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US plans to secure minerals in response to the peace agreement between Congo-Rwanda and the US
The United States Development lender announced on Friday plans to take a stake to market Congo minerals, which could give U.S. users of copper and cobalt the right to first refusal. The U.S. and China are in a heated competition to gain access to minerals that are crucial to the manufacture of everything from cars to iPhones. Congo has 72% of the world's cobalt reserves, and supplies 74% of that amount. Many of these mines are artisanal. The plans for investment were revealed a day after U.S. president Donald Trump hosted leaders of Rwanda and the Democratic Republic of Congo to sign an agreement to end the long-running conflict in Congo's mineral rich east and stabilize supply chains. Trump said it was a new era in harmony and cooperation, which would bring peace and prosper across the region. However, neither country had implemented the pledges that were at the heart of the agreement and fighting broke out again on Friday. The peace agreement ties security commitments with an economic framework that opens up Congo's reserves of copper, cobalt and lithium to Western investors looking for minerals critical to EVs and renewable energy. CONGO AND METALS: A REDEFINED LINK The U.S. International Development Finance Corporation has expressed an interest in acquiring equity in a joint venture between Congo’s state miner Gecamines, and Swiss commodities group Mercuria for the marketing of copper and cobalt. In a joint press release, Gecamines said that the partnership could include minerals such as germanium and gallium. These are vital to semiconductors and solar panel technology. Guy Robert Lukama said that this collaboration is a crucial step for Gecamines to enhance its position in the global market. The two companies have said that under a possible deal with the International Development Finance Corporation U.S. consumers would get a first right of refusal on supplies of copper and cobalt. The lender stated in a separate press release that the planned U.S. investments in the partnership will support the commercialization of cobalt, copper and other essential minerals. This will give U.S. buyers and their allies access to supplies vital for electric vehicles and renewable energy. The partnership announced that it is aiming to improve transparency and competition in the world’s largest cobalt producer. This country recently introduced export quotas and launched traceable artisanal artisanal cobalt. Mercuria, as part of the agreement, will offer expertise in logistics and finance and provide training on risk management and operations. The statement also said that the venture plans to invest in export infrastructure, which will help ease mineral bottlenecks. Kostas Bintas is the global head of Mercuria for metals and minerals. He called this partnership "a redefined way of how Congo interacts globally with metals markets". DFC has also indicated support for another project in Congo to renovate the Dilolo - Sakania railway line. This project could be funded up to $1 billion. The line would be connected to Angola’s Lobito Atlantic Railway creating a strategic route to move goods and minerals across Central and Southern Africa.
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Silver hits record high as dollar falls on expectations of rate cuts; gold gains 1%
The dollar was under pressure as the expectation of a rate cut by the U.S. Federal Reserve next week grew. Silver prices also reached a new record high. At 10:44 am, spot gold was up by 1.1% at $4,255.59 an ounce. ET (1544 GMT) and was on course for a weekly gain of 0.5%. U.S. Gold Futures for February Delivery were up 1% at $4,286.90 an ounce. Bart Melek is the global head of commodity strategies at TD Securities. He said that "the market is increasingly confident the central bank will cut (rates)." In response, the U.S. currency has weakened a bit, which is a positive for gold. Gold became more appealing to buyers who use other currencies after the U.S. Dollar Index fell by 0.1%. Gold tends to be more attractive when interest rates are lower, as it does not provide a yield. The U.S. Economic data revealed that the Personal Consumption Expenditures Price Index (PCEPI) rose by 0.3% in September. This is a slowdown from the 2.9% annual increase in August. Last month, private payroll data revealed the largest decline in more than two and a half years. The Fed's dovish comments have further fuelled expectations of monetary ease. CME's FedWatch indicates that there is an 87.2% chance of a rate cut of 25 basis points at the Fed meeting on December 9-10. Alex Ebkarian said that gold is expected to trade between $4200 and $4500 this year and between $4500 and $5,000 in the future, depending on Fed decisions. In India and China, the physical gold demand has slowed this week while buyers await a correction of spot prices. Silver increased 3.6%, to $59.19 per ounce. This is up 4.7% on the week after reaching a record high of $59.32 an ounce earlier. Melek stated that "silver is following the path of gold, and many investors believe that silver is still quite cheap relative to gold," citing structural deficits as well as a rising demand for electricty. The white metal is up 104% in this year due to supply shortages and its inclusion on the U.S. Critical Minerals List. Palladium rose by 0.8%, to $1460, and platinum was up 0.2%, to $1648.85. Anmol Choubey reports from Bengaluru. (Editing by Leroy Leo, Mark Potter and Mark Potter.)
