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Gold falls from its 1-week high due to profit-booking and dollar strength
The gold price fell on Wednesday, as investors booked profits after the prices briefly rose to a?one-week high in earlier trade. A stronger dollar was weighing on sentiment throughout the precious metals sector ahead of important U.S. employment data this week. As of 0330 GMT, spot gold was down 0.7% at $4,466.19 an ounce. Bullion reached a record-high of $4,496.71 on December 26. U.S. gold futures for February delivery fell 0.4% to $4,477.30. GoldSilver Central's managing director,?Brian Lan, said: "Precious Metals have increased (quickly this week) and there is a little profit-taking... The dollar has also pushed prices up." The dollar fluctuated in a narrow range and was near its two-week high, ahead of an avalanche of?U.S. The dollar is now more expensive to other currency holders due to the economic data. Investors are expecting 'at least two rate cuts' by the Fed in this year. They will be looking at non-farm payrolls due on Friday to get more information. JOLTS and ADP private pay data due on Wednesday could also influence the market. Federal Reserve Governor Stephen Miran's term ends this month. He said that aggressive interest rate reductions are necessary to keep the U.S. economy moving forward. In times of low interest rates, and geopolitical and economic uncertainty, non-yielding investments tend to perform well. Donald Trump, the president of the United States said that Caracas, Washington and other countries had reached an agreement to export Venezuelan crude worth up to $2 billion to the United States. This would divert Chinese supplies following what Venezuelan officials have called a kidnapping by former President Nicolas Maduro. Spot silver fell 1.2%, to $80.34 an ounce. This is down from $83.62 per ounce on December 29, a record high. The spot platinum price fell 2.9%, to $2,373.0 an ounce. This is a decline from the record high of $2,478.50 on Monday. It had gained over 3% in the earlier session. Palladium was 2.5% lower, at $1.777.22 an ounce. (Reporting and editing by Rashmi aich in Bengaluru, Ronojoy Mazumdar, and Ishaan arora from Bengaluru)
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Nickel prices remain high despite copper nearing record levels
Nickel remained near multimonth highs after a record rally on Wednesday, as expectations of tighter supplies from the top producer - Indonesia - kept nickel near its previous record. As of 0315 GMT the most traded copper contract on Shanghai Futures Exchange rose 0.45% to 103,760 Yuan ($14.854.69) per metric ton, just below a record 105,500 Yuan. The benchmark copper for three months on the London Metal Exchange fell 0.49%, to $13,173.50 per ton after reaching an all-time record of $13,387.50 Tuesday. Citi analysts raised their near-term copper target price to $14,000 per ton on February 2, citing strong market movement that exceeded both their baseline and bullish case forecast?in their December projection. The bank's 2026 average forecast remained at $13,000. Citi analysts believe that January 2026 could be the year's peak in copper prices. Without new market catalysts, they expect prices to decline to a sustainable level of $13,000. Nickel prices rose as the Indonesian Government slashed its mining quota of?2026 for the metal in an effort to increase the price. Shanghai nickel rose 7.3% to 146,770 yuan per ton after rising by?8%, to its highest level since June 2024, at 147720 yuan. London nickel fell 0.29%, to $18,470 per ton after reaching its highest level since June 2024 at $18,785 on Tuesday. Sucden Financial analysts cited weaker fundamentals as a reason for the metal's gains being "more susceptible to short-term profit taking". Shanghai tin gained 5.55%, while London benchmark? jumped by 2.04%. Investors are also assessing this month's Federal Reserve interest rate path as policymakers try to balance risks associated with inflation and the job market. Fed Governor Stephen Miran whose term ends in a month said on Tuesday the interest rates were?overly restricting and that cuts of over 100 basis points would be needed to support growth this year. The U.S. attack on Venezuela, and the capture President