM Trade's Chief Market Analyst, said that Trump's latest tariffs letters keep gold on the radar of investors looking for a hedge against uncertainty. However, a strong dollar and rising bond yields limit the metal's upside potential in the short term. The yield on the benchmark 10-year U.S. notes hovered around a two week high while the U.S. Dollar Index steadied, after hitting a one-week-high in the previous session. Gold's price increases when the dollar is stronger. Waterer stated that "traders appear relatively unfazed" by Trump's tariffs letters. With safe-haven demands largely contained, gold is just waiting to see if a breakout on the topside occurs. Trump's tariffs have increased inflation fears and complicated the Federal Reserve's efforts to reduce interest rates. The minutes of the Fed meeting from June, which are expected to be released on Wednesday, will provide more information about the central bank's outlook. The spot price of silver fell 0.1%, to $36.78 an ounce. Platinum rose 0.6%, to $1379.29, and palladium grew 1%, to $1170.46. (Reporting and editing by Sumana Nady and Subhranshu Sahu in Bengaluru.
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Iron ore prices rise despite Trump's tariff threats
Iron ore prices rose on Tuesday due to a resilient short-term demand from China, the world's largest consumer. However, caution caused by President Donald Trump’s threat of increased tariffs limited gains. As of 0244 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange added 0.14%. It now stands at 733 yuan per metric ton. As of 0234 GMT, the benchmark August iron ore traded on Singapore Exchange was up 0.55% at $95.75 per ton. The near-term demand for iron ore was stable, as shown by the relatively high output of hot metal, which is a measure of iron ore consumption, and underpins the prices of this key ingredient in steelmaking. The fall in portside iron ore inventories, which fell 0.4% compared to the previous week and reached 144.04 millions tons by July 7, according to data from Mysteel consultancy. The resumption of trade tensions around the world has limited price gains. Trump began Monday telling his trade partners, from major suppliers like Japan and South Korea down to minor ones, that the U.S. will be imposing sharply higher tariffs on August 1. This marks a new phase of the trade war Trump launched earlier this summer. Coking coal and coke were both up by 0.54%, but other steelmaking ingredients did not change much. The benchmarks for steel on the Shanghai Futures Exchange have been moving sideways. Rebar fell 0.13%, while hot-rolled coils were down 0.06%. Wire rod remained flat, and stainless steel was up 0.63%. The (steel market) focus has returned to the seasonally weak fundamentals, after the frenzy over promises of crackdowns on price wars receded," Zhuo Guqiu said. Analyst at Jinrui Futures. The downside is likely to be limited, as supply and demand are not in conflict at the moment. (Reporting and editing by Amy Lv, Lewis Jackson, and Rashmi aich).
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Copper prices are easing on the back of trade tariffs and Chilean supply outlook
The London Metal Exchange and Shanghai Futures Exchange saw copper prices drop on Tuesday as the uncertainty surrounding U.S. tariffs on trade and increased supply of copper from Chile, which is the world's biggest producer, weighed heavily on the market. As of 0109 GMT the LME's three-month copper was down by 0.2% to $9,810 a metric ton. The most traded copper contract on SHFE also fell 0.16%, to 79.380 yuan (11,064.34) per ton. Both contracts are still trading at high levels. On Monday, the United States sent notices to 14 nations announcing new tariffs of 25% to 40% that will take effect August 1. Donald Trump, the U.S. president, warned that a 10% additional tariff could be imposed if BRICS nations such as Brazil, Russia India and China pursued what he called "anti-American policies" during their Brazil summit. The market is still focused on U.S. tariffs as they haven't been finalized. A higher value of copper exported from Chile may indicate a larger supply, according to a metals analyst in Beijing from a futures firm. Chile exported $4.67 Billion worth of copper to the world in June, an increase of 17.5% compared with the previous period. ANZ reported that "Chilean Copper Mines enjoyed their best export month in three years in June", The U.S. continues to receive copper, as Washington continues its investigation into possible new copper import tariffs, which keeps the premium for COMEX futures over LME benchmarks high. COMEX stocks have also reached a seven-year-high, or a 120% increase since mid-February. LME nickel slipped 0.18% to $15,150 per ton. Zinc gained 0.24% at $2,691, while tin climbed 0.12% to $33,325, with aluminium gaining 0.1% to $2,576. SHFE zinc fell by 0.68%, to 22,035 Yuan per ton. Lead dropped by 0.55%, to 17,115 Yuan. Nickel was down 0.53%, to 120,540 Yuan. Tin dropped 0.5%, to 264 360 Yuan. Click or to see the latest news in metals, and other related stories.
