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Investors wait for clarity on US-Iran talks before buying gold
Investors remained largely 'on the sidelines' on Monday as they awaited clarity regarding the stalled talks between Iran and the United States. As of 0728 GMT, spot gold was up by 0.1%, at $4,714.51 an ounce. Last week, gold fell 2.5% and ended a four-week streak of gains. U.S. Gold Futures for June Delivery fell?0.2% at $4,729.40. Kyle Rodda is a senior financial analyst at Capital.com. He said, "We are just watching to see if there is any progress in the U.S.-Iran talks?in the next few days. That's going be the biggest driver of gold." After a report that said Iran had given the U.S. through Pakistani'mediators' a new offer on reopening Strait of Hormuz and ending the war, the dollar eased. U.S. President Donald Trump said that Iran can call if they want to negotiate a ceasefire to their two-month conflict and stressed the fact that it will never possess a nuclear device. Trump cancelled the trip of two U.S. ambassadors to Pakistan, a war mediator for Iran. This was a blow to peace prospects. As the Middle East's energy exports were disrupted by the stagnant talks, oil prices rose. A rise in crude oil prices may increase inflation rates by increasing transportation and production costs. Gold is considered an inflation hedge, but high interest rates can make other assets that yield more attractive. This reduces its appeal. Investors are now awaiting the U.S. Federal Reserve interest rate decision on Wednesday. Rodda said that the Fed's stance on the rest of this year could be either a positive or negative for gold, depending on whether they are indicating their intention to keep the policy unchanged. This is because the energy crisis has inflationary effects. Silver spot rose by 0.1%, to $75.75 an ounce. Platinum gained 0.8%, to $2,026.85. Palladium fell 0.4%, to $1,490.60. (Reporting and editing by Sherry Jac-Phillips in Bengaluru, Subhranshu Sahu, Ronojoy Mazumdar).
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Iron ore prices are not much different as restocking before the holidays offsets increased shipments
Iron ore prices were little altered on Monday as falling inventories and a restocking of steelmakers by top consumer China offset higher shipments and a weaker steel margins from Australia, whose major supplier. The day-trade price of the most traded iron ore contract on China's Dalian Commodity Exchange was 786 yuan (115.12 dollars) per metric ton. As of 0701 GMT, the benchmark May ore price on Singapore Exchange was up 0.23% at $106.85 per ton. Analysts said that Chinese steelmakers continue to replenish feedstocks including iron ore ahead of the May Day Holiday break from May 1-5. This has supported prices. A decline in iron ore stocks at major Chinese ports also supported the market. This is the third consecutive week that has seen a decline in. Steelhome's data shows that stocks fell 1% in a week to 163.12 millions tons, the lowest since February 27. The gains were however limited by the higher steel supply and the shrinking margins. Mysteel, a consultancy firm, reported that shipments of iron ore to China from Australia's top supplier rose 15.8% in a week. BHP Group concluded sales contract negotiations with China’s state-owned buyer of the key ingredient in steelmaking, ending months of dispute that had?unsettled market. Official data released on Monday showed that Chinese steelmakers suffered a combined loss in the first quarter of 2026 of 3,34 billion yuan compared to a profit of 7,51 billion yuan a year ago. Coking coal and coke, among other steelmaking components, advanced by?1.19% et 0.63% respectively. The Shanghai Futures Exchange's steel benchmarks were mixed. Rebar, hot-rolled coil and wire rod were flat. Wire rod fell 0.28%. Stainless steel rose 1.29%. ($1 = 6.8277 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson)
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Investors wait for clarity on US-Iran talks before buying gold
Investors remained largely on the sidelines as they awaited clarity regarding the ongoing peace talks between Iran and the United States. As of 0553 GMT, spot gold was unchanged at $4,709.50 an ounce. Last week, gold fell 2.5% and ended a four-week streak of gains. U.S. Gold Futures for June Delivery fell?0.3% at $4,725.10. Kyle Rodda is a senior financial analyst at Capital.com. He said, "We are just watching to see if there is any progress in the U.S.-Iran talks in the next few days. That's what's going be the biggest driver of gold." Dollar eased, lending support to the bullion after a report that said Iran?through Pakistani mediators gave the U.S.a new proposal regarding reopening?the Strait of Hormuz?and ending the war. Donald Trump, the U.S. president, said that Iran can call if they want to negotiate a ceasefire in their two-month conflict and added that it will never possess a nuclear device. Trump on Saturday cancelled the trip of two U.S. ambassadors to Pakistan, which is the main mediator in the Iran-Iraq war. This was a blow for peace prospects. As the Middle East's energy exports were disrupted by the stagnant talks, oil prices increased. A rise in crude oil prices could cause inflation by increasing transportation and production costs. This would increase the probability of interest rates rising. Gold is considered an inflation hedge. However, the high interest rates are making yield-bearing investments more appealing, which reduces its appeal. Investors are now awaiting the Federal Reserve's interest rate announcement on Wednesday. Rodda said that the Fed's stance on the issue could be either a support for gold or a headwind depending on whether the Fed indicates it is 'potentially maintaining policy unchanged throughout the upcoming year due to?the inflationary effects of the energy crises. Silver spot fell by 0.1%, to $76.61 an ounce. Platinum rose 0.2%, to $2,015.63, while palladium dropped 0.6%, to $1,487.73. (Reporting and editing by Sherry Phillips, Subhranshu Sahu, and Noel John from Bengaluru)
