Latest News
-
Gold records record highs as Dollar drops ahead of Fed meeting
Gold reached a new record high on Tuesday. This was helped by the weaker dollar, which is expected to be a factor in the Federal Reserve meeting that will take place later in the afternoon. The monetary authority has been widely predicted to lower interest rates. As of 0748 GMT the spot gold price rose by 0.3%, to $3688.41 an ounce. It had earlier reached a session high of $3697.05 per ounce. U.S. Gold Futures for December Delivery rose 0.2% to $ 3,726.70. The dollar has fallen to its lowest level in over two months against other currencies. The Fed is expected to cut rates next week, according to UBS analyst Giovanni Staunovo. CME FedWatch shows that traders are pricing in an almost certain 25 basis-point cut to the rate at the end the two-day session on September 17. There is a slight chance of a reduction of 50 bp. In a post on social media, U.S. president Donald Trump called for Fed chair Powell to implement a "bigger rate cut" in a Monday's post. Carlo Alberto De Casa is an external analyst with Swissquote. He said that traders are betting on the Fed continuing to reduce interest rates in 2019. This will also support gold. In a low interest rate environment, non-yielding gold bullion is likely to perform well. "We should expect higher volatility around the Fed's statement, especially if the market perceives the rate reduction to be accompanied by a hawkish comment. Staunovo said that Trump's desire for lower rates will likely lead to gold moving higher in the months to come. A U.S. court of appeals refused to let Trump fire Fed Governor Lisa Cook on Monday. This is the latest in a long-running legal battle which threatens the Fed’s independence. Gold's spectacular rally to successive records highs is expected to continue for the remainder of 2025. However, a healthy correction will be needed before it reaches $4,000/oz by 2026, according traders and industry analysts on the sidelines the India Gold Conference held in New Delhi. Silver spot was unchanged at $42.70 an ounce. Platinum was stable at $1400.58, and palladium was up 0.3% at $1187.94.
-
Copper prices fall from multi-month highs on profit-taking
The copper price fell on Tuesday, from its multi-month highs. Profit-taking by traders overshadowed the support of cemented bets that a U.S. interest rate cut would occur and trade talks between China and the United States could progress. The Shanghai Futures Exchange's most traded copper contract, which had been trading at 81,530 yuan per metric tonne, lost some of its earlier gains and ended the daytime trade up 0.06%. The contract had reached its highest level since March 28, at 81.530 yuan, earlier in the day. The benchmark three-month copper price on the London Metal Exchange fell 0.61% by 839 GMT to $10,124.5 per ton. On Monday, the contract reached a 15-month high of $10,192.5. The traders are trying to cash out their profits in advance of the Fed's final rate decision. Two other traders claim that the rapid rise in prices has been met with resistance by downstream consumers. This has led to a limited increase for them. A Chinese copper smelter who requested anonymity said that downstream buying had slowed down after prices rose over 80,000 Yuan. U.S. officials and Chinese officials came to a framework agreement Monday on the short-video app TikTok. This sparked hopes of a close trade deal, which lifted sentiments and limited price drops. Analysts at Everbright Future noted that the prices were also supported by increased bets on a rate reduction by the U.S. Federal Reserve. Analysts at Benchmark Minerals Intelligence wrote in a report that rate cuts increase copper prices by combining a weaker US dollar with the expectation of higher demand. Nickel, among other SHFE metals rose 0.36%. Aluminium fell 0.33%. Tin dropped 0.42%. Zinc lost 0.22%. Lead fell 0.38%. Aluminium was largely unchanged, while nickel, lead, and zinc all declined. Tin, however, rose 0.23%. Click here to see the latest news in metals.
