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Gold prices fall as a potential US-China trade agreement dents demand for safe-haven assets
The gold price fell by 2% Monday as investors looked forward to the major central bank meetings scheduled this week. As of 1122 GMT, spot gold was down by 2% to $4,029.69 an ounce. Prices reached a record-high of $4,381.21 in October, boosted by bets on U.S. interest rate cuts and geopolitical, economic and financial uncertainties. Since then, prices have fallen over 5%. U.S. Gold Futures for December Delivery fell 2.3% to $4 042.80. Asian stocks rose as signs of a truce in the China-U.S. Trade tensions boosted risk appetite. This was a good start to a busy week, which will include central bank meetings and earnings from megacap companies. The UBS analyst Giovanni Staunovo stated that a possible trade agreement between the U.S. U.S. president Donald Trump announced that the U.S. will "come away" with a deal between China and the U.S., a day following a meeting of top officials from both countries to discuss a framework on which Trump and Chinese president Xi Jinping would decide during their upcoming summit in South Korea. The Fed is expected Wednesday to reduce rates by a quarter of a percentage point, as a result of September's lower than expected inflation. Markets are waiting for any remarks that Jerome Powell, Fed chair, may make at the meeting. Lower real interest rates should still be able to support the demand for gold. Staunovo said that the market consensus was for the Fed's rate to be cut by 25 basis points. "I don't anticipate much movement at the FOMC meeting." In a low interest rate environment, gold that does not yield tends to be more profitable. Silver fell 2.3% per ounce to $47.48, while platinum fell 0.8% at $1,593.43, and palladium dropped 0.8% at $1,417.58. (Reporting by Ishaan Arora in Bengaluru; Editing by Sumana Nandy and Subhranshu Sahu)
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Biya is declared the winner of the election in Cameroon, but opposition members report gunfire
Cameroon President Paul Biya Official results from Monday showed that the candidate for the main opposition party, who claimed victory, was reelected to an eight-term term. Issa Bakary, the opposition candidate who was a challenger to the incumbent in the election, wrote on Facebook after the announcement of the results by the Constitutional Council that civilians were being fired upon outside his Garoua home. The government did not immediately comment on the statement, nor could it independently verify its content. Protesters against the government The clashes with security forces have escalated in the last week, after local media reported partial results that showed Biya on track to win. The vote on October 12 . The government has rejected the opposition's accusations of irregularities. Biya is 92 years old and was elected in 1982. He has been in power since then, abolishing the term limit for presidents in 2008, and winning re-election with large margins. A new seven-year term could keep him at the helm until he is almost 100. Clement Atangana said, "Hereby declared as President of the Republic having received the majority of votes cast, Biya Paul", the president of the Constitutional Council. Tchiroma, a former minister of employment and government spokesperson in his 70s, broke ranks with Biya this year. He ran a campaign which attracted large crowds, and received endorsements from an alliance of opposition parties and civil groups. He said last week that he won the election, and he would not accept a different result. (Reporting and writing by Bate Felix, Amindeh Atabong and Anait Miridzhanian. Editing and proofreading by Ayen deng Bior and Andrew Heavens.
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Mazda and Changan jointly form EU Carbon Emissions Pool
A document from the EU revealed that Mazda, a Japanese automaker, has formed a joint venture with China’s Changan in order to pool carbon credits. This will help Mazda avoid fines for carbon emissions. As the shift from gasoline to electric cars (EVs), has taken longer than expected, several legacy carmakers could face fines by the European Union. But those with a lower share of EV sales are able to "pool" their emission with segment leaders by purchasing credits and lowering their average. The EU fines that carmakers say could reach up to $17.5 billion for the industry were originally intended to be applied to carbon emissions levels in 2025. In March, however, the European Commission gave in to pressure from auto manufacturers and allowed compliance on average emissions between 2025-2027. The pool created by Mazda and its joint venture with Changan, a 50/50 joint-venture, is valid until 2025. Other manufacturers can join the pool up to the end of November. The pool joins four others that were formed earlier in the year and are all valid for 2025. These include ones built around Tesla, Mercedes-Benz, and other manufacturers.