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Lightning kills 14 in Bangladesh as storms rage
Officials said on Monday that at least 14 people were killed by lightning strikes in several areas of Bangladesh as seasonal thunderstorms swept the country. Several districts reported deaths after heavy rains and intense lighting were brought by sudden storms. Local authorities reported that the majority of?victims? were farmers who were working on open fields and labourers trapped in exposed areas. Other people were also injured and transported to nearby 'hospitals. Some of them are in critical condition. In Bangladesh, lightning kills hundreds of people every year. The country declared lightning strikes as a natural catastrophe in 2016, after more than 200 deaths in just the month of May, including 82 on one day. Experts claim that the 'rise in fatalities from lightning strikes' is a 'linked to?deforestation. This has resulted in the loss of many tall trees which helped draw lightning away from people. Lightning-related deaths are frequent?during pre-monsoon?months of?April-June,?when increasing heat and humidity creates unstable weather conditions. Reporting by RumaPaul; Editing and proofreading by RajuGopalakrishnan
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Ugandan lawmakers approve budget 2026/27, which represents a 16% increase year-on-year
Uganda's Parliament has approved the government's budget proposal of 84.4 trillion Ugandan shillings (US$22.7 billion) to cover the fiscal year 2026/27 July-June, which is 16% higher than the previous year. Chris Obore, the Parliament's spokesperson, said that lawmakers approved the budget on Friday evening. The'ministry of Finance' has previously stated that a majority of the planned expenditure will be funded by tax revenue, while the remainder will come through domestic borrowing. The'ministry' has justified the'surge in spending by saying that the extra funds will help finance a planned $3.2 billion railway project, and a toll road connecting the capital Kampala with an industrial city to the east. Uganda expects to begin 'crude oil production' this year. The finance ministry said on X Saturday that the economic growth will?hit 10,4% in 2026/27 due to an expected windfall of crude revenue. Early June, the Finance Minister will officially present to Parliament the final budget and any revenue-raising measures for 2026/27.
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Rupee wedged in between dollar sales by state-run banks and US-Iran War uncertainty
The Indian rupee limped in a 'narrow band' on Monday. It was wedged between higher oil prices, demand from importers to hedge their positions and dollar sales by state-run banks. As of 10:30 am IST the rupee was trading at 94.1650 to the dollar, which is a little stronger than it closed at 94.2475 during the previous session. Brent crude oil futures rose to $106.6 during Asia trading, as the hopes for peace talks between Iran and the U.S. dwindled after U.S. president Donald Trump cancelled a trip by his envoys to Islamabad. Iran's foreign minister shuttled between Pakistan and Oman, mediators, on Sunday, before heading to?Russia. Washington and Tehran still seem to be at odds on many issues. The conflict has roiled?global market, and stoked inflation and growth risks for economies around the world. In a recent note, MUFG stated that "our base case" is for a deescalation of the Iran conflict. However, the longer the crisis continues the more severe the inflation and demand destruction impact on?Asia ex-Japan will be. The war also pushed the rupee down by 3.3%. Market interventions and regulatory curbs from the central bank helped to avoid even greater losses. Three traders reported that on Monday?state-run?banks were spotted offering dollars. One of the traders said that the activity also increased the interest in dollar sales on the market. Analysts predict that the rupee will?stay in the red as long as oil costs remain high. The market indicators are also pointing 'in the same directions, with the 1-month delta dollar-rupee reversal risk hovering at 0.7-0.8. This indicates a preference for those options that bet on rupee weakness rather than those that profit from its increase. (Reporting and editing by Rashmi aich, Harikrishnan Nair and Jaspreet kalra)
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MORNING Bid EUROPE-Hormuz & hyperscalers
