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Gold rallies above $4,300/oz for the best week since 17
The price of gold reached a new record high on Friday, surpassing $4,300 per ounce. Investors were pushed to the metal as signs that regional U.S. banks are struggling, trade tensions around the world, and hopes for further rate cuts pushed them. As of 0439 GMT spot gold was up 0.9% at $4,362.39 an ounce after reaching a record high earlier of $4,378.69. U.S. Gold Futures for December Delivery jumped 1.7% at $4,375.50. Bullion is on track to have its best week ever since September 2008. Each session has seen a record-high price. Silver spot rose by 0.3%, to $54.41 an ounce. This represents an 8.2% increase in the weekly price. Prices reached a new record high earlier in the session of $54.35, following the rally in spot gold and a squeeze on the short market. Tim Waterer, KCM Trade's Chief Market Analyst, said that the $4,500 target for gold could be reached sooner than expected. However, it will depend on how long the concerns over U.S. China trade and the shutdown of the federal government continue to linger. China has accused the U.S. again of creating panic with its controls on rare earths, but it rejects calls to reverse the export restrictions. Christopher Waller, the U.S. Federal Reserve governor, has also expressed support for a further rate cut in response to concerns about the labour market. Investors expect a reduction of 25 basis points at the Fed meeting on October 29-30 and another in December. Wall Street also closed lower Thursday. Signs of weakness among regional banks have frightened investors who were already nervous about the U.S.-China tensions. Waterer stated that "the resurgence of regional bank credit concerns in the United States has given traders another reason to purchase gold." The non-yielding gold, which does well in low-interest rate environments, has gained over 66% in the past year, mainly due to geopolitical tensions and aggressive bets on rate cuts, central bank purchases, dedollarisation, and strong exchange-traded fund inflows. On Thursday, U.S. president Donald Trump and Russian president Vladimir Putin agreed to hold another summit about the war in Ukraine. The West continued to pressurize Russia on its oil sales. Britain even imposed sanctions against major Russian oil companies. Palladium increased 0.3%, to $1 618.95, while platinum fell by 0.4%, to $1 706.45. Both metals are headed for weekly gains. (Reporting and editing by Rashmia Aich, Subhranshu Saghu and Anmol Choubey in Bengaluru).
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Reliance's IT counter-pressure helps India's Nifty reach a one-year high
India's equity benchmarks reversed their early losses on Friday. The Nifty 50 reached a new high of one year, with gains from Reliance Industries before its results, outweighing losses by Infosys, and Wipro. Both companies fell due to margin concerns, despite strong earnings. As of 10:36 am IST, the Nifty 50 index rose by 0.42%, to 25,693.3. This is its highest level since October 1, 2024. The BSE Sensex also increased by 0.50%, to 83887.58. Both indexes dropped about 0.2% when they opened. The benchmarks reached a three-month high on Thursday and are now less than 3% off their record peak in September 2024. Two analysts said that the markets are experiencing a bullish consolidate following a recent rally and before the results from ICICI Bank and HDFC Bank this Saturday, as well as Reliance Post Market on Friday. Reliance Bank and ICICI Bank both rose by 0.9% and 0.6%, respectively. HDFC Bank gained by 0.4%. VK Vijayakumar is the chief investment strategist of Geojit Investments. He said that "good results from HDFC Bank, ICICI Bank, and Reliance can support the markets and if Reliance joins in the rally after its results, then the market can continue to sustain the momentum." Ten of the sixteen major sectors posted gains. Small-caps gained 0.2% while mid-caps lost 0.1%. Analysts raised concerns over margin pressures resulting from recent acquisitions and deal ramp-ups, causing the IT sub-index to drop by 1.3%. Wipro fell 4.5%, despite exceeding second-quarter revenue expectations. Infosys, which reported strong results for the September quarter, also fell 1.8%. CLSA said that the company's revenue forecast for fiscal 2026 of 2% to 3% was too conservative. Asian Paints, a major paintmaker's input, rose by 5% among individual stocks. This was aided by the drop in oil costs, which is a significant factor. Nestle India rose 1.2% after rising 4.5% Thursday, following the release of a report on sales and volume growth for the third quarter. Zee Entertainment dropped 3% following a dramatic drop in its second-quarter profits. (Bharath Rajeswaran, Bengaluru. Sumana Niandy, editing)
