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Gold reaches $4,700/oz despite Trump's threats
Gold reached $4,700 an ounce for the very first time on Tuesday, as President Donald Trump threatened to impose extra tariffs against European allies. This shook global sentiments and caused a rush towards safe-haven assets. Spot gold rose 0.7% by 0514 GMT to $4699.93 an ounce, after hitting a record high of $4701.23 earlier. U.S. Gold Futures for February Delivery climbed 2.4%, to $4.706.50 per ounce. Silver spot fell by 0.4%, to $94.27 per?ounce after reaching a session high of $94.72 an?ounce earlier. Trump is intensifying his efforts to 'wrest Greenland sovereignty from NATO member Denmark. This has prompted the European Union (EU) to consider retaliatory measures. Tim Waterer is the chief market analyst at KCM Trade. He said that Trump's "disruptive" policy and desire for lower interest rates are ideal for precious metals. Trump's unconventional approach to politics has played into the hands for gold and silver. Since Trump's second term began a year before, gold prices have risen by more than 70%. Gold also gained support on Tuesday as concerns about the Federal Reserve's autonomy lingered. The U.S. Supreme Court is expected to hear the case this week regarding Trump's attempted to fire Fed Governor Lisa Cook. It is expected that the Fed will maintain interest rates during its meeting on January 27-28, despite Trump's call for reductions. Gold, which does not pay interest, usually performs well when there are low interest rates. Kelvin Wong is a senior analyst at OANDA and expects that the Fed will continue to cut rates into 2026. He cites a weak labour market, as well as a lackluster consumer sentiment. The next rate reduction has been priced in for either June or August. (Reporting by Swati Verma in Bengaluru; Editing by Subhranshu Sahu) (Reporting by Swati Verma in Bengaluru; Editing by Subhranshu Sahu)
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MORNING BID EUROPE - Sell America, sell Japan
Tom Westbrook gives us a look at what the future holds for European and global markets. Investors in Tokyo are waiting to see how U.S. market's react to the transatlantic tension over?Greenland. The U.S. market resumes trading after a long holiday. During that time, the rest of world sold its stocks and dollar as a response to President Donald Trump's threat to impose tariffs on European Allies who opposed his efforts to "control the Danish Arctic territory". Trump told Norway's prime minister by text that he does not feel obliged to think "pure peace" anymore because he did not receive this year's Nobel Peace Prize. The 10-year Treasury yields increased by 2.4 basis points during the Asia session. Equity markets suggest a drop at the opening. Investors are 'tired' of a year of policy shocks. They're now waiting for Europe's response. This will be decided on Thursday at an emergency EU leader's meeting to determine how frightening Trump's threats might be. Citi downgraded European stocks on Tuesday on the basis of?uncertainty clouding the earnings outlook. In Japan, yields soared and demand for a 20-year bond auction slowed as Prime Minister Sanae Takaichi called an early election. Debt investors worry that tax cuts and spending mandates don't bode well for future government finances. The yen missed out on a lot of the gains from this week’s dollar selling and is hovering near 158 per dollar. The following are key developments that may influence the markets on Tuesday. Markets in the U.S. return after holiday World Economic Forum in Davos - German ZEW Survey
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Shanghai snowfall is rare due to a wave of low temperatures
Shanghai residents were delighted to see rare snowfall on Tuesday, as a wave of cold weather swept through southern China. Authorities warned that the frigid temperatures could last at least three more days. Last time the city on China's East Coast experienced heavy snowfall was in January 2018. Last week, Shanghai basked in temperatures as high as 20 degrees Celsius (68 degrees Fahrenheit) which caused osmanthus to bloom. Yu Xin, a 30-year-old'resident' said: "This year the weather has been strange." She said that "in general, there have been significant temperature fluctuations, which may make some people feel uncomfortable." Chinese state media reported that other areas, such as Jiangxi province and Guizhou, south of China's Yangtze and Huai Rivers, also experienced sharp temperature drops. The Zhejiang News reported that temperatures in Guizhou are expected to drop by 10-14 degrees Celsius. CCTV reported that in China, the authorities have also closed 241 sections of main roads across 12 provinces, including Shanxi and Inner Mongolia, due to snowfall. (Reporting and editing by Thomas Derpinghaus; Xihao Jiang and Brenda Goh)
