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Gold reaches its highest level since mid-May, as purchasing momentum builds
Tuesday's gold price hit a?higher than three-month high, continuing a rally that was?driven by?the recent announcement of the U.S. Treasury buyback. Investors are now focusing on key inflation data, and an upcoming speech from Federal Reserve Chair Kevin Warsh. As of 0146 GMT spot gold was up 0.4% to $4,668.19 an ounce after reaching its highest level since May 14, earlier in the session. U.S. Gold Futures increased 0.6% to $4724.50. Tony Sycamore, IG's market analyst, said that gold has continued to rise, and the return of?debasement trading last week has fuelled the latest leg of gains. He said: "We expect gold dips to be supported by buyers who are looking to see gold move towards the next resistance level at $4,900/$5,000." The U.S. Treasury Department announced that it would?double the size of liquidity support buyback operations for longer-dated notes and bonds. Treasury Department announced that it would "double the size" of its liquidity support buyback operations on longer-dated bonds and notes. The announcement sparked currency debasement concerns. TD Securities stated in a report that "these U.S. Dollar debasement concerns should see gold well supported in the coming week, as the Fed is not sending a clear message it is prepared to fight higher inflation." Gold is often regarded as a hedge against inflation, but high interest rates can reduce demand for bullion by increasing the cost of holding this non-yielding investment. Fed Chairman Warsh’s inaugural speech at this year’s annual Jackson Hole conference has gained in importance as traders and analysts seek guidance on the recent rise in bond yields, and to reassure themselves of his independence from Trump’s administration. The U.S. The Fed's preferred inflation indicator, the Personal Consumption?Expenditures Report, is due Wednesday. Iran has promised to respond geopolitically against the 'expanded U.S. sanctions, which Washington said would cut off Iran’s economic lifeline. Tehran expressed confidence in the ability of major trading partners to resist pressure. Silver spot gained 0.3% per ounce to $69.16, platinum gained 0.4% to 1,883.93, and palladium rose 0.2% to $1359.00.
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Oil prices stable as investors assess impact of US sanctions on Iran
Investors weighed the impact of the new U.S. sanctions against Iran, which are more severe, on the oil prices. Brent 'crude 'futures were down by 9 cents or 0.1% at $92.16 at 0104 GMT. Meanwhile, U.S. West Texas Intermediate crude oil was up one cent at $85.02 a barrel. Both contracts dropped more than 2% Monday, with U.S. Crude Oil falling to an all-time low after the price had risen over the past two weeks. U.S. Treasury secretary Scott Bessent announced on Monday an expansion of sanctions in order to cut off Iran’s economic lifeline and force a ceasefire between the two countries. He told?countries that they must cut their business ties, or risk being excluded from the dollar-based system. He refused to reveal the names of the countries targeted, or the date that the penalties would come into effect. Instead, he said he would give them time to comply with the new directive. Although U.S. Secretary of Defense Pete Hegseth stated on Monday that the U.S. will not rule out using military force against Iran. Tim Waterer is the chief market analyst for KCM. He said that markets appear to be pricing in economic pressure as being a less-risky path for physical supplies than kinetic actions. This was why initially, oil moved lower, rather than spiked higher. He warned that "Iran retains the ability to respond through disruption of shipping, which keeps a residual premium on the oil price." The United Kingdom Maritime Trade Operations?said that an oil tanker struck by an unknown?projectile on Tuesday, about 9 nautical mile (16.7 km), northeast of Oman’s Ash Shishah was disabled. Iran still maintains that it should control the Strait of Hormuz. Before the February war began, the Strait of Hormuz carried cargoes equivalent to?about 20% of the global oil consumption. It named 45 tankers on Monday that had 'broken its rules for crossing the strait, and threatened to take action against them up to and including confiscating their goods. Supply disruptions caused by the U.S. and Israeli war against Iran, which began on February 28, have led to countries reducing their commercial and strategic reserves. The Department of Energy announced on Monday that crude oil stocks in the U.S. Strategic Petroleum Reserve dropped by 3.7 million barrels, to 289.7 millions barrels, last week. This is the lowest level since November 1982. (Reporting by Ishaan Arora in Bengaluru; Editing by Christian Schmollinger)
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Russell: Iran's response to D-Day sanctions is crucial.