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ASIA GOLD - India's festive rush drives gold premiums over 10-year high
The physical gold market in Asia was very strong during this week. Prices broke multiple records and premiums in India reached their highest levels in more than a decade, ahead of the major festivals in this month. Gold prices in the spot market surpassed $4300 an ounce on Thursday for the first. They have gained 7.6% over this past week, amid renewed U.S. China trade tensions, and anticipation of a U.S. interest rate cut. This week, the domestic gold price in India reached a new record of 131 699 rupees for 10 grams. Indian dealers quoted premiums Up to $25 per ounce above official domestic prices including import and sales taxes, compared to $15 last week. Ashok Jain is the owner of Mumbai's gold wholesaler Chenaji Narsinghji. A Mumbai-based bullion seller with a private banking firm said jewellers are stocking up on coins and bars of small denominations in preparation for the festival. Indians celebrate Dhanteras (Diwali) and Diwali later this month. These are occasions when purchasing gold is considered auspicious, and they're among the busiest days for gold purchases in the country. Officials from the government and industry have said that gold smuggling has increased in India due to high prices and shortages. Independent analyst Ross Norman stated that a retail rush on investment gold would normally signal a mature rally. However, almost all expectations regarding gold's price behaviour seem to have been proved wrong. Bullion prices in China were discounted anywhere from $20 to $66 per ounce compared with the global benchmark price . Hugo Pascal is a precious-metals trader with InProved. He said that the global demand for precious metals has returned, as has Chinese demand. Peter Fung of Wing Fung Precious Metals, the head of trading, said that "some people sell jewelry because they want to make a profit". Gold in Hong Kong Singapore sold the same product at a $1.30 premium, whereas Singapore Prices ranged from a $0.50 discount to a $1.30 premium. Pascal stated that "the dealers' inventories continue to deplete in Singapore as the demand for metals is strong." In Japan, gold The price was $1 higher than the spot prices. Tokyo-based trader: "Investors aren't deterred by the high prices; they just buy." (Reporting and editing by Harikrishnan Nair in Bengaluru, Anmol Choubey)
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Sources: Japan Q4 aluminum talks drag on in an effort to bridge the gap
Three sources involved directly in the discussions said that quarterly pricing talks between Japanese aluminum buyers and global producers took an unusually long time as both sides struggled to close a large gap on primary metal shipment for October toDecember. Japan is one of the largest Asian importers of metals and the premiums that it pays each quarter above the London Metal Exchange cash price (LME) set a benchmark for the region. However, it is rare to have talks continue weeks after the start date. Early September saw the beginning of talks between Japanese buyers, global suppliers such as Rio Tinto and South32. In the initial offer, producers offered Japanese buyers premiums ranging from $98 to $100 per ton, a drop of 5% to 10% over the previous level for July-September, due to low demand. Sources said that one producer cut its price to $97, from $103, and buyers refused, citing premiums of $70 or more, and wanting levels in the 80s. Source at a Japanese fabricator said, "The $97 offer has expired and we've asked the producer for a new offer." She added that low demand and high inventory keep bids in $80s. Three major Japanese ports have large stocks of aluminium Marubeni, a trading house, said that the total volume of coal sold in September was 341,300 metric tonnes, an increase of 1.8% over the previous month. Sources at a producer say that sellers are holding out for a higher price as the rising prices in Europe and the United States are expected to cause a shortage of supplies in Asia. They also said that discussions could continue until the end this month. Sources declined to identify themselves as this is a sensitive issue. (Reporting and editing by Clarence Fernandez; Yuka Obayashi)
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Shanghai copper falls as traders focus trade tensions, weak dollar limits decline
