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Gold reaches $4,100 on the back of trade tensions and rate-cut optimism
On Monday, gold broke through $4100 per ounce, a new record, on renewed U.S. China trade tensions, and on expectations of U.S. rate cuts. Silver also reached a record high. As of 12:17 pm, spot gold had risen 2.4%, to $4,114.31 an ounce. After hitting a new record of $4,116.77 at 1617 GMT ET (1617 GMT), gold prices have risen 2.4% to $4114.31 per ounce. U.S. Gold Futures for December Delivery rose by 3.3% to $4133.90. Gold prices have risen 56% in the past year, and last week they reached the $4,000 mark for the first. This is due to factors such as geopolitical uncertainty, economic concerns, and expectations of U.S. rate cuts. Central bank purchases are also a major factor. Gold could continue to rise. "We could see prices above $5,000 by 2026," said Phillip Streible. Chief market strategist at Blue Line Futures. Streible said that the structural support of the market is provided by the steady central bank purchases, the firm ETF inflows as well as the U.S. China trade tensions. Streible added that on the geopolitical side, U.S. president Donald Trump reignited the trade tensions between China and the United States last Friday, ending a tense truce. While traders price in a 97% chance of a Federal Reserve rate reduction in October, and a 100% probability for December. Gold is a non-yielding investment that tends to perform well in environments with low interest rates. Bank of America analysts and Societe Generale expect gold to hit $5,000 by 2026. Standard Chartered's forecast has been raised to $4,488 on average next year. Standard Chartered Bank's global head of commodities research, Suki Cooper said: "This rally is strong, but a short-term correction will be better for a long-term trend." Spot silver increased 3.1% to $51.82, reaching a record high earlier in the session of $52.07. This was boosted by the same factors that supported gold and tightness on the spot market. Technical indicators indicate that both gold and silver are overbought. The relative strength index (RSI), which measures the strength of the relationship between two assets, is 80 for gold. Palladium rose 6.5%, to $1496.52. Platinum gained 5%, to $1666. Reporting by Noel John in Bengaluru, Pablo Sinha in Mumbai and Sherin-Elizabeth Varghese; Additional reporting and editing by Joe Bavier & Alexander Smith.
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Trump will meet Zelenskiy this Friday to discuss air defense and new weapons
Three sources familiar with the plans said that President Donald Trump would meet Ukrainian President Volodymyr Zelenskiy for a luncheon on Friday. The meeting comes amid increasing discussions over the possible provision of Tomahawk long-range missiles to Kyiv. Both leaders met on Saturday and Sunday. A high-ranking Ukrainian delegation, headed by Prime Minister Yulia Shvyrydenko is scheduled to arrive in Washington, DC, before Friday's meeting, to prepare the groundwork for their talks. One of the sources, who requested anonymity, as the visit had not been announced publicly, stated that the main topics would be air defense, additional U.S. arms for Kyiv, and Russia's possible return to the negotiation table. Zelenskiy is lobbying Washington for the supply of U.S. Tomahawk missiles that can hit Moscow but are only used on military targets, according to Ukrainians. Moscow said that such a move could be a significant escalation. Trump said that he was considering sending Tomahawks into Ukraine. He also stated that he may speak to Russian President Vladimir Putin. Ukraine and the U.S. also appear to be closing in on an historic drone deal, in which Ukraine will share drone technology with United States. European diplomats view such a deal to be an important tool in keeping the volatile U.S. President engaged and supportive of Ukraine. Reporting by Steve Holland in Washington, Tom Balmforth and Gram Slattery from London. Editing by Jeff Mason & Matthew Lewis.
