Latest News
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Silver falls from its $80 peak, while gold mellows due to profit-taking
Silver fell after reaching a record high of $80 per ounce on Monday, while gold dropped from near-historic levels as investors booked profits. A market perception that geopolitical risk had decreased also curbed the safe haven buying. Gold spot was down 1.7% to $4,455.35 per ounce at 1321 GMT. It had hit a record of $4,549.71 an ounce on Friday. U.S. Gold Futures for February Delivery lost 1.7% and reached $4,474.80. Spot silver fell?5.1%, to $75.15 per ounce. This is a retreat from the record high of $83.62 reached earlier in this session. Spot 'platinum' fell 6.9%, to $2281.15, after reaching a record high of $2478.50, while palladium plummeted 11.9%, to $1,694.75 per ounce. Ricardo Evangelista, an analyst at ActivTrades, said that the decline in gold prices this morning, following record highs, was primarily due to traders reinvesting profits before year-end. "Tentative optimism on the part of the U.S. administration regarding progress in the Ukraine peace talks is also a mild blow." Donald Trump, the U.S. president, said that on Sunday he and Ukrainian leader Volodymyr Zelenskiy are "getting closer, perhaps very close" to a deal to end Ukraine's war. Bullion prices have risen by 72% in the past year. This is due to factors like a softer U.S.?monetary policy, a weaker dollar, geopolitical tensions, and robust central bank purchasing. Silver has outperformed gold this year by 181%, mainly due to its designation as an important mineral in the United States, shortages of supplies and a growing industrial and investor appetite. The release of the Fed minutes from the December meeting, which is due on Tuesday, will provide some clues about the future interest rate outlook. The market is pricing in at least two rate cuts next year. When interest rates are low, non-yielding investments tend to perform well. UBS analysts wrote in a report that "gold prices are trading at an elevated premium and downside risks may emerge if the Federal Reserve makes a surprise pivot to the hawkish side and/or if large ETF withdrawals affect the market." (Reporting and editing by Barbara Lewis, David Goodman and Pablo Sinha from Bengaluru)
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Bahrain implements new fiscal reforms in order to boost public finances
Bahrain announced several fiscal measures on Monday. These included raising fuel prices, increasing tariffs on water and electricity, and increasing dividends from government-owned companies, as well as other fees and tax. Bahrain, one of the Gulf's smaller producers of oil, has increased its efforts to diversify away from hydrocarbons and into other areas, such as tourism and financial services. However, lower?oil price have had a negative impact on public finances and growth. Bahrain plans to?raise natural gas prices and reduce administrative government expenditure by 20%. It will also introduce a new corporate income tax law for local companies. The statement did not provide any further information or details about when the new measures would be implemented. S&P Global Ratings Downgraded Bahrain sovereign credit rating In November, the rating was downgraded to "B" (from "B+") due to an increase in government debt. This increased pressure on government interest costs. The report projected an increased fiscal?deficit in 2025 of 7.6% of the GDP, up from its previous estimate of 7.1%. The government has raised $5 billion from global debt markets This year, investors will be able to take advantage of the healthy appetite for Islamic bonds or sukuk. The parliamentary speaker stated in a separate statement dated 28 December that Bahrain's government, parliament and the Council of Representatives held several meetings to discuss measures to support state finances. He noted some differences regarding the application of electricity and water services. Reporting by Mahal Dahan and Nayera Addallah, Writing by Rachna uppal; Editing and proofreading by Alison Williams & Chizu Nomiyama
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Upgrade of Zimbabwe thermal plant to 400 Megawatts will add to grid
Zimbabwe will upgrade its Hwange coal fired power?plant for $455 mln, adding 400 megawatts, or a 'fifth' of the current country electricity demand. Southern Africa has signed a concession agreement with Jindal Steel's Africa-focused unit for a 15-year period to refurbish some of its older units at the?thermal plant. Cletus Nyachowe, acting ZESA CEO, said that the deal was signed and finalised in December after it was approved by Zimbabwe’s cabinet on September 17. Nyachowe stated that the 15-year contract with Jindal would lead to increased power generation. This will?add 400 MW to our production within 48 months." He added that "Rehabilitation works are set to begin in the first quarter 2026." Zimbabwe is only able to meet half its electricity demand of 2,000 MW and suffers from?prolonged power cuts because its power plants are reducing in capacity. In 2023, two units, adding 600 MW, were commissioned at the Hwange plant. The older units, built in the 1980s, are only operating at a third of their full capacity because of?breakdowns. In 2018, the Kariba hydropower plant, built in 1960, underwent a 300-MW upgrade, boosting its capacity from 750 MW to 1,050MW. Its generation capacity also decreased in recent years due to climate-change-induced droughts.
