Latest News
-
Silver extends its rally above $60; gold dips ahead Fed decision
The gold price fell on Wednesday, as investors awaited a rate cut by the U.S. Federal Reserve and clues about future policy. Silver prices meanwhile?extended? their rally to new heights. At 1113 GMT, spot gold had fallen 0.4% to $4193.60 an ounce. U.S. Gold Futures for February Delivery were down 0.3% at $4,221.60 an ounce. Spot silver rose 0.7% to $61.11/oz, after reaching an all-time record of $61.61 in the previous session. This was due to rising industrial demand, falling inventories and its designation by?the United States as a critical metal. The white metal is up 112% this year. Silver broke through the $60 an ounce mark, attracting more short-term traders and trend followers to the market. Carsten Menke, Julius Baer's analyst, said that this also reflects a narrative of a physical tightness on the silver market. Federal Open Market Committee (FOMC) policy meeting ends later. A rate cut is expected to be announced by 1900 GMT, and Jerome Powell will speak at 1930 GMT. Markets assign an 88% chance of a 25 basis-point reduction. Nitesh Sha, commodities analyst at WisdomTree said that gold was currently trading in a range until the FOMC announced its decision. "What will move gold? Not necessarily the cut itself, but rather the guidance for future," he added. Benchmark 10-year U.S. Treasury Yields are at their highest level in more than three month. The demand for gold, as measured by the holdings of physical-backed products, was lower than for silver in the last few weeks. Menke said that they see this as being the primary factor preventing gold from gaining traction. Carolane de Palmas, an analyst at ActivTrades, said that "gold's performance is one of the primary drivers of silver price volatility -- any correction in gold can lead to increased volatility in silver." Kevin Hassett is the White House's economic adviser and the leading candidate to succeed Powell as Fed Chair. He said on Tuesday that "there was plenty of room" for further interest rate cuts, but rising inflation might change this calculation. Gold and other non-yielding investments are favored by lower rates. RBC Capital Markets increased its long-term forecasts for gold prices to an average $4,600 per 1 ounce by 2026, and $5,100 in 2027. They cited geopolitical risk, a softer monetary policies, and persistent deficits. Palladium dropped 0.7%, to $1,495.88, while platinum fell 1.7%, to $1662.33. Reporting by Pablo Sinha from Bengaluru. Alexandra Hudson, Mark Potter and Alexandra Hudson edited the article.
-
Marubeni expects Japan aluminum premiums to be between $85 and $203 by 2026
Marubeni Corp, a trading house, said that Japanese buyers will pay premiums between $85 and $203 per metric ton of aluminium in 2026 as overseas premiums are higher. This is because the flow to Asia has been reduced due to higher premiums, which have also slowed down. Japan is a major aluminum importer in Asia. The amount it pays for primary metal shipments above the London Metal Exchange Cash Price each quarter sets the benchmark for Asia. Japanese premiums have been lowered to $86 per tonne due to a combination of sluggish demand, ample supply and low prices. This quarter, the price was $228 compared to $190-$203 in January-March. In negotiations that began earlier this month for shipments in January-March, global suppliers have offered premiums between $190 and $203 per ton above the benchmark price. This is up 121%-136% compared to this quarter. Marubeni is one of Japan’s largest aluminum traders. They forecast Japan premiums of $140-$203 per tonne in January-March. $125-$200 from April-June. And a range between $85-$175 in the remainder of 2026. IMPACT OF US TARIFFS ON PREMIUMS "Premiums are rising in Europe and America amid concerns about supply and tariffs. This is raising fears that flows into Asia will be reduced, and has pushed up Japanese spot premiums over the past few weeks," Eisuke Akasaka said, General Manager of Marubeni's Light Metals Section. He noted that spot?premiums had risen to almost $140. Akasaka noted that an outage in a smelter located in Iceland and the expectation of the potential mothballing South32's Mozambique aluminum smelter, as well as front-loading before a new Carbon?Border Adaptation Mechanism under the EU have all contributed to the increase of European premiums. U.S. premiums are up because of high import tariffs. Akasaka said he expects European premiums will ease in the second halves of 2026, as the underlying demand is weak. This would lead to a small decline in Japanese premiums during the same period. (Reporting and editing by Barbara Lewis; Yuka Obayashi)
-
GE Vernova shares rise after bullish 2026 revenue outlook, buyback boost
GE Vernova shares rose by more than 8% on Wednesday in premarket trading after the company forecasted higher revenue for '2026, and a $4 Billion increase 'in its share buyback program. This was due to rising demand for GE Vernova power equipment used in data centers. GE Vernova is positioned to expand in the United States for a longer period of time, thanks to its continued growth across its gas turbine and grid businesses. Vernova, which was spun-off from General Electric in 2024, has seen a?rise of more than 370%. The stock jumped?8.2% before the bell Wednesday to $676.46. GE Vernova increased its share repurchase authority to $10 billion, up from $6 billion. It also doubled the quarterly dividend per share to 50 cents. Analysts at Jefferies said that the forecast was "well over on margins, EBITDA, and FCF," pointing out the "uniquely positive" outlook of the company's free cash flow for 2026 as well as the positive electrification margins above 20%. The company anticipates a 16% to 18% growth in organic revenue in 'its power segment, and a 20% increase in electrification in 2026. It?projected a free cash flow between $4.5 and $5.0 billion in the next year. This is higher than the $3.5 to 4 billion it expected to reach by 2025.