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Dollar gains on US tariffs; shares steady and oil drops
The Asian stock markets took the latest twist of U.S. President Donald Trump’s tariff rollout in stride on Tuesday as the dollar held gains and oil declined. Wall Street shares fell after Trump sent letters, including to Japan and South Korea announcing sharply increased tariffs on imported goods into the United States. He also delayed their implementation until August 1. The Nikkei index of Japan opened lower, but turned positive when Trump said that the deadline was "firm but not 100% solid" and tariffs could be adjusted for certain countries. The Aussie Dollar rose in anticipation of the Reserve Bank of Australia's decision to be made later that day. Tapas Strickland, National Australia Bank's head of market economy, said that the market reaction to Trump's tariff announcements had been muted because of Trump’s quick retreat from his "Liberation Day", duties originally set out on April 2. Strickland, head of market economics at National Australia Bank, said that there would be volatility when the headlines started to appear, more letters were released, and the negotiations came to the forefront before the August 1 deadline. Trump set a 10% cap on all so-called reciprocal Tariffs for trading partners in April to allow time for negotiations. Two agreements have been made, with Britain, and Vietnam. Washington and Beijing reached an agreement in June on a framework for tariff rates. This restored a fragile truce to their trade war. The tariffs for Japan and South Korea will now increase to 25% by August 1. Shigeru Shiba, the Japanese prime minister, called the increase regrettable and stated that his country would continue to negotiate with the U.S. EU sources informed on Monday that the European Union would not receive a letter outlining higher tariffs. A spokesperson for the EU said that it still hopes to reach a deal with Trump by Wednesday, after Ursula von der Leyen, President of the European Commission and Trump had "a good exchange". MSCI's broadest Asia-Pacific share index outside Japan rose 0.2% at the start of trading. Japan's Nikkei index rose by 0.4%, while South Korea's KOSPI increased by 1.5%. The dollar increased 0.2% to 146.36 Japanese yen and reached a new two-week high. The euro remained flat at $1.1741. The Australian dollar rose 0.4% to $0.6516 ahead of a central bank meeting where policymakers will likely announce a 25 basis-point reduction. U.S. crude oil fell 0.5% to $67.59 per barrel, after surging almost 2% on Sunday. Gold spot edged down 0.2%. Early trade saw Euro Stoxx futures down by 0.1%. German DAX Futures at 24,133 were also down by 0.1%. FTSE futures fell 0.3%. (Reporting and editing by Jacqueline Wong; Reporting by Rocky Swift)
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Oil prices drop as traders evaluate US tariffs and OPEC+ production increase
The oil prices fell on Tuesday, after a rise of almost 2% the previous day. Investors analyzed new developments regarding U.S. Tariffs and a larger-than-expected OPEC+ production increase for August. Brent crude futures fell 21 cents to $69.37 per barrel at 0041 GMT. U.S. West Texas Intermediate Crude fell 24 cents to $67.69 per barrel. U.S. president Donald Trump began informing trade partners on Monday, including major suppliers South Korea, Japan, as well as smaller U.S. importers such as Serbia, Thailand, and Tunisia that the U.S. will begin imposing sharply higher tariffs starting August 1. This marks a new phase of his trade war, which he started earlier this year. Trump's tariffs caused uncertainty on the market, and there were concerns that they could negatively impact the global economy, and therefore, oil demand. Prices have been supported by the fact that there are signs of a strong demand, especially in the U.S. Last week, AAA data showed that a record number of Americans are expected to travel over 50 miles (80km) during their Fourth of July holidays. The U.S. Commodity Futures Trading Commission published data on Monday that showed money managers had increased their net-long positions in futures and options contracts for crude oil in the week leading up to July 1st. Concerning supplies, the Organization of the Petroleum Exporting Countries (OPEC+) and its allies agreed on Saturday to increase production by 548,000 barrels a day in August. This is more than the 411,000 bpd they increased for the previous three months. Goldman Sachs analysts expect OPEC+ will announce a final increase of 550,000 bpd for September during the next meeting, on August 3. Analysts said that the actual increase in production has been lower than what was announced so far, and the majority of the supply comes from Saudi Arabia. (Reporting and editing by Christian Schmollinger; Stephanie Kelly)
