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Gold falls after a two-month high due to oil and hawkish Fed outlook
Gold prices fell on Thursday, after rising more than 4% the previous session. A surprise U.S. Treasury "liquidity" move pushed down bond yields as well as the dollar. Meanwhile, rising oil prices and hawkish Fed signaling prompted profit taking. By 1140 GMT, spot gold had fallen 0.9% per ounce to $4479.12. Bullion was earlier at $4,525.79, after prices rose to a two-month high on Wednesday. U.S. Gold Futures slipped?0.2% to $4,535.70. Treasury Department announced on Wednesday that it will double its liquidity-support buyback operation for longer-dated bonds and notes, helping to ease the pressure in the bond markets. The U.S. Dollar?was hovering around three-month lows. Ricardo Evangelista, senior analyst at ActivTrades, said that the lower prices this morning were a temporary correction and not the start of a downward trend. He said that the outlook for the next few weeks will be largely determined by the Federal Reserve's policy and the developments in the Persian Gulf. The minutes of the Fed's last meeting revealed that inflation concerns have intensified, and several policymakers are prepared to increase interest rates. The price of oil hit a three-week high on Thursday, amid fears that the U.S. and Iran war impasse would continue to disrupt Middle East supply. This comes after President Donald Trump warned against economic consequences for any nation providing Iran with "any type" of lifeline. The total U.S. outstanding debt surpassed $40 trillion for the?first time, causing new warnings about a fiscal emergency. According to the CME FedWatch tool, traders are pricing in a 67% chance of a Fed Hold in September. Morgan Stanley believes gold will exceed $5,000 per ounce by 2027. It could even be sooner as the Fed is expected to remain?on hold. However, it said that U.S. inflation figures may drive volatility, while low COMEX'short positions' limit further gains from?short covering. Gold is often regarded as an inflation hedge. However, increasing interest rates tend to make the metal less appealing. Silver spot fell by 0.4%, to $66.63 an ounce. Platinum dropped by 0.5%, to $1815.57, and palladium was down 0.1%, to $1331.00.
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India's infrastructure production rose 5.4% year-on-year in July
According to the second release of a revised series, India's infrastructure production increased?5.4% on an annual basis in July. However, it slowed a little from the previous months, as the output of iron ore and electricity moderated. The new series, released by the government last month, replaces 2011-12 as the base-year and expands core sectors to nine from eight industries, including iron ore. According to data from the government, infrastructure output increased by a revised 6 percent in June compared with a year ago. KEY NUMBERS * Cement production increased 13.1% from a revised increase of 9.9% in June. * Steel production grew?2.9% in July, compared with a revised growth of 5.6%?in June. * Electricity production?rose by 9% in July compared with a revised increase of 11.4% in June. * The coal production increased 7.6% in July compared to an increase of 1.4% in the previous month. * Iron ore production increased 29.5% from a revised increase of 44.5% during June. * Crude oil production fell by 5.3% in July compared with a drop of 4.2% in the previous month. * Fertiliser output declined by?8% in July, after a contraction of 3.3% in June. * The natural gas production fell 3.7% in July, compared with a revised decline of 4.8% in June. * The output of refinery products rose by 2.7% in July, compared to a revised 4.0%?fall one month earlier. * The cumulative infrastructure output growth for April-July has increased from 1.5% to 4.3% in comparison with the same period last year.