Nicolas Maduro remained a focal point. Aluminium, zinc and lead are also among the SHFE base metals that have seen gains. Wednesday, January 7 DATA/EVENTS (GMT) 0855 Germany Unemployment Chg SA Dec 0855 Germany Unemployment rate SA Dec 0930 UK S&P GLOBAL PMI: MSC COMPOSITE - OUTPUT DEC 1000 EU HCIP Flash YY DEC 1000 EU HICP-X F,E,A&T Flash YY DeC 1000 EU HCIP X F, E, A, T FLASH MM DEC 1500 US Factory Orders Wednesday, January 7, DATA/EVENTS: 0855 Germany Unemployment Rate SA Dec 0855 Germany Unemployment Change SA Dec 0930 UK S&P GLOBALPMI: MSC Composite - Output Dec 1000 EU HICP X F,E,A&T YY December 1000 EU HCIP X F,E A&T Flash YY De 1000 EU HCIP X F,E A&T Flash MM Dec 1600 US Factory Orders MM October 1500 US ISM
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Iron ore prices reach a multi-month high after China pledges to ease monetary policy
Iron ore futures rose on Wednesday, reaching their highest level in a number of months. This was boosted by the hope that demand would improve?in China's top consumer following Beijing's promise to ease monetary policy. The May contract for iron ore on China's Dalian Commodity Exchange closed morning trade at 823.5 Yuan ($117.90), its highest level since July 23. As of 0322 GMT, the benchmark for February iron ore at the 'Singapore Exchange' was $108.25 per ton. It had previously reached its highest level since February 24, at $108.6. China's central banks said on Tuesday it will cut interest rates and reserve requirements in 2026, to maintain ample liquidity and to continue implementing a loose monetary policy. Analysts said that the expectation of rate reductions by Beijing in the coming months has boosted the sentiment on the ferrous metal market and led to a price rally across the board. The Chinese steel mills, which have a low in-plant stock of steelmaking ingredients, were also expected to restock in large numbers in anticipation of the Lunar New Year celebrations in February. Coking coal and coke, the other steelmaking ingredients, also grew, by 7.98% each. The benchmark steel prices on the Shanghai Futures Exchange have gained some ground. Rebar grew by 2.26%. Hot-rolled coils gained 1.94%. Wire rod rose 1.12%. Stainless steel increased 4.39%. ($1 = 6.9850 Yuan) (Reporting and editing by Mrigank Dahniwala; Amy Lv and Ruth Chai)
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Yemen's STC leader al-Zubaidi flees, Saudi-backed coalition says
Aidarous al Zubiaidi, leader of Yemen's Southern Transitional Council, did not board the plane that was supposed to take him to Riyadh and instead fled to an unknown destination. The Saudi-backed coalition said this on Wednesday. The remarks were made amid efforts to stop fighting between the STC - backed by United Arab Emirates - and Yemen's internationally recognised Saudi government. This has caused a major dispute between the Gulf allies. Zubaidi had planned to visit Saudi Arabia just days after the Yemeni government claimed it asked Riyadh for a forum to discuss southern issues. Turki Al-Maliki, spokesperson for the coalition, said in a'statement that a flight with a number of senior leaders of the separatist movement left after a delay of more than three hours, without Zubaidi and no information as to his location. Maliki said that during the delay, "information was available which indicated he had mobilised large forces", citing "calls to mobilise and the movement and equipping of factions with medium and light weapons". The dispute between the UAE and Saudi Arabia has fractured the coalition that was originally formed to combat the Iran-aligned Houthis who remain the dominant military force in Yemen. In 2014, the Houthis seized control of Yemen's capital city of?Sanaa. Gulf countries intervened in support of internationally recognised government the following year. Yemen was split into two rival zones of authority. After monitoring the movements of armed troops who had left their camp, the coalition also said that it conducted limited pre-emptive strikes in Yemen's south province of al-Dhalea. Sources within the STC and domestic sources reported that there were more than 15 strikes taking place in the province of Zubaidi. Enas Alashray, Christian Schmollinger, and Clarence Fernandez edited the report.
