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Gold prices rebound after a report that US and Iran are working together to extend the ceasefire
The gold price reversed its?course on Thursday to increase, recovering from a low of two months earlier in the session. Dollar and oil prices slid?after a report that the United States and Iran are working on extending a ceasefire. Gold spot was up 0.5% to $4,477.59 an ounce at 11:08 am EDT (1508 GMT) after it fell to its lowest levels since late March. U.S. Gold Futures increased 0.6% to $4475.60. Axios reported the U.S. reached a?outline deal to extend their ceasefire pending approval by President Donald Trump. As a result, foreign buyers can now buy greenbacks at a lower price. After the report, oil prices fell. In line with expectations, the personal consumption expenditures price index for the 12 months ending in April rose 3.8%. In line with expectations, the PCE price index rose 3.8% over a 12-month period ending in April. PCE prices rose 0.4% in April, after a 0.7% increase in March. The trading gods?seem to be intervening?in gold today. Tai Wong, an independent metals trader, said that the PCE's weakness and reports of a deal to open Hormuz are giving gold much-needed relief. Gold was on the verge of dropping below the 200-day-moving average early this morning, which many investors and traders consider to be a litmus test in maintaining an upward trend. Bart Melek is global head of commodity strategies at TD Securities. He said that the PCE data indicates that the Federal Reserve could hold rates instead of pursuing further tightening. The minutes of the Fed’s?meeting on April 28-29, published last week, showed that a growing number officials were open to the possibility that they might?need? to raise interest rates. Since the U.S. and Israel conflict with Iran began in late February, the price of gold has been under pressure due to inflation concerns. Bullion, despite its appeal as a safe haven, underperforms when rates increase, as investors tend to gravitate towards yield-bearing investments. The problem with gold is that it is not operating alone. Fawad Rasaqzada is a market analyst for City Index. He said that higher energy prices are again causing inflation concerns, which in turn pushes Treasury yields up and strengthens the dollar. Spot silver rose 0.3% to $74.8, while platinum fell 0.8% to $1.902.64. Palladium fell 1.9% to 1,364.10. Ashitha Shivprasad, Bengaluru (Reporting and Editing by Devika Syamnath & Dita Pujara).
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Gold prices recover after US inflation data
The release of the?U.S. Prices were down for a third straight session despite April's inflation data. As of 9:16 am EDT (1316 GMT), spot gold was down by 0.6%, at $4428,69 per ounce. It had fallen to its lowest price since late March during the previous session. U.S. Gold Futures fell 0.5% to $4426.20. The U.S. Personal Consumption Expenditures Price Index rose 3.8% over the past 12 months, which is in line with what was expected. The PCE index increased 0.4% month-on-month from March to April. Bart Melek is the global head of commodity strategy at TD Securities. He said that data shows gold has a slight respite, and suggests that the Federal Reserve may decide to maintain rates instead of pursuing further tightening. He added that gold could continue to trend lower, and this is because even if war ends now, energy costs could stay higher. The minutes of the Fed meeting of April 28-29, published last week, showed that a growing number officials were open to the idea of raising rates. Investors gravitate towards yield-bearing investments when interest rates increase, despite its appeal as a safe haven. The problem with gold is that it is not operating in isolation anymore. Fawad Rasaqzada is a market analyst for?City Index. He said that higher energy prices have once again fueled inflation fears, which has pushed Treasury yields modestly up and strengthened the dollar at the same time. Iran has targeted an airbase in the United States after Washington struck what it described as a drone operation near the Strait of Hormuz and President Donald Trump rejected the reported compromise with Tehran. Spot silver dropped 1.2% to $73.69 an ounce, while platinum fell 1.6% to $1.887.75. Palladium fell 3.1% to $1347.31. Ashitha Shivprasad, Bengaluru (reporting); Devika Syamnath (editing)
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Operation to recover 11 people believed dead after chemical vat explosion in Washington state