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Gold reaches $4,100 on the back of trade tensions and rate-cut optimism
On Monday, gold broke through $4100 per ounce, a new record, on renewed U.S. China trade tensions, and on expectations of U.S. rate cuts. Silver also reached a new high. As of 10:50 am, spot gold had risen 2.1%, to $4,099.55 an ounce. After hitting a new record of $4,103.58 at 1450 GMT ET, gold prices rose 2.1% to $4099.55. U.S. Gold Futures for December Delivery rose 3% to 4,120.10. Gold prices have risen 56% in the past year, and last week they reached the $4,000 mark for the first. This is due to factors such as geopolitical uncertainty, economic concerns, and expectations of U.S. rate cuts. Central bank purchases are also a major factor. Jeffrey Christian, managing partner of CPM Group, said that gold and silver prices rise when investors become concerned about the current state of the economy or politics. Donald Trump, the U.S. president, reignited the trade tensions between China and the United States on Friday. This ended an uneasy truce that existed between the two world's largest economies. While traders price in a 97% chance of a Federal Reserve rate reduction in October, and a 100% probability for December. Gold is a non-yielding investment that tends to perform well in environments with low interest rates. Bank of America analysts and Societe Generale expect gold to hit $5,000 by 2026. Standard Chartered's forecast has been raised to $4,488 on average next year. Standard Chartered Bank's global head of commodities research, Suki Cooper said: "This rally is strong, but a short-term correction will be better for a long-term trend." Spot silver increased 3.3% to $51.95, reaching a record high earlier in the session of $52.07. This was boosted by the same factors that supported gold and tightness on the spot market. Technical indicators indicate that both gold and silver are overbought. The relative strength index (RSI), which measures the relative strength of a currency, is 80 for gold. Palladium rose 5.4% to $1.482.00, while platinum gained 4.6%. (Reporting from Sherin Elizabeth Varighese and Pablo Sinha in Bengaluru, Additional reporting by Kavya Baliaraman; Editing and Joe Bavier by Alexander Smith and Joe Bavier)
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EU legislators back further reductions to the sustainability law
The European Parliament’s Legal Committee on Monday supported plans to further reduce the EU's Corporate Sustainability Law, which has been criticized by companies who say that complying with these rules would hinder European industries' competitiveness. Last year, the European Union adopted the Corporate Sustainability Due Diligence Directive (CSDDD), which requires companies to address human rights and environment issues within their supply chains or risk a fine of 5% global turnover. On Monday, the European Parliament’s Legal Committee approved proposals to limit the application of the regulations to only those companies with at least 5,000 employees and a turnover of 1.5 billion euros. CSDDD currently covers companies with at least 1,000 employees and a turnover of more than 450 millions euros. The committee also supported dropping the requirement that companies implement "transition plans" in order to align their activities with climate change goals. The EPP has always sought to simplify the rules and reduce costs for business -- even going beyond the original Commission proposal. "Our vote today will bring more predictability to our businesses in a world that is unpredictable," said Jorgen Warborn. He was the legislator who drafted and approved the text on Monday. The committee asked that the European parliament now begin negotiations with EU countries on final rules. The EU Parliament as a whole will decide whether or not to proceed with this request next week. It appears that some of the changes are already likely to be implemented. EU countries have said that they are in favor of changing the law so it only applies to companies with at least 5,000 employees. CSDDD is one of the most controversial parts of Europe's Green Agenda. Countries like the United States, Qatar and others have demanded changes, claiming that the EU has overstepped by imposing demands on foreign companies. TotalEnergies and other European companies have called on the EU to scrap the law completely, warning that it could harm the EU's economic ability to compete with foreign competitors. Investors and activists have reacted negatively to the move back on ESG regulations. They say that it undermines corporate accountability, and Europe's ability attract more investment towards climate goals. Some companies also have resisted. In an August survey conducted by the think-tank E3G with YouGov of 2,500 European company leaders, 63% said that they were in favor of large companies implementing a climate change plan. Only 11% disagreed. (Reporting and editing by Kate Abnett, Inti Lanauro)
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Mexico: Torrential rains and flooding cause at least 64 deaths, 65 missing
The government announced Monday that the torrential rains which ravaged Mexico last week left 64 dead and 65 people missing. Landslides were triggered, power was cut in some municipalities, and rivers burst through their banks. Mexican authorities have sent thousands of personnel to clean up, evacuate and monitor the areas most affected by last week's rains in Gulf Coast states and Central States. Laura Velazquez is the national coordinator for civil protection. She said that Hidalgo, along with Veracruz was the worst affected state, with 29 fatalities and 18 missing persons reported in Veracruz and 21 deaths and 44 missing persons in Hidalgo. Authorities said that electricity was cut for five municipalities in Mexico, but it has now been restored to a large extent. (Reporting Ana Isabel Martinez, writing Stefanie Eschenbacher, editing Mark Heinrich).
