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Silver belts reach record highs as investors rush for safety
Investors flocked to gold as geopolitical uncertainty and expectations of U.S. rate cuts pushed it past $4,000 per ounce for the first. Silver, too, reached a new record on Wednesday as investors continued to flock to the metal. By 12:17 PM ET (1617 GMT), spot gold had risen 1.8% to $4,053.13 an ounce. U.S. Gold Futures for December Delivery gained 1.8%, to $4 075.00. Silver rose 3.4% to reach $49.42 an ounce after reaching its highest level of $49.57. Matthew Piggott is director of metals focus and the director for gold and silver. He said that "gold's strength reflects a macroeconomic and geopolitical backdrop which is extremely positive and a concern over other safe havens." Gold, which is traditionally seen as an asset to store value in times of uncertainty, has gained 52% this year, compared with 27% gain in 2024. Gold is the top performing asset in 2025. It outperforms the global equity markets, bitcoin and the U.S. Dollar and crude oil. Silver has risen by more than 66% this year. This is due to the same factors that have driven gold's rise, as well as the tightness of the spot market. The silver market is tightening, with increasing lease rates as Comex stocks reach record highs, and India's strong seasonal demand. "The recent rally was supported by hefty ETP flows," said Suki cooper, Global Head of Commodities Research, Standard Chartered Bank. Metals have been boosted by a number of factors including the expectation of U.S. rate cuts, political and economic unrest, central bank purchases, large inflows to ETFs, and a weaker dollar. We do not see any catalysts for gold to meaningfully reverse at this time. Piggott said that we should expect gold to keep pushing up through the year in order to challenge $5,000/oz. The U.S. shutdown of the government entered its eighth day Wednesday, delaying key economic data releases and forcing investors relying on non-government resources to assess the timing of and scope of Fed rates cuts. The markets are pricing in a rate cut of 25 basis points at the Fed meeting in November. The Middle East conflict, the war in Ukraine and political turmoil in France, Japan and other countries have all contributed to the demand for gold. According to World Gold Council data, global inflows of gold ETFs have reached $64 billion for the year. September saw a record amount of $17.3 billion. Analysts said that "fear of losing out" also fuels the rally. Technically, the Relative Strength Index of gold is 88. This indicates that it has been overbought. Silver has risen 71% this year due to the same factors that have driven gold's rise, as well as the tightness of the spot market. HSBC raised its forecasts on silver prices for 2025 and 2026, respectively, to an average of $38.56 and $44.50 per ounce. The bank cited expectations of high gold prices, renewed demand from investors and expected volatile trading. Palladium, which has reached its highest price since June 2023, climbed 7.3%, to $1435.18, a gain of 2.5%.
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STOXX reaches record levels after French stock market turmoil
European shares reached record highs Wednesday, boosted by gains in French, Spanish and other stocks. Steelmakers also rallied following the EU's announcement of plans to reduce steel import quotas. The pan-European STOXX 600 closed at its highest level since 2007, with a 0.8% gain, while French stocks rose 1.1%, and Spanish stocks reached their highest mark in 2007. The DAX in Germany closed at a three-month high. The STOXX 600 was boosted by banks, which added over 1%. British lender Lloyds rose after the UK's financial watchdog proposed a smaller-than-expected compensation package over motor finance mis-selling, easing investor concerns. Societe Generale, BPER Banca and Italy's BPER Banca have also joined in the rally. This has led to broad gains for the sector. Steelmakers Surging After the European Commission proposed slashing the tariff-free import quotas of steel by almost half, shares of ArcelorMittal and Aperam rose between 4% and 7%. The basic resources index increased by 1.9%. BMW, on the other hand, fell 8.2% as the automaker lowered its earnings forecast for 2025 due to a change in U.S. Tariff assumptions and a weaker than expected growth in the Chinese Market. Mercedes' rival, BMW, fell 2.9% while the auto index as a whole declined 2.1%. France's political instability remained at the forefront as the caretaker Prime Minister Sebastien Lecornu The government struck a cautiously positive tone and suggested that a budget agreement could be reached before the end of the year, potentially averting an election. After a week of market turmoil, following Lecornu’s abrupt resignation, French mid-caps gained 0.7%. The French benchmark is one of Europe's laggards by 2025. It has only gained 9% in the past year, lagging behind double-digit gains on most major exchanges. The general opinion among clients is that new legislative elections will be held in the next week. However, there are few chances of France's deficit falling below 3% of GDP by 2030. There is also little hope for relief on the French bond markets for the time being, said Olivier Korber. The technology stocks declined 0.6%. Chip-related companies ASML, ASMI and Applied Materials led the declines. This was after U.S. legislators called for wider bans on sales to China of chipmaking equipment. The German economy ministry raised its growth forecast for 2025 on Wednesday. It now expects a modest expansion of 0.2%, up from a zero. They cited signs of a gradual improvement. Puma, among other stocks rose 6.8% as BofA Global Research upgraded its rating of the German sportswear company to "neutral", from "underperform". Umicore rose 5.5% after the Belgian Metal Recycling Group said it plans on selling its permanent gold inventory for around 410 million euro ($476 millions). Unite Group dropped 10.7% following the British student accommodation developer's report of softer rental growth for the third quarter. (Reporting from Shashwat Chakrabarty and Pranav Kashyap, in Bengaluru; and Amir Orusov, in Gdansk. Editing by Saumyadebchakrabarty and Sonia Cheema.