-
Iron ore prices rise amid recovery of Chinese steel production
The iron ore futures price rebounded Tuesday due to the improvement in China's steel production. Meanwhile, gains in steel benchmarks reflect a positive sentiment despite weak housing statistics. The January contract for iron ore on China's Dalian Commodity Exchange was up 0.82% at 803.5 Yuan ($112.94) per metric ton. As of 0730 GMT, the benchmark September iron ore traded on Singapore Exchange was $0.24 per ton higher. According to Chinese broker Galaxy Futures, in early September, the key steel companies produced an average daily production of 2.087 millions tons. This represents a 7.2% increase from one month to another. The news comes as China's crude-steel output fell for the third month in a row in August, when steelmakers in Tangshan - China's largest steelmaking center – curtailed operations to prepare for a major Beijing military parade. Brazil's raw steel production fell by 4.6% on an annual basis in August. Chinese consulting firm Mysteel said that after weeks of declines in production, iron ore concentrats were produced by Chinese mining firms last week. This is a sign of the gradual restarting of operations of domestic miners, according to Chinese consultancy Mysteel. As the property market continues to be weak, China's new homes prices dropped 0.3% month-on-month in August. On Thursday, the China Iron and Steel Association (a state-backed organization) will host a meeting for the heads of the iron ore purchasing at steelmakers. Coking coal and coke both increased in the DCE, by 5.84% each. China's coal production fell by 3% in August compared to the same month last year, its lowest level in more than a year. Production restrictions continued to be a factor. The Shanghai Futures Exchange steel benchmarks gained a majority of ground. Wire rod and hot-rolled coil increased by 0.09% and 1.25% respectively, while stainless steel dropped by 0.27%.
-
Top executives of KPI Green Energy say that SBI will raise $363 Million from KPI Green Energy.
Top KPI executives said on Tuesday that India's KPI green energy is planning to borrow 32 billion rupees (363,39 million dollars) from the largest lender in the country to expand production at its renewable power plant. Analysts say that the loan approval is one of the largest deals in recent history. It comes as the Indian government targets 500 gigawatts non-fossil energy capacity by 2030. KPI Green Energy is a renewable energy company that develops, builds and manages solar, wind, and hybrid power solutions. Sahil Yahya, chief financial officer, said that the company will raise the funds through a 20-year State Bank of India loan with an interest rate of 8,45%. The money will be distributed in stages over the next 1,5 years. Faruk G. Patel said that by 2027 the company will have completed all its projects, which will generate revenue of about 10 billion rupees. The company issued its first green bonds on Tuesday. It plans to raise 6.7 bn rupees with a coupon rate of 8.5%. The rating of the rupee-denominated 5-year bond has been boosted by a 65% GuarantCo guarantee, a company from the Private Infrastructure Development Group. Patel explained that without the guarantee they would have been forced to pay a coupon of 14-15% to raise money via equity or quasi-equity instruments. Yahoo reported that the guarantee raised the instrument's rating from A+ up to AA+ by CRISIL. Yahoo reported that Aseem Infrastructure Finance had purchased the majority of bonds while Jio Finance, SBI Capital Markets and SBI Capital Markets bought the remainder. The executives stated that SBI Capital Markets is the only arranger of the issue.
-
China's steel exports set to reach record levels, threatening further tariff backlash
China's exports of steel are expected to reach a record high in this year. This is despite predictions that trade barriers would cause shipments to drop. They also threaten to trigger a fiercer backlash from protectionists against the world's largest producer. According to 11 analysts who had predicted earlier in the year that exports were going to fall, they expect to see a growth of 4% to 9% to between 115 and 120 millions metric tons this year. China's record exports, which produce more than half the world's metal, highlight the need for new markets to absorb the metal, as its consumption peaked at the end of 2020, before the collapse of property prices. Steelmakers are also concerned that trade barriers may continue to rise. Three analysts and one trader, who spoke under condition of anonymity due to the sensitive nature of the issue in China, believe that it is better to sell as much now as possible. This fear could become self-fulfilling, as the export push reshapes flows globally and encourages countries to shut down their markets in order to support domestic steelmaking. China Trade Remedies Information reports that 54 tariffs or other trade barriers will be imposed on Chinese steel starting in 2024. This is more than what was imposed between 2019 and 2023. Analysts believe that more exports will lead to further restrictions. The European Union announced earlier this month that it would look for new ways to reduce steel imports. Mexico announced a plan on Thursday to increase tariffs on Chinese imports including steel. PIVOT PIVOT PIVOT The last peak in steel exports was in 2015. However, rising trade barriers as well as a boom in the Chinese property market that increased demand for construction steel reversed this trend. Steelmakers maintain exports by focusing on new markets with lower barriers or no barriers at all. Baosteel or Baoshan Iron & Steel, China's