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Investors focus on Middle East and Trump-Xi Meeting as gold prices ease
?Gold prices dipped on Thursday as investors focused mainly?on a?recent development in the Middle East conflict and signals from U.S. president Donald Trump's recent meeting with Chinese president Xi Jinping. At 9:42 am EDT (1342 GMT), spot gold was down by 0.4% to $4,668.34 an ounce. U.S. Gold Futures for June Delivery fell by 0.7% to $4672.70. The dollar?U.S. The dollar rose 0.1% and made metals priced in greenbacks more expensive to holders of other currencies. Oil prices fell after Iran's official media reported that 30 vessels had recently crossed the Strait of?Hormuz. This report briefly boosted gold prices. Bart Melek is the global head of commodity strategy for TD Securities. He said that if this Middle East conflict doesn't end, there is a risk of a "significant downturn" in gold. He said that if inventories and supplies of energy products are reduced, prices could rise dramatically, resulting in an increase in inflation. According to CME Group’s FedWatch tool the U.S. rate cuts are largely priced in at this point in the year due to an 'energy-driven increase in U.S. consumer and producer prices in April. Gold is considered to be a hedge against rising inflation. However, as interest rates rise, the metal tends to lose its appeal. The data released on Thursday revealed that?U.S. Retail?sales increased in April but some of this increase was due to higher prices. Xi reassured Trump on Thursday that the trade talks are progressing, but warned that disagreements over Taiwan could lead to a 'dangerous path' and even conflict. Taiwan was not mentioned in the U.S. summary. Spot silver dropped 3.8% to $84.00 per ounce. Platinum fell 3.4% at $2,065.50 and palladium fell 3.7% to $1,443.74. (Reporting by Ishaan Arora in Bengaluru; editing by Paul Simao)
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Venezuelan bonds rise after debt restructuring by government
Venezuela's bonds rose on Thursday, after the country began a restructuration exercise that is expected to be one of the largest and most complex sovereign debt restructuring exercises undertaken. Venezuelan government announced that it has appointed U.S. consulting firm Centerview Partners to rework what is estimated at hundreds of billions dollars in sovereign and state-owned debt. The dollar-denominated bonds of the country, which have been in default for years but still trade on financial markets, reached their highest level since more than a decade. Data from Tradeweb showed that the bonds of Petroleos de Venezuela, a state oil company, were at a decade high, at 40 to 50 cents. Jean-Charles 'Sambor is the head of EM Debt at TT International, London. He viewed it as a signal that a restructured debt was now a top priority for both Caracas, and the White House. He added that "the recovery rate will high" because we are dealing with a country whose oil production and debt sustainability has improved sharply. COMPREHENSIVE & ORDERLY Venezuela, the South American nation with the largest oil reserves in the world, and Petroleos de Venezuela (the state oil company) owe between $150 and $170 billion dollars of debt and interest. This burden must be reduced for the economy to remain viable. The government announced late Wednesday that it aimed for a "comprehensive" and "orderly" overhaul of the debt burdens, which would include both sovereign debt as well as that of PDVSA. Venezuela defaulted on its debts due to U.S. sanction pressure in 2017. However, its bonds have steadily increased since U.S. president Donald Trump returned the White House at the beginning of last year. Since the U.S. ousted President Maduro, in January, momentum has picked up and Washington's relations with acting Venezuelan president Delcy Rodrguez have become closer. In a client note, JPMorgan analyst Benjamin?Ramsey stated that the goal is to move "expeditiously" with financial advisers. "We remain MW (marketweight), Venezuela in our portfolio model, pending an?improved assessment of a framework for debt sustainability." Ramsey said that although the process was questioned, it is worth noting that it began before the International Monetary Fund provided its assessment of Venezuela's economic prospects or debt sustainability metrics.