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Congo fighting flares up within hours of Trump’s peace deal ceremony
Fighting broke out in the eastern Democratic Republic of Congo Friday, just a day after U.S. president Donald Trump met with Congolese leaders and Rwandans in Washington for the signing of new agreements aimed at ending decades of conflict in this mineral-rich region. On Thursday, Congo's Felix Tshisekedi reaffirmed his commitment to the U.S.-brokered agreement reached in June. The deal aims to stabilize the vast country by allowing more Western mining investments. "We are settling a long-running war," said Trump. His administration intervened in many conflicts around the globe to burnish Trump's credentials as a world peacemaker, and advance U.S. corporate interests. The warring parties blamed each other for the fierce fighting that continued on the ground. AFC/M23, a rebel group backed by Rwanda, which has seized two of the largest cities in eastern Congo this year, and is not bound to the Washington agreement, claimed that forces loyal to government are launching widespread attacks. In a press release, the group stated that 23 people had been killed and others injured in bombings that targeted towns located in South Kivu Province in eastern Democratic Republic of Congo. A Congolese Army spokesman stated that clashes are ongoing and Rwandan troops are bombing. FAMILY FLEE CLASHES Analysts claim that U.S. diplomatic efforts halted the escalation in fighting in eastern Congo, but did not resolve key issues. Neither Rwanda nor Congo fulfilled their commitments in the June agreement. Online videos showed dozens displaced families fleeing with their possessions and livestock in the direction of Luvungi, in South Kivu Province in eastern Congo. It was not possible to verify them immediately. Lawrence Kanyuka wrote, "Women and children alike have tragically died in this tragedy." He wrote that the Congolese forces "continued to attack densely populated North Kivu areas and South Kivu using heavy artillery, drones, and fighter jets." Un spokesperson for the Congo army confirmed that there were clashes along the Kaziba-Katogota-Rurambo axis of South Kivu Province. The bombardment by the Rwandan Defence Force has caused a population displacement in Luvungi. He said that they were bombing blindly. The Rwandan army and government spokespersons were not available to comment immediately. A senior AFC/M23 representative said that rebel forces had recaptured the town of Luberika, and destroyed a drone used by the Congolese Army. He asked to remain anonymous as he wasn't authorized to speak with media. He said: "The war is still going on and it has nothing to do with the signing agreement yesterday in Washington." Reporting by Congo Newsroom, Writing by Bate Felis; Editing and proofreading by Philippa Fletcher & Alex Richardson
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Metal prices are soaring, adding a new shine to the Olympic-Winter Games' medals
The gleaming medal of an Olympic athlete is priceless. It's a reward for all the sacrifices and dedication they have put in over the years. With the recent rise in gold and precious metals prices, these prized symbols of success have a much higher monetary value. The Italian state mint IPZS is producing medals with up to double the value of the ones won at the Paris Olympics in 2024. Michele Sciscioli, IPZS Chief executive, said: "The medals represent tangible rewards for intangible effort." Gold medals were solid until 1912. Silver-gilt medals have been used since then as per the official guidelines of the International Olympic Committee. The gold medals which will be worn by the champions in 2026 will contain just under $800 of gold at current prices. Since the last Olympics in Paris, bronze medals have been made from pure copper with a low metal value. Data shows that gold has been on a steady rise all year and reached its all-time peak on October 20. Silver also reached new highs early in October. The white metal has risen over 100% this year. DISCS OF ICE IPZS will produce 1,146 medals in total for the Olympics, which runs from 6 February to 22 February. Each of the three medals will have 245 pieces. The following month, in the Paralympics 137 medals each will be awarded for the three ranking. The medals were first unveiled at the Venice Olympics in July. They have a clean design, and are "discs made of ice", which consist of two halves joined by the Olympic and Paralympic symbol in the middle. Matteo Taglienti told the press on Friday that the IPZS program manager for medals had begun working with the IOC a year earlier, and production began in recent months. Both halves are meant to represent both the athlete and their network, which includes family, coaches, and team. The two halves have a frosted texture and a polish one. On the reverse of the medals, braille letters identify the respective discipline. The ribbon will be hidden by a new design inlet on all of them, but the medal's face will remain visible.