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Copper prices fall as inventories rise; weaker dollar provides support
The copper price?fell on Thursday, as more stocks arrived at?warehouses. However, losses were minimal due to the weaker dollar following a move by the U.S. Government?to calm down bond markets. Benchmark 'three-month' copper on the London Metal Exchange fell 0.4% to $13,988 per metric ton at 1025 GMT after adding 0.5% the previous session. LME copper reached a six-month high on Monday due to concerns about low inventories. However, since then the price has eased as metal is now flowing into storage facilities. The Treasury's announcement of yesterday's copper buyback helped stop the decline that we saw as inventories began to return to LME, said Ole Hansen. He is the head of commodity strategy at Saxo Bank. The announcement is a very strong one and indicates the possibility of a weaker dollar in the future. The announcement also shows that there is a competition among investors to fund debt and also hard assets. Copper has been at forefront of this recently. The dollar index dropped to a 3-month low as the Treasury Department acted to calm down a bond-market selloff which had driven long-end yields up to their highest level since 2007. The weaker dollar means that commodities priced in U.S. dollars are cheaper for buyers of other currencies. The Shanghai Futures Exchange's most traded copper contract edged up 0.2% to 107200 yuan (15,943.13) per ton. Data showed that LME inventories increased by another?3,950 tonnes, bringing gains for the week to 17%. On-warrant stocks of copper, meaning that metals not already designated for?warehouse removal' on the LME The prices of most items have risen by over?50% in the last week but remain less than half the levels they were three months ago. Other metals include LME aluminium, which?lost 1.1% at $3,196 per ton, and nickel, which?shrank 1.3% to $15,890. Zinc gained 1.2%, to $3.751, while lead increased 0.1%, to $1,890, and tin rose by 0.3%, to $55,705.
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Sources say that Indian Oil is close to signing a LPG import agreement with Algerian Sonatrach in 2027.
Indian Oil Corp., the top refiner in India, has signed a contract with Sonatrach of Algeria to import LPG from 2027. India is diversifying its sources of LPG (mainly used for cooking) to reduce its dependence on the Middle East. The recent blockade of energy flows in the Strait of Hormuz forced the South Asian nation, which was forced to ration LPG supplies, to rely less on Middle Eastern suppliers. IOC will lift one large?gas container containing between 45,000 and 55,000 metric tonnes of LPG (a mixture of propane?and butane) every month. IOC had a contract with Sonatrach for a period of time until a few?years ago, but then switched to purchasing?from the Middle East. A second source confirmed that the LPG prices in Algeria are lower than Saudi Aramco's Contract Price. The deal between IOC and Sonatrach, however, is to lift the cargoes free-onboard. IOC and Sonatrach have not responded to emails seeking comments. According to preliminary LSEG trade flow, India is expecting to receive 110,000 tons of LPG in August. India has 'increased their?intake?of U.S. LPG in order to offset the loss Middle Eastern supplies while encouraging customers to switch to piped gas. Sources said last month that India will buy up to a quarter (25%) of its LPG imported from the United States by 2027. Sources said that the three state-owned?retailers – Indian Oil Corp., Hindustan Petroleum Corp. and Bharat Oil Corp. – are expected to launch a joint bid to import LPG imported from the U.S.
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Investors take profit after gold's recent rally.
Gold prices fell on Thursday after a?4?% gain in the previous session. A surprise U.S. Treasury move to increase liquidity pushed bond yields down and the dollar, while higher oil prices and hawkish U.S. Fed signaling prompted profit taking. By 0946 GMT, spot gold had fallen 0.7% per ounce to $4487.93. Bullion prices were at $4,525.79 earlier, after they reached a two-month high on Wednesday. U.S. Gold Futures were little altered at $4,544.50. Treasury Department announced on Wednesday that it would double its liquidity-support purchase operations for longer-dated bonds and notes, helping to ease the pressure in the bond market. The U.S. Dollar was hovering around three-month lows. Ricardo Evangelista, senior?analyst at ActivTrades, said: "I'd describe the lower prices this morning as a short term?correction and not the start of a broader downtrend." He said that the outlook for the next few weeks will be largely determined by expectations about Federal Reserve policy, and the developments in the Persian Gulf. The minutes of the Fed's last meeting revealed that inflation fears had intensified, and several policymakers were prepared to increase interest rates. The oil prices rose to a three-week high on Thursday, amid fears that the Iran conflict impasse would continue to disrupt Middle East supplies. This was after Trump warned about economic consequences for any nation providing Iran with "any kind of lifeline." The total U.S. outstanding debt surpassed $40 trillion for the very first time. This prompted new warnings about fiscal crisis. According to the CME FedWatch tool, traders are currently pricing in a 67% probability of a Fed Hold in September. Morgan Stanley believes that gold will surpass $5,000 per ounce by 2027, and possibly sooner, because the Fed is expected to remain on hold. However, it said that U.S. inflation could cause volatility, while low COMEX-short positions limit the scope for short-covering gains. Gold is generally viewed as a hedge against inflation, but rising interest rates have a tendency to make it less attractive. Silver spot fell 0.4% per ounce to $66.68, platinum slid 1.5% to 1,797.77 and palladium dropped 0.2% to 1,323.86.