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Nord Stream suspects fight German transfer at Italy's highest court
The case of a Ukrainian suspected of coordinating a 2022 sabotage on the Nord Stream pipelines is being re-filed in Italy's highest court by his lawyer. A Bologna Italian appeals court ordered on Monday that the suspect, who was identified as Serhii k. under German privacy law, be transferred to Germany. This decision confirmed a previous one that had been issued by this court last month. Nicola Canestrini, the defence lawyer, said that the man would stay in Italy pending a hearing before the Court of Cassation (the top court), which is expected to be held within a month. DEFENCE SAYS THE ACT WAS POLICICAL AND REQUESTS INNOCENT Canestrini, the lawyer for the client, said that the defence would not stop until the court had fully examined international law and the human rights implications in the case. He argued his client should receive immunity because of what he called a "political act". German prosecutors refused to comment on the Italian court process. The new appeal will cite also a recent decision in Poland where a Polish court refused to hand over a Ukrainian suspect sought by Germany for connection with the blasts, and ordered his immediate freedom from detention. The mysterious explosions of September 2022, described by both Moscow as well as the West, severely impacted the Russian gas supply to Europe. Ukraine has also denied playing any part in the explosions. Serhii, described by defence as a former officer, was detained in August near Rimini, Italy, on an European warrant. In an early decision, the Court of Cassation of Rome sent the case to the Bologna appeals court after a first challenge. German prosecutors claim he is part of a group that planted devices near the Danish Island of Bornholm, in the Baltic Sea. He is accused of conspiring to cause an explosive, anti-constitutional acts of sabotage, and the destruction of important buildings. (Written by Keith Weir, edited by Crispian balmer and Conor Humphries).
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Copper reaches 17-month high on optimism about US-China trade deal
Prices of copper rose to a 17-month high on Monday, as signs of reduced trade tensions between China and the U.S. and expectations for stronger demand and growth prompted buyers. The benchmark copper price on the London Metal Exchange rose 0.6% to $11,026 per metric ton by 1120 GMT. It had earlier reached $11,094 per ton, its highest level since May 20, last year. Chinese and U.S. officials worked out the framework for a trade agreement that President Donald Trump and Chinese Leader Xi Jinping will decide on this week. The deal would halt more onerous U.S. duties and Chinese controls over rare earths exports. Metal traders reported that China's industrial profit growth was at its fastest rate in almost two years during September, suggesting that the country is gaining momentum. The weaker dollar against yuan helped to boost sentiment on the metals market. This made commodities priced in dollars cheaper for Chinese consumers. The Yangshan copper premium The price of copper in China has dropped to $38 per ton, down from $58 in late September, and $100 in early May. This indicates that the pace of purchases is still slow. The dollar is under pressure due to expectations that the U.S. Federal Reserve would cut interest rates in the coming week. This could also provide a boost to demand for base metals. The focus elsewhere was on the declining zinc stock in LME approved warehouses At 37,050 tonnes, it is the lowest since March 20,23, and has dropped by more than 80% from the middle of April. StoneX analyst Natalie Scott Gray said that LME zinc stock has been "feeding the real-world demand", due to tight supply globally. Scott-Gray stated that "Units were also drawn to the U.S. due to concerns about the Section 232 investigation (launched by the U.S. in April) which could lead import tariffs for zinc." The premium on the cash zinc contract for the three-month ahead was pushed up by concerns about the supply of zinc on the LME. The record price per ton is $338.74. Last time, it was around $250 per ton. Zinc for three-months was up 1% to $3,054 per ton. Aluminium was up 0.3% at $2,868, while lead was up 0.4% at $2,024. Tin was up 1.2% at $36,225, and nickel was unchanged at $15,360. (Reporting from Pratima Dasai. Dylan Duan contributed additional reporting. Mark Potter (Editor)