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Mercuria and Congo's Gecamines partner to market critical minerals
The companies announced on Friday that Gecamines, Congo's state-owned miner, is working with Swiss commodities group Mercuria in order to increase transparency and revenue for the world's largest cobalt producer. The Democratic Republic of Congo is also a major supplier of copper. It has undertaken reforms to gain more control over the mining output of its country and increase its global influence. In October, it introduced a cobalt export quota to reduce oversupply. Last month, the country launched its first batch traceable artisanal copper. Gecamines, based on the memorandum it signed earlier this summer, will have direct control over its sales volumes through joint ventures. It will also be able to compete in tenders. Guy Robert Lukama is chairman of Gecamines. He said: "This collaboration marks an important step in Gecamines’ journey to strengthen its position in the global market for metals." US PURSUIT MINERAL SECURITY Mercuria is providing expertise in logistics, finance and trading as part of the deal. It will also provide training on risk management and operation. The statement also said that the venture plans to invest in export infrastructure, which will help ease mineral bottlenecks. Kostas Bintas is the global head of Mercuria Metals and Minerals. He called this partnership a "redefinition of Congo's interaction with global metals market." Western countries are looking for ways to reduce their dependence on China by securing critical mineral supplies. Washington is particularly interested in Congo. This week, the U.S. brokered a deal between Congo (and Rwanda) to end a long-running conflict in Congo’s mineral-rich eastern region and stabilise supply chains. However, renewed fighting broke out on Friday. The peace agreement ties security commitments with an economic framework that opens up Congo's reserves of copper, cobalt and lithium to Western investors looking for minerals critical to EVs and renewable energy. Gecamines and Mercuria reported that the U.S. International Development Finance Corporation expressed an interest in acquiring a stake in the new mineral partnership. They said that under a possible deal, U.S. consumers would have a first right of refusal over copper and cobalt supply. The statement stated that the partnership could expand to include minerals such as germanium and galium, which are vital for semiconductors. Mercuria is looking at additional deals in Congo. The country is home to 72% of the world's cobalt reserves, and supplies 74%, with a large portion coming from artisanal mining.
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Gold prices rise as Fed rate-cut bets increase ahead of inflation data
The gold price rose on Friday, as investors began to expect the Federal Reserve to cut interest rates in the coming week. They are awaiting U.S. data on inflation that may clarify the central banks next move. As of 1416 GMT the spot gold price rose by 0.7%, to $4,235.59 an ounce. This was in line with a weekly gain of 0.1%. U.S. Gold Futures for February Delivery edged up 0.6% to $4,266.50 an ounce. "The odds of a rate reduction are in place... Gold is retesting, and reaffirming its $4,200/oz price level." Alex Ebkarian said that although the week was volatile, it had a positive trajectory and momentum. Gold is generally supported by lower interest rates, as it is a non yielding asset. CME's FedWatch shows that there is now an 87.2% probability that the U.S. Central Bank will reduce rates next week. The government shutdown has delayed the release of September's Personal Consumption Spending (PCE) figures. The release will likely show a 0.2% increase in monthly spending and a 2.9% growth on an annual basis. The data released on Wednesday showed that private payrolls dropped by the most in more than two-and-a half years in November. Recently, several Fed policymakers adopted a more dovish tone. Morgan Stanley predicted that the Fed would cut rates by 25 basis points at its meeting on December 9-10, which is in line with J.P. Morgan's, Bank of America's, and most economists polled. In India and China, the physical gold demand has slowed this week while buyers await a correction of spot prices. Silver increased 2.2%, to $58.34 per ounce. This is a 3.5% increase for the week after reaching a record price of $58.98 Wednesday. The price of white metal is up 101% in the past year. This has been fueled by supply shortages and its inclusion on the U.S. Critical Minerals List. Palladium rose 1.2% to 1,465.29, and platinum fell 0.4%. Both metals were set to lose money for the week. (Reporting from Anmol Choubey, Bengaluru. Editing by Leroy Leo.)