-
The price of 2026 diesel is higher at major Asian refineries
According to several trade sources, major Asian refineries have signed term agreements for diesel exports by 2026, at a higher premium than the benchmark Singapore prices this year. This is supported by the firmer prices of November. The spot premiums for refiners’?sales? of 10ppm diesel in December were at their highest level in two years as the?prompt?supplies tightened because refinery outages exceeded expectations and year-end demand by regional importers increased, traders reported. The higher premiums on 2026 supply indicates that traders are still bullish about the prospects for motor and industrial fuel in the coming year. Three sources familiar with this matter claim that the Taiwanese refiner Formosa Petrochemical Corp. (FPCC), sold two cargoes of 750,000 barrels per month at 10ppm sulphur to a Western trading house for a premium of 60-70c a barrel. They added that two more?buyers can load a 750,000-barrel shipment every quarter for a premium of up to 80 cents a barrel. The contract prices for this year were higher by 20-40 cents a barrel. The 'premiums' for diesel and jet-fuel are largely up on an annual basis due to'stronger forecasts of supply-demand next year', said FPCC spokesperson KY Lin. However, he declined comment on the deal. He added, "We expect global supply-demand fundamentals to be better than this year for most oil products such as diesel and jet fuel due to some refinery closures and shutdowns since the second half of this year." Some refineries in Asia have experienced longer than expected outages. Others on the West Coast of the U.S. West Coast refineries have permanently closed due to high cost. SK Energy (a unit of SK Innovation) and GS Caltex, two South Korean oil companies, have been selling?several cargoes of 10ppm sulphur-free diesel per month? to a few Western trading houses as well as regional end users at a premium of 30 cents a barrel?, compared to around 20 cents a barrel this year? SK Energy and GS Caltex didn't immediately respond to our requests for comment. Two sources confirmed that Japan-origin barriques were also being discussed, with premiums of 30-50 cents per barrique. However, further details couldn't be confirmed. Traders said that FPCC?and GS Caltex jet fuel and kerosene were both sold at a premium of 80 cents up to $1 per barrel compared to FOB Singapore prices. Several buyers took advantage of this opportunity to lock in supplies, expecting a stronger heating demand through the first quarter next year. Reporting by Trixie YAP. Joyce Lee contributed additional reporting. Mark Potter (Editor)
-
Copper prices rise on the prospect of support for Chinese real estate sector
On Wednesday, copper prices rose, returning to record levels on the back of hopes for more stimulus, particularly in China's battered real estate sector. Benchmark three-month Copper on the London Metal Exchange rose?1.2%?to $11,624 per metric ton at 1005 GMT, after falling by 1.3% Tuesday. It had reached a record high of $11,771 one day earlier. The shares of China's real estate sector soared on Wednesday, amid unsubstantiated market rumours about a government mortgage subsidy package worth 400 billion yuan (56.63 billion dollars). Property is one of the largest consumers of industrial metals, including copper. Dan Smith, managing Director?at Commodity Market Analytics, said: "A lot of?data from China recently was pretty abysmal in construction. It wouldn't?surprise me at all if there will be more stimulus for that part of economy to continue to grow." Analysts said that a stimulus for the Chinese economy as a whole was needed. Data on Wednesday revealed?that domestic demand is still weak and deflationary pressures persist. LME