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Fuel shortages in Moscow have returned, and drivers are faced with long queues at the fuel stations.
This week, disgruntled Moscow motorists waited in long queues at 'gasoline stations to fill up their cars with limited fuel. It was the second wave of the 'crisis due to high seasonal demand and Ukrainian strikes against oil refineries. Witnesses and fuel suppliers report that fuel stations in Moscow have set new limits on the purchase of gasoline due to fuel shortages. In May, shortages began to grow and spread throughout most Russian regions in July. However, fuel stations in Moscow were able ease an earlier round of restrictions. Ukraine has targeted Russian oil refineries to reduce energy revenues and undermine Moscow's war efforts. The queues at the gas stations can be as long as a kilometer. Witnesses also reported long queues at filling stations, with some extending up to one kilometer (0.6 miles) in Moscow and the surrounding area. Many other stations also had closed their doors or only offered diesel. We have visited five petrol stations and still there is no fuel. Fuel was available last week. "Now, fuel is unavailable again," said a German resident of Moscow who refused to reveal his full name. Marat, a taxi driver, complained as well. "Everything's very bad." You'd need to drive the length of Moscow in order to find fuel. Even in this situation, you will not find any fuel. You'll have to wait two or three hours." Other motorists have downplayed the shortages. Artur, a resident of Moscow, stated, "I believe everything will return to normal in a few weeks." In order to boost the domestic supply, Russian authorities?banned gasoline and diesel exports,?assuaged fuel quality requirements, and?started importing petroleum products. On Wednesday, Russian Deputy Premier Alexander Novak confirmed that Russia had begun importing fuel. Normally, Russia is a net oil and fuel exporter. (Reporting and Editing by David Holmes).
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Monte dei Paschi CEO to unveil strategy to fend off Intesa's EUR36 billion bid
Three people familiar with the matter have confirmed that Monte dei Paschi di Siena CEO Luigi Lovaglio is preparing to present a strategy to the Italian board of directors on Thursday to counter the EUR36 billion bid from Intesa Sanpaolo, the bank's bigger rival. Analysts suggest that MPS can use an asset it acquired by taking over Mediobanca in 2025, a 13% share of Italy's largest insurer Generali. It could also draw from its cash reserves to boost returns to its shareholders and counter Intesa's EUR3 billion?in cash offer. Analysts have stated that the Generali stake, worth EUR8.5 billion, could be traded or sold for another asset. MPS CEO Luigi Lovaglio refused to give any details on an analyst call held on August 7. Lovaglio had previously been ruled out of selling the Generali stake by people familiar with his plans. MPS explored a possible deal with Banco BPM in order to stop?Intesa from taking over. However, the two banks announced on July 31 that they had ended their discussions after Credit Agricole France, BPM's largest investor, expressed its disapproval. One of the sources stated that the board began its meeting at 0700 GMT in order to discuss options. BREAK-UP Intesa will retain Mediobanca and the Generali stake as well as roughly half of MPS’s branch network. The other half has been sold to address antitrust concerns. Lovaglio criticised the plan and said it would destroy value. Prime Minister Giorgia meloni expressed her hope that MPS might not be "dismembered", even though she insisted that the government was playing no active role. Intesa’s unsolicited offer of cash and shares in June was the latest in a wave of consolidation that has reshaped Italian Banking over the last 21 months. Italian banks spent years restructuring to reach record profits when interest rates began to rise in 2022. MPS was the poster child of the overhaul. After being rescued by the government in 2017 and then?reprivatised between 2023 and 2024, Generali bought Mediobanca for EUR16 billion in a hostile bid and took control of Generali's prized stake. MPS's largest shareholders are Delfin - the investment vehicle for the Del Vecchio business family, an eyewear dynasty - and Francesco Gaetano Caltagirone, a construction magnate. Both are major Generali investors. Intesa made its bid as UniCredit was busy taking over Commerzbank in Germany. UniCredit also acquired a Generali stake in recent months, which it referred to as a financial asset. (Reporting and editing by Elaine Hardcastle, Giulio Pioloavaccari, Andrea Mandala)