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Oil drops after Trump says Venezuelan oil will be sent to United States
Oil prices fell on Wednesday, after U.S. president Donald Trump announced that Venezuela would "turn over" between 30 and 50 million barrels sanctioned oil from the United States. U.S. West Texas?Intermediate Crude (WTI), fell by 78 cents or 1.37% to $56.35 per barrel at 0200 GMT. Brent crude futures dropped by 61 cents or 1% to $60.09 per barrel. The market has weighed the expectations that global crude supply will be ample this year with the uncertainty surrounding Venezuelan crude production after the U.S. captured the country's president, Nicolas Maduro. "This Oil will Be Sold at Market Price.?And that Money Will Be Controlled By Me, As President of the United States of America. To Ensure It Is Used For The Benefit Of The?People of Venezuela and United States!" Trump made the statement in a post on social media Tuesday. Tina Teng said that Trump's tweet shows he prefers to increase supply over limit it. This is a concern about the global market being oversupplied. Two sources said earlier Tuesday that the deal Caracas reached with Washington could require a first reallocation of?cargoes originally destined for China. Venezuela is selling its Merey crude at around $22 below Brent per barrel for delivery at Venezuelan ports. This deal could be worth up to $1.9 Billion. Chevron, PDVSA’s main joint-venture partner, controls the flow of oil under an American authorisation. Chevron is the only company to have been able to load and ship crude oil from Venezuela without interruption in the last few weeks, despite the blockade. Analyst at Haitong Futures, Yang An, said that Venezuela's oil exports into the United States have disrupted first the U.S. markets, and will also increase the global oversupply. Haitong Futures stated in a recent report that complex geopolitical changes captured the attention of many in early 2018. This led to many overlooking?weaknesses in the physical crude market due to oversupply. Haitong Futures said that Middle Eastern crude oil prices continue to decline, and have become the weakest segment of cross-regional pricing. This has dampened investor's willingness to chase gains. Morgan Stanley analysts predicted that the oil market would reach a surplus as high as 3,000,000 barrels per day during the first half 2026. This was based on the weak growth?in the demand of last year, and the rising supply of OPEC and Non-OPEC producers. Market sources cited American Petroleum Institute figures on Tuesday to say that U.S. crude oil inventories dropped last week, while fuel stock rose. API figures show a decline of 2.77 million barrels in U.S. crude stock. The official U.S. Government statistics on the country’s oil inventory are due on Wednesday at 10:30 am EST (1530 GMT). Eight analysts polled ahead of the report estimated that crude inventories increased by an average of about 500,000 barrels during the week ending January 2nd.
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As global tensions rise, crude oil prices plunge and Asian stocks fall.
Crude futures fell and resource shares rose in Asian trading, as the?markets digested the political turmoil in Venezuela and its fate with regard to its petroleum reserves. Oil prices continue to'slide' after U.S. president Donald Trump announced that Venezuela would "turn over" 50 million barrels to be sold at market value following the toppling of its leader. Japanese shares led to a decline in regional equity benchmarks while commodity shares rose after a surge overnight in industrial metals. Dollar gains were made as geopolitical tensions erupted from South America through to China. Investors waited for data coming out of the United States in order to get clues on the timing of any interest rate reductions by the Federal Reserve. Michael McCarthy, CEO Moomoo Australia & New Zealand's investment platform, stated that the most likely outcome of the turmoil in Venezuela is an?boost for the global economy due to this oil. "Of course, it's a negative for oil prices themselves. But energy costs are crucial to your global economy outlook." He added that "the flip side of this is the increased uncertainty in the geopolitical outlook could overwhelm any positive economic benefit." U.S. crude dropped 1.1%, to $56.48 per barrel. Brent was down to $60.22 a barrel on the same day. MSCI's broadest Asia-Pacific share index outside Japan fell 0.2%. Japan's Nikkei stock index slid 0.25%. The S&P/ASX 200 Index in Australia, heavily weighed by commodity producers, rose 0.3%. Caracas has reached an agreement with Washington to export Venezuelan crude worth up to $2 billion to the United States. Trump announced this on Tuesday. The agreement follows a weekend attack on Venezuela and comments from the White House that said the U.S. is looking at options for acquiring Greenland, with the U.S. using its military to achieve that goal "always an alternative". The dollar index (which measures the greenback versus a basket currencies) was unchanged at 98.60, after a 0.2% rise on Tuesday. The euro remained at $1.169 while the yen fell 0.05%, to 156.73 yen per dollar. The Tokyo stock market was weighed down by China's announcement that it would ban the export of dual-use products to Japan, which can be used to serve military purposes. This is Beijing's response to comments made by Japanese Prime Minister Sanae Takayichi?about Taiwan. The benchmarks for U.S. shares have risen to record levels despite the global tensions. Copper reached a new record in the previous session, while nickel jumped by more than 10%. Supply concerns fueled gains in these key industrial resources. The market is currently pricing in two more Fed rate reductions this year, but the U.S. employment report due on Friday could influence their expectations. ADP's private payrolls and the JOLTS survey are due on Wednesday. Data from the Asian trading session showed that core inflation in Australia slowed a little and consumer prices increased less than expected. In Japan, a private sector survey showed that the service sector expanded at its lowest pace since May. Spot gold dropped 0.6% to $4.469.04 per ounce. Copper fell 0.1% to $13,111.50 per tonne. Early European trading saw the Euro Stoxx 50 futures up 0.1% to 5,959. German DAX futures up 0.2% to 25,099 and FTSE Futures down 0.24% to 10,123.5. The S&P500 e-minis for U.S. stocks, which are the futures of U.S. stocks, were unchanged at 6,987.5. Bitcoin fell 0.8%, to $92,499.05. Ether declined 0.5%, to $3,257.66. (Reporting and editing by Christopher Cushing in Tokyo, Rocky Swift)
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Sources say that Thyssenkrupp is considering a phased sale to Jindal Steel International of TKSE.