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Oil prices are boosted by a weaker dollar, while investors look to Greenland for developments
The price of oil?increased on Tuesday due to a weaker US dollar. Meanwhile, the markets were watching President Donald Trump threaten higher U.S. Tariffs against European nations because he wants to buy Greenland. Brent futures were up 15 cents or 0.2% to $64.09 per barrel at 0430 GMT. The U.S. West Texas Intermediate contract for February that expires Tuesday was up by 14 cents or 0.2% to $59.58. WTI March gained?6 Cents or 0.1% to $59.40. WTI contracts were not settled on Monday because of the U.S. Martin Luther King Jr. Martin Luther King Jr. Day was observed in the United States on Monday. Tuesday, ING commodities strategists said that a weaker dollar helped oil and commodities in general. The weaker dollar makes dollar-denominated contracts of oil cheaper for holders other currencies. ING said that prices have held relatively well despite a broader move away from risk in the markets. This was prompted by the resurgence of trade tensions 'between the U.S. Fears of a new trade war grew over the weekend after Trump announced that he would increase import taxes by 10% on goods from Denmark, Norway and Sweden as well as France, Germany, The Netherlands, Finland, and Britain. These levies will rise to 25% if a deal is not reached on Greenland. CHINA DATA SUPPORTS OIL Tony Sycamore, IG's market analyst, says that the oil market also finds support from the better than expected fourth-quarter Chinese GDP data released on January 28. He said that "this resilience of the world's largest oil importer gave a boost to?demand sentiment". The data revealed that China's economy grew by 5.0% in the past year. This was in line with the government's goal, which was to counteract the weak domestic demand through a record-breaking share of the global market for goods. This strategy has helped to offset the negative impact of U.S. Tariffs, but it is becoming increasingly difficult to maintain. Government data released on Monday showed that the country's crude oil production grew by 1.5% and its refinery output rose 4.1% in 2025. Both were at record highs. The markets are also keeping an?close watch on Venezuela's petroleum sector, after Trump stated that the U.S. will run the industry in the wake of the capture and imprisonment of President Nicolas Maduro. Multiple trade sources reported that Vitol had offered Venezuelan crude oil at a discount of $5 per barrel compared to ICE Brent, for delivery in April. (Reporting and editing by Jamie Freed in Singapore, Jeslyne Lerh from Bengaluru; Anushree mukherjee of Bengaluru)
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Gold nears record high as trade tensions threaten to sour global sentiment
On Tuesday, gold and silver traded at record levels as U.S. president Donald 'Trump's threats to buy Greenland soured the global mood and led investors to rush into safe haven assets. As of 0336 GMT spot gold was up by 0.1% to $4,675.32 an ounce after reaching a record high of $4689.39 the previous session. U.S. Gold Futures for February Delivery climbed 1.9% per ounce to $4,680.30. Silver spot fell by 1.4%, to $93.33 an ounce. It had earlier reached a session high of $94.72. Tim Waterer is the chief analyst at KCM Trade. He said that gold was waiting for today and consolidating its recent gains. Traders are waiting to see how Trump will handle his latest spat with the EU over Greenland. Waterer added that "if European Union leaders were able to reach an agreement with Trump in Davos, this week, the risk premium for gold might diminish." Trump's renewed efforts to take Greenland away from NATO member Denmark has prompted the European Union (EU) to consider retaliating with its own measures. After tariff threats caused a selloff in U.S. government bonds and stocks, the dollar fell to its lowest level in a week. Concerns lingered over the independence of the Federal Reserve, which is a part of the United States. This week, the Supreme Court is expected to hear an appeal regarding Trump's attempts to fire Fed Governor Lisa Cook for alleged mortgage fraud. Despite?Trump’s calls for a cut, the Fed is expected to keep interest rates steady at its meeting on January 27-28. Gold, which doesn't yield interest, performs well during low interest rate periods. Kelvin Wong is a senior analyst at OANDA and expects that the Fed will continue to cut rates into 2026. He cites a weak labour market, as well as a lacklustre consumer mood. The next rate reduction has been priced in for either June or even July. Other precious metals also fell, with spot platinum falling 1.8% to $2331.20 per ounce and palladium dropping 2% to $1804.15. (Reporting by Swati Verma in Bengaluru; Editing by Subhranshu Sahu)