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Colombia's Ecopetrol signs new deal with Parex to explore hydrocarbons
Ecopetrol, the state-run energy company in Colombia, announced on Friday that it had signed a new contract with Parex Resources to explore and produce hydrocarbons in the Piedemonte Llanero area. Ecopetrol said in a press release that operations will be conducted in areas covered by existing contracts within the departments of Boyaca e Casanare. DEAL DETAILS * This new agreement is in addition to the five other agreements Ecopetrol and Parex signed in December of 2024 for hydrocarbon exploration in two major Colombian basins. * The agreement includes drilling of the Florena-Huron well which is expected increase the domestic gas supply. The Florena Huron Well is scheduled to be drilled in 2026. Key Context * The five previous agreements projected investments of just under $400 million. Ecopetrol has not provided any further information on the investment associated with the new agreement. * The companies will begin drilling an exploratory well in 2026. This is part of another agreement announced last summer. Ecopetrol intends to invest between $5.85 and $7.18 Billion in 2026. This includes drilling 8 to 10 exploration wells.
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Investors brace themselves for US data as gold prices rise on bets of rate cuts
The gold price rose on Friday as the market increased its bets that interest rates will be cut in the United States. Markets are now focused on inflation data due out next week, ahead of Federal Reserve policy meeting. As of 1208 GMT spot gold was up 0.5% at $4,226.99 an ounce. However, it was still on course for a weekly decline of 0.1%. U.S. Gold Futures for February Delivery edged up 0.3% to $4,257.40 an ounce. Lukman Otunuga is a senior research analyst with FXTM. He said that market bets on the Fed cutting rates next week have kept gold prices somewhat elevated. The data released on Wednesday shows that the private payroll fell by 32,000 during November, which is the largest drop in over two-and-a half years. More than 100 economists surveyed by predict that the Fed will lower its key interest rate at its meeting on December 9-10 by 25 basis points. Gold is a non-yielding asset that tends to be favoured by lower interest rates. Investors will be watching the September PCE inflation numbers due today. This is the last data release before the FOMC meeting next week. Gold prices in India rose to near a record high this week. This slowed down the physical demand, as buyers waited on a correction in price. Demand in China was also relatively low. Despite the volatility of the spot gold price market and its high prices, physical demand for gold in China remained low. Silver increased 1.9% to 58.20 per ounce. This is up 3.2% in one week, after reaching a record of $58.98 an ounce on Wednesday. Otunuga said that silver is on course for a second week of gains thanks to the strong inflows made into exchange-traded fund. Rate cut expectations, as well as a weaker dollar, have also fueled the upward trend. Silver prices have risen by about 101% this year due to a structural shortage, concerns over liquidity and the addition of silver to the U.S. Critical Minerals List. Palladium rose 1.3% to 1,466.70, but the week was expected to be lower. Platinum gained 0.5%, to $1654.06, and was on track for a modest weekly gain. (Reporting Pablo Sinha from Bengaluru, Editing by Elaine Hardcastle & Leroy Leo).
TSX reaches new record high after positive jobs data
Toronto's main stock index rose to a fresh peak on Friday, and was on track for weekly gains, after stronger-than-expected domestic jobs data fueled optimism about the economy.
The S&P/TSX composite index increased by 0.2%, reaching a new high of 31533.40 points. The index was last seen at 31,531.84 point.
Data showed that Canada's unemployment rate defied expectations in November and dropped to a 16 month low as part-time employment grew for the third consecutive time.
Analysts polled predicted a loss of 5,000 positions.
Angelo Kourkafas is an investment strategist with Edward Jones Investments. He said, "The jobs data confirms expectations that the Bank of Canada remains on hold next Monday and will likely be done with its easing cycles."
Bank of Canada interest rates are widely expected to remain at 2.25% the following week. The swap market now prices in a 15 basis point rate increase next year, up from 5 basis points before the data.
The main index is set to post its second consecutive week of gains, as strong results from major Canadian Banks and higher oil prices have helped offset some of the losses suffered in early weeks due to a decline in technology and mining stocks.
The U.S. Personal Consumption Expenditures (PCE) Price Index - the Federal Reserve preferred measure of inflation – came in line with expectations as the U.S. Central Bank prepares to announce its policy next week.
Laurentian Bank, a lender, reported a fourth-quarter loss that was below analysts' expectations; shares were almost flat.
Orla Mining shares fell 6.8% after Fairfax Financial Holdings bought 25 million shares. (Reporting by Avinash P in Bengaluru; Editing by Sahal Muhammed)
(source: Reuters)