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China calls on South Korea to not take sides and blames US policy in Korea tensions
Wang Yi, China's foreign minister, urged South Korea to not take sides in the dispute between Beijing and Washington. He said that the U.S. North Korea should drop its "hostile policy" towards the peninsula. Wang made these remarks during a meeting on Thursday with South Korea’s National Security Adviser Wi-Sung-lac, reported the Chinese state news agency Xinhua, where he met South Korean president Lee Jae Myung. Wang was quoted by Xinhua as saying that "the fundamental solution to tensions on Korean Peninsula is to address the root causes and urge the United States abandon its 'hostile policy towards North Korea. Wang expressed China's hope that South Korea "will achieve genuine strategic autonomy and refrain from bloc confrontation and taking sides and develop relationships with major powers, including China and the United States, in parallel and without contradiction." The remarks come after U.S. president Donald Trump announced on Wednesday that he plans to meet with North Korean leader Kim Jong Un in the second half of this year. He also said that North Korea possessed 57 "very strong" nuclear weapons. Trump also ordered Pentagon officials that joint military exercises between South Korea and the United States be cut short, citing Kim's "very good relationship". The U.S. continues to demand that North Korea denuclearize, a demand Pyongyang consistently rejects. North Korea fired a suspected missile into the sea Thursday, according to Japan's coastguard and government. Wang, a Chinese diplomat, told Wi that China would welcome a peaceful coexistence on the peninsula between South Korea (North Korea) and South Korea. He called for a re-start of dialogue and restoring trust. Wang, in separate discussions with Lee, called on Seoul to adopt a policy of friendship towards China. He said that bilateral relations had "fully recovered", and they made progress this year. He said that a 'rational, pragmatist, and positive' policy towards China was in full accordance with South Korea’s interests, as well as the current trend. Wang called for a 'rapid completion of the second-stage negotiations with 'South Korea to establish a free trade deal, saying that the two countries must promote regional integration in light of the increasing fragmentation and protectionism in the global market. (Reporting and editing by Christian Schmollinger; Liz Lee, Ethan Wang)
Norway's Equinor signs a three-year agreement with Poland's Orlen
The Norwegian company Equinor announced on Thursday that it had signed a contract for a period of three years to supply oil from western Europe's largest producing field Johan 'Sverdrup. Equinor announced that the contract will begin in September and allow for deliveries between 5 million metric tonnes and more than nine million tons.
The deal is flexible, and allows for different Norwegian grades. However, Johan Sverdrup’s medium-heavy oil?is an excellent substitute for Russian Urals which historically Lithuanian or Polish refineries were designed to process. Since Russia's war against Ukraine began in?2022, European nations have slowly stopped using Russian energy. Orlen stopped purchasing?any Russian crude oil last year, when it ceased purchases for its Czech division. Orlen's chief executive, Ireneusz Fafara, said that the agreement was a response to global instability. It also demonstrated that energy sector resilience is built by a long-term partnership with partners who provide predictable supplies and operational stability. The contract stipulates that the greater quantity would be delivered in Lithuania, Poland, and the Czech Republic. This would make Equinor Orlen’s second largest supplier, after Saudi Aramco which supplies around 40% of crude oil processed by Orlen.
According to estimates, the contract covers about 20% of Sverdrup’s output. Reporting by Louise Rasmussen and Nerijus Adomiaitis; writing by Marek Strazelecki; editing by Terje Sollvik and Barbara Lewis
(source: Reuters)