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Silver falls from its $80 peak, while gold's price softens due to profit-taking
Silver fell after reaching a record high of $80 per ounce on Monday, while gold dropped from near-historic levels as investors booked profits. A market perception that geopolitical risk had decreased also curbed the safe haven buying. Gold spot was down 1.9% to $4,448.23 per ounce at 1148 GMT. It had hit a record of $4,549.71 an ounce on Friday. U.S. Gold Futures for February Delivery lost 1.9% at $4,467.90. Spot silver fell?5.4%, to $74.90 per ounce. This is a retreat from the record high of $83.62 reached earlier in this session. Spot 'platinum' fell 6.5%, to $2,291 per ounce, after reaching a record high of $2,478.50, while palladium dropped 13%, to $1,674.25 per ounce. Ricardo Evangelista, an analyst at ActivTrades, said that the decline in gold prices this morning, following record highs, was primarily due to traders reinvesting profits before year-end. "Tentative optimism on the part of the U.S. administration regarding progress in?Ukraine's peace talks is also a mild blow." Donald Trump, the U.S. president, said that on Sunday he and Ukrainian leader Volodymyr Zelenskiy are "getting closer, perhaps very close" to a deal to end Ukraine's war. Bullion prices have risen by 72% in the last year. This is due to factors like a softer U.S.?monetary policy, a weaker dollar, geopolitical tensions, and robust central bank purchasing. Silver has outperformed gold this year by 181%, mainly due to its designation as an important mineral in the United States, shortages of supplies and a growing industrial and investor appetite. The release of the Fed minutes from the December meeting, which is due on Tuesday, will provide some clues about the future interest rate outlook. The market is pricing in at least two rate cuts next year. When interest rates are low, non-yielding investments tend to perform well. UBS analysts stated in a report that "gold prices are trading at an elevated premium and downside risks may emerge if the Federal Reserve makes a surprise pivot to the hawkish side and/or if large ETF withdrawals affect the market." Reporting by Pablo Sinha, Bengaluru Editing Barbara Lewis and David Goodman
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Axis International wants $28,9 billion from Guinea for revocation of bauxite permits
Axis International Ltd, based in the United Arab Emirates, is seeking $28.9billion from Guinea through a World Bank Tribunal after Guinea revoked its permit to operate a mine of bauxite there earlier this summer. Guinea, which has the world's largest reserves bauxite and is seeking to increase revenues and local processing, has tightened state control of the mining sector over the last year, revoking some permits and reallocating others. These moves by the government led by coup leader 'Mamady Doombouya' have led to several arbitration challenges. One was filed by Nomad Bauxite Corporation in November and another by Nimba Investment LLC this month. Axis International stated in a Monday statement that "if Guinea fails to pay compensation or refuses participation, it risks losing donor support multilaterally and access to the financial markets." The dispute was brought before the?International Centre for?Settlement of Investment Disputes of the World Bank. The government of Guinea did not respond immediately to a comment request. Axis International is the owner of 85% Axis Minerals Resources SA. This Guinean company has rights to a Boffa region bauxite mining. In a statement, the company stated that this permit along with others was terminated on May 1. Axis International stated that, while the government claimed that the mine wasn't operational or underutilised it was "operating at a scale and supporting thousands and their families." "We will prove to the World Bank Tribunal that Guinea is responsible for all damages caused by its intentionally unlawful acts. Gunjan Sharma, counsel for Axis International said that the amount was USD 28,9 billion at minimum. The company stated that damages were calculated based on "proven reserves", which they put at over 800 million metric tonnes. The company stated that the mine would produce 18 million metric tonnes of bauxite by 2024. This will make it Guinea's largest source of bauxite exports. (Reporting and writing by Robbie Corey Boulet; Editing and proofreading by Jan Harvey).
