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Gold prices steady as investors wait for US trade updates and central bank meetings
Gold prices were not much changed on Monday, as investors watched developments in U.S. Trade Talks and awaited possible market-moving factors, such as the U.S. Federal Reserve policy meeting scheduled next week. As of 0250 GMT, spot gold remained steady at $3,352.19 an ounce. U.S. Gold Futures remained unchanged at $3,358.70. Tim Waterer, KCM Trade's Chief Market Analyst, said that the dollar has had a quiet start to the week. This has opened the door for gold to make gains in the early going. Tariff deadlines are looming. The closer we get to the August 1 deadline, without any new trade agreements emerging, the more likely it is that gold will start to fancy another run towards the $3.400 level, and perhaps even beyond. Investors are watching developments in the trade negotiations as U.S. president Donald Trump approaches his August 1 deadline. U.S. commerce secretary Howard Lutnick is optimistic that a deal can be reached with the European Union. Reports said that Trump could visit China between October 30th and November 1st before attending the Asia-Pacific Economic Cooperation Summit. He might also meet Chinese leader Xi Jinping at the APEC summit in South Korea. The European Central Bank will likely hold its interest rates at 2.0% after a series of rate cuts. Last week, Federal Reserve governor Christopher Waller reiterated his belief that the U.S. Central Bank should reduce rates during its next policy meeting. In an environment of low interest rates, gold, which is often considered to be a safe haven during times of economic uncertainty, does well. The ruling coalition in Japan lost control of Japan's upper house during an election held on Sunday. This further weakened Prime Minister Shigeru Shiba's hold on power, as the U.S. deadline for tariffs looms. Other metals, such as spot silver, rose 0.1% to $38.22 an ounce. Platinum gained 0.3%, to $1.425.11, and palladium increased 0.2%, to $1.243.47.
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BHP exits $2.5 billion Tanzania nickel project, partner Lifezone says
BHP Group chose to sell to Lifezone Metals its stake in the $2.5 billion Kabanga Nickel Project in Tanzania for up to $83 million. Lifezone, a company listed on the NYSE, said that it would acquire BHP’s 17% equity stake in Kabanga Nickel Limited. KNL is the majority owner in the Kabanga Nickel Project located in the northwestern part of Tanzania. In a report released by the company on Friday, development costs were estimated at $2.49billion. The project is expected to produce around 50 000 metric tons per year once it has been fully ramped-up, which will take about six years. The project will be finalized by the end of next year. BHP agreed to invest up to $100 million by 2022 in the nickel mines and processing facilities, if certain conditions are met. BHP still views Kabanga as one of the best undeveloped nickel-sulphide projects in the world, according to a source familiar with the matter. However, the uncertain outlook for the nickel market and the miner’s capital allocation structure have made investing in greenfield nickel project challenging. BHP's spokesperson declined to make any comment. BHP's view of nickel has changed due to the boom in production from Indonesia over the past few years. BHP put its Australian Nickel West operation on care and maintain last year because of a poor outlook on nickel prices. A decision about the future is due in early 2027. Lifezone owns now 100% of KNL. KNL holds 84% of Tembo Nickel Corporation Limited, the Tanzanian operating firm for the Kabanga Nickel Project. Tanzanian government owns the remaining 16%. Lifezone said that all existing agreements with BHP had been terminated, and it also took full control of 100% offtake of the Kabanga Nickel Project. (Reporting by Melanie Burton; Editing by Jamie Freed)
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New Zealand dollar drops as rate-cut bets are boosted by benign inflation