Authorities said that the search for nine people who went missing in Washington State after a chemical storage tank ruptured and imploded has now moved from being a rescue effort to one of recovery. This will likely bring the death toll up to eleven. Two deaths had been confirmed by officials. Eight other people, including some who were critically injured, were also injured. Washington Governor Bob Ferguson told a press conference on Wednesday with local authorities that "we're bracing for the worst industrial disaster in modern Washington State history." Authorities have said that they do not yet know the cause of a 900000 gallon vat imploding at Nippon Dynawave Packaging's facility early Tuesday morning. The container contained "white liquor", a chemical mixture of sodium hydroxide (salt) and sodium sulfide (sulfur), used to make paper pulp. It can cause severe skin burns. Matt Amos, the Longview Fire Department's Battalion Chief, said during the press conference that recovery efforts would be slow in an "extremely dangerous" environment. Cowlitz 2 Fire chief Scott Goldstein stated that it was not clear where the nine missing persons were located in the facility. He added that they had searched all the areas that could be searched. He said, "As from this morning, this incident is transitioning from rescue to recovery." At a press conference, officials confirmed that tests had shown contamination in the Columbia River. Testing of water samples confirmed contamination entering the Columbia River yesterday. Goldstein stated that additional evaluations were underway to better determine the extent and scope of this environmental impact. At this time, there are no known negative health effects on... the air quality in the area or the drinking water system of the city Longview. Goldstein stated that it is fair to estimate approximately 550,000-570,000 gallon left the tank. Some material remains in tank and continues to slowly leak. Officials warned people to avoid certain areas and reported that about a dozen carps had died. Nippon Paper Industries 3863.T is Japan's second largest paper manufacturer by sales. It acquired the Longview Plant from Seattle-based Weyerhaeuser WY.N timber company for $225 millions and created the wholly owned subsidiary Nippon Dynamics Packaging in 2016. Authorities in southern California who were monitoring a tank that was overheating and contained?highly explosive methyl methacrylate announced late Tuesday that GKN Aerospace's facility in Garden Grove, California no longer posed an explosion risk. On 'Thursday, thousands of residents were ordered to evacuate after it was discovered that the chemical inside the tank had overheated. TJ McGovern said, "After an intensive operation, we're pleased to report that residents have begun to return home", TJ McGovern interim chief of Orange County Fire Authority.
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Trump dismisses the midterm elections pressure and says he will outwait Iran
Donald Trump, the U.S. president, said that he is not concerned about the political fallout from an extended conflict with Iran. He also stated that the Iranian leaders miscalculated when they thought the November midterm elections would compel him to a 'deal. Trump, speaking of Iran's leaders at a cabinet meeting in the White House, said: "They thought that they would outwait me." You know, "We'll be able to outwait him. He has the midterms. "I don't really care about the midterms." Trump made these comments while he was discussing how to end conflict. Many of Trump's Republican allies had already been uneasy about his dismissive remarks earlier regarding the "economic impact" of the war for Americans. The President initially stated that the war would last between four and six weeks. It is now approaching its fourth months. He has said that the war could be over in a matter of days, only to say later that it could last for some time. The growing discontent of voters, particularly about gasoline prices, has increased political pressures on Trump's Republican Party. It is expected that the party will struggle to maintain control of the House of Representatives, and perhaps the Senate. This disquiet was heightened by Trump's endorsement of Ken Paxton over John Cornyn, the incumbent Republican senator from Texas. Paxton, whose wife is divorcing him on biblical grounds after being indicted by the FBI for felony fraud, easily defeated Cornyn at a Tuesday party primary, despite having received the endorsement of President Obama. Democrats see the 'Senate seat, in a largely Republican state, as a competitive race in November. Trump said: "Look what happened last evening," referring to Paxton’s victory. "That was?a prelude for the midterms." Trump also mentioned his construction projects that he has been working on in Washington, D.C. Republicans have said that these projects are a distraction from other economic concerns. A? A? Reporting by Trevor Hunnictt, Gram Slattery and Ross Colvin. Editing by David Gregorio and Ross Colvin.