Shanghai copper fell on Friday, as investors continued to focus on trade tensions. However, a weaker U.S. Dollar and the rising prospect of another Fed rate reduction limited losses. As of 0330 GMT the most traded copper contract on Shanghai Futures Exchange fell 0.42%, trading at 84630 yuan (11,881.56) a metric ton, and is expected to finish the week down 2.42%. The benchmark copper for three months on the London Metal Exchange fell 0.82%, to $10,560 per ton. This was a 0.46% gain in a week. Market participants continue to be cautious as they closely monitor trade developments between China, the United States and other countries as an important meeting between these two countries approaches. China blamed Thursday the United States of creating a panic in the world over its control on rare earth exports. The U.S. official's comments on Wednesday that China's expansion in rare earth exports is a danger to global supply chains and threatens to decouple, as well as their urging China to alter its course. Beijing claimed that the U.S. "seriously misrepresented" China's actions and deliberately stoked misunderstandings and panic. The Federal Reserve cut interest rates again, which helped to support copper's decline. The soft dollar makes commodities that are traded in greenbacks cheaper for investors who use other currencies. Fed Governor Christopher Waller announced on Thursday that he would be on board with another rate reduction later this month. Citing weak labour market statistics, his colleague Stephen Miran urged a more aggressive path of rate cuts. Zinc fell 0.48% among SHFE's base metals. Lead was down 0.26%. Tin grew 0.52%. Aluminium and nickel were not affected. Zinc fell 0.72% on the LME, nickel dropped 0.41%, tin declined 0.23%, and lead rose 0.28%. Aluminium was relatively unchanged. ($1 = 7.1228 Chinese yuan renminbi) Friday, October 17, DATA/EVENTS - (GMT) 0900 EU Housing Starts Number Sep. 1230 US Import prices YY Sept. (Reporting from Dylan Duan and Lewis Jackson).
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Gold prices rise to $4,300/oz for the first time in five years
Gold reached a new record high of $4,300 per ounce on Friday, and investors were rushing to buy the metal as a safe haven due to signs of weakness among regional U.S. banks, global trade frictions, and the expectation of further rate cuts. As of 0233 GMT spot gold was up by 0.3% to $4,336.18 an ounce after hitting a new session high of $4 378.69. U.S. Gold Futures for December Delivery jumped 1%, to $4348.70. Bullion is up about 8% this week, which would make it its best week since the month of March 2020. Each session has seen a new record high. Silver spot fell by 0.7%, to $53.86 an ounce. However, it remained on course for a weekly increase. Prices reached a high of $54.35 earlier in the session as a result of the gold rally and the short squeeze on the spot market. Tim Waterer, KCM Trade's Chief Market Analyst, said that the $4,500 target for gold could be reached sooner than anticipated, depending on how long the concerns over U.S. China trade and the shutdown of the federal government linger. China has accused the U.S. again of creating panic with its controls on rare earths, but it rejects calls to reverse the export restrictions. Christopher Waller, the Federal Reserve governor, has also expressed support for a further rate cut in response to concerns about the labour market. Investors expect a reduction of 25 basis points at the Fed meeting on October 29-30 and another in December. Wall Street also closed lower Thursday. Signs of weakness among regional banks have frightened investors who were already on edge due to the U.S.-China Trade tensions. Waterer stated that "the resurgence of regional bank credit concerns in the United States has given traders another reason to purchase gold." The non-yielding gold, which does well in low-interest rate environments, has gained over 65% in the past year, driven by geopolitical turmoil, aggressive bets on rate cuts, central bank purchases, de-dollarisation, and robust inflows into exchange-traded funds. On Thursday, U.S. president Donald Trump and Russian president Vladimir Putin agreed to hold another summit about the war in Ukraine. The West continued to pressurize Russia on its oil sales. Britain even imposed sanctions against major Russian oil companies. Palladium fell 0.4%, to $1607.93, while platinum dropped 0.7%, to $1701.0. Both metals are headed for weekly gains. (Reporting and editing by Rashmia Aich, Subhranshu Saghu and Anmol Choubey in Bengaluru).
