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Gold drops 2% as Middle East fears support the dollar and keep inflation concerns in focus
Gold prices fell 2% on monday as tensions between the U.S. and Iran boosted dollar values. This also fueled inflation fears that kept interest rate expectations high. By 2:05 pm, spot gold had fallen 2% to $4,523.23 an ounce. ET (1805 GMT). U.S. Gold Futures closed 2.4% lower, at $4.533.30. Bart Melek is global head of commodity strategies at TD Securities. He said that the latest news did not give the market any confidence in the future. It also raised the specter inflation issues and sent a hawkish signal to the market regarding interest rates. Iran has attacked several ships and set fire to a UAE oil terminal in the 'Strait of Hormuz', after President Donald Trump tried to free up shipping by using the U.S. Navy. This was the biggest escalation of the war since the ceasefire declaration 'four weeks ago. The U.S. Dollar?firmed up and Brent prices rose more than 5%. The dollar price of metals increases when the U.S. dollar is stronger. The soaring prices of energy have heightened inflation fears and boosted bets on central banks keeping interest rates high for longer. Barclays has joined the growing list of brokerages that bet against any policy easing by the U.S. Federal Reserve in this year. The Fed's most divided decision in over 20 years was to leave rates unchanged last week. This was due to deepening concerns about higher energy prices affecting the economy. This week, key data will include the ADP Employment Report and the April Payrolls Report. Gold is a good hedge against inflation, but it's not attractive in an environment of high rates because it offers no return. "I see a strong level of support for gold around $4,200. I think that there will be broader issues in the later part of this year which could support gold prices. Melek stated that uncertainty and rate hikes could push traders to sell positions in the short term. Spot silver dropped 3.2% to $72.95, while platinum fell 1.7% to $ 1,955.95 and palladium lost 2.9% to $1 481.00.
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Oil prices rise, while stocks fall as Iran tightens its grip on the Strait of Hormuz
Oil prices rose by 5% Monday, and stocks dropped as 'Iran escalated their military campaign. Drones were used to strike a 'UAE oil port and a South Korean vessel was hit in the Strait of Hormuz. Brent futures gained $6.43 or 5.9% to $114.60 while U.S. West Texas Intermediate crude (WTI), rose 4% to $100.91. The move came after U.S. president Donald Trump announced over the weekend that U.S. Navy will force the strait to open. Since two months, the Strait of Hormuz has been seriously disrupted. It is through this strait that a fifth of all oil and gas transported by sea in the world normally passes. The attacks on Monday reinforced fears that a military effort to reopen the Strait of Hormuz could spark a wider confrontation. The Dow Jones Industrial Average fell 1.03%. The S&P 500 was 0.53% lower, and the Nasdaq Composite fell 0.41%. The longer oil prices remain above $100 per barrel, the less fiscal stimulus the tax cuts that were passed in 2025 will be. MSCI's global index outside Japan fell as well, reversing gains made earlier after South Korean tech stocks closed over 5 percent higher. German automakers in Europe weighed on regional equity after Trump announced on Friday that he would increase tariffs on European cars and trucks. The STOXX 600 pan-European index dropped by 0.99%. The benchmark yield for the eurozone bloc, Germany's 10-year bonds, increased 5 basis points to 3,08%. Bond yields are inversely related to prices. London's markets were closed due to a public holiday. CENTRAL BANKS TURN HAWKISH AFTER OIL FANS INFLATION FEARS Oil-driven inflation has pushed bond rates higher and complicated global monetary policy outlook. The markets no longer expect that the Federal Reserve will cut rates in this year and they have already begun to price in rate increases from the European Central Bank as well as the Bank of England. Barclays joined other brokerages on Monday in predicting that the Fed won't ease policy this year. The Friday April payrolls report may further alter expectations. The yield on benchmark U.S. 10-year bonds rose 7.6 basis point to 4.454%. FOREX TRADERS ARE KEPT ON THE EDGE BY YEN VOLATILITY The currency markets are also a bit uneasy, and traders are 'closely monitoring for signs of Japanese intervention in order to support the yen. In Asian trading, the dollar plunged against the yen before turning around. The Japanese yen last fell 0.11% against the greenback, closing at 157.25 dollars. Analysts think Tokyo could have intervened in the last week for a total of?35 billion dollars. Roberto Cobo Garcia is the head of BBVA's G10 FX Strategy. He said that intervention was justified, due to the inflationary effect of a weaker yen through import prices. The U.S. government also seems comfortable with this action. The euro dropped 0.3% to 1.1685 while sterling fell 0.34% to 1.003526. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and other currencies) rose by 0.35%, reaching 98.50. On the commodity markets, gold dropped 2.22% to $4,511.66 an ounce.
