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China's net gold imports through Hong Kong in August fell 39% compared to July
Hong Kong Census and Statistics Department figures released on Thursday show that China's net imports of gold via Hong Kong fell by 39.11% in August compared to July. Why it's important China is the largest gold buyer in the world. Its buying activities can have a significant impact on global gold markets. Hong Kong's data might not be a complete view of Chinese gold purchases as it is also imported through Shanghai and Beijing. By the Numbers The net imports from Hong Kong into China in August were 26.746 tons compared to the 43.923 tons imported via Hong Kong in July. China's total imports of gold via Hong Kong fell by 29.85% in August from 58.296 tonnes in July. Customs data released on Saturday showed that China's gold imports fell by 3.4% in August compared to July. Last week, dealers in China's top gold-consuming country offered discounts of between $21 and $36 per ounce compared to global benchmark spot prices The previous week, gold prices ranged between $17 and $24, a significant increase from the previous $7-$24. China's central banks added gold to their reserves in August, continuing purchases for a 10th consecutive month, according to official data. The spot gold price hit a new record of $3,790.82 this past week. KEY QUOTE According to StoneX analyst Rhona OConnel, the drop in net imports through Hong Kong was caused by the "continued stress" in the economy that has a negative impact on jewellery demand. She also noted that the price difference between platinum and gold jewellery had led to a partial shift in favour of platinum jewellery. The World Platinum Investment Council has predicted that global demand for platinum jewellery will increase by 11%, to 2.2 millions troy ounces by 2025. O'Connell stated that "the weakness in offtake" has caused Shanghai gold prices to drop to a significant discount compared to prices offshore. (Reporting and editing by David Goodman in Bengaluru, Kirby Donovan.)
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Barclays reports that nature loss could reduce mining and power earnings by up to a quarter
Barclays warned that company earnings could drop by up to 25% in five years as a result of nature degradation. This is due to rising input costs, operational disruptions caused by policy changes, and worsening conditions. Barclays Bank conducted an exploratory stress testing on a portfolio mining and power companies. According to the results, transitional risks such as higher water costs, stricter pollution control and the expansion protected areas along with droughts, flooding and increased water prices pose a greater risk for operations. Barclays analysed around 9,000 facilities for power generation from 40 European clients and 250 mines in operation linked to 30 mining companies. Both sectors experienced significant earnings declines during the past five years. Mining earnings fell by around a quarter due to transition risks. The impact on power companies was about 10%. This is mainly because of physical risks, such as floods and droughts. These are more severe when landscapes have been degraded. Barclays stated that the rapid loss of biodiversity, and degradation of ecosystems are now widely recognized as systemic risk. Marie Freier is Barclays Group Head of Sustainability. She said: "These risks are increasing materializing across our client's operations." Despite the fact that nature is responsible for over half of the global GDP, attempts to quantify its benefits, from pollination to food production to water supply are still in their infancy. Barclays says that financial risks associated with its work are not well understood. The bank developed its own method for calculating financial risks related to nature across large portfolios using the Taskforce on Nature Related Financial Disclosures LEAP framework. A team of experts in technical risk, nature and environmental issues from across the banks spent an entire year analysing client impacts and dependencies. This included land use, air pollution, and water usage. Barclays' nature work will also help identify funding opportunities, as the estimated biodiversity financing gap is $700 billion per year.