Scott Bessent, U.S. Treasury secretary, invoked the 1944 D-Day landings of Allied forces in?France when announcing sanctions against Iran. The measures taken are superior to the much less successful Anzio Beachhead landing in Italy, which was another amphibious landing during World War II. Anzio was a battle that began with a successful landing of the Allies, but a lack of leadership led to the campaign stalling and turning into a long campaign of attrition. Bessent’s new measures are designed to choke Iran economically. They target companies and countries that do business with Iran in five different sectors: digital assets, technology and gold, aviation, and shipping. Bessent, rather than go for broke upfront, is warning countries that they must work with the United States to maintain access to the global financial system based on the dollar. The new measures are therefore more of a danger than they are a reality. Even if these plans do come to fruition, there is doubt as to whether or not they are severe enough to force the Iranian rulers to surrender. Or if they will even be effective in forcing a desperate Iranian population to rise up and successfully overthrow its clerical leaders. Iran has shown its ability to get around sanctions by setting up front companies and working closely with allies like China. Beijing is unlikely to agree to any U.S. sanction, so Bessent will have to be prepared to impose measures on Chinese refiners and shippers, traders and banks. This may be a level that Washington would be reluctant to pursue. The new sanctions confirm that a diplomatic resolution to the Iran conflict remains a "distant" option. They also reinforce the belief of the Trump administration that some sort of victory is still achievable. History teaches us that when both sides are confident they can still win a war and believe time is on their side then the conflict will continue. IRANIAN RESPONSE How Iran reacts will determine the future of energy markets. Iran's social media messages have been aggressive, but it has not yet renewed missile and drone attacks against energy and other infrastructure within Gulf nations that host U.S. bases such as Kuwait and Qatar. Tehran also hasn't been able fully to close the Strait of Hormuz. While there's some disagreement over the volume of crude that moves through the narrow waterway the important thing is it isn't zero. Every barrel that passes through lessens Iran’s leverage. Iran also feels the pain of the U.S. port blockade, which is far more effective than sanctions. According to Kpler, data from commodity analysts shows that Iran exported 1.75 million barrels of crude per day in the three-month period leading up to U.S. and Israeli attacks on February 28. The crude oil demand has fallen to 255,000 bpd, from 893,000 in July. This is even lower than the 259,000 bpd of May, the lowest level since May 2020. Bessent and Trump have a problem because the more effective their economic and blockade sanctions are, the more Iran is compelled to retaliate with all the military weapons it has at its disposal. If Iran's leadership sees itself in an existential struggle, it is unlikely that they will accept being economically throttled and not try to take back the initiative by attacking infrastructure and vessels throughout the Gulf. Crude oil prices will likely remain high due to the uncertainty surrounding Iran's reaction. Brent futures, the global benchmark, fell 2.4% to $92.17 per barrel on Monday after Bessent announced his decision. This is still 31% more than the $70.14 per barrel that they dropped to in the short ceasefire between Iran and the U.S., which lasted mid-June through early July. You like this column? Check out Open Interest, your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, who is also an author. (Editing by SonaliPaul)
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Ghana gold buyers were left without funds for weeks, according to sources