Four people familiar with the discussions said that Germany's Thyssenkrupp might sell its steel division in several stages to India's Jindal Steel International, as both sides attempt to reach a deal for this complex business. Jindal Steel is conducting due diligence on Thyssenkrupp Steel Europe (TKSE) after submitting an indicative bid to acquire Europe's second largest steelmaker. Thyssenkrupp needs to focus on becoming leaner by acquiring the deal. The people who spoke to us said that Jindal would take a majority share in TKSE in a first move, most likely 60%. The remaining 40% could be acquired in two 20% tranches, or all at once, depending on the progress of restructuring. One person said that a phased transaction could give Thyssenkrupp greater flexibility in addressing the 2.5 billion euro ($2.9 billion) pension liabilities associated with TKSE – a major obstacle in 'previous sales attempts. The details of a possible gradual takeover and its impact on the debt obligations were not previously reported. The people stated that due diligence was ongoing and the terms may still change. JINDAL STEEL ?DELEGATION SET FOR JANUARY VISIT ?TO GERMANY The sale of TKSE will end years of trying to find a buyer. This asset, which is central to Germany's industry heritage, was volatile and expensive to operate in the face of tougher Asian competition. Jindal Steel International (the international steel arm of Naveen Jindal Group) would be able to expand into Europe, after purchasing smaller Czech competitor Vitkovice Steel in 2024. Thyssenkrupp stated in a press release that during the due diligence process and any contract negotiations, all aspects of the deal - such as valuation, obligations, and future investments – would be discussed. It said: "We can't comment on individual statements at this time, as they are only interim in nature." Jindal Steel International ?had no immediate comment. After a December trip had been postponed, a second source confirmed that a Jindal delegaion was to visit Germany for a technical inspection of?TKSE’s Duisburg facility in January. Third source: A phased takeover?would also keep Thyssenkrupp in the TKSE restructuring. Thyssenkrupp's CEO Miguel Lopez stated last month that Jindal Steel would be a good fit for TKSE. He added that a sweeping restructuring to reduce jobs and capacity was what prompted the Indian group’s interest. Lopez, without providing details, said that Thyssenkrupp had a backup plan in case the talks with Jindal Steel International failed.
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Berkshire Hathaway increases new CEO Abel’s salary to $25 Million
Berkshire Hathaway announced on Tuesday that it had raised the salary for?new chief executive Greg Abel, to $25 million. This is a far greater salary than the $100,000 per year salary that his predecessor Warren Buffett received for over four decades. Abel, who is 63 years old, was appointed chief executive of Berkshire on January 1 after eight years in the role of vice chairman, overseeing Berkshire’s non-insurance business. Buffett set his compensation during this period. It included a $21 million salary in 2020, a $ 20 million salary in 2030, and a $15 million salary plus a bonus of $3 million in 2022. Buffett gave Vice Chairman Ajit Jain, who oversees Berkshire Insurance's businesses, the same amounts between?2022 and 2024. The compensation of Abel and Jain for 2025 is not known. Buffett, 95 years old, has been running Omaha-based Berkshire, Berkshire, for over 60 years. He turned it into a conglomerate worth more than $1 trillion, with over?200 companies, including Geico auto insurance, BNSF railroad, and a variety of?insurances, energy, manufacturing, and retail operations. Buffett is still the chairman of Berkshire and one of the richest men in the world. Berkshire said that during his tenure, its executive compensation program was "different" than that of most public companies. Abel owns approximately $171 million in Berkshire stock. In 2022, he sold his 1% share in Berkshire Hathaway Energy to Berkshire Hathaway for $870 millions.
As AI rally matures, investors may seek value in 2026
According to analysts, global investors will actively look for opportunities in the financial markets this year that are undervalued as concerns about an AI bubble encourage traders to look past highly valued technology companies.
U.S. stock prices were volatile in 2025. They plunged to bear market territory after President Donald Trump's tariffs in April before eventually rebounding to new record highs.