copper prices have risen 32% in this year, on fears of mine disruptions leading to deficits. Also, the flow of metals into the U.S. has tightened the supply of the rest of world. "I think that the risk for now is still on the upside. Smith stated that he had a "hunch" we would reach $12,000 by the end of the calendar year. The Shanghai Futures Exchange's most traded copper contract closed the daytime trade down 0.2%, at 91.850 yuan per ton. The U.S. Federal Reserve, expected to cut rates on Wednesday afternoon, may also dampen expectations for further rate cuts. Analysts at Chinese broker Jinrui stated that investors have'scaled back their positions due to the uncertainty of future rate cuts. The expected supply pressure outside of the U.S. keeps prices high and volatile. Other metals saw a 0.3% rise in LME aluminium to $2,863.50 per ton. Lead rose by 0.2% at $1,983, Nickel increased 0.2% at $14,760. Tin gained 1.4% at $40,400, while zinc fell 0.1% to 3,086.50.
-
A Chinese rare earth manufacturer receives a streamlined license for magnet exports
Ningbo Jintian Copper, a Chinese rare earth producer, announced on Wednesday that it had obtained streamlined export?licences. After a meeting in late October between Donald Trump, the U.S. counterpart of President Xi Jinping, and Xi's Chinese counterpart Xi Jinping, the?new general licences? are intended to allow individual customers more exports with year-long permits. On an investor interactive platform, Ningbo Jintian Copper said that its rare earth magnets are used in electric cars, wind turbines and robots as well as consumer electronics, medical equipment, and consumer electronic products. Last week, it was reported that three Chinese rare-earth magnet manufacturers including JL Mag Rare Earth Ningbo Yunsheng High-Tech and Beijing Zhongke San Huan High-Tech secured the licenses which would allow them to speed up exports to certain customers. Beijing added several rare earth elements and magnets in early April to its export control list, requiring dual-use licenses for export. China's exports of rare-earth magnets plummeted in April and may, forcing automakers to shut down parts of their production. The dual-use license regime will continue to exist. Reporting by Beijing Newsroom. (Editing by Jan Harvey, Mark Potter and Jan Harvey)
-
Intel wins reduced fine after losing its challenge to EU antitrust ruling
Intel, the U.S. chipmaker, lost its appeal against a 376 million euro ($438 millions) EU antitrust penalty imposed two years earlier for 'thwarting competitors.' But it gained some comfort as Europe’s second highest court reduced the fine by a third. The European Commission (which is the EU's competition enforcer) handed out the fine in 2023, after the court threw out an earlier penalty of 1.06 billion euro imposed by the tribunal in 2009 for blocking Advanced Micro Devices. The 376 million Euro fine was a result of payments Intel made to HP, Acer and Lenovo between November 2002 and December 2006 to stop or delay competing?products. These payments are often referred to as "naked restrictions" and are frowned upon by regulators. The Luxembourg-based tribunal stated that "the General Court upholds Commission 2023's decision against Intel, but reduces fine by about?140million euros." The judges said that a fine of 237 million euros is more appropriate in light of the severity and duration of the violation at issue. The company cited the limited number of computers that were affected by Intel?s restrictions and the 12-month interval between?some of these anti-competitive activities. On legal issues, the Commission and Intel may appeal to the European Court of Justice (the highest court in Europe), which is Europe's highest. T-1129/23 Intel Corporation V Commission.