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Markets focus on Trump-Xi Meeting
?Gold was largely stable?on Friday, as investors focused mainly on a meeting between U.S. president Donald Trump and his Chinese equivalent Xi Jinping. They also digested a rise in U.S. prices due to increased energy costs associated with the Iran War. As of 1112 GMT, spot gold was up 0.2% to $4,696.36 an ounce. U.S. Gold Futures for June Delivery fell 0.1% to $4,703.70. China's Xi said that the trade talks are?making good progress? at the beginning of a two day summit on Thursday, but that a disagreement over Taiwan might?damage relationships and even lead conflict? Gold is still hovering at $4,700 while markets digest the latest U.S. inflation figures. It is very evident that we are now in a phase of consolidation," said Swissquote analyst Carlo Alberto De Casa. Data on Wednesday revealed that U.S. Producer prices had posted their largest increase in four-years in April. This is the latest indication of an accelerating inflation. On Tuesday, data showed that the annual U.S. consumer inflation had posted its biggest gain in three year. According to CME Group’s FedWatch tool, traders have priced in a large amount of interest rate increases this year. This is due to the rising cost of energy. The?U.S. The Senate has approved Kevin Warsh to be the chair of the Federal reserve. Gold is considered to be a hedge against rising inflation. However, as interest rates rise, the metal becomes less attractive. HSBC has raised its forecasts for silver prices to $75 an ounce by '2026. The bank cited the weaker U.S. -dollar. However, the bank believes that there is only limited room 'to the upside as silver remains too overvalued. Silver spot fell by 1.3%, to $86.86 an ounce. Platinum fell by 1.3%, to $2,110.70. Palladium fell 2.2%, to $1,467.03. (Reporting and editing by Barbara Lewis in Bengaluru, Noel John)
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India's JSW Steel reports a two-fold increase in quarterly profits on the back of price recovery
India's JSW Steel announced a more than two-fold increase in its adjusted quarterly profit on Thursday. A rebound in steel prices, and a healthy demand, helped to offset the?impact of an?increase?in costs resulting from the Iran War. The demand for steel usually increases in the third quarter of the year as construction picks up. Analysts said that New Delhi's tariffs on certain steel products imported from China helped to raise?steel after two consecutive quarters of declines. The lowering of U.S.?tariffs was also a factor in the price increase. JSW Steel said that its sales volume increased by 6% in the third quarter due to a 10.4% increase in steel consumption. Mumbai's steelmaker reported a 14.2% increase in revenue?from operation to 511.8 billion rupees (5.34 billion dollars) for the three-month period ended March 31. This was higher than analysts' expectations of 496.6 billion rupees. The company's net profit was 163.7 billion rupees. This was boosted by an unforeseen gain from the sale of Bhushan Power and Steel's steel business. JSW Steel said that its operating EBITDA margins increased to 16.87%, from 14.23%. This was due to higher sales realization and higher coking coal costs, which were partially offset by the higher EBITDA margins. The Iran War and the Blockade of Strait of Hormuz has slashed the LNG?supplies. This has forced a widespread switch to coal, which in turn, has pushed up the price of coking coal. The total expenditures of JSW Steel increased by 8.9%, to 468.62 Billion Rupees. $1 = 95.7625 Indian Rupees (Reporting and editing by Eileen Soreng, Harikrishnan Nair).
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Bessent of US Treasury expects large Boeing orders during China visit
Scott Bessent, U.S. Treasury secretary, said on Thursday that he was expecting an announcement regarding large Chinese orders for Boeing aircraft when President Donald Trump visits Beijing. Washington wants to expand its exports to China. Bessent told?CNBC earlier in the day that they would be discussing other purchases including energy and agricultural products, as well non-strategic or non-sensitive areas where China could invest in America. Bessent, after meeting with Chinese counterparts, told CNBC’s “Squawk box” program that fireworks were one of the?goods?the U.S. wouldn't seek to reshore. Bessent stated that U.S. officials and Chinese officials had discussed the formation of a "Board of Trade" to govern trade between these two world-leading economies and a separate Board of Investment, which would be responsible for investments in non-sensitive areas. He said, "I don't know where the $1 trillion number came from." He said that the new investment board will review any Chinese plans in order to make sure they do not fall under jurisdiction of the Committee on foreign Investment?in the United States, which he chairs. Bessent explained that the goal is to ensure that these investments are not referred to CFIUS. This would allow them to be pre-screened to ensure that they don't fall into a sensitive or strategic area. Trump said to Chinese President Xi Jinping that he wants to open China up and rebalance?the trade relationship. Bessent stated that "we're focused on getting the balance right." "That's our goal, and it can be achieved in two ways: either we receive fewer imports out of China or we sell more products to China. We're working to balance this." Reporting by Andrea Shalal; editing by Doina chiacu and Kirsten Donovan.