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US extends protection to Venezuelan-owned Citgo against creditors
According to a statement posted on the website of the U.S. Treasury Department on Monday, "the United States extended a license protecting Venezuelan-owned refiner Citgo Petroleum against 'creditors until June '19." The Office of Foreign Assets Control issued the general license to boost investment in Venezuela and increase oil production. The U.S. also strengthens its protection of Houston's?Citgo, and its overseas parent companies which are the crowning jewels of Venezuela's foreign assets. Citgo is America's eighth largest refiner. The previous OFAC licence, issued in March, was set to expire on May 5. Citgo will be acquired by Amber Energy, a hedge fund affiliate, after a Delaware court ordered the sale of PDV Holding last year to pay billions to Venezuelan creditors. For the sale to go through, the auction winner must still have OFAC sign off on the order and the protection licence lifted. In an opinion piece that appeared in the Wall Street Journal, Amber officials promised last month to invest $11 billion in Citgo Petroleum in the event OFAC released the refiner?to Amber. These investments include adding 125,000 barrels of crude oil per day to the Corpus Christi refinery in Texas. Washington has eased sanctions against Venezuela ever since U.S. troops 'captured President Nicolas Maduro 'in January. The U.S. government 'took control of the OPEC nation’s oil sale proceeds through a trust fund. (Reporting and editing by Michelle Nichols, Alistair Bell and Alistair Bell; Daphne Psaledakis, Timothy Gardner and Ismail Shakil)
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Gold drops nearly 2%, as Middle East threats support the dollar and keep inflation concerns in focus
Gold prices fell by?nearly?2% on Monday, as increased tensions between the U.S. and Iran boosted dollar values and reinforced inflation fears that kept expectations for higher interest rates alive. By 11:26 am, spot gold had fallen 1.9% to $4,526.88 an ounce. ET (1526 GMT). U.S. Gold Futures dropped 2.3% to $4,37.90. Bart Melek is the global head of commodity strategies at TD Securities. Authorities in the emirate reported that a fire had broken out at the Fujairah Oil Industry Zone following what they called a "drone attack" from Iran. The U.S. Military said that two guided-missile destroyers from the U.S. Navy had entered the Gulf to break the Iranian blockade. Brent prices increased by more than 5%. The dollar price of metals increases when the U.S. dollar is stronger. The escalating energy prices have also heightened inflation fears and boosted bets on central banks keeping interest rates high for longer. Barclays has joined the growing list of brokerages that have bet against any policy easing by the U.S. Federal Reserve in this year. The Fed's most divided decision in 1992 was to leave rates unchanged last week. This was due to deepening fears about rising energy prices. This week, key?data include the ADP Employment Report and the April Payrolls Report. Gold is a good hedge against inflation and geopolitical unrest, but it loses its appeal when rates are high because the metal offers no return. I see a strong level of support for gold around $4,200. I think that there will be broader issues later in the year which could support prices. Melek stated that traders may be pushed to sell positions due to uncertainty and rate hikes. Spot silver dropped 2.9% to $73.12, while platinum fell 2.1% to $1.947.05 and palladium lost 3.5% to 1,471.50.
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US Justice Dept. Targets Minnesota over global greenhouse gas emission
On 'Monday, the U.S. Justice Department filed a lawsuit against Minnesota for its regulation of global greenhouse gas emissions. This is a part of a series of federal actions that has included fraud investigations and immigration raids in Minnesota. In its complaint, the department claims that Minnesota tries to regulate greenhouse gas emissions by suing companies of energy in state courts. In a statement, Associate Attorney General Stanley Woodward stated that Minnesota officials could not 'undermine President Trump's directive to unleash American energy dominance by requiring their woke climate preferences be the uniform policy? of the nation. Tim Walz, the Minnesota Governor, did not respond immediately to a comment request. Trump declared a nationwide energy emergency on his first day as president, issuing an Executive Order to "unleash America’s affordable and reliable natural resources and energy." Minnesota has been a focus of the Trump?administration. Last week, the?U.S. Agents searched more than twenty locations in Minnesota, as investigations into fraud?in social welfare programs continued. In an immigration crackdown, the Trump administration sent thousands of federal officers to Minnesota earlier this year. They also requested records from Minnesota's attorney general and governor as part of a probe into interference with immigration enforcement.