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Copper prices are soaring as investors look for new catalysts
On Tuesday, copper prices were rangebound as investors waited for new catalysts that would push the price in either direction. As of 0330 GMT, the?most active copper contract at the Shanghai Futures Exchange increased 0.35% to 101,000 yuan (US$14,596.22) a metric tonne. The benchmark three-month copper price on the London Metal Exchange fell 0.50%, to $12,901 per ton. It is still below the $13,000 mark. Investors remained cautious amid geopolitical risk, and favored safe-haven assets like gold, which has been holding near record highs. The dollar's weakness was a major factor in the Monday rebound. After U.S. president Donald Trump threatened to impose additional tariffs on Greenland as part of his campaign, data revealed that China's economy had shown resilience by meeting its growth targets by 2025. Copper, the most popular?base metal last year, gained more than 41%?in London and 33% in Shanghai. This was a record-breaking?rally. Nickel policy in Indonesia remained a major topic on the base metals markets. Nickel miner PT Vale Indonesia announced on Monday that it is unlikely to be able to meet the demand of the smelters whose pipeline the company has in this year, due in part to the production quota received. The announcement came after the Indonesian government said?last weekend that it may approve a nickel ore production quota in 2026 of around 260 millions tons. This was seen as a decrease from the volume approved in 2025, and would fall short of demand. The most traded nickel contract retreated after rising by 2.36%, to 144180 yuan per ton. It only posted a?a gain of 0.08%. The benchmark nickel for three months fell 1.45% to $17.870 per ton. Other base metals in the SHFE fell by 0.31%. Zinc lost 0.45%. Lead dropped 0.32%. Tin gained 2.26%. Aluminium fell 0.78% on the LME, while zinc slipped 0.14%, lead dropped 0.27%, and tin remained unchanged. Tuesday, January 20, DATA/EVENTS - (GMT) 0700 UK HMRC Changes in Payrolls Dec 1000 Germany Economic Sentiment Jan 1,000 Germany ZEW Current Situation Jan ($1 = 6,9609 Chinese Yuan Renminbi). (Reporting and Editing by Lewis Jackson & Dylan Duan)
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Australia closes beaches on the east coast after shark attacks
Heavy rains have muddied the waters and made them more attractive to sharks. Several beaches on Australia's east cost, including Sydney, were closed Tuesday following four shark attacks within two days. A man who was surfing in Port Macquarie (about 400 km north of Sydney) had been bitten earlier that day. Health authorities reported that he is in stable condition in hospital. Steven Pearce told reporters that the beaches were unsafe at this time. "We have such poor water that is really conducive for some bull shark activity." The closures occur during the summer months in Australia, when the beaches are usually crowded with tourists and locals. SHARK ATTACKS Emergency services were called on Monday night to Manly Beach in Sydney after reports that a surfer aged in his 20s was bitten by shark. Max White, an eyewitness, said that another surfer kept the man alive by using the leg rope of his board as a tourniquet. He told ABC that "he was conscious, but not breathing. We just tried to keep him awake." The paramedics treated him for severe leg injuries and then took him to the hospital in critical condition. On Monday, a boy aged 10 escaped without injury after a shark bit into his surfboard. A day earlier, a boy in critical condition was bitten on a city beach. Police have announced that all beaches along the Northern Beaches council area, which straddles Sydney's northern coast, will remain closed until further notification. BRACKISH WTER Bull sharks are suspected of being behind the attacks. Days of heavy rain washed in to the harbour and nearby beaches. The species thrives when exposed to brackish waters. In a Sydney Morning Herald column, Chris Pepin-Neff wrote that sharks don't normally bite humans. However, the turbid waters reduce their visibility, which increases the chance of them bumping into something. At this point, "they bite defensively or curiously and then bite twice again", an expert in shark behavior. He added that heavy rain increases sewage runoff and attracts bait fish, which sharks feed upon. According to conservation groups, Australia has around 20 shark attacks each year. Of these, fewer than 3 are fatalities. The drownings that occur on Australia's beaches dwarf those numbers. (Reporting and editing by Himani Sarkar in Sydney)
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Dollar struggles, stocks tumble as Trump's Greenland gamble rattles markets