-
Silver extends rally beyond $60; gold steady ahead of Fed rate-cut decision
Investors awaited comments from Jerome Powell, the chair of the Federal Reserve, on future policy decisions, as gold prices remained unchanged. Silver extended its historic rally over $60 an ounce. As of 0844 GMT, spot gold dropped 0.2% to $4199.92 an ounce. U.S. Gold Futures for February Delivery fell 0.2% to $4.228.10 an ounce. Spot silver rose 1.2% to $61.37/oz after hitting an all-time record of $61.61 earlier. Silver broke above the $60 an ounce mark, luring in more short-term traders and trend followers. Carsten Menke, Julius Baer's analyst, said that this also reflects a narrative of "physical tightness" in the silver markets. White metal prices have risen 113% in the past year. This is due to a combination of factors, including a decline in inventories and the United States' designation of it as a "critical" mineral. Today, the two-day Federal Open Market Committee (FOMC) policy meeting ends. A rate-cutting decision is expected at 1900 GMT. Powell will then make his remarks at 1930 GMT. The markets assign an 88% chance of a 25 basis-point cut. In the last few weeks, investors' demand for gold measured by holdings in physically-backed products was not as high as silver. Menke said that this is the primary factor holding gold back. Holdings of the largest gold-backed ?exchange-traded-fund (ETF), New York's SPDR Gold Trust, fell 0.1% on Tuesday, while New York's iShares ?Silver Trust, gained 0.53%. Kevin Hassett is the White House's economic advisor and a frontrunner for replacing Powell as Fed Chair. He said on Tuesday that "there was plenty of room" to lower interest rates further. However, rising inflation may change this calculation. Gold is a non-yielding asset that tends to be favoured by lower interest rates. RBC Capital Markets has raised its long-term forecasts for gold prices to an average $4,600 per 1 ounce by 2026, and $5,100 in 2027. They cited geopolitical risk, a softer monetary policies, and persistent deficits. Palladium dropped 0.3%, to 1,501.71, and platinum fell 1.2%, to $1670.70. (Reporting and editing by Alexandra Hudson in Bengaluru, with reporting by Pablo Sinha from Bengaluru)
US strikes on Iran shattered hopes for nuclear diplomacy
Foreign ministers of Europe's three largest powers met their Iranian counterparts in Geneva on Friday to try to diffuse the tensions over Iran's nuclear program.
These hopes were dashed Saturday, when U.S. president Donald Trump ordered airstrikes against Iran's main nuclear sites in support of Israel’s military campaign.
Abbas Araqchi - Iran's Foreign Minister - told reporters in Istanbul, Sunday, that it was "inappropriate" to ask Iran to resume diplomacy. He promised a "response", to the U.S. strike. It's not the time for diplomacy.
Trump warned that the U.S. would attack other Iranian targets if a peace agreement was not reached in his televised address on Saturday. He also urged Tehran to come back to the negotiation table.
Seven Western diplomats and analysts said that the prospects of negotiations were negligible for now. Washington's demands for Iran to stop enriching its nuclear fuel and Tehran's refusal abandon its nuclear program are not able to be bridged.
James Acton is co-director of Carnegie Endowment for International Peace's Nuclear Policy Program, a Washington-based think tank.
"I am more concerned about the escalation of the situation, both on the short-term and long-term."
According to European Diplomats, Trump's decision not to strike Iran was not communicated to the three European Allies, Britain, France, and Germany, in advance. Emmanuel Macron, the French president, had promised to speed up the nuclear talks on Saturday - before the U.S. strike - after a phone call with his Iranian counterpart.
Unidentified European diplomats acknowledged that a second planned meeting with Iran could not be held in the next week.
After the U.S.'s military action, it appears that any diplomatic role played by Europe will be secondary. Trump dismissed Europe's efforts to resolve the crisis on Friday, saying Iran wanted only to talk to the United States.
Analysts and three diplomats said that any future talks between Iran, and Washington, would most likely take place through Oman or Qatar as regional intermediaries, after Tehran decides what to do in response to U.S. strikes on its nuclear sites of Fordow, Natanz, and Isfahan. Iran has few options left after the attacks. Some in Tehran have suggested that since Israel launched its military campaign against Iran, on June 13, Iran could withdraw from the Nuclear Non-Proliferation Treaty to show their determination to speed up enrichment. However, experts warn this would be a significant escalation which would likely draw a strong response from Washington.
Acton of the Carnegie Endowment said that Iran's short-range missiles are the most obvious way to retaliate. These could be used against U.S. assets and forces in the region. He said that any military response from Iran would be fraught with danger.
"On one hand, the Americans want a response strong enough to make them feel that the U.S. paid a real price. He said that on the other hand they do not want to encourage a further escalation.