largest listed company, reported last month that exports to emerging markets such as the Middle East, Central Asia, and North Africa are growing rapidly. The company forecasts 10 million tons of exports this year. In the first seven-month period of this year, steel exports from Canada to Saudi Arabia rose by 24%, Malaysia by 14% and Thailand by 13%, respectively, compared with a year ago. Malaysia imposed antidumping duties on certain imports in July. In a late-August note, the China Iron and Steel Association, backed by the government, said that China's exports fell 20% and 10% respectively in the first seven-month period to its major trading partners Vietnam and South Korea. Both countries have also implemented anti-dumping sanctions. "It is a very brutal market for traders." There are very few orders coming from Vietnam or South Korea. We must now develop new markets, said a steel trader in east China. Steelmakers in China are turning to simpler products such as steel billets - semi-finished blocks made of raw metal because they attract lower tariffs. The exports of billets were three times greater in the first seven month of this year than they had been a year ago, and shipments of steel bars, which are used in construction, grew by 77%. Customs data revealed that hot-rolled wide thin steel strips, which are used in manufacturing, and often subject to tariffs fell by 23%. Alexis Ellender is the senior lead for dry bulk insights, Kpler. She said that China's exports are suffering because of its shift to unfinished, lower-value products, despite their record volume. Customs data revealed that steel exports increased 10% in volume during the first eight month of the year, but declined 1% in value. "The rise in semis exports can be a sign of exports nearing their peak. Semis are more profitable to export than finished steel. It shows that the market is under pressure", said Tomas Gutierrez. He is head of data for consultancy Kallanish Commodities. THE PEAK The Chinese government is also opposed to the increasing exports of semifinished products. Beijing wants steelmakers add value, and is considering higher export taxes in order to discourage the shipment of lower-valued steel. Some analysts believe that exports are likely to peak this year due to a combination of the new wave in protectionism and these factors. "Overseas market saturation and trade barriers are increasing." Gutierrez said that selling overseas won't be any easier. Kpler predicts that China's exports of steel will decline to between 100 and 105 millions tons by 2026. Three analysts predict volume will fall below 100 million. Exports of around 100 million tonnes would still be higher than the total steel production in every other country except India. Baosteel's general manager Baojun Lu said during a call to discuss earnings last month that "this year we have experienced record trade disputes, including anti-dumping duty." But as a large steel company, we have to export."
-
Gold's uptrend is intact but it will need to correct before reaching $4,000 by 2026
Gold's spectacular rally to successive records highs is expected to continue for the remainder of the year. However, a healthy correction will be needed before it reaches the $4,000 an ounce milestone, which is set for 2026. Investors have been prompted to buy gold by strong tailwinds including expectations of monetary easing from the U.S. Federal Reserve. The long-term bull run in gold looks intact as demand, especially from central banks, and ETFs continues to increase at a faster rate," Renisha chainani, head research at Mumbai refiner Augmont, said on the sidelines at the India Gold Conference, held in New Delhi. She said, "But gold has reached overbought levels and could see a short-term correction of 5-6% before consolidating again and reaching new highs in 2026 above $4,200." Gold spot was trading at around $3,680 an ounce on Wednesday, after reaching a session record of $3,689.27. It has gained 40% this year following a 27% increase in 2024. Nearly all participants in the industry at the conference expected gold's bull market to continue through 2026, based on a decline in U.S. rates of interest, strong demand for investment and geopolitical risk. Analysts have hedged prices to reach $4,000 by 2026. It's hard to say because the price is rising faster than expected, according to Nicholas Frappell of ABC Refinery, who heads global institutional markets. At the end of its monetary policy meeting, scheduled for September 17, it is widely expected that the U.S. Central Bank will cut interest rates. Trump has repeatedly criticized Federal Reserve Chair Jerome Powell's slowness and urged the Fed to reduce rates. Gold is a popular hedge against geopolitical risks and economic uncertainties. It also flourishes in an environment of low interest rates. Metals Focus' managing director, Philip Newman, said that gold prices have not been in this range for too long. The firm anticipates the price to rise to $3,800 by the end of the calendar year. We could see a possible correction after this price rally. But we also see it as an opportunity for investors to enter the market who have been waiting. In 2026, we could see gold prices rise above $4,000." SILVER BREAKOUT Silver, a metal that is both an investment and used for solar and electronics, has done well due to the strength of gold and the strong physical demand during this time of deficit concerns. On Tuesday, the metal reached its highest price in 14 years at $42,50 an ounce. Silver prices have been boosted by growing investor interest, said Chirag Thakkar. He is the chief executive officer of Amrapali Group Gujarat.