The New Zealand dollar fell on Monday, while local bonds rallied. Inflation data showed that it was not as bad at first thought. Still tepid price pressures in New Zealand support a rate cut next month. The kiwi fell by 0.3%, to $0.5941. It had fallen 0.8% the previous week. This is now the third week in a row that it has declined. The kiwi dollar is down almost 3% since a peak of $0.6120 nine months ago. Near-term support has now been found at the low of last week of $0.5906. New Zealand's second-quarter inflation rate rose to 2.7%, its highest in a full year, due to rising prices for food, electricity, and streaming services. This was below the 2.8% forecast. The non-tradable price inflation, mainly domestically generated, has continued to decline to 3.7%, from 4%. Citi analysts said in a client note that "CPI inflation is not expected to increase significantly this year, giving the Reserve Bank of New Zealand Monetary Policy Committee reason to be skeptical about a return of annual CPI to the top of target range (of 1-3%)." This would allow the MPC re-starting the easing cycle during the August 20th meeting. The two-year swap rate fell by 6 basis points, to 3.115%. This is the lowest it has been since mid-May. The yields on ten-year government bonds fell 4 basis points to 4.595%. The markets now price in a probability of 75% that the RBNZ is going to cut by 25 basis point in August. This was up from 61% before the data. The Aussie was flat at $0.5510, after losing 1% the previous week, to as low as $0.455. The 65-cent level is a good support. The yen fell 0.3% against the dollar to 96.61, as the Japanese currency jumped a bit after the ruling coalition lost the upper house of parliament in Sunday's election, a result which was predicted by polls. The Reserve Bank of Australia is expected to release its minutes of the July policy meeting, which may provide some insight into the rare split between policymakers prior to deciding whether or not rates will remain at 3.85%. The markets have priced in a 90% probability that the RBA is going to cut rates this August, after a surprisingly weak jobs report was released last week. On Thursday, Governor Michele Bullock will deliver a speech during the annual fundraising luncheon at the Anika Foundation. Paul Conway, Chief Economist of RBNZ, will speak about the economic impact of tariffs on New Zealand at 11:15am local time Thursday. (Reporting and editing by Lincoln Feast; Stella Qiu).
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Shanghai metals are rising after China pledges to boost industrial growth
After China's Industry Ministry last week promised to stabilize the machinery, automobiles and electrical equipment sector, the most traded metals contracts at the Shanghai Futures Exchange increased on Monday. Tao Qing said that China would launch action plans to stabilize growth in these industries. Tao said that the move was designed to "improve supply capacity for premium products" in order to prepare the industry to achieve an upgrade of quality and a reasonable growth, measured by quantity. It also promotes an "orderly withdrawal of outdated production capacities". SHFE zinc was the biggest gainer, up 2.69% at 22,900 yuan a ton ($3,190.48), as of 0102 GMT. The contract had hit 22,915 Yuan earlier, its highest level since May 14. SHFE Nickel rose by 1.25%, to 121.750 yuan. Aluminium gained 1.17%, to 20.745 yuan. Lead grew 1.04%, to 16.990 yuan. Copper climbed 0.87%, to 78.990 yuan. Tin advanced 0.56%, to 265,390. Metals analysts at a Beijing futures company commented that "China's Industrial Ministry said was encouraging for metals generally." They added, "Industrials sectors are all relevant to metals." The ministry stated that the plan would cover 10 industries in addition to downstream industries. These include steel, nonferrous materials, petrochemicals, and construction materials. Metals have generally responded positively to news. Those with the most room for price increases will be stronger, said a Shanghai-based futures analyst. After Friday's spike, LME metals fluctuated only slightly on Monday. Zinc rose 0.5% to $2.832.5 per tonne. It reached $2,837 earlier in the session. This was the highest level since April 1. LME aluminium increased 0.15% to 2,633.5. Lead gained 0.13% at $33,490. Nickel added 0.11% at $15,235. While lead decreased 0.1% to $2,000 Copper was unchanged at $9,776.5, after reaching $9,777 last Friday, its highest level since July 8. Click or to see the latest news in metals, and other topics. (Reporting by Hongmei Li. Editing by Sumana Niandy.
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Investors continue to monitor the impact of new sanctions against Russia on oil prices.