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Minister: Chile will curb budget growth while Codelco accelerates recovery
The new Chilean finance minister said on Wednesday that the country will have a budget for 2026 with a "responsible increase" while the state-run Codelco tries to recover from production problems. Nicolas Grau, who was appointed by President Gabriel Boric in August, told reporters in his Santiago office that the budget for 2026, which is due to Congress, will have a "limited" increase in spending. Boric will announce the exact amount, but budget increases have been declining since 2023, when they grew by 4.2%. Grau stated that the average annual growth rate would be around 2% with this budget. He said that a responsible budget would be developed with Congress, which would address the needs of the country and provide enough flexibility for the next administration. Chile will hold a presidential vote in November, and Boric is not eligible to run again for reelection. CODELCO’S RECOVERY OF COPPER Chile is the largest copper producer in the world, and its primary source of revenue. Codelco, the state-owned company, has struggled to increase production for many years. It cut its production target in August due to an accident that killed a worker at the mine's flagship El Teniente. Grau reaffirmed his confidence in Codelco’s strategy to close the production gap in previous years and highlighted initiatives such as its partnership with Anglo American for two adjacent deposits. Grau stated that "Codelco is creating public-private partnerships to allow it maintain its leadership in copper." SPEEDING UP PERMITTING WILL BOOST INVESTMENT According to Grau, he is confident that the economy will grow by 2.5% this coming year. This growth will be boosted by a 5% increase in investment for carbon-neutral initiatives such as clean energy and digital infrastructure. Grau has made reducing unemployment a priority for his final months in office. Jeannette Jara is the coalition candidate for the leftist government in the upcoming elections. "Although unemployment has decreased slightly in the most recent data, 8.7% remains a high rate. Grau stated that "we believe this rate must be lowered". He said that policies such as pension reform and better permitting, a demand of large miners like BHP or renewable energy companies like TotalEnergies, have led to greater economic growth. He acknowledged, however, that environmental permitting reform has made less progress than other categories. He said that although the executive branch made "significant" efforts to advance the reform, he could not predict if it would be approved under this administration. (Report by Fabian Andres Cambero, Editing by Alexander Villegas & Richard Chang)
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Israel Police arrests man who threatened to kill Netanyahu
Israeli police announced on Thursday that they had arrested an individual for threatening Prime Minister Benjamin Netanyahu. A man in his 40s from Kiryat Gat, a southern town, entered the police station on Monday night just before the Jewish New Year began. He said he was going to kill Netanyahu. The police reported that the suspect had told them he intended to buy a gun and shoot Prime Minister Stephen Harper three times. A man has been arrested, and an indictment is expected on Thursday. The police want to keep him in custody until all legal proceedings are completed. According to polls, Netanyahu has lost public support due to the two-year Gaza War against Hamas militants. This has caused Israel's isolation in the world. The Israeli government has been urged to negotiate a deal to bring the 48 hostages back home. Of those, 20 are believed to be still alive. (Reporting and editing by Hugh Lawson; Reporting by Steven Scheer)
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Russian Crimea chief says that refinery closures have affected fuel supplies in several Russian regions
Sergei Aksyonov said that the fuel shortages were caused by the closing of some oil refineries in Russia as the gasoline crisis spread across the country. The traders and retailers reported that there were shortages in certain Russian regions due to the reduction of refinery operations caused by drone attacks from Ukraine. High borrowing costs also mean that private filling stations cannot afford to stockpile gasoline. Aksyonov, in a video on his Telegram page, said that fuel problems have been experienced due to some plants not being operational. He did not say the drones had attacked the plants. Fuel stations were not crowded, but some grades of gasoline are often missing. In two days' time, the gasoline stations should have enough Ai 95 to meet their needs. He said that the Ai 92 gasoline shortage will be solved within two weeks. Interfax reported that Russian Deputy Minister of Energy Pavel Sorokin stated on Tuesday that additional restrictions on fuel imports could be implemented if necessary. (Reporting and Editing by Bernadettebaum)
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China's new Climate Target 'falls far short', EU says
The European Union's climate chief stated on Thursday that China's new pledge to reduce emissions "falls far short" and makes it more difficult to achieve global targets. This is as the EU struggles to agree upon its own emission-cutting target. On Wednesday, China was the first country to announce its climate plan at the U.N. Xi Jinping, the Chinese president, said that his country will reduce greenhouse gas emissions from their peak by 7% to 10% by 2035. The EU failed to announce a new target for climate change this week after its member states failed to reach an agreement in time for the U.N. Summit. "Unfortunately, we feel that the NDC submitted by China falls far short of what is achievable and needed. This level of ambitious is disappointing and, given China's enormous footprint, makes reaching the global climate goals much more difficult," EU Climate commissioner Wopke Hekstra stated in a press release. The U.N. refers countries' climate goals as "nationally-determined contributions". Hoekstra stated that "we will continue to press China (and other countries) to go beyond their current level of commitment and respect our shared commitments under Paris Agreement". The Chinese foreign ministry didn't immediately respond to an inquiry for comment. China is the largest polluter in the world, and its emissions target will have a decisive impact on global efforts to curb climate change. This was the first time that China had committed to reducing emissions. The reduction is far below the 30% by 2035 cut that some scientists said China would need to meet the global goal of limiting warming to 1.5 Celsius. Other major emitters, facing the opposition of U.S. president Donald Trump to addressing climate changes, are trying to build momentum before this year's COP30 summit on climate change in November. The EU's climate goal of 2035 has been held back by disagreements between its members about how ambitious it should be. The EU has committed to submitting it by COP30 and agreed that the target will reduce emissions between 66.25% and 72.50% by 2035. (Reporting and additional reporting by Yukun Zhu; editing by Barbara Lewis.)