Analysts expect the upward trend to continue into 2026. However, investors may need to be selective in their asset selection.
BlackRock Investment Institute strategists said that the current environment is ripe for investing actively.
The dollar fell on the expectation of Federal Reserve interest rate cuts, boosting emerging market assets.
Strategists bet on other asset classes gaining traction in 2018.
Small Cap Stocks
As earnings prospects improve, and borrowing costs decline, U.S. Small Caps may be back in the spotlight after years of being out of the spotlight.
Oren Shiran is a portfolio manager at Lazard Asset Management. He said, "The biggest difference in 2026 will be that earnings growth returns to small-cap stocks."
LSEG estimates that traders expect the U.S. Central bank to cut interest rates by 25 basis points twice in 2026. Small-cap companies are more likely to have higher debt levels, and so they will be among the first ones to benefit from a decrease in interest rates.
Steven DeSanctis, equity strategist at Jefferies, expects the Russell 2000 index (which tracks small-cap stocks) to reach 2,825 by 2026. This would be a gain of nearly 14% from 2025.
Gold's historical run in 2025 was the best year since 1979, when the oil crisis began. J.P. Morgan and Bank of America predicted gold prices would hit $5,000 per ounce in this year compared to $4,314.12 by 2025.
Wells Fargo Investment Institute analysts expect that favorable conditions will continue, but they said gains may come at a slower pace.
Central banks could also provide support by purchasing assets other than dollars.
HEALTHCARE & FINANCIALS
A wave of policy improvements could propel the healthcare sector to be a standout. Morgan Stanley stated that the increasing reach of weight loss drugs could boost industry.
As M&A accelerates and the loan growth rebounds, financials, notably?banks are expected to also outperform.
Morgan Stanley stated that the sector's valuation is still attractive due to deregulation and AI driven efficiency gains. Mid-cap banks offer compelling early-cycle opportunity.
CURRENCIES
Analysts?said that the U.S. dollar is set for another bout in weakness in 2026 as they expect the Fed to lower interest rates to cushion an easing labor market. Analysts also see political uncertainty, such as the appointment of a Fed chair, adding to volatility.
Selling would make emerging market currencies like the yuan of China and real of Brazil more attractive, as currency movements are increasingly driven by divergent policy paths.
ING economists believe that the Czech crown may benefit from a new boost due to the rate increases by the Czech National Bank.
Analysts at MUFG wrote that commodity-linked currencies, such as the Australian and New Zealand dollars, could also benefit from a better global growth outlook.
MUFG stated that the euro, among G7 peers, is likely to be supported by fiscal stimulus, while the Japanese yen may remain vulnerable but recover in the short term.
Emerging Markets
A weaker dollar and relatively low valuations are expected to continue to drive?inflows into emerging markets.
BofA Global strategists said that emerging markets are now less volatile than developed ones.
It is a mistake to focus too much on the fact the growth of emerging markets is lower than in the "good old days". It's true. But macro stability indicators have improved in recent years.
Domestic politics could cause a snag, particularly as Brazil and Colombia prepare for elections.
High-Yield and Corporate Bonds
According to analysts, the high-yield bond market and corporate bond markets will be active in 2026 as dealmaking will increase demand for "buyout financing" and AI heavyweights are likely to continue seeking capital to fund data center investments.
According to PitchBook, as of mid-December 2025 the high-yield issuers had a total of $325 billion. This is 17% higher than in 2024, and the highest showing since 2021's pandemic record.
"We have a?constructive view on high-yield bonds in 2026." In the last year, demand for high-yield bonds was strong. This allowed them to comfortably absorb a high-supply?year," wrote Janus Henderson's portfolio managers in a recent note.
EVENT CONTRACTS SUPERCYCLE
Retail investor demand is expected to fuel the rapid growth of event contracts. These contracts allow users to wager on real-world outcomes in politics, sports, and financial markets.
These contracts became popular before the 2024 U.S. Presidential election and have prompted a new wave of startups to launch event contracts.
Vlad Tenev, CEO of Robinhood, said at a recent conference that "we're still in the beginning stages of this supercycle" for this asset class.
Robinhood is one of the largest players in this industry, and Coinbase also wants to get a foothold.
Citizens Financial analysts estimated that prediction markets generate nearly $2 billion a year in revenue. This could increase five-fold by the time institutions begin to participate.
State regulators are examining the rapid growth of these contracts, accusing them of being similar to sports betting, and encouraging potentially speculative behaviour.
(source: Reuters)