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Bank of Spain warns of the potential for higher rents if mortgage lending is restricted
On Thursday, the Bank of Spain said that it is carefully calibrating any potential restrictions on mortgage lending to improve the resilience of both households and banks while not increasing rent prices. The 'authority' is developing a framework which would enable it to activate macroprudential limitations on lending standards when necessary to prevent risky loans. It estimated in its semi-annual report on financial stability that these measures will shift a part of the housing from ownership to rental, leading to likely lower house prices. It warned that the measures could have a knock-on effect on other variables, such as the rental price, and undermine the effectiveness of the plan. It said that any'such measures' should be calibrated carefully. Rents are rising at a rate well above inflation, with 10% increases in 2024, and 5% increases in 2025. This is in a housing market that has an estimated deficit of 700,000 houses. In 2025, home prices will rise at a rate of 9.7% per year, but they are still 14.7% lower than the peak in 2007, when Spain's bubble burst and forced the banks to be bailed out. Financial Stability Director Daniel Perez Cid said at a press briefing that the institution has not yet detected signs of a real estate bubble, such as excessive growth in credit. The stock of mortgage loans grew by a staggering 3.7 percent in the fourth quarter 2025, marking the fifth consecutive quarter of growth. However, it is still far below the levels of 2000-2008. In March, the number of new mortgage loans in Spain increased by 9.6% compared to last year. As of March, Spanish lenders offered the second lowest mortgage rates in the Eurozone. They averaged?2,75%. However, their?approaches differ. Santander's new mortgage lending increased by 44% in Spain in the first quarter compared to the previous year, while Bankinter decreased it by 40%. (Reporting and editing by Andrei Khalip, with Jesus Aguado)
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MORNING BID AMERICAS - 'G2' Choreography
What's important in U.S. and Global Markets Today By Mike Dolan, Editor at Large, Finance and Markets The two-hour meeting between Donald Trump and Xi Jinping, China's president, in 'Beijing' on Thursday seemed to be full of pleasant words and a few contentious issues were avoided. However, Xi did say that trade talks are progressing and warned Taiwan. Investors have little to latch onto on the first day of "the summit". The market is left with only two major themes: oil-fueled inflation and the AI explosion. Below, I'll go into more detail. Check out my most recent column about why the Fed might have to raise rates. Listen to the most recent episode of Morning Bid, the daily podcast. Subscribe to the Morning Bid daily podcast and hear journalists discussing the latest news in finance and markets seven days a weeks. "G2" CHOREOGRAPHY In terms of inflation, the U.S. Producer prices rose by the most in four years in April, and core consumer prices also increased above forecasts in the same month. Fed models predict that annual headline inflation will rise above 4% by May. Bond markets are restless, as yields across the curve increase, as futures price in a possible Fed interest rate hike over the next year. Susan Collins, Boston Fed's chief executive officer, said that the central bank couldn't ignore supply shocks because inflation has been above target for five years and is now rising. Kevin Warsh will be taking over as Fed?Chair tomorrow after the Senate confirmed his appointment on Wednesday. The stock market's enthusiasm has not been dampened by rising borrowing rates. Wall Street indexes have risen on Wednesday and the S&P 500 as well as Nasdaq reached new closing highs. Stock futures were higher before the opening bell while European shares rose following the open. In Asia, Japan’s Nikkei reached another record while South Korea’s SK Hynix is on the verge of becoming the second trillion-dollar company in the country after Samsung. Asia's chip titans were once again in the spotlight as Taiwan's TSMC increased its forecast for chip demand by 50%, to $1.5 trillion. Meanwhile, Britain's political unrest eased as Keir starmer refused to step down. A leadership challenge may still be in the works, as health minister Wes Streeting is reportedly planning to resign, and launch a bid against Starmer. Chart of the Day In just six weeks the Philadelphia SE?semiconductor Index has increased by 64%, compared with a gain of nearly 17% for the S&P 500. Micron Technology, Advanced Micro Devices and Intel all saw their shares more than double during this time. Analysts estimate gains in semis, memory stocks and other semiconductors accounted for 70%?of the $5.1 trillion in market capitalization that the S&P 500 will add in 2026. Watch today's events * U.S. import prices for April (8:30 am EDT), weekly claims of unemployment (8:30 am EDT), and retail sales (8.30am EDT). * Kansas Fed Jeffrey Schmid speaks, as does?Cleveland Fed Beth Hammack. New York Fed John Williams also speaks * Trump-Xi summit continues Want to receive a copy of the Morning Bid every morning in your email? Subscribe to the newsletter by clicking here. Follow us on LinkedIn, X and ROI. The opinions expressed by the author are their own. These opinions do not represent the views of News. News is a non-partisan organization that adheres to the Trust Principles and values integrity, independence and neutrality.