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LMEWEEK - Trafigura CEO minimizes AI and defence role in copper demand
The CEO of the trading house Trafigura stated on Monday that traditional applications of copper will continue as the largest part of the demand for the metal in the coming decade. This is not data centres or the defence industry. Richard Holtum, speaking at the LME Week in London, noted that artificial intelligence (AI), defence spending and metal demand are "buzzwords". He said that consumer demand will "dwarf three times" the AI demand for copper this year. Holtum, in a conversation with Matt Chamberlain, CEO of the London Metal Exchange said: "The amount that copper goes into air conditioning is more than what copper will go into data centers this year." Holtum stated that 90% of the copper demand we will see in the coming 10 years is from traditional sources such as infrastructure, construction, urbanisation and consumer goods. CRU, a consultancy, expects the copper demand in data centres to increase from 78,000 tonnes in 2020 to 260,000 tons this coming year. Holtum stated that although the new applications will add significant demand to the airwaves, "the amount that AI and defence gets in relation to the actual demand" is slightly disproportional. A spokesperson for Trafigura said that the company estimates AI copper demand to grow by 70,000 tons per year in 2025, while consumer durables, which are mainly shipped to emerging markets, will increase demand by 250,000 tons. Trafigura predicts that AI is expected to add one million tons of demand for copper over the next decade. (Reporting and additional reporting by Eric Onstad, editing by William Maclean & Tomaszjanowski).
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On the back of trade fears and rate cuts optimism, gold and silver are at all-time highs.
Gold reached a new record high on Monday as investors flocked to safe-haven investments amid renewed U.S. China trade tensions and the expectation of U.S. rate cuts. Silver's rise mirrored that of gold, reaching a new high. As of 10:04 am, spot gold had risen 1.9%, to $4,093.39 an ounce. After hitting a new record of $4,096.35/oz. U.S. Gold Futures for December Delivery surged 2.8%, to $4113.40. Prices are rising due to concern over the state of the world Gold and silver prices rise when investors become concerned about the economic or political state of the world. Jeffrey Christian, managing director of CPM Group said that the expectation of U.S. rate cuts is also driving prices up. Donald Trump, on the geopolitical side, reignited tensions between China and the United States last Friday, breaking a tense truce that existed between the two world's largest economies. The traders are now pricing in 97% of the probability that the Federal Reserve will cut rates by 25 basis points in October, and 100% for December. Gold is a non-yielding investment that tends to perform well in low interest rate environments. The price of gold has increased 56% in the past year. It reached the $4,000/oz mark for the first week last week. This was boosted by geopolitical uncertainties and economic uncertainty, as well as expectations that the U.S. will cut interest rates and the robust central bank purchases. Standard Chartered's forecast for next year is $4,488/oz, up from the average of $4,488/oz that Bank of America, Societe Generale and Bank of America have previously predicted. Standard Chartered Bank's global head of commodities research, Suki Cooper said: "Given that there has been a carousel in drivers and the short-lived dips, we believe this rally is still going strong, but a correction near-term would be better for a long-term uptrend." Spot silver increased 3.3% to $51.91/oz. It had reached a record of $52/oz in an earlier session. This was boosted by the same factors that supported gold and tightening spot markets. Goldman Sachs stated on Sunday that it expects the silver price to continue rising in the medium-term, due to private investment flows. However, they warned of increased volatility near-term. Technical indicators indicate that both gold and silver are overbought. The relative strength index (RSI), which measures the relative strength of a metal, is 80 for gold. Palladium rose 4.3%, to $1.465.97, while platinum gained 4%, to $1.651.20. (Reporting from Sherin Elizabeth Varighese and Pablo Sinha in Bengaluru, with additional reporting by Kavya Baliaraman. Editing by Joe Bavier.)