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Before reversing gains, copper spikes reach a record of $13,000
On Monday, copper prices spiked to an all-time high of just $13,000 per metric ton. The London market was racing to catch up to gains in China and?the?US. While?it was closed Friday. LME copper prices have risen by 41% in the past year. This is due to fears of shortages, a weaker dollar and gains on other financial markets. The benchmark three-month copper price on the London Metal Exchange soared 6.6% in Asian trading to a record of $12,960 per ton, but then fell to $12,415 (up 2.1%) by 1030 GMT. The Shanghai Futures Exchange, the U.S. Comex and the London Metal Exchange all saw record-high copper prices on Friday. Robert Montefusco, broker at Sucden Financial, said that "Comex led Boxing Day". U.S. Comex copper futures rose to $5.8395 a lb. on Friday. This is a record that was surpassed on July 23, when the planned date of U.S. Tariffs neared. The imposition of U.S. Tariffs on refined copper did not have any impact. However, this decision will be reviewed next year and a new flow of copper into the U.S. in order to benefit from higher prices. Many analysts have forecast deficits for next year due to the pile-up in copper prices in the U.S. Metals prices rose as a result of a wider risk-on attitude, with global equity markets on course to reach record highs by 2025 and oil prices on the rise. The most active contract for copper on SHFE reached a record high of 102660 yuan per ton. Daytime trading closed up 0.8%, at 98860 yuan (about $14,105.33). The news that China will rein in its copper capacity in the next five year plan helped support gains on?SHFE. Nickel was up by 1.1% at $16,960, after reaching its highest level since April, at $16,025; tin fell 0.5% to $42,600.
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China's net gold imports through Hong Kong in November more than doubled compared to October
Hong Kong's Census and Statistics Department reported on Monday that China's net imports of gold via Hong Kong rose 101.5% in November compared to October. Why it's important China is the world's largest gold consumer. Its buying activities can have a significant impact on?global?gold markets. Hong Kong's data might not be a complete view of Chinese gold purchases as it is also imported through Shanghai and Beijing. By the Numbers The net imports from Hong Kong into China in November were 16.16 metric tonnes, up from 8.02 tons for October. China's total gold imports via Hong Kong in November increased by 0.5% compared to 30.08 tonnes in October. KEY QUOTE "During November we saw a great deal of volatility in the domestic Chinese premiums. They went from a modest premium to an important discount, which indicates a very mixed sentiment," according to independent analyst Ross Norman. Gold imports are typically higher in the months leading up to the Lunar New Year. CONTEXT China is the top consumer of bullion Gold prices reached record highs last week and gold was sold at discounts between $15 and $30 per ounce compared to the global benchmark price. This is the lowest discount in over five years. Discounts were offered in order to entice buyers amid a lacklustre retail demand. However, they narrowed last weekend as speculative purchases increased on the expectation of U.S. interest rate cuts. A tighter supply was also a result of limited import quotas, and a stronger yuan. China, however, continued to add gold to its reserves, increasing its holdings from 74.09 million fine troy pounds at the end October to 74.12 millions at the end November. Gold spot prices are up 72% in the last year. They reached a record of $4,549.71 per ounce on Friday. This is the largest annual increase since 1979. The rally was fueled by several factors including the Federal Reserve's policy easing, increased central bank demand, increasing ETF holdings and continued de-dollarisation. Reporting by Noel John in Bengaluru and Sherin Varghese, Kirsten Doovan. Editing by David Goodman.
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Silver falls from its $80 peak, while gold loses value on profit-taking
On Monday, silver retreated from a record high of $80 per ounce, while gold fell from historic levels. Investors booked profits as the perception of decreased geopolitical risk curbed safe haven buying. Gold spot fell 1.4% to $4,470.56 an ounce at 1017 GMT after reaching a record-high of $4,549.71 per ounce on Friday. U.S. Gold Futures for February Delivery lost 1.3%, to $4493.20 an ounce. Spot silver fell 4.8% to $75.32 an ounce after hitting a high of $83.62 earlier in the session. Palladium fell 13.2% to $1.669.11 an ounce after falling 6% from $2,478.50, the previous day's high. Ricardo Evangelista, a ActivTrades analyst, said that the price drop this morning, following record highs is primarily due to traders taking profit before year-end. The U.S. administration's tentative optimism about progress in the Ukraine talks is also a slight headwind. U.S. president Donald Trump stated on Sunday that the United States and Ukraine were "getting closer, perhaps very close" to a peace agreement. Bullion prices have risen by 72% this year on the back of factors like a softer U.S. dollar, geopolitical tensions, and central bank purchases. Silver has gained 181% in the past year, outperforming gold. This is due to its classification as a critical mineral for the United States, a shortage of supply, and a growing industrial and investor demand. The release of the Fed’s December meeting minute, which is due on Tuesday, will provide clues about the outlook for interest rates. Two rate cuts are expected next year, according to traders. In a low interest rate environment, non-yielding investments tend to perform well. UBS analysts wrote in a report that "gold prices are trading at a premium and downside risks may emerge if the Federal Reserve makes a surprise pivot to the hawkish side and/or if large ETF withdrawals affect the market." (Reporting from Pablo Sinha, Bengaluru. Editing by Barbara Lewis.)
What is USAID, and why have Trump and Musk made it a target?