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White House: China's Xi expressed an interest in purchasing US oil
During a leadership'summit with Donald Trump, President Xi Jinping stated his interest in buying more U.S. crude oil to reduce China’s dependence on Strait of Hormuz. The readout said that both leaders agreed the Strait of Hormuz should remain open in order to allow for the free flow of oil and Xi was against any militarization of the strait or tolls. The Chinese summaries published by the state media did not mention oil purchases. China's Foreign Ministry did not immediately respond to a comment request. Trump and Xi spent several hours together on Thursday, the first day of a two-day meeting that Chinese state media claimed would change the course of relations between the two countries. Chinese purchases of U.S. agricultural and energy products are being considered as part of a possible deal. However,?no specific details have yet been revealed. China hasn't imported U.S. crude oil since May 20, 2025 due to 20% tariffs that were imposed in the trade war. The removal of these duties is likely to be a pre-requisite for any large-scale purchase of U.S. crude oil. Even with the search of Hormuz free alternatives, a tariff of 20% still makes U.S. Light Sweet Crude commercially uncompetitive against other grades available, said?Emma Li an analyst at ship-tracking company Vortexa. Even at its height, the U.S. was never a major crude oil supplier to the world's largest importer. In 2020, China imported about 395,000 barrels of U.S. crude oil per day (bpd), which is just under 4%. By 2024, when Trump was no longer in office, this had dropped to 193,000 bpd and $6?billion. The Chairman of the state-owned oil giant CNPC has long-term agreements with?U.S. The chairman of state-owned oil major CNPC, which has long-term contracts with?U.S. It was reported earlier that the U.S. and China were expected to establish a "trade mechanism" for non-sensitive products this week. Each side could identify $30 billion in goods where they can reduce tariffs. Reporting by Trevor Hunnicutt in Beijing, Lewis Jackson and Sam Li; Editing by Sharon Singleton & Thomas Derpinghaus
Iraq requested financial assistance from IMF in response to the Iran war, a source said
A source close to the IMF confirmed on Thursday that Iraqi officials had approached the International Monetary Fund in order to?secure financial assistance due to the conflict in the Middle East.
Sources said that initial discussions took place during the spring meetings in Washington of the IMF and World Bank, and are continuing about how much funding Iraq will need and the structure of any loan.
The Middle East has been rocked by the war that began February 28 with a massive U.S. and Israeli bombing campaign on Iran. This led to the closure of the Strait of Hormuz.
Iraq was hard-hit by the war. Its oil exports, which make up nearly all of its government revenue, were cut off due to the closing of the crucial waterway that?previously transported about one-fifth the world's crude oils.
The?IMF and the Iraqi Embassy did not immediately comment.
Iraq's economy is heavily dependent on oil exports. It has the?fifth-largest?petroleum reserve in the world.
Iraq's latest financial?deal was a $3.8 billion standby agreement that expired in July 2019. Of this amount, $1.49billion was drawn according to the IMF website.
Iraq is owed $2.39 billion by the global lender, according to the website. This includes $891 million that was provided through a rapid funding instrument. (Reporting and editing by Louise Heavens, Chizu Nomiyama, and Andrea Shalal)
(source: Reuters)