Five industry sources have confirmed that Ghana's artisanal marketing agency for gold,?GoldBod, has been unable to provide funds to its "gold suppliers" in the last three weeks. This forced some operators to stop purchases or borrow money to remain in business, despite a surge of bullion prices. The last two weeks have been terrible. Last week, a gold dealer in Ghana's Ashanti Region stated that you could wait for a day and still not receive funds. A buyer from Ghana's Western Region who was funded by GoldBod said that funds hadn't been received in about three weeks. Sources requested anonymity as they were not authorized to speak publicly about the issue. GoldBod - which makes advance payments to licensed gold aggregators - said in a Monday statement that there was no shortfall of funding and that the funds were provided on the basis of creditworthiness and security assessments. The state agency stated that its gold-purchasing operation remained fully funded, operational and rejected any suggestions the agency had abandoned or was unable finance its statutory mandat. Kwaku Ohemeng Amosh, the chief executive of the Chamber of Gold Buyers, stated that GoldBod’s decision to fund the trade on its own balance sheet, after decoupling itself from the Bank of Ghana, may have contributed towards the funding constraint. He added that buyers can seek additional financing. Sammy Gyamfi was GoldBod’s chief executive at a recent press conference. He said that GoldBod had raised $839 million for purchase advances between March and may. GoldBod raised $75 million in a foreign exchange sale to commercial banks on 3 August before halting the auction for consultations with central bank. Three bank executives stated that the Bank of Ghana considered GoldBod’s auction program to be inconsistent with its operating structure and that both institutions are working together to resolve the concerns. Ghana, Africa's largest gold producer, created?GoldBod 2025, with the exclusive right to buy, export and sell artisanal gold, as part of efforts to?curb smuggling, and?boost foreign currency inflows. GoldBod's initial purchases were funded by the Bank of Ghana, which helped boost Ghana's economy. However, the IMF has called for a stop to central bank financing following losses associated with purchases. GoldBod stated in a statement released on Monday that it currently has two licensed aggregaters working under its trade finance framework. It also said that tighter controls were introduced from August 1 including due diligence, trade financing agreements, and security guarantees to strengthen risk management and protect the public funds. The Bank of Ghana didn't respond to all requests for comment immediately. Banking executives stated that less than five banks took part in GoldBod’s auction programme. They added that lenders felt more secure when the central banking backed the arrangement. Maxwell Akalaare Adombila reported from Dakar, and Emmanuel Bruce reported from Accra. Christian Akorlie contributed additional reporting from Accra. Editing was done by Pratima Deai, David Goodman, and Cynthia Osterman.
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Aggreko, a power supply company, files for an IPO in the US amid the data center boom
Aggreko filed for an?U.S. The power supply company announced on Monday that it had filed for an initial public offering. The company plans to list its ordinary share on the New York Stock Exchange with the ticker "AGKO". However, it did not reveal the number of shares or price range. Aggreko filed with the U.S. Securities and Exchange Commission at a time when investor interest has soared in the sector, partly because of an AI-driven datacenter boom. This year, nuclear companies X-Energy (formerly Standard Nuclear) and X-Energy went public via traditional IPOs. Goldman Sachs, ?J.P. Morgan and BofA Securities will serve as joint bookrunning?managers of Aggreko’s offering. Barclays and Morgan Stanley, on the other hand, will be bookrunning managers. The Glasgow-headquartered company's revenue grew 28% to about $1.92 billion for the six months ended July 4, helped by strong demand from data centers and other power-intensive industries. The company recorded a profit of $80m from its continuing operations, compared to a loss $196m in the previous period. According to the filing, data center revenues nearly doubled in the year ending January 3 to $391 millions. Aggreko reported that it has $6 billion in?net revenues secured as of July 2026. This gives the company a clear view of its future performance. The company was acquired by TDR Capital in 2021, and I Squared Capital. It provides temporary power generation, cooling, and energy solutions for customers across industries including utilities, mining and manufacturing. The company employs a little over 8,000 people and operates in 80 countries. It also serves more than 14,000 customers worldwide. The company has a total of more than 17 gigawatts available in its fleet.