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Aura Minerals, a Canadian company, prepares to list on Nasdaq and targets a $2.1 billion valuation
Aura Minerals, a Canadian gold and copper mining company, is planning to list its shares at the Nasdaq. This could give the company an estimated value of $2,14 billion. If the company priced its public offering at a price near to that of July 4th's closing price on Toronto Stock Exchange, it could raise approximately $210 million. Foreign companies often list in the U.S. for higher valuations and to tap into deeper capital markets. Investors were rattled by uncertainty over President Donald Trump's policies on tariffs, and new listings were frozen. But sentiment has changed as new listings are gaining momentum. The proceeds from Aura’s U.S. Offering will be used to strengthen the business, including additional liquidity and financial flexibility in support of its strategic growth initiatives. Aura Minerals expects to list under the Nasdaq symbol "AUGO" after selling 8.1 million shares. The gold and copper miner was founded in 1946 and focuses on the development of projects and operations throughout the Americas. The joint bookrunners of the offering are BTG Pactual, Itau BBA and BofA Securities. Reporting from Prakhar Srivastava, Bengaluru. Editing by Shashesh Kuber
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Dollar gains on stocks as Trump prepares 25% tariffs against Japan and South Korea
The dollar gained strength on Monday after U.S. president Donald Trump announced sharply increased tariffs against goods imported from Japan, South Korea, and other countries. This is the latest development in U.S.'s trade war. The yields on longer-dated U.S. Treasury bonds rose. Trump began Monday telling his trade partners, including Japan and South Korea, that higher U.S. Tariffs will begin August 1. Trump in April set a 10% cap on all so-called reciprocal Tariffs with trading partners until July 9, to allow time for negotiations. Only two agreements have been reached, with Britain, and Vietnam. Adam Sarhan is the chief executive officer of 50 Park Investments, a New York-based investment firm. He said: "Markets like certainty and the news of today increases the level uncertainty. Hence the selloff." Tariffs will likely increase prices and slow growth. However, uncertainty about the final policies could be more of a drag on business as they postpone making decisions. Next week, S&P 500 companies are expected to start reporting their results for the second quarter. The Dow Jones Industrial Average dropped 422.17 points or 0.94% to 44,406.36, while the S&P 500 declined 49.37 points or 0.79% to 6,229.98, and the Nasdaq Composite lost 188.59 or 0.91% to 20,412.52. U.S. listed shares of Japanese automakers fell. Toyota Motor was down 4%, and Honda Motor by 3.9%. Tesla shares also fell 6.8% when CEO Elon Musk revealed the formation of the "American Party," a new political party in the United States. MSCI's global stock index fell by 5.80 points or 0.63% to 919.93. The pan-European STOXX 600 closed at 0.44%. The yield on benchmark U.S. 10 year notes rose 5.7 basis points in the last day to 4.397%. The yield on the interest rate-sensitive two-year note rose 1.9 basis to 3.901%. It was the dollar's increase against the yen that was most noticeable. The dollar was up by 1.09% to 146.130. The euro fell 0.57%, to $1.172 after a rally of over 13% this year. The dollar index (which measures the currency in relation to six major counterparts) rose by 0.517%, reaching an all-time high of 97.467. The minutes of the Federal Reserve's last meeting are due this week. Investors are trying to determine how many times they expect the Fed to reduce interest rates in this year, after Thursday's jobs data showed that employers had added more jobs than forecast. The oil price rose on signs of strong demand, which offset the impact from a higher than expected OPEC+ production increase for August as well as concerns over possible tariff effects. Brent crude futures gained $1.28 or 1.9% to settle at $69,58. U.S. West Texas Intermediate Crude gained 93 cents, or 1.4% to settle at $67.33. (Reporting from Caroline Valetkevitch, New York; Additional Reporting by Lawrence White, London; and Wayne Cole, Sydney; Editing and rewriting by Cynthia Osterman and Stephen Coates.)