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Israel's Katz: Hamas failing to deliver four hostages dead would be a 'failure of commitments'
Israel Katz, Israel's Minister of Defence, said Monday that the announcement by Hamas militants to deliver four Israeli hostages dead is "a failure to meet commitments". Katz stated in a blog post on X that "any delay or deliberate avoidance of payment will be considered a grave violation of the contract and we will respond accordingly." According to the agreement, within 72 hours after the military redeployment all 48 hostages must be freed from the Gaza Strip. This includes 20 known alive and 28 dead. Hamas has previously stated that the recovery of bodies from some hostages could take longer because not all burial locations are known. (Reporting and editing by Menna al-Din, Jaidaa taha, and Alison Williams).
Gecamines plans overhaul of mining JVs in world's leading cobalt supplier
The Democratic Republic of Congo's state miner is widening a push to extract more from its copper and cobalt joint endeavors, looking for to negotiate for greater stakes across the board to get take advantage of in management of some of its biggest mines
Gecamines is also leveraging existing shareholding in mines. to negotiate off-take contracts for the function of trading copper and cobalt by itself.
The miner wants more local executives on boards governing joint ventures to have a higher say in how assets are managed, Guy Robert Lukama, the Gecamines chairman, told .
The strategies may indicate upgrading some terms of contracts that Gecamines considers unfavourable to capitalise on the world's. scramble for supplies of minerals critical to international green. energy transition.
We want to fix a certain phase of mistakes that were. made when they asked us to provide the majority of our finest possessions to third. parties just to bring in foreign direct financial investment, said the. chairman of the state miner, which at its peak in 1986 produced. more than 490,000 lots of copper and cobalt - however is now a. shadow of its previous self.
Chinese mining companies have actually been key to driving output in. the world's biggest provider of cobalt, a key element in. batteries for electric lorries and cellphones. Congo is also. the world's third-largest copper producer.
President Felix Tshisekedi's government had previously said. some deals were heavily skewed in favour of China, requiring some. state-backed companies to discover an additional $1 billion in a. renegotiated infrastructure for minerals pact.
PROLONGED FINANCIAL OBLIGATIONS
Board representation on the mines could guarantee. accountability, transparency, neighborhood advancement and. compliance with guidelines on local procurement and training of. Congolese staff, Lukama stated.
He included that some mines aren't buying broadening. output, mentioning extended levels of insolvency. An absence of. oversight might be behind the substantial financial obligations, which he stated is. denying the state miner of returns.
Lukama questioned why some of its partners are reporting. losses and reducing production because of a slump in. cobalt's value while copper rates have actually remained elevated. In. Congo, cobalt output is a spin-off of copper.
We can no longer accept this level of financial obligation while people. don't put capital into the assets, he stated.
We are not sleeping partners in our own country. We should. become part of the governance.
CMOC DEAL
In 2015's deal with China's CMOC Group secured. Gecamines a right to get copper and cobalt produced from. Tenke Fungurume Mining equivalent to its 20% stake, on market terms. Gecamines also scored an $800 million settlement to end a. disagreement over mineral royalties and $1.2 billion in dividends. over the life of the Tenke mine.
The offers has actually triggered Gecamines' push to trade copper and. cobalt at projects with partners including Glencore and. Zijin Mining.
Gecamines' partners had maintained full off-take rights. since they used financial obligation to construct the jobs, Lukama said.
The off-take was there to protect the circulations of payment of. debt, now the financial obligation is repaid, why must they keep it 100%.
Lukama said some terms need to be examined as financiers. aren't satisfying expectations, with communities not better off. in spite of the mining boom.
He decreased to state which business are not meeting. expectations.
Changes to the mining code in 2018 boosted Gecamines'. powers to seek reviews of terms in mining contracts and boosted. the minimum state participation limit, said Andrew Smith, a. senior Africa expert at risk intelligence company Verisk. Maplecroft.
DR Congo does have a history of pressurising mining. companies into delivering shares, Smith said.
Steps such as asserting that firms have actually not paid. appropriate royalties or taxes by underreporting revenues and. production have actually been used in the past..
(source: Reuters)