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Nevada sues Trump administration to block Colorado River plan
Nevada filed a lawsuit against the Trump administration on Monday, claiming that its plans to cut water supplies from the drought stricken Colorado River would devastate Nevada and violate laws governing the Colorado River. The Department of the Interior finalized on Friday its plan, which included a reduction of 21% in the water flowing from the river into California, Nevada and Arizona over a two-year period starting in 2027. Arizona and Nevada say that the cuts to the three states in the lower basin could double after 2028. Colorado, Utah New Mexico and Wyoming are the four states that make up the so-called upper Basin and do not face any mandatory?cuts in the new 10-year management plan for the river, which provides water and power to 6 million people and is managed by the federal government. After more than three years, the states could not agree on how to divide the water after a plan expiring this year. The upper basin states have refused to make mandatory cuts in their water supply, claiming that they are already facing steep reductions because of the drought that has lasted for decades in western United States. Three lower basin states claim that all seven states who share the river are required to reduce their water consumption. This is the first time that the plan has been challenged. The lawsuit was filed in federal court, Las Vegas, and named the Interior Secretary Doug Burgum and the U.S. Bureau of Reclamation, as well as its Commissioner, Aubrey Bettencourt, as defendants. The Interior Department refused to comment, and the Bureau of Reclamation didn't immediately respond to a comment request. The lawsuit claimed that the administration violated administrative laws, environmental laws, and the group of agreements, treaties and court rulings known collectively as the Law of the River. The lawsuit alleged that the administration failed to comply with the requirements to take into consideration reasonable alternatives and foreseeable economic effects, fully respond to comments or adequately analyze mitigation measures. The lawsuit stated that "decisionmakers and stakeholders have to guess how federal defendants will interpret and apply the Law of the River which they all agree governs the proposed actions."
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Netanyahu claims Iran attempted to kill one his sons
Benjamin Netanyahu, Israeli Prime Minister, said that Iran had allegedly tried to kill his son, but did not provide any details as to when it took place, who was the target, or how close he came to executing this plot. Netanyahu's claim highlights the increased tensions that have been present since the U.S. and Israeli war against Iran began in early February. During this conflict, the Supreme Leader Ayatollah Ayatollah Khamenei as well as other senior Iranian officials were killed. Netanyahu's coalition, which is in the rear of opinion polls just two months out from a general election on October 27, made this claim in a phone interview with Israel’s Channel 14. He was responding to reports that one of Israel's Security Agencies had refused to protect a political opponent ahead of the nationwide election. "As to my sons. Yes, this is quite incredible. Iran targeted one of my sons. Iran attempted to kill or murder one of my sons," Netanyahu said to the conservative channel known for its positive coverage of the government. "Iran attempted to murder one my sons and therefore, this security protection isn't a luxury," said he, without giving any more details about the alleged plan or how close it was to being executed. It wasn't immediately clear to whom he was referring. Netanyahu's older son, Yair lives in Miami. The Iranian mission to the United Nations at 'New York' did not respond immediately to a question about?the accusations. Netanyahu said he also told Shin Bet chief David Zini he wanted to ensure that 'any candidate for prime ministerial office' would be adequately protected. Israeli media reported that Zini refused to provide security to Gadi Eisenkot, and told the country’s election authority that there was no conspiracy to harm him. Eisenkot's Party is expected to?win the most seats? in the election. However, Israeli governments are formed by coalitions between multiple parties and not by one party gaining a majority. Reporting by Andreea P. Popescu and Alexander Cornwell, Editing by Howard Goller
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Thirty people are killed in a gang attack near Haiti's capital.
Jean Massillon, the mayor of Kenscoff, told reporters on Monday that at least 30 people had been killed in a gang attack near Port-au-Prince. Kenscoff, a hillside town that overlooks Port-au-Prince, has been the scene of frequent gang violence in recent years. Human rights groups reported rapes and homicides in mass numbers, as well as arson, kidnappings and arson. This forced thousands of people to flee. RNDDH, a Haitian rights group, estimated that 30 to 40 people were killed in the overnight raid which began at 10:30 pm local time (0230 GMT) but cautioned it was still difficult to determine a total number. Haiti's Prime Minister's Office on Monday afternoon condemned the "heinous attacks", noting that all security forces are on high alert, and that reinforcements have been deployed. In a press release, it stated that "Kenscoff?will not be abandonned." "The authority of the government will be restored without delay and without any weakness in Kenscoff." Haiti's National Police did not respond immediately to a comment request. The community is strategically located to?overlook routes leading into Petion-Ville, home to several embassies and upscale hotels as well as the temporary seat for government. Local?media reported that?several homes were set ablaze, including the residence of Jean William Pape - a leading 'public health expert' in Haiti. The attack took place as the U.N. Gang Suppression Force - mandated to assist police in fighting gangs, and replace a 'underfunded and ill-equipped predecessor - plans?to achieve a full?capacity?of over 5,500 troops this fall. The report was written by Daina Beth Solor and Sarah Morland. Inigo Alexander, Natalia Siniawski, and Harold Isaac edited the article.