The oil price barely moved on Monday, as traders watched the impact of European sanctions on Russian supply and rising production from Middle East producers. They also worried about fuel prices as tariffs weigh on global economic growth. Brent crude futures were up 5 cents at $69.33 per barrel by 0040 GMT, after closing 0.35% higher Friday. U.S. West Texas Intermediate Crude was up 2 cents to $67.36 per barrel after a 0.30% increase in the previous session. The European Union approved Friday the 18th set of sanctions against Russia for the conflict in Ukraine. These included India's Nayara Energy as an exporter who refines oil from Russian crude. Dmitry Peskov, the Kremlin's spokesperson, said that Russia has developed a certain immunity against Western sanctions. Rosneft - Russia's largest oil producer and owner of Nayara - criticised Sunday the sanctions, calling them unjustified, illegal, and a direct threat to India's energy independence. A spokesperson for the Iranian Foreign Ministry said that Iran, another oil producer sanctioned, will hold nuclear talks with Britain, France, and Germany in Istanbul on Friday. The three European countries had warned that international sanctions would be reimposed if the negotiations were not resumed. Baker Hughes reported on Friday that the number of oil rigs operating in the U.S. fell by two last week to 422 - the lowest level since September 2021. Separately U.S. Tariffs on Imports from the European Union will kick in on 1 August, although U.S. Secretary of Commerce Howard Lutnick stated on Sunday that he is confident the United States can secure a deal with the bloc. (Reporting and editing by Jamie Freed; Florence Tan, Reporting)
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BHP exits $2.5 billion Tanzania nickel project, partner Lifezone says
BHP Group chose to sell to Lifezone Metals its stake in the $2.5 billion Kabanga Nickel Project in Tanzania for up to $83 million. Lifezone, a company listed on the NYSE, said that it would acquire BHP’s 17% equity stake in Kabanga Nickel Limited. KNL is the majority owner in the Kabanga Nickel Project located in the northwestern part of Tanzania. In a report released by the company on Friday, development costs were estimated at $2.49billion. The project is expected to produce around 50 000 metric tons per year once it has been fully ramped-up, which will take about six years. The project will be finalized by the end of next year. BHP agreed to invest up to $100 million by 2022 in the nickel mines and processing facilities, if certain conditions are met. BHP didn't respond to an immediate request for comment about why it sold its stake in this project. BHP's view of nickel has changed since the divestment, largely due to a surge in production from Indonesia over the past few years. The company put its Australian Nickel West operation on care and maintain last year because of a low outlook for nickel prices. A decision about the future of these operations is due in early 2027. Lifezone owns now 100% of KNL. KNL in turn holds 84% interest in Tembo Nickel Corporation Limited, the Tanzanian operating firm for the Kabanga Nickel Project. Tanzanian government owns the remaining 16%. Lifezone said that all existing agreements with BHP had been terminated, and it also took full control of 100% offtake of the Kabanga Nickel Project. (Reporting by Melanie Burton; Editing by Jamie Freed)
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Exports of rare-earth magnets from China to the US grew in June
China's rare earth magnet exports to the United States rose to more than seven-times their level in May, indicating a sharp increase in the flow. Data from the General Administration of Customs on Sunday showed that the number of shipments from China to the United States, the world's biggest producer of rare-earth magnets, increased by 660% in June compared to May. This followed pacts made in June to settle issues relating to shipments of magnets and rare earth minerals to the United States. As part of the agreement, Nvidia will resume sales of H20 AI chips in China. In retaliation to U.S. Tariffs, China, which supplies more than 90% global supply of rare-earth magnets, added several rare-earth items to its list of export restrictions in early April. Due to the long time it took to obtain export licenses, the sharp drop in shipments that followed in April and may had disrupted the global supply chain. Some automakers outside China were forced to stop partial production because of a rare earths scarcity. China exported 3,188 tonnes of rare earth permanent magnetic materials globally in June, an increase of 157.5% compared to 1,238 tons shipped in May. However, the volume in June was still 38.1% below the same month in 2024. Analysts said that the shipment of magnets is likely to increase in July, as more exporters have obtained licenses since June. Exports of rare-earth magnets dropped 18.9% year on year, to 22,319 tonnes in the first half 2025.