U.S. President
Donald Trump's
administration is considering
merging the U.S. international aid agency (USAID) into the State Department
in a major revamp that would shrink its workforce and align its spending with Trump's "America First" policy. Trump has entrusted Elon Musk, the billionaire heading his drive to shrink the federal government, to oversee the project. On Sunday, Trump said USAID had "been run by a bunch of radical lunatics, and we're getting them out," while Musk called it "a criminal organization" without providing any evidence and said it was "time for it to die."
What is USAID and how is it funded? USAID was established in 1961 by Democratic President John F. Kennedy at the height of the Cold War with the aim of better coordinating foreign assistance, already a key platform of U.S. foreign policy in countering Soviet influence. It now administers some 60% of U.S. foreign assistance and disbursed $43.79 billion in fiscal 2023. According to a Congressional Research Service report this month, its workforce of 10,000, about two-thirds serving overseas, assisted about 130 countries. USAID is funded by Congress, based on administration requests.
CRS said USAID helps "strategically important countries and countries in conflict; leads U.S. efforts to alleviate poverty, disease, and humanitarian need; and assists U.S. commercial interests by supporting developing countries' economic growth and building countries' capacity to participate in world trade."
Its top aid recipients in 2023 were Ukraine, Ethiopia, Jordan, Democratic Republic of Congo, Somalia, Yemen, Afghanistan, Nigeria, South Sudan, and Syria.
How much does the US spend on aid and how does it compare?
In fiscal 2023, the United States disbursed a total of $72 billion in assistance worldwide and about 42% of all humanitarian aid tracked by the United Nations in 2024. The funds covered everything from women's health in conflict zones to access to clean water, HIV/AIDS treatments, energy security and anti-corruption work.
In recent years, according to a Brookings Institution report from September, U.S. aid spending has been around 0.33% of GDP. It peaked at 3% of GDP in the 1950s with the Marshall Plan program to rebuild Europe after World War Two. During the Cold War, it ranged from 1% to a little less than 0.5%.
While the United States gives more official government aid than any other country, its contribution as a percentage of national income is at the bottom of the list for wealthy countries in 2020, according to figures from the Organization for Economic Co-operation and Development.
In 2023, Norway topped the list at 1.09 percent of gross national income, while the United States lagged at 0.24 percent, along with Slovenia, the Czech Republic and Spain.
Is support for foreign aid bipartisan?
According to Brookings, Democratic administrations and lawmakers have historically been more supportive than Republicans, but every post-war president, whether Democrat or Republican, has been a strong proponent of foreign aid - apart from Trump. It noted that proposals by the first Trump administration to cut the U.S. international affairs budget by one-third were rejected, as were attempts to delay congressional consideration of supplemental foreign aid legislation in 2024. And in a bipartisan vote in June, 80% of the members of the Republican-led House of Representatives rejected an amendment to eliminate foreign assistance from the fiscal 2025 budget.
Who has been running USAID? Under former President Joe Biden, USAID was run by Irish-American diplomat Samantha Power, a self-professed idealist who served as U.N. ambassador under Barack Obama.
Its top priorities under its March 2023 Policy Framework were the climate crisis, stemming the tide of authoritarianism, and promoting inclusive economic growth and equal opportunities. In an interview this month, Power highlighted the role of USAID in projecting U.S. soft power.
"The best testament to USAID's contribution is the surge in PRC-backed and Russian-backed propaganda maligning USAID and our work around the world," she said, using the initials of China's official name, the People's Republic of China.
Trump opposition and impact In a Jan. 20 executive order announcing a 90-day pause in most of foreign aid, Trump said the U.S. "foreign aid industry and bureaucracy are not aligned with American interests and in many cases antithetical to American values."
"They serve to destabilize world peace by promoting ideas in foreign countries that are directly inverse to harmonious and stable relations internal to and among countries," it said.
In a memo, the administration urged USAID workers to join the effort to transform how Washington allocates aid in line with Trump's "America First" policy and threatened disciplinary action for ignoring the orders. The actions rang alarm bells from refugee camps in Thailand to Ukraine war zones with humanitarian organizations and U.N. agencies saying they could face drastic curbs on their ability to distribute food, shelter and healthcare.
A source with knowledge of USAID's workings said folding it into the State Department would be a big departure. USAID has in the past been able to provide humanitarian assistance to countries with which Washington has no diplomatic relations, including Iran and North Korea. This has sometimes helped build bridges, the source said, and the benefit could be lost if its operations were purely tied to political objectives. (Reporting by David Brunnstrom; Editing by Mark Porter)
(source: Reuters)