Asia shares drop on tech nerves, oil prices slip
Asia shares fell on?Tuesday, while oil prices continued to fall after the U.S.'s threats of an "economic D-Day," or sanctions against Iran, turned out to be a damp-squib.
U.S. Treasury Yields are 'off their recent highs after a report that Treasury Department?might tap its cash account to fund increased debt buybacks. This could reduce the requirement for additional short-term bill sales.
Investors are well aware of the high expectations that Nvidia will have to meet.
Analysts expect quarterly revenues to nearly double, to $92 billion. Full-year earnings are expected to range between $103 billion and $105 billion.
"These are high expectations that must be met," said Fabien Yips, a market analyst with IG.
"Judging by Nvidia's past performance, it will not be surprising if the company meets the headline figures. But I think that the most important thing is to try and understand if there are any concerns about the circular deals driving its growth, or a question of whether the growth percentage in the next quarters is sustainable."
MSCI's broadest Asia-Pacific index outside Japan fell 0.5%. Japan's Nikkei dropped 0.9%, and South Korea's Kospi plunged 2.7%.
Alibaba's $10.2 billion sale of shares at a steeply discounted price to "fund" its AI ambitions and Samsung Electronics' disappointing shareholder-return program also weighed on the tech sentiment.
Nasdaq Futures fell 0.08%, while S&P500 Futures were unchanged. EUROSTOXX?futures were 0.05% lower.
SANCTIONS & BUYBACKS
The Trump administration issued a warning on Monday to countries that they must cut off their business relations with Iran, or else face secondary sanctions. This was part of an "economic D-Day" which the Trump administration referred to as such. However, the Treasury Department did not impose any penalties.
Brent crude futures fell by 0.1% on Tuesday to $92.08 per barrel. U.S. crude climbed 0.1% to $85.09 a barrel, both measures falling more than 2% over night.
Joseph Capurso is a strategist with the Commonwealth Bank of Australia. He said: "We don't expect China, Iran's biggest trade partner, to give in to U.S. demands to stop commerce with Iran."
The U.S. campaign against Iran threatens the trade truce that the U.S. has with China before the next leaders' meeting.
The threat of being cut-off from the dollar-based system fuelled rumours about some countries and their banks needing to buy dollars as a precaution, thus lending support to greenback.
The U.S. dollar extended gains against its Canadian counterpart and last stood at C$1.3844 after a rise of more than 0.5% overnight. The?U.S. dollar continued to gain against its Canadian counterpart, and stood last at C$1.3844 following a rise of over 0.5% overnight.
Donald Trump, the U.S. president, threatened on Monday to increase U.S. tariffs starting January 1 on all Canadian cars, trucks, and automotive parts?to 50%. This escalated a trade war after negotiations broke down last week.
The euro has slipped from its?three-month peak and bought $1.1668 last, while the pound sterling gained 0.06% at $1.3638.
Investors will be watching the Federal Reserve Chair Kevin Warsh’s speech on Friday in Jackson Hole Wyoming. They are hoping to get some clarity on U.S. Interest Rates.
Standard Chartered analysts stated that "fiscal uncertainty is unlikely to fade anytime soon... but there is scope for the Warsh led?Fed, to ease some monetary policies uncertainties by clarifying their reaction function - specifically how long they are willing to hold rates to see inflation returning to its 2% goal."
All eyes will be on the Jackson Hole address by Chair Warsh for a sign, if not a forward-looking guidance.
Spot gold rose 0.5% to $4,675.51 per ounce.
(source: Reuters)