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Australia's South32 manganese production recovers after cyclone and beats expectations
South32, a diversified Australian miner, reported on Monday higher manganese ore output in the fourth quarter, exceeding analysts' expectations, after resuming exports from its Australia manganese operation following storm delays. Groote Eylandt mining Co (GEMCO), a project of the company in Australia's Northern Territory, was hit by severe storms early in 2025. It made it difficult to restart production after a tropical-cyclone had damaged vital infrastructure at the site a year earlier. The company released a statement saying that "Australia Manganese successfully recommenced export shipments in the third quarter, marking an important recovery from the effects caused by Tropical Cyclone Megan." The Perth-based company said that its Australia Manganese operations will post losses of between $100 million and $120 million operating earnings by fiscal 2025. This is after a restart following disruptions caused by Tropical Cyclone Megan. For the quarter ending June 30, the world's biggest producer of manganese (used to improve steel quality and strength) produced 1.1 million wet-metric tons of manganese. This is up from 534,000 wmt the year before. Barrenjoey reported that the result was better than the Visible Alpha consensus of 850,000 wmt. The company said it had invested $517 millions in growth capital expenditures at its Arizona-based Hermosa Project during fiscal 2025. The miner, which is diversified, also reported fourth-quarter production of copper at 21,900 tonnes from the Sierra Gorda Mine in which it has a 45% share. South32, in mid-July, had indicated an impairment at its Mozal aluminum smelter located in Mozambique. It said that its production is under review as it hasn't been able secure affordable electricity prices after March 2026. (Reporting and editing by Leslie Adler, Lincoln Feast and Adwitiya Shrivastava from Bengaluru.
Australia's Fortescue beats on first-half profit, posts strong dividend
Australia's Fortescue on Thursday published a 41% dive in its halfyear profit and stated a betterthanexpected dividend, supported by strong iron ore shipments and greater prices for its lower grades of the steelmaking raw material.
Imports to China, the world's largest iron ore customer, hit a record high last year on strong need as steel makers sought to conserve margins by utilizing more lower grade ore, raising need for Fortescue's items.
The world's fourth-largest iron ore miner said net earnings after tax attributable for the six months ended Dec. 31 was available in at $3.34 billion, up from $2.37 billion a year back. It beat an LSEG quote of $2.89 billion.
The beat on profit streamed in to raise its interim dividend to A$ 1.08 per share, topping the agreement quote of A$ 1.04, and up from A$ 0.75 apiece declared a year ago. The payment was in the middle of its 50-80% target range.
The market will take (the) dividend and EBITDA beat as a favorable, Citi analysts stated in a note, describing revenues before interest, amortisation, tax and depreciation. Shares in the miner rose 2.2%.
At its Iron Bridge magnetite operations, work is underway to replace a 65-km (40-mile) section of a high pressure water pipeline, anticipated to be completed by mid-2025, Fortescue stated.
Fortescue understood a typical earnings of $108.19 per dry metric tonne, as compared with $87.18/ dmt in the prior corresponding period and kept its overall complete fiscal-year delivery projection the same at 192 million to 197 million loads.
Fortescue likewise stayed with its spending guidance. Metals capital investment is seen at $2.8 billion-$ 3.2 billion and for its energy division, net operating expenditure of around $800. million and capital expenditure and financial investments of approximately. $ 500 million.
There was no update around the timing of final. investment decisions on green energy jobs in Norway, Brazil. and Kenya, which energy boss Mark Hutchinson said last month. were being readied and which Fortescue had previously said would be. ready at the end of 2023.
There are concerns about how Fortescue will money those. projects, even with complimentary capital at $2.65 billion and net financial obligation. of $569 million that has cut in half from June.
Those jobs are a 2.1 gigawatt green hydrogen project. in Brazil, a 300 megawatt (MW) task in Chui, Kenya, and a 300. MW Holmaneset project in Norway. Goldman Sachs, which has a sell. score on the stock, approximates these tasks combined will cost. $ 10 billion-$ 20 billion.
(source: Reuters)