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Petrobras Picks Halliburton for Deepwater Completions Job off Brazil
U.S. oilfield services provider Halliburton has secured multiple contracts from Petrobras to provide completion and stimulation services for its deepwater fields offshore Brazil.The contracts entail vessel stimulation, intelligent completions, and safety valves services, using Halliburton’s engineering solutions.In the Búzios field, Halliburton will deploy its SmartWell intelligent completion technology to enable real-time reservoir management and actionable insights to optimize production. For the Sépia and Atapu fields, Halliburton will provide EcoStar electric tubing retrievable safety valves (eTRSV) to improve the safety and efficiency of this project.Additionally, Halliburton's Stim Star Brasil, tailored for Petrobras activity, will deliver stimulation services that focus on reservoir productivity and improve asset performance.The contracts are expected to begin in 2026.“Halliburton’s engineered stimulation solutions strengthen the collaboration with Petrobras. These awards demonstrate our longstanding relationship in Brazil and support our global strategy to improve asset value and safety through our completions services,” said Shawn Stasiuk, senior vice president, Halliburton Completion and Production division.
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Bankers claim that the bond sales by three Indian state-owned firms prompted by the yield decline accounted for $880 million of the total amount.
Three merchant bankers familiar with the matter on Friday said that a decline in corporate bond rates in secondary market following a dovish policy encouraged three state-run companies to raise approximately 77.50 trillion rupees ($880.5 millions) through bonds sales. Hindustan Petroleum, a state-run company, plans to raise 50 billion rupees. Bharat Petroleum plans to raise 20 billion rupees. The bankers said that both oil marketing companies will be looking to issue bonds with a maturity of five years or less in the next few days. North Eastern Electric Power Corp. (NEEPCO), a subsidiary wholly owned by NTPC, would like to raise approximately 7.50 billion rupees via bonds maturing between five and eight years. BPCL tapped into the market about six months ago. NEEPCO raised money via debt in May 2024, and BPCL did so in March 2023. One of the bankers stated that "NEEPCO was waiting for the central banking policy for a very long time and should be first to go out among the three." The companies did not respond to the emails asking for a response, and bankers asked to remain anonymous as they were not authorized to speak with media. The Reserve Bank of India maintained the status quo in its policy rate setting and said that lower inflation had opened policy space for growth. The expectation of a reading of record low in October and the drop in retail inflation down to an eight-month low have cemented bets on a rate cut in December. According to LSEG data, the bond markets are rallying and AAA-rated corporate bonds with shorter maturities have seen yields decline by 6-10 basis point. Bankers said that corporate bond issuances have slowed in September but will pick up again this month as the easing of yields is expected to encourage both issuers and investor. ($1 = 88.0190 Indian rupees). (Reporting and editing by Sumana Niandy; Khushi malhotra, Dharamraj Dhutia)
Eni's Vaar Energi once again postpones very first oil from Norway's Balder X.
Norway's Vaar Energi has actually again postponed the startup of its North Sea Balder X oil and gas task, planning to begin output in the second quarter of 2025 rather than by the end of this year, the business stated on Wednesday.
Afflicted by cost overruns and hold-ups, Balder X had initially been set to start production in 2023 but this was later delayed to the third quarter of 2024 and subsequently to the 4th quarter of this year.
The delay triggers an additional task expense of around $400. million pre-tax of which roughly 75% will be incurred in. 2025, stated Vaar, which is majority owned by Italy's Eni .
Vaar maintained a goal for the company's production this. year of 280,000-300,000 barrels of oil comparable each day (boed). and for this to increase to around 400,000 boed by the end of 2025.
Balder X will secure production from the Balder location beyond. 2045, opening an anticipated 150 million barrels of oil. equivalent and with peak production of 80,000 boed, Vaar said.
There stays considerable additional resource advantage in the. area and further expedition drilling and tie-back development. phases are being planned, it included.
Vaar holds a 90% stake in Balder X while Britain's Kistos. owns the remaining 10%.
(source: Reuters)