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Swiss steel industry raises concerns over EU steel tariffs and presses for exemptions
Swiss industry expressed concern on Wednesday over the European Union plans to reduce tariff-free import quotas of steel by almost half, and to impose a 50% tax for excess shipments. They urged the bloc to make an exception for Switzerland. Swissmem, an industry association, said that curbs on the free trade would harm Swiss manufacturers. They are already subject to much higher U.S. tariffs as part of the Trump administration’s effort to reorder global trade. EU steel is protected at the moment by safeguards which cap imports for 26 steel grades. Any steel imported above these limits will be subject to 25% tariffs. The tariffs have been steadily increasing each year, despite declining demand. They must be lifted by mid-2026 under World Trade Organization regulations. Swissmem's spokesperson expressed concern about the reduction of duty-free steel to the EU. The steel industry will face a serious problem if the EU does not grant Switzerland duty free quotas of a comparable scale to those currently in place. The group demanded a solution that was negotiated and stated that even with tariffs of 25%, companies could not compete on the EU market. Switzerland and the EU have agreed to a new trade agreement that will deepen their ties. Any disagreements over tariffs could complicate this process. Swiss Steel, a steelmaker, said that while it is still analyzing the EU's proposed measures it was vital that Switzerland be excluded from them. Swiss Steel, and its counterpart Stahl Gerlafingen are not the only Swiss companies exporting processed steel into the EU. (Reporting and editing by Dave Graham and Alexandra Hudson.
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Former South Africa top producer rues lost shine as gold prices spike
Duncan Wanblad, a South African mining veteran, lamented Wednesday the country's missed investment in mining as gold prices surged above $4,000 per ounce - a record high fueled by expectations of reduced interest rates and demand for safe haven assets. Anglo American Plc's CEO Duncan Wanblad said that the mining potential of South Africa was not fully explored "due to the unsupportive exploration policy in the past 20 years". "That is a critical part of the mining life cycle." Wanblad explained that the data shows that it takes 17 years to get a deposit permitted, ramped up and in full production. He added, "It is a generation that has been sacrificed." Gold prices soared to a record high of $4,000 per ounce on Wednesday. This was a result of expectations for lower interest rates, and a demand for safe havens. The rally came as mining executives met in Johannesburg to discuss their industry's future. The recording brought back memories of the visit made by Bobby Godsell, a South African mining executive, to Washington and London in 1992 to lobby against a gold sale. He was desperate to prevent prices from falling below $260 per ounce. South Africa, at the time, was one of the top three gold producers in the world. Its output averaged 400 metric tonnes per year. The country's gold production has dropped from 1,000 metric tonnes in 1970 when it was the world's leading producer to 90 metric tonnes last year. South Africa's deep, old shafts cost more to operate today compared to their competitors in Africa, Australia and Canada. South African mining executives also said that policy uncertainty, infrastructure problems and labour unrest were preventing investment in exploration and mine development. Gold Fields (founded by Cecil Rhodes 1887), Harmony Gold, and AngloGold Ashanti, the former gold division of Anglo, acquired assets in Africa, Australia, and America. Reporting by Nelson Banya and Editing by William Maclean
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EU Wheat remains subdued due to abundant supply
Euronext wheat traded again in a tight range on Wednesday. A falling euro was not enough to support the futures, and they remained near their contract lows. The most active position in December milling grain on Paris' Euronext was down 0.1% to 187.50 euro ($218.12) per metric ton at 1435 GMT. This is close to the contract low from last Wednesday of 185.00 euro. The euro has fallen for the third consecutive day due to political uncertainty in France after the fall of its last government. Euronext also received some help from a stabilization in Chicago wheat prices after they had reached a low of five years. The traders said that a partial shutdown of the United States government was contributing to a subdued grain trading by disrupting U.S. export and crop data and raising doubts about the timing of the aid promised for U.S. Farmers affected by the trade dispute with China. The rising supply of wheat in exporting nations has remained a constraint on the price, and harvests in the southern hemisphere are set to increase competition. Donatas J. Jankaukas of CM Navigator said that "supplies are abundant for the moment, and new volumes should be arriving soon from Australia or Argentina." The traders in Europe were waiting to see if recent falls on Euronext or for the Euro would bring new demand. A German trader reported that the price of Russian wheat with 11.5% protein for November shipment was about $226 to $228 per ton FOB on Wednesday, or about $3 higher than French wheat. This depends on Euronext, and currency movements. The price of Argentine wheat, however, was just below the $220 mark, despite higher shipping costs for buyers in North Africa and Middle East. Estimates for Russian exports increased in September and Octember, suggesting that the world's biggest wheat supplier was recovering from a slow start to the growing season. Slow sales by farmers also plagued exporters of European Union Wheat. The problem is that farmers in Germany and other EU countries are not selling because they're unhappy with the Euronext price. The trader explained that it was difficult to obtain enough supplies to satisfy the current requests from buyers in North Africa, West Africa and other parts of Africa. Reporting by Gus Trompiz and Michael Hogan, Hamburg. Editing by Tasim Zaid.