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Moody's changes outlook for Republic of Congo to "positive" on the ease of default risks
Moody's changed its outlook on the Republic of Congo from "stable" to "positive" on Wednesday. The company said that the country's increased access to the international capital markets, as well as a potential IMF program had reduced the near-term risk of default. The 'positive outlook' reflects RoC’s potential reversal of its credit trend following defaults in the regional market between 2024 and 2025, according to a statement from?global rating agency. The Congo finance ministry announced earlier this month that it had requested to speak with the IMF about a new financing program. A technical mission will be arriving in central Africa. In an April assessment, the IMF said that Congo's economy and outlook remained fragile. Moody's says that higher oil prices, and the planned increase in oil and gas production will likely boost the growth of a?African nation's fiscal revenues and its ability to service debt. The'sovereign rating' was rated in the junk category at "Caa2" due to its high debt load, persistent arrears with official creditors and domestic arrears with?services and goods providers.?Alongside this, it has a history of poor fiscal governance. (Reporting and editing by Shilpi Mahumdar in Bengaluru)
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CME LIVESTOCK cattle futures rise on expectations of US beef demand
Analysts said that the Chicago Mercantile Exchange futures for live cattle and feeder calves? climbed on Wednesday, as fears about high prices? affecting demand for U.S. Beef eased. Prices rose a week after falling by more than 3% and reaching their lowest levels since March. Last month, the live cattle futures contract reached a new high. Consumer demand for beef has been strong and the U.S. herd is at its lowest level in 75 years. The high price of beef, gasoline, and other goods has recently caused consumers to worry that they may reduce their spending. On Wednesday, oil prices fell by 4% after Iranian state TV reported that it had seen an unofficial draft of a framework for an agreement between Iran & the United States to end their conflict and reopen the Strait of Hormuz. Dan Norcini is an independent livestock trader. He said that if it looks like energy prices are going down, combined with the record high stock market levels, this will take away some of the worries about consumer demand for?beef falling. The August futures for live cattle rose 3.35 cents, to 242.500 cents/pound. August feeder cattle futures also soared 5.17 cents, to 354.625 cents/pound. The U.S. Department of Agriculture has reported that the value of boxed beef's choice cuts increased on Tuesday by $2.63 per hundredweight to $392.90, and select cuts by $5.30, to $390.30. The high cost of scarce cattle supplies continues to put pressure on meatpackers, even though beef prices are sky-high. According to HedgersEdge.com, on Wednesday, packers?lost about $299 for each head of cattle that they slaughtered. Pork processors earned about $4.40 per hog. CME's lean-hog futures rose 2 cents to 102.125cents per pound. On Friday, the contract reached a new low for December. Norcini stated, "Hogs seem to be trying to 'forge a bottom. The key to them continuing to push higher is the additional strength in pork cutout. According to USDA, the wholesale price of pork carcass cutouts on Tuesday increased $2.59 per cwt to $98.85.