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Gold falls on optimism about trade deals, but stocks rise
Investors were encouraged by signs that trade tensions have cooled between the U.S. and China. This marked a positive start to a busy week of central bank meetings, megacap earnings, and other events. On Sunday, top Chinese and U.S. economists hammered out the framework for a trade agreement that U.S. president Donald Trump and his Chinese equivalent Xi Jinping will decide on this week during a meeting in South Korea. Investors are less concerned about the possibility of a break in the trade truce between China and the United States if a deal is reached. The STOXX600 index rose by 0.1%, bringing it to record highs. This was a modest rise, but the stock markets in Asia rallied strongly, and this led European shares to rise. US STOCK FUTURES - JUMP Investors will be looking for confirmation that the current trade truce is still in place and that China’s reform and stimulus signals are translating into a tangible growth momentum, said Charu Chanana. Chief investment strategist at Saxo. The U.S. Stock Futures indicated a strong rally later. Nasdaq futures gained 1.4%, while those for S&P 500 rose 0.9%. George Boubouras of K2 Asset Management said that the market is satisfied with the U.S. China momentum of recent days. "Over the last few months, the markets have been observing global tariff negotiations, understanding that some comments can be a little theatre and noise." The Chinese yuan rose to its highest level in over a month against the dollar of 7,1091. The People's Bank of China announced the official midpoint dollar rate before the market opened at 7.0881, its highest since October 15, 2024. This was above the estimate of 7.1146. Derek Halpenny, MUFG's head of research, said that the yuan could see further gains if a deal were to be made based on the details reported today. He said that investors would be more inclined to look at non-dollar currencies as they have better prospects. Gold, the safe-haven, fell 2% to $4.028 per ounce. Meanwhile, U.S. Treasury yields rose 2.7 basis points, reaching 4.024%. Commodities such as soybeans, corn, and wheat rose due to trade prospects. CENTRAL BANK RESULTS ARE AWAIT This week, investors will be focused on the central bank meetings taking place in Japan, Canada and Europe. Federal Reserve rates are expected to be cut by 25 basis points, after September data showed that U.S. consumer price increases were slightly lower than expected. However, the impact of the government shutdown on data is still a concern. The dollar was steady at 152.71yen and hovered near its two-week high. The euro rose 0.15% to 1.1644. Both the European Central Bank (ECB) and Bank of Japan (BoJ) are expected to keep rates unchanged this week. As concerns about a recession caused by tariffs ease, the BOJ will likely debate whether it is time to resume rate increases. However, political complications could keep this on hold. Focus on Megacap Earnings This week, the U.S. Earnings Season will be at its busiest. Megacaps like Microsoft, Apple and Alphabet are all expected to release their results. The profit advantage of "Magnificent 7" companies, whose shares dominate equity indices due to their huge market capitalisations, is shrinking. However, it's still expected that they will post better results this quarter. Stock market performance has been driven by the enthusiasm of a number of megacap companies in the artificial-intelligence industry.