Asian stocks fell Tuesday as trade war concerns resurfaced and caused a sell-off in U.S. ?assets. Investors are rushing to secure assets such as the Swiss Franc or gold in response to U.S. president Donald Trump's threat to impose additional tariffs on Greenland. This could fuel trade tensions between the U.S. and Europe. Talk of the "Sell America" trade has been revived after the tensions. This is where investors sell U.S. stocks, dollars and Treasuries. The trade seemed to be gaining momentum during Tuesday's Asian hours. Nasdaq futures and S&P500 futures both fell 1% during the early trade. The dollar was still vulnerable, and the yield of the 10-year U.S. Treasury Note rose to 4.265% - its highest level since September. The broadest MSCI?index of Asia-Pacific stocks outside Japan fell 0.44%, moving further away from its record highs set last week. Henry Cook, MUFG Europe economist, said that last year "taught us to not overreact to Trump’s threats". He noted European policymakers would look to engage in dialogue and negotiate?first to at least 'buy some more time'. Trump's threats have sparked a strong pushback in Europe, and his remarks raise questions about the future of trade agreements struck with Europe since then. Cook stated that "even if the situation is resolved, this incident will cause many people to doubt any agreement with Trump. The uncertainty over tariffs will therefore remain high." Citi downgraded European stocks as their strategists noted that the recent step-up of tensions and uncertainty over tariffs dents the near-term investment case. This casts doubt on the broad-based earnings inflection expected in 2026. European futures are 0.12% lower. This suggests a mellower opening later in the day. Sources say that all eyes are now on Davos, where Trump will meet with global business leaders in Switzerland this Wednesday. The U.S. President's presence is a major factor at the annual gathering of global elites. The Nikkei index fell 0.8%, and the dollar last traded at 157.92 yen. Investors were looking ahead to next month's elections, where Prime Minister Sanae Takaichi is seeking to increase spending, reduce taxes, and implement a new strategy for security that will accelerate defence building-up. The sale of Japanese Government Bonds (JGBs), which will take place on Tuesday, will be a test for the markets to see if Takaichi's promise of tax cuts during his election campaign is true. On Monday, both short- and longterm JGB yields reached record highs amid fears that tax cuts, hailed by Takaichi’s ruling Liberal Democratic Party as well as opposition groups, would worsen the already stretched finances of the government. Gold was unchanged at $4,670 an ounce on Tuesday, barely a smidgen below the record high reached on Monday. (Reporting and editing by Ankur Banerjee, Singapore)
After an accident at a Chinese steel mill, iron ore prices fall due to concerns about demand
Iron ore futures declined for a third straight session on Monday, after an accident at a Chinese steel plant sparked concerns about the demand for this steelmaking ingredient.
As of 0250 GMT, the most-traded contract for May iron ore on China's Dalian Commodity Exchange (DCE), traded at 786 Yuan ($112.92) per metric ton.
The benchmark iron ore for February on the Singapore Exchange fell 0.63% to $104.66 per ton.
Inner Mongolia Baotou Steel Union's subsidiary, which owns the steel plate factory, reported earlier on Monday that an explosion occurred at a factory producing steel plates in China's northern region of Inner Mongolia, killing six people and injuring 84 others.
Investors were alarmed by the news of the accident, as they feared a drop in hot metal production and imminent government safety inspections of steel mills throughout?the nation, which could?affect demand for feedstocks.
The Shanghai Metals Market stated in a report that it is possible the accident will affect two blast-furnaces, which produce an average of 16,000 mt per day.
BHP Group said that it had accepted lower iron ore prices during its annual contract negotiations with China, which it announced on Tuesday as it reported record production in the first half of the year.
BHP, world's biggest listed?miner, announced on Tuesday a 9% increase in its iron ore production relative to the first quarter.
China Mineral Resources Group, a state-owned buyer of iron ore, has been ordering steel mills and traders to stop buying multiple grades BHP 'iron ore since September. It is seeking better terms for domestic manufacturers.
Coking coal and coke both fell by 2.55% and 2.54 % respectively.
The benchmark steel prices on the Shanghai Futures Exchange are mixed. Rebar fell 0.7%, hot-rolled coil dropped 0.76% and wire rod weakened 0.78%. Stainless steel, meanwhile, rose by 0.35%. $1 = 6.9607 Yuan (Reporting and editing by RashmiAich; Ruth Chai)
(source: Reuters)