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India's Reliance boosts LPG production by cutting alkylate exports
Reliance Industries, India's largest chemical company, is reducing output of alkylates while?diverting the feedstock in order to increase production of liquefied gas (LPG), as India struggles with shortages due to the Iran War. The operator of 'the world's largest refining complex runs its alkylation unit on a minimum rate, reducing exports of gasoline-blending components. Reliance exports alkylates primarily to the U.S., from its export-focused refinery that produces 704,000 barrels per day. The company claimed that LPG production had increased by'more than threefold compared to pre-war levels. The company stated in a press release that the move was made to fill in the gaps in the loss of LPG imported from Middle Eastern countries. The federal government ordered refiners in?March to increase LPG production, as India was facing shortages following the closure of the Strait?of?Hormuz. India, the second largest LPG importer in the world, is facing its worst gas crisis in decades. The government has cut supplies to industry, to protect domestic cooking fuel needs. About 90% of the country's LPG imports came from the Middle East. Reporting by Nidhi verma and Mohi narayan. (Editing by Susan Fenton, Mark Potter and Mark Potter.)
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India's electricity production reaches a two-year high due to intense heat
India's electricity production in April reached 167.61 billion?kilowatt?hours?, the highest level since May 2024?and will continue to rise?as intense heat leads to record highs in demand?, according to an analysis of government data?. El Nino forecasts are expected to lead to hotter, drier weather across Asia. Grid-India data revealed that peak power demand (a measure of maximum electricity requirements at any time) had already reached a record level on April 25. Peak power demand is expected to reach 270 GW during the hottest months in May and June. Grid-India data showed that India's annual power generation increased by 5.3% from April to April. RENEWABLE GENERACY INCREASES IT SHARE OF MIX Data showed that the share of renewable energy generation in India's electricity mix increased to 16.5%. This is the highest level since July 2025. The South Asian nation produced 27,58?billion? kWh of renewable energy in April, an increase of 22.3% over the previous year. Debabrata Ghosh said that a solar-heavy system can meet the absolute peak demand in the daytime. Ghosh said India needs more power storage infrastructure in order to meet peak demand when solar power cannot be produced "at the earliest". According to the India Meteorological Department (IMD), large parts of India experienced temperatures of up to 45 degrees Celsius in April. In March, the government stated that it was confident about meeting the peak of 270 GW. The data shows that coal-fired electricity generation grew 2.6% on an annual basis to 121.34 billion kWh (about 125.34 billion kWh) in April, which is the fastest growth since December. The coal share of the total power generation fell to 72.4% from 74.3% in April, as renewables expanded. The data revealed that hydropower production increased by 11.8%, to 11,46 billion?kWh. Gas-based electricity generation dropped 33% from April of last year due to high fuel prices and supply constraints related to the Middle East crisis. Gas-fired power usage increased during peak demand periods despite this. The gas-fired generation increased to 9.6 GW by the end of April, up from 2 GW at the beginning of the month. This highlights its role as a back-up power source. Sethuraman N.R., Nidhi V.R. and Babrara L. Lewis edited the report.
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Argentina's mining exports will increase by 49% in 2026.
According to Roberto 'Cacciola, a?president of Argentine Chamber of Mining Companies, the mining exports of Argentina are expected to increase by 49% in 2026 and reach $9 billion. Cacciola stated that the estimate is conservative and added that the value could be higher if the current prices continue. Argentina exported mining exports worth $6.056 billion in 2025. This was a 30% increase over the previous year. The Incentive Regime for Large Investments (RIGI) was launched by President Javier Milei. Through this, the country attracted investments from mining giants such as BHP and Rio Tinto. The chamber reported that 13 projects totaling $42 billion have been submitted to RIGI. Seven of these have already been approved for $7.9 'billion. Argentina has moved up from 12th to 7th place in the world's top exploration destinations. Environmentalists and scientists have warned that the reform would undermine protections of water resources and weaken environmental protections. Reporting by Lucila SIGAL; Editing by Aida PELAEZ-FERNANDEZ and Brendan O'Boyle
Eni has restarted Venezuelan oil lifting as payment in kind for gas
Eni said on Monday that it would resume lifting Venezuelan crude in April as payment-in kind for gas produced?in Venezuela. The Italian energy group added?that?the move?would?allow?it to?recover?old receivables?from Caracas. Payments stem from an agreement between Venezuelan oil firm PDVSA, and Cardon IV - a joint venture owned equally by?Eni and Spain’s Repsol - that produces gas in the Perla field. The deal was signed in March. Eni stated that payments for gas are made in kind, and the first shipment from Venezuelan crude oil was lifted in April.
Eni announced that the lifting of oil cargoes has resumed as U.S. sanctions against Venezuela have been slowly eased by the Office of Foreign Assets Control of the U.S. Treasury since January.
Eni said that the new regulatory framework allowed it to continue to operate in Venezuela and, on a medium-term basis, assess whether or not to 'intensify' its activities. Eni owed PDVSA around $3.3 billion at the end of last fiscal year, which included?about $1 billion in interest.
Eni's?balanced sheet reported that the recoverable value of the receivables related to its Venezuelan operations was 880 million euro at the end 2025. (Reporting and editing by Francesca Landini)
(source: Reuters)