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China's net gold imports through Hong Kong in September fell by 18% compared to August
Hong Kong Census and Statistics Department figures released on Monday showed that China's net imports of gold via Hong Kong dropped 17.6% from August. 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 September were 22.047 tons, down from 26.746 tons for August. China's total imports of gold via Hong Kong fell by 11.29% to 36.275 tonnes in September from 40.892 tonnes in August. CONTEXT Bullion was in China last week The price of gold fluctuated between $20 discounts and a premium of 8 cents per ounce above the benchmark global spot price. Official data from the People's Bank of China showed that China's central banks added gold to their reserves for the 11th consecutive month in September. Gold spot prices reached a record-high of $4,381.21/oz in October, boosted by bets on U.S. interest rate cuts and geopolitical, economic and political uncertainties. However, they have fallen more than 5% since then. KEY QUOTE Fawad Rasaqzada is a market analyst for City Index and FOREX.com. He said that there was a noticeable slowdown in gold purchases by the People's Bank of China (PBoC) at the end of the third quarter. Razaqzada said that although the pace of purchases slowed down, China still bought a significant amount of gold in Hong Kong. This suggests it is continuing to build up its reserves, even though "high prices are probably what has caused them to reduce their purchases." (Reporting by Ishaan Arora in Bengaluru; Editing by Leroy Leo)
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Angola bids to buy majority stake in De Beers according to source
Angola bid for the majority of Anglo American's De Beers unit, according to a source with knowledge of the matter. This could lead to a standoff between Angola and Botswana, which are both seeking control over the diamond producer. De Beers is one of the leading diamond companies in the world. It operates in Botswana Namibia South Africa and Canada. Bloomberg News reported that the source confirmed that Angola’s state-owned Diamond Company Endiama made the offer. De Beers and Endiama are jointly exploring diamonds in Angola. In August, the company announced that it had discovered Angola's first kimberlite fields in 30 years. Kimberlite, an igneous stone that contains precious stones, is a type of kimberlite. DE BEERS UP for SALE AS DIAMOND PRICES DROP According to a June report, Anglo, which put De Beers up for sale amid falling diamond prices attracted at least six consortiums. Anglo Values De Beers at $4.9 Billion after recording $3.5 Billion in impairments for the last two years. Anglo American, as well as the Angola Mines Ministry, declined to comment. Endiama was not available for immediate comment. Botswana, which owns 15% of De Beers, and which contributes 70% to its annual rough production, considers it a strategic asset, despite a slump in diamond prices that has severely hurt the country's economy. In July, its mining minister stated that the Southern African nation wanted to fully control De Beers. The mines ministry of Botswana could not be reached immediately for comment. Angola stated in September that they were seeking a stake in De Beers, and believed it should be run by a private sector firm. Clara Denina is the reporter; additional reporting by Miguel Gomes, Brian Benza and Wendell Roelf in Cape Town; Writing by Silvia Aloisi and Nelson Banya. Editing by Olivia Kumwenda Mtambo and Kirby Donovan.
Rare earth miners fall after US-China truce to pause export restrictions and tariffs
Shares of U.S. listed rare earth miners dropped as much as 8% on Monday before the bell, after Washington and Beijing agreed on a framework of a trade agreement that could pause U.S. planned tariffs and Chinese controls on exports of critical minerals. This would ease fears of supply disruptions which had boosted this sector in the past year.
The rare earths ceasefire marks a pause on one of the most important fronts in U.S.-China tensions over trade.
China processes over 90% of rare earths in the world. It has recently increased export restrictions, adding new elements to their control list as well as tightening oversight of foreign producers who rely on Chinese material.
The U.S. has only one rare earth mine, whereas the U.K. is rushing to acquire minerals essential for electric vehicles, defence systems, and advanced manufacturing.
Donald Trump, the President of the United States, proposed a 100% tariff on Chinese imports that would take effect November 1, after the latest restrictions.
Trump and Chinese president Xi Jinping are expected to review the preliminary agreement later this week, at the Asia-Pacific Economic Cooperation summit (APEC), in Gyeongju.
Investors have unwound bets on the U.S. mining industry benefiting from a prolonged trade dispute.
Ramaco Resources dropped 5.7% and NioCorp Developments fell 5.4%.
MP Materials, USA Rare Earth, and Trilogy Metals all fell by more than 6.5%.
The Trump administration also benefited several U.S. miners of rare earths such as MP Materials and Critical Metals. Lithium Americas, USA Rare Earth, and Lithium Americas all gained from the Trump administration's acquisitions and supply-chain agreements to reduce dependence on China. (Reporting and editing by Sriraj Kalluvila in Bengaluru)
(source: Reuters)