-
Google invests $6.8 billion in the UK ahead of Trump's visit
Google announced on Tuesday that it will make new investments of 5 billion pounds (6.80 billion dollars) into Britain in advance of U.S. president Donald Trump's visit to the nation, which is expected feature a flurry business deals and partnership. The U.S. technology company announced also the opening of a data centre near London to meet growing demand for AI-powered Google Cloud, Search and Maps services. In a statement, finance minister Rachel Reeves stated that the investment was "a powerful vote for confidence in the UK's economy and our strong partnership with the US". Alphabet's company stated that the investment will create 8,250 new jobs each year at British companies. The announcement is expected to be a boost to the Labour government of British Prime Minister Keir starmer, who hopes to attract private investments to help grow an economy that has been stagnant and to regain momentum on national opinion polls. Trump's visit will also be expected to strengthen economic ties between both Western allies. Senior U.S. government officials have stated that deals worth more than $10 billion will be announced. Google said in its statement that it has also agreed to a deal Shell, which will contribute to grid stabilization and Britain's transition towards a cleaner energy. Google's Waltham Cross Data Centre, located about an hour from London, is equipped with air-cooling technologies to reduce water consumption and can reroute heat to homes or local businesses to minimise its environmental impact. Google's UK operations will be running at or close to 95% carbon-free energy by 2026, thanks to its clean-energy initiatives and its partnership with Shell.
-
Morning bid Europe-Fed begins September meeting with the threat of independence
Rae Wee gives us a look at what the European and global markets will be like tomorrow. On Tuesday, the U.S. Federal Reserve will begin its two-day meeting where a rate cut has been all but priced into the market. This is at a moment when the White House is putting unprecedented pressure on the central bank to change the direction of the monetary policy. On Monday, the U.S. Senate narrowly confirmed Stephen Miran as a member of the Board of Governors of the Federal Reserve. This gave President Donald Trump's chief economic adviser one of twelve votes to set interest rates on the eve of a policy meeting. Miran is expected to attend the policy meeting, pending his swearing in and completion of paperwork. Lisa Cook, the Fed governor, is also able to attend despite a Supreme Court intervention at the last minute. A U.S. court of appeals ruled on Monday that Trump couldn't fire her. The markets reacted little to the news, but the development was a reminder that Trump is stamping his mark on the bank. He's changing its image in the public's eyes and among peer institutions. And he influences policy and other decisions. The markets were in a wait-and-see attitude ahead of Wednesday's Fed decision. Stocks in Asia reached new highs, while the U.S. Dollar struggled to gain traction. The markets have priced in the 25 basis point cut, with some even pricing in a 50 basis point move. This is despite Trump's call for a "bigger cut" from the Fed. Investors will have UK retail sales data, as well as U.S. retail employment figures to digest later Tuesday. The Bank of England continues to be concerned about the still-high wage growth in Britain, even though the wider labour market is showing signs of cooling. The average weekly earnings are expected to have grown 4.8% between May and July, as opposed to 5.0% from April-June. Meanwhile, the unemployment rate will likely remain at 4.7%. A poll of economists showed that the BoE will likely keep its benchmark rate at 2% this week, despite inflation rates creeping up. However, it is expected to reduce interest rates once next quarter, and then again in early 2019. The following are the key developments that may influence Tuesday's markets: * UK labour market data (July) * U.S. retail sales (August) The two-day meeting of the Federal Reserve's monetary policy committee begins
Anglo American, Codelco finalise $5 billion Chilean copper mines deal
Anglo American, the state-run Chilean copper giant Codelco and their Chilean neighbours have finalised a joint operation agreement for their Chilean copper mines. The aim is to extract at least $5 billion from their key assets.
The mining plan is based on the memorandum signed in February by both Codelco and Anglo American. It relates to the Andina Mine of Codelco, as well as the Los Bronces Mine of Anglo American in central Chile near the capital Santiago.
Codelco Chairman Maximo Pacheco said, "We are now able to maximise the potential of Andina-Los Bronces without major investment and with much greater returns."
Codelco plans to increase copper production by 2.7 million tonnes over a period of 21 years, subject to the receipt of permits. These are expected in 2030.
The companies have said that a new joint-owned operating company will oversee the execution of the plan. Both Codelco Anglo will retain ownership of their respective asset.
The agreement includes principles of sustainability and flexibility in order to adhere to environmental commitments made by the companies.
Environmental groups have fought the expansion in Chile because of its potential impact on the glaciers and the water supply.
Anglo American had earlier in the month
A merger with Canadian mining company Teck Resources is set to be the largest mining deal in more than ten years. (Reporting and editing by Sumana Niandy in Bengaluru)
(source: Reuters)