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Silver reaches a new record, riding on the coattails of gold
Silver prices reached a new record on Wednesday. This was boosted by the bullish gold market and investor demand for hard assets in an environment of persistent geopolitical, economic and political risks as well as expectation of U.S. rate cuts. Silver spot reached a new high of $49.57 an ounce. Silver, a precious metal and an industrial metal, has seen a 70% increase in value this year. It is on track to have its best annual growth since 2010. On Wednesday, gold, which is traditionally considered a safe haven during periods of uncertainty, surpassed the $4,000 per ounce mark for the first-time, while the price of copper briefly reached a 16 month high. Zain Vawda is an analyst at MarketPulse, by OANDA. He said that there are also cases where retail traders have used silver as a "safe-haven" bet, which has increased the demand and supported a rally in price. Silver could reach $55/oz in the next few months, given the structural deficit and the strong industrial tailwinds. After this year's massive inflows into the COMEX owned warehouses in the U.S., tight liquidity on the London spot market is providing another layer of support for silver. . The first reason for these deliveries was to avoid the U.S. import tariffs in April, which silver avoided. This concern led to unusually large differences between London spot prices and New York CME futures, the exchange for Physical or EFP markets. The New York premium made it profitable for gold and silver to be moved to New York," HSBC's James Steel wrote in a note. Silver's inclusion in a draft list for critical minerals in the United States has sparked speculation about potential tariffs. COMEX stocks reached a record last week. According to the LBMA, at the end of September there were 24,581 metric tonnes of silver in London vaults. This is down 0.3% compared to August and valued at $36.5 Billion. It takes 82 ounces to purchase an ounce gold Silver has caught up to the price of gold, compared to 105 in April. Matthew Piggott is the director of metals at Metals Focus. He said that silver underperformed gold in mid-year, as the ratio gold-silver went up to 100. Trade concerns reflected silver's industrial role. Silver will continue to rise and surpass $60 in 2026. Prices are supported by macroeconomic and financial factors, but also by the strong demand for technologies like photovoltaics and electronic devices. Morgan Stanley noted that, similar to gold, silver also saw a rise in the inflows into physically-backed exchange-traded silver funds (ETFs). It also enjoyed a strong industrial demand due to increased solar installations in China between January and May. Silver ETFs have room to grow, but they could begin to lag behind gold, as solar demand is expected to slow.
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Ford F-150 Lightning plant affected by aluminum fire-related closure, says union official
Ford Motor will stop production at its Dearborn, Michigan plant next week, which makes the F-150 Lightning electric pick-up. A union official says the change is due to the devastating fire that occurred at an aluminum supplier's New York factory. According to analyst estimates, the fire that occurred on September 16 at Novelis's plant will disrupt Ford's F-150 production for several months and could cost $1 billion to its bottom line. In a memo sent to workers, the Rouge Electric Vehicle Center will be closed next week. Nick Kottalis confirmed that the fire at the Dearborn Truck and REVC was the reason for the shutdown. Ford refused to give specifics about any production changes. Stocks of the automaker fell by about 6% Tuesday after news broke of the fire. Ford shares closed Wednesday's trading session 1.5% lower at $11.74. Ford has been using an aluminum-based body for its F-150 pickup truck since more than 10 years ago to reduce vehicle weight. The company produces F-150s and Super Duty models in Kentucky, Michigan and Ohio. The automaker refused to comment on whether or not any changes in production were planned for these locations. Novelis is among the many aluminum suppliers that Ford has. Ford has worked closely with Novelis since the fire almost three weeks ago. A full team is dedicated in exploring all options to minimize disruptions. In recent weeks, EV sales have soared as buyers rushed to get a good deal before the federal tax credit of $7,500 expired on September 30, causing a surge in EV purchases. Ford sold 10,000 F-150 Lightnings in the third quarter. The company calls it the most popular electric pickup truck in the U.S. Ford CEO Jim Farley said recently that he expected EV sales would fall by about half of their record levels in August and September without the credit. (Reporting and editing by Matthew Lewis in Detroit, Nora Eckert)
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Brazil announces new bid to attract foreign capital for green projects using FX hedge mechanism
The Brazilian government announced a new Eco Invest bidding process on Wednesday to attract foreign capital into innovative and sustainable projects. This is the first time that a hedge against foreign exchange has been offered. The government will direct Climate Fund resources towards financial institutions in order to create foreign exchange and performance risk-hedging strategies. According to the Finance Ministry, these are crucial to enable long-term investments in Latin America's biggest economy. According to the Ministry, financial institutions must submit their proposals by November 19. In the same way as in previous auctions, banks are required to leverage private investment, stating this time exactly how much equity will be mobilized. The government says that the proceeds of the auction will be used to support tech-based companies and startups in developing projects related to bioeconomy and energy transition, as well as circular economy initiatives such bioplastics, waste management, and battery recycling. Eco Invest, launched last year, aims to attract international capital for long-term sustainable project by leveraging public funding through innovative financing mechanisms. The first auction took place in October 2024. A second was held in August to restore pastureland that had been degraded. (Reporting and editing by Kylie Madry; Marcela Ayres)
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Carney claims he and Trump had a'meeting' of minds on steel, aluminium
Mark Carney, the Canadian Prime Minister, said on Wednesday that he and Donald Trump had "a meeting" of minds on the future of steel and aluminum industries in the United States. These sectors are currently subject to U.S. Tariffs. Carney Trump was in the Oval Office for trade talks on Tuesday. Officials stated that the meeting was productive, but they still needed more convincing to convince Trump to remove damaging tariffs against Canadian autos, steel and aluminum imports. Ottawa reports that Carney and Trump have asked officials to begin working on possible agreements in key sectors within the next few weeks. Carney stated that "The President... and I had a meeting yesterday regarding the future of steel, aluminum, and energy sector collaboration, which is the reason our teams are currently negotiating the terms for these deals." He told the legislators at Parliament that he was working on "the modalities" of an automobile agreement. The opposition parties claim that Carney has made too many concessions in Washington. Carney won the April elections on a promise not to bow down to Trump. "Canadians remember the last election when that Prime Minister promised to put elbows high... that was the promise he kept. Pierre Poilievre, leader of the official opposition in Parliament, said that those elbows had now been lowered. Reporting by David Ljunggren, Maria Cheng and Chris Reese; editing by Chizu Nomiyama and Chris Reese
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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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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.
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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.
Spain's grid operator warns about new voltage swings and urges measures to prevent blackout
In a letter sent to the market regulator CNMC, Spain's grid operator REE warned that it had detected sharp voltage swings over the last two weeks. These could affect power supply in a country that experienced a major blackout in April.
The CNMC urged that technical changes be made quickly to prevent any impact. The CNMC announced on Wednesday that it would be holding a public consultative meeting in the next few days to discuss urgent and provisional measures for stabilizing the system until a permanent solution is found.
The CNMC said that the rapid fluctuations in voltage recorded over the past two weeks could trigger disconnections in demand or generation, even though they are within the margins.
In a report published last Friday, the European network of electricity transmission systems operators stated that the massive blackout which hit the Iberian Peninsula April 28th was the first ever known to be caused by excessive voltage.
Like previous inquiries, the report pointed to an increase in voltage as being the immediate cause of Europe's biggest blackout in over two decades. The outage on April 28 paralysed many cities in Portugal and Spain and left people stranded in trains. Reporting by Corina Poans and Andrei Khalip; editing by Pietro Lombardi
(source: Reuters)