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South African mining stocks rise as gold prices reach new records
The miners listed at South Africa's major stock exchange rose sharply on Wednesday. This was boosted by the surge in global gold prices above $4,000 per ounce. Gold Fields, AngloGold Ashanti and Harmony Gold all closed higher than 3% at the Johannesburg Stock Exchange. Due to economic uncertainty and expectations of U.S. rate cuts, gold, which is traditionally viewed as a store for value in times of instability has reached record highs. Annabel Bishop is the chief economist of Investec. She said that the safe-haven status gold enjoys has caused its recent rally. This was due to concerns about the impact of tariffs and the U.S. government shutdown on U.S. economic growth, as well as increased geopolitical tensions. Gold spot was up 1.5% to $4,045 an ounce by 1510 GMT. This brings the gains for this year to 54%. The U.S. Dollar and crude oil have both declined for the year, making it one of the best-performing assets in 2025. The gold's momentum spreads to other precious materials, such as platinum and palladium. This boosts the shares of Johannesburg listed companies that produce these metals, including Sibanye Stillwater which gained 5% Wednesday. Johannesburg Stock Exchange Top-40 Index closed at 1.5%. The rand, which is the South African currency, also gained 0.4% in value against the dollar. Its yield on the benchmark 2035 bond fell by 9 basis points, to 9.09%. (Reporting and editing by Alexander Winning, Jane Merriman and Sfundo parakozov)
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Mali fuel stations are flooded with long queues as militants prevent imports
After several days of fuel station closures, and amid fears of a fuel shortage following an al-Qaeda-linked blockade of fuel imports in Mali’s capital Bamako last month, motorists waited in long lines outside the stations on Wednesday. Since last week, many stations have been forced to shut down or only supply diesel. Analysts say this is a tactic used by militant groups to put pressure on the military-led Mali government. They want to cut of its economic oxygen. In a video announcing a blockade, a militant from Jama'at Nusrat al-Islam wal-Muslimin announced that "we are telling all traders" who import gasoline and diesel into Mali to stop until further notice. Fuel Tankers Arrive from Ivory Coast Residents and witnesses reported that Shell, Total, and Star stations were not in service for the past few days. Only a handful of local stations could serve motorcyclists. The Malian authorities announced on Tuesday night that fuel tankers from the neighbouring Ivory Coast had arrived. By Wednesday, many stations had been reopened. Social media videos showed long queues in Segou, Mopti, and San. One motorcyclist from Bamako said, "I had to push my bike this morning due to a lack of fuel... I searched everywhere in the neighbourhoods of Faladji and Kalaban but found nothing." If the state could find a way to solve this problem, it would be great. State television reported that Prime Minister Abdoulaye Maiga had convened a committee for disaster management to ensure the supply of convoys. Since 2012, Mali has been in a state of instability after islamist militants hijacked the Tuareg revolt in the north. After coups in 2021 and 2020, the current military government came to power promising to improve security. Mid-September, the insurgents destroyed at least 40 fuel tanks after attacking a convoy consisting of more than 100 vehicles. To prevent any further attacks, the armed forces are blocking fuel tanks from reaching their destinations. This includes about 70 trucks destined to Allied Gold's Sadiola Mine in western Mali. Reporting by Mali Newsroom and Portia in Dakar, Editing by Robby Corey-Boulet & Timothy Heritage
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Attorney General says that Guyanese mining entrepreneurs could be extradited.