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Executive says that Rosatom, the Russian nuclear company, is near to placing bonds on the Chinese market.
Ilya Rebrov, the deputy director general of Rosatom's Chinese division, was quoted on Thursday as saying that Rosatom had made significant progress in placing bonds on the Chinese market. Interfax reported that Rebrov stated that a placement would take months or even weeks. He said that despite the "pressure" Russian industry was under, Rosatom managed to get a rating by a Chinese credit rating agency. It also took decisions which had brought it closer to its goal of being able raise debts in China. Atomenergoprom, Rosatom's power unit, received a "AAA" credit rating in April from China's Dagong Global Capital Rating Agency. The agency also gave the unit a "stable outlook". Rebrov said that Rosatom has been actively searching for new sources of financing this year. Reports earlier this month stated that Rosatom and Gazprom, among other top Russian companies, were looking into the sale of "panda bonds" - debt issued by non-Chinese entity that is denominated yuan. Rusal, a metals giant, was the only Russian company to have ever issued panda bond prior to 2022 when Russia began its full-scale invasion in Ukraine. Since then, geopolitical conflicts and the closing of Western capital markets for Russian firms has boosted the Chinese market’s appeal. Rosatom's top management is sanctioned by the U.S., but not its entire organization. (Reporting and writing by Robert Harvey, Editing by Mark Trévelyan).
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China is studying how to regulate copper smelting capacities, an industry association claims
A state-run news outlet reported on Thursday that China is looking into ways to tighten regulations on expanding copper smelting capacities, because persistently low processing charges have lowered smelting profit. Chen Xuesen was quoted by a Chinese nonferrous metals industry association vice-chairman as saying at a Wednesday meeting that the low processing fees for concentrates were the "most significant" problem facing the industry. Low fees are the result of what is called in China "involution style" competition or fierce competition that is so intense it destroys itself. The low fees are the result of an expansion in smelting that exceeded mined supplies and impacted availability of concentrate. Chen stated that "Competition of the involutionary type has been detrimental to both industry and nation's interests, so copper companies should be resolutely opposed." "The association has suggested specific measures to strictly control the expansion of copper melting capacity." Copper smelters' processing fees, which miners pay in order to convert concentrate into metal, have reached record lows. According to the state-backed China Nonferrous Metals News, representatives from major copper smelters such as Jinchuan Group and Jiangxi Copper attended. Reporting by Ethan Wang and Amy Lv Editing by David Goodman, Barbara Lewis and Dylan Duan
Investors await US data as gold prices rise on demand for safe-havens
Gold prices rose on Thursday, as geopolitical tensions and economic uncertainty fueled demand for safe-haven assets. Investors were also awaiting U.S. data on economic growth to get clues about the Federal Reserve’s monetary policy.
As of 0857 GMT spot gold was up by 0.6% to $3,756.29 an ounce after reaching a record-high of $3,790.82 Tuesday. U.S. Gold Futures for December Delivery rose by 0.5% to $3787.0.
In a sudden change of heart, U.S. president Donald Trump said Tuesday that he believes Ukraine can retake the land it has been occupied by Russia.
Carlo Alberto De Casa is an external analyst with Swissquote. He said that investors don't believe the U.S. has enough fiscal stability.
Mary Daly, the president of San Francisco Federal Reserve Bank, said that she "fully supports" last week’s rate reduction and anticipates further reductions. Fed Chair Powell took a more conservative tone. The markets expect the U.S. to cut rates by 25 basis points in October and December this year.
Investors are now awaiting the release of the Fed's preferred measure of inflation, the Personal Consumption Expenditures (PCE) Price Index Report, which is due Friday. According to a survey, the report will show an increase of 2.7% on a year-over-year basis and 0.3% month-over-month for August.
Peter Fertig, Quantitative Commodity Analysis analyst, said: "If the data come in as expected by the market then that indicates at least that the market is headed the right way towards Fed rate easing providing support for gold."
In an environment of low interest rates, safe-haven bullion is likely to flourish.
The weekly U.S. unemployment claims data due later that day may give additional insight into the labour market.
Silver spot rose by 2%, to $44.76 an ounce. Platinum gained 2%, to $1.501.69, and palladium rose by 1.8%, to $1.231.21. (Reporting by Ishaan Arora in Bengaluru; Editing by Sonia Cheema)
(source: Reuters)