Three diplomats say that the European effort ended in failure. Even before the U.S. strike, the talks on Friday in Geneva were a complete failure. There was a huge gulf between the two parties and no concrete proposals were made. Diplomats believe that their mixed messages may have undermined the efforts of both sides.
The European position on Iran's enrichment programme has hardened over the last 10 days, as a result of the Israeli airstrikes and the threat of U.S. aerial bombardment.
Three years later, during Trump's first term, the three European powers (known as E3) were party to a nuclear agreement signed in 2015.
The Europeans and Tehran both believed that they understood how to reach a realistic agreement, given that the E3 has been dealing with Iran’s nuclear program since 2003.
The Europeans had a difficult relationship in the last few months with Iran, as they tried to exert pressure on it regarding its ballistic missile programme, its support for Russia and the detention of Europeans.
Two European diplomats say that France, the country most eager to negotiate, has suggested in recent days that Iran should move toward zero enrichment. This was not a demand of the E3 until recently, given Iran's redline on this issue.
Diplomats reported that Britain also took a more aggressive stance in Geneva. This was in line with Washington. The new German government also appeared to be moving in the same general direction, albeit with more nuance.
One EU official said that Iran will eventually have to accept the zero enrichment policy.
On Saturday, a senior Iranian official expressed disappointment with the Europeans’ new stance. He said that their demands were “unrealistic”, without giving any further details.
In a short joint statement issued on Sunday that acknowledged the U.S. airstrikes, the European countries stated they would continue to pursue their diplomatic efforts.
The Europeans said they were ready to help "in coordination with other parties" and called on Iran to enter into negotiations that would lead to an agreement that addressed all concerns related to its nuclear program.
David Khalfa is the co-founder of Atlantic Middle East Forum in Paris, which is a think tank. He said that the government of Supreme Leader Ali Khamenei had abused the Europeans to gain time while developing its nuclear program and missile capabilities.
He said, "The European effort ended in failure."
The Europeans have one more important card. As parties to the nuclear agreement, they are the only ones that can use the "snapback" mechanism, which will reimpose previous UN sanctions against Iran if the deal is violated.
Diplomats reported that, before the U.S. strike, the three countries discussed a deadline of the end of August to activate the system as part a "maximum-pressure" campaign against Tehran.
The U.S. has "MULTIPLE CHANNELS" for its talks
Officials from the United States said that the U.S. had launched 75 precision-guided weapons, including over two dozen Tomahawk missiles and more than one hundred and fifty military aircraft, in their operation against three nuclear sites.
US Defense Secretary Pete Hegseth warned Iran on Sunday against retaliation, and said that both public and personal messages were sent to Iran through "multiple channels" to give them the opportunity to negotiate.
Five rounds of indirect talks between the United States, and Iran have failed after the U.S. proposed at the end May that Iran abandon its uranium-enrichment program. Tehran rejected it, and Israel launched its attack against Iran after Trump's deadline of 60 days for talks expired.
Iran has said repeatedly since then that it will not negotiate during a war.
Two European diplomats and a senior Iranian official claim that Washington reached out to Iran even after Israel's strike to restart negotiations. It offered a meeting in Istanbul between Trump and Iranian president Masoud Pesekhkian. Three diplomats said that Iran rejected the offer, but Araqchi continued to maintain direct contact with US Special Envoy Steve Witkoff. Experts say that one of the biggest challenges of engaging with Iran is the fact that it's impossible to know the full extent of damage done to the country's nuclear program. The IAEA is severely restricted in accessing Iranian sites. It's unclear whether Tehran has hidden any enrichment facilities.
According to a senior Iranian source, most of the highly-enriched uranium from Fordow, which produces the majority of Iran's uranium that is refined up to 60%, was moved to an unnamed location prior to the U.S. strike there.
Acton of the Carnegie Endowment said that, despite the physical damage to Iran's installations, thousands of scientists, technicians, and engineers were involved in its enrichment program. Most of them had survived U.S.
Acton said, "You can't blow up knowledge." (Additional reporting in Brussels by Lili Bayer, Andrew Gray and Tom Perry; editing by Daniel Flynn.)
(source: Reuters)