Guyana's Attorney-General said that Azruddin Mohammed and Nazar Ahmed, two Guyanese entrepreneurs, would be extradited back to the United States, to face charges for fraud and money laundering in relation to gold exports. Last week, the businessmen who own the gold exporting firm Mohamed's Enterprise were indicted by a Florida court on charges of conspiracy and money laundering in order to enrich themselves as well as defrauding the government of Guyana. Azruddin Mohammed, a politician who founded his party three months before Guyana’s general elections in September, said to local media that he is assembling a team of lawyers to fight the U.S. accusations. The court for the Southern District of Florida stated that he and his father were accused of entering agreements on behalf of Mohamed’s Enterprise in order to sell and ship thousands of kilograms of Guyanese Gold to buyers in Miami or Dubai, by using fraudulently Guyana customs seals and declarations. In one of the 11 charges, they are also accused of paying bribes in order to get Guyanese officials to accept gold shipments that had duplicate paperwork. Azruddin Mohammed accused Guyana's People's Progressive Party, which is in power, of persecuting his political career. Azruddin Mohamed said that the ruling People's Progressive Party was doing all they could to stop him. They were afraid of the momentum from the last election, and the call for change by the Guyanese. Last year, the U.S. Treasury imposed sanctions on the businessmen based on the same fraud accusations. Anil Nandlall, Attorney General of Guyana, said in an evening show that he broadcasts regularly on social media late Tuesday night: "The next steps are for the United States of America government to request the Government of Guyana extradite the two individuals." He said: "This legal process will be undertaken and it is part of an extradition agreement between the governments of the U.S.A. and Guyana." Azruddin Mohammed's party won 16 seats in the Guyana general elections last month. This puts him in a position to be sworn-in as the opposition leader in November.
Gold gains above $4,000 in anticipation of rate cuts
Investors waited to see minutes of the Federal Reserve's last meeting on Wednesday, and gold continued its recent rally over $4,000 per ounce. A prolonged U.S. shutdown coupled with expectations for further U.S. rate cuts drove the demand for this safe-haven investment.
Gold, traditionally seen as an investment during periods of uncertainty, has gained 54% this year, after having gained 27% in 2024. Gold spot was up last 1.41%, at $4,039.81 per ounce. U.S. gold contracts for December delivery were up 1.5%, to $4,063.70.
Gold Fields shares, listed in the United States, rose 3.8%.
The Japanese yen fell to its lowest level since February as investors fretted about an increase in Japan's fiscal spending, while the Euro dropped due to the ongoing political uncertainty in France. Stocks on Wall Street recovered from Tuesday's losses, with technology stocks leading the charge. Nvidia's shares rose 1.6%.
It's rebounding nicely led by Nvidia, and AI-related shares. Investors have been optimistic for a while now, despite the government shutdown and a slowing job market.
The federal government is still closed, so investors have not had access to most U.S. economy data. The Fed will release the minutes of its September meeting on Wednesday. These will be scrutinized for new clues about Fed policy. According to CME Group's FedWatch Tool, the central bank will likely cut rates by 25 basis point at its meeting on October 28-29.
The Dow Jones Industrial Average gained 53.16 points or 0.11% to 46,656.14, while the S&P 500 gained 26.47 points or 0.39% to 6,740.96. Meanwhile, the Nasdaq Composite increased 152.53 or 0.67% to 22,940.90. The MSCI index of global stocks rose 3.05 points or 0.31% to 995.21. The pan-European STOXX 600 rose by 0.84%. Sebastien Lecornu, the caretaker prime minister in France, said that a budget agreement could be reached by the end of the year, reducing the likelihood of an early election.
His cautiously positive tone helped a modest rise in French bonds. OAT yields fell 5.3 basis points for the day to 3.52%. The euro, however, continued its recent declines, and ended the day down by 0.39%, at $1.161.
The yen has been weakened by the unexpected election of Sanae Takayi as leader of the ruling Liberal Democratic Party in Japan on Saturday. This was due to expectations of increased government stimulus. The dollar last rose 0.45% against the yen to 152.59. It had earlier hit 152.99, its highest level since February 14.
The yield on the benchmark 10-year U.S. notes fell 1.4 basis points, to 4,113% versus 4,127% at late Tuesday.
The oil prices rose. U.S. crude oil rose by 1.8%, to $62.84 per barrel. Brent crude was up by 1.53% to $66.45 a barrel.
(source: Reuters)