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Study: Abandoning EU 2035 zero emission car target could risk 1,000,000 jobs
A study released by the campaign group Transport & Environment on Tuesday showed that the European Union could achieve its 2035 target of clean cars and implement policies to help the transition. T&E stated that if no industrial strategy is implemented and the target of 2035 of all new cars and vans in the EU not emitting carbon dioxide is not met, it could lead to the loss of one million jobs in the auto industry and two thirds of the planned battery investment. Why it's important European automakers are already facing high costs on their home markets, and they have to compete with their Chinese and U.S. competitors in the electric vehicle market. Now, President Donald Trump has imposed 25% tariffs on imports of automobiles. This has forced many manufacturers to withdraw their forecasts for the year 2025. In May, after heavy lobbying by the industry, the European Parliament backed a softer approach to the EU CO2 emission targets for cars, vans, and trucks. However, it has not yet changed the regulation that bans the sale of fossil fuel cars before 2035. KEY QUOTES In a statement, Julia Poliscanova Senior Director of Vehicles & Emobility Supply Chains, T&E said: "It is a moment that will make or break Europe's Automotive Industry as global competition for the lead in production of electric vehicles, batteries, and chargers, is immense." By the Numbers The advocacy group stated that if the 2035 target is maintained and policies to increase domestic EV production were implemented, the contribution of the automotive value chain to the European economic system would grow by 11% by the year 2035. The report added that the loss of jobs in the vehicle industry could be offset by creating more than 100,000 new jobs in battery manufacturing by 2030, and 120,000 jobs in charging by 2035. The report stated that a weakening of the goal, coupled with a lack of comprehensive industrial policy could reduce the value chain's contributions by 90 billion euro ($105.5 billion), by 2035. $1 = 0.8529 Euros (Reporting and editing by Milla Nissi-Prussak in Gdansk)
Alabama Power will build a 150-MW battery storage system at the former site of a power plant
Utility Southern Co’s Alabama unit announced on Monday that it would develop a utility-scale, battery energy storage system of 150 megawatts (MW) at the former site of its coal-fired plant in Walker County.
CONTEXT
The new Gorgas Battery Facility is designed to house lithium-ion phosphate battery packs with a 2-hour lifespan. Construction should begin in this year, and be finished by 2027.
Alabama Power said that the seven-acre facility would be designed as an independent system, which will be connected to and charged directly from electric grid.
Why it's important
BESSs have become increasingly important as companies and countries move to cleaner energy in order to combat climate changes.
The systems are able to store excess energy from renewable sources. This can be very useful when there is a high demand for energy or if power production is low.
Batteries can be used to integrate clean energy sources into a company's mix of power generation. They are a complementary technology that complements variable and weather-dependent renewable resources such as solar.
KEY QUOTE
Batteries can be charged when energy prices are low and discharged when energy rates are high, which helps to keep costs low. "They can supply energy quickly to our system in response to changing circumstances," said Brandon Dillard. Senior vice president of Alabama Power’s generating fleet. (Reporting and editing by Tasim Zaid in Bengaluru, with Pooja Mnon from Bengaluru)
(source: Reuters)