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Gold falls to a two-month low amid inflation-fueled rate hikes
Gold prices fell to their lowest level in two months on Wednesday. This was due to expectations of a tighter monetary policy, which would help to curb inflation. The U.S.-backed conflict with Iran is not expected to end any time soon. As of 2:08 pm EDT (1808 GMT), spot gold was down by 1.3% to $4,447.71 an ounce. It had fallen earlier in the day to its lowest price since March 27. U.S. Gold futures for delivery in June settled at $4,448.40, a?1.2% decrease. The Middle East continues to have the biggest impact. Peter Grant, senior metals analyst at Zaner Metals, said that there was a lingering optimism but that it is fading as the conflict continues. He added that inflation fears are increasing due to this ongoing conflict. Since the beginning of the U.S. - Israel war with 'Iran, the price of gold has been on the rise. Brent crude prices have risen due to the effective closure of Strait of Hormuz, causing inflation worries and raising expectations of rate increases. Iranian state TV reported Wednesday that Tehran would restore shipping in the Strait to its pre-war level within a month as part of a framework agreement with the U.S. The deal also included the withdrawal by the U.S. military from the vicinity of Iran. The gold price briefly recovered some of its losses following this report. The market is still predicting energy-driven inflation, which will lead the U.S. Federal Reserve will increase its overnight benchmark interest rate by 25 basis point by the end this year. Gold, despite being a hedge against inflation, is not yielding in high-rate environments. Neel Kazhkari, the Minneapolis Fed president, said that it is "far too early" to predict whether or not it will change its current policy rate. Investors are awaiting the release of U.S. Data on Personal Consumption Spending (PCS) can provide clues about the direction of monetary policy. Spot silver dropped 3.2% to $74.46 an ounce. Bank of America said in a Tuesday note that while a gold rally could boost silver to $100/oz again in the next few months, it is unlikely to be sustained due to an easing of fundamental demand. Platinum fell 2.1% to $1.916.90, while palladium rose 0.1% to $1.386.47.
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Trump: US still not satisfied with Iran deal
Donald Trump, the U.S. president, said on Wednesday that he is 'not yet satisfied with a deal reached with Iran.' He also added that the U.S. The United States is not 'discussing' easing sanctions against Iran. Trump told reporters that Iran is open to a deal at a White House cabinet meeting. "Iran has a very strong desire to reach a deal. They haven't reached a deal yet... but we won't be. Trump said that we?will either be that or finish the job. He said that under the potential framework agreement?with Tehran that the Strait?of?Hormuz will open immediately, but it won't be controlled by anyone. "We will watch it, but no one is going to control it." This is part of our negotiation. They want to control it. No one is going to be able to control it. Trump said that it was international waters, and Oman would behave like "everyone else" or we'd have to blow up the'ships'. The White House didn't immediately respond to an inquiry for a comment about Trump's "comment" on Oman. The embassy of Oman in Washington did not respond immediately to a comment request. Trump said that he is not comfortable with Russia or China taking Iran's highly enriched uranium stockpile.
Oil gains after US-Iran ceasefire report
Oil lost gains on Thursday and traded lower briefly. A report by Axios claimed that U.S. officials and Iranians had reached an agreement to extend the ceasefire for 60 days and begin talks about Tehran's nuclear program.
Brent crude futures rose 33 cents or 0.4% to $94.62 per barrel at 11:01 am EDT (1501 GMT). ?U.S. West Texas Intermediate futures rose 56 cents (0.6%), to $89.24. Both benchmarks fell a little after the report, before recovering some of their lost ground.
Axios, citing U.S. official?and source involved in mediation, reported that the agreement between the U.S. The oil prices have fluctuated in recent sessions as traders try to sort through conflicting signals about the possible end of the three-month Iran War and the reopening of Strait of Hormuz. The maritime chokepoint is still only a fraction of its pre-war levels.
Brent and WTI Futures rose more than 2% in the first session of trading after Iran's Revolutionary Guards claimed they targeted a U.S. airbase as a response to the U.S. attacks on Bandar Abbas, a port city.
John Evans, a PVM Oil Associate analyst, said that trading airstrikes appears to be "part of the negotiation language."
Shipping data from LSEG &?Kpler revealed that two supertankers, one liquefied 'natural gas' tanker, and one supertanker left the strait this week without their transponders on, heading to India and China. According to data from the American Petroleum Institute, crude oil stocks in the U.S. fell by 2.8 million barrels during the past week. This is the sixth consecutive week that they have declined.
The U.S. Energy Information Administration will release its official inventory data one day later than normal due to the Memorial Day holiday. Reporting by Shariq and Nicole Jao from New York, Seher in London, Sam Li and Florence Tan from Singapore, and Hugh Lawson in Beijing; editing by Mark Potter and Paul Simao.
(source: Reuters)