Tom Westbrook gives us a look at what the future holds for European and global markets. The stock markets have turned their attention to the AI boom, as U.S.-Iran negotiations are stalled and there is little oil flowing through the Strait of Hormuz. Artificial intelligence supply chains stocks surged to record highs in Japan, South Korea and Taiwan on Monday as a result of a wave buying triggered by Intel's unexpectedly positive revenue forecast. The G10 central banks are expected to leave rates unchanged this week, and the Middle East ceasefire is holding. This means that the focus will be on the key driver of AI growth -- the spending plans of the hyperscalers when they announce their earnings this week. Asia's chipmakers posted record earnings last week. SK Hynix reported a fivefold increase in quarterly profit, while Samsung projected an eightfold jump for an operating profit of almost $38 billion over the three-month period from January to march. TSMC has also recorded eight consecutive quarters of double-digit revenue growth. According to the World Federation of Exchanges, the value of South Korean, Taiwanese and German stocks has surpassed that of Germany's stock market. The markets were buoyed by a report from 'Axios that Iran has proposed conditions to reopen the Hormuz, and separate nuclear negotiations again. Investors may begin to adjust their aggressive short-term rate?positions bet on imminent increases?leading up to European and British central bank meetings. Market developments on Monday that may have a significant impact - U.S.-Iran peace talks - Economics: German consumer sentiment for May - Earnings: Deutsche Boerse, Verizon, Domino's Pizza
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Gold prices rise on weaker dollar following Iran peace proposal report
Gold rose?on Monday, aided by a weaker?dollar?as news of Iran's new proposal to end its war with the U.S. boosted hopes for a deescalation of the Middle East conflict. As of 0407 GMT, spot gold was up by 0.4%, at $4,726.62 an ounce. Last week the metal dropped 2.5%, ending a four-week winning streak. U.S. Gold Futures for June Delivery were unchanged at $4,742. The?dollar, which lends support to the bullion market, eased after it was reported that Iran had given the U.S. through Pakistani mediators a new proposition on the reopening of the Strait of Hormuz as well as ending the war. "We are just watching to see if there is any progress in (U.S. - Iran) talks in the next few days, and that will be the main?driver of gold," said Kyle Rodda a senior financial analyst at Capital.com. Donald Trump, the U.S. president, said that Iran can call if they want to negotiate a ceasefire in their two-month conflict and stressed that it will never possess a nuclear device. Trump canceled a visit by two U.S. ambassadors to Iran's war mediator Pakistan, a blow to the prospects for peace. The oil prices increased as the Middle East energy exports were disrupted by the stagnant peace talks. Inflation can be stoked by higher crude oil prices, which increase transportation and production costs. This increases the probability of 'higher interest rates. Gold is seen as an inflation hedge. However, the high interest rates are making yield-bearing investments more appealing, which reduces its appeal. Investors are now awaiting the U.S. Federal Reserve interest rate decision, which is expected to be announced on Wednesday. Rodda said that the Fed's policy could be unchanged for the remainder of the year due to the impact of inflationary costs from the energy crisis. Silver spot rose by 1%, to $76.45 an ounce. Platinum gained 0.7%, to $2,025.20. Palladium fell 0.2%, to $1,493.50. (Reporting and editing by Sherry Phillips, Subhranshu Sahu, and Noel John from Bengaluru)
EU steelmakers to rebound after Iran war hits Asian counterparts
Analysts say that after a half dozen flat earnings seasons in the European Union, steelmakers are poised for a recovery. The first quarter of 2026 may be an inflection-point.
Steel prices increased faster than anticipated in recent months, despite the fact that demand has not?recovered?to 2022 levels. This is due to rising energy prices and a decrease in imports outside of the EU as a result of the EU's newly implemented safeguards.
The price of hot-rolled coils in Europe has increased by around 20% over the last six months.
Oddo BHF analyst Maxime Kogge said that, excluding demand, the planets have aligned themselves for the sector. In the past, we only had a few one-off measures to combat imports. "Now the system has been fundamentally strengthened structurally," Kogge said. He was referring to EU's?carbon tax on high-emissions imports and the trade policy that will halve the import quotas from July 1.
According to LSEG data, higher steel prices are expected to boost profits for EU steelmakers. They will almost all be posting higher first-quarter profit compared to last year's same period and the previous quarter.
The war in the Middle East is surprising to find that it has brought them some benefits, but not enough to offset the negatives. The war in the Middle East has made European steelmakers more efficient and competitive, even though it is a source of uncertainty and threatens to halt further purchases and investments.
Hansjoerg pack, senior portfolio equity director at German asset manager DWS, said that Asian peers were more affected by the Middle East's energy than European counterparts, because of their greater dependence on it.
Bank of America analysts wrote earlier this month that higher shipping costs had helped "regionalize" the steel market, and buyers' behaviour in Europe has changed. Customers have been shifting purchases to domestic producers because of fears of "supply disruptions".
DEMAND DESTRUCTION Still, questions linger. In April, after the Middle East flare-up, the World Steel Association lowered its forecast for steel demand in Europe and Britain in 2026 from 3,2% to 1,3%. This will slow down the recovery.
The energy sector is also a major concern. Bank of America, in a separate report, warned that European steelmakers would face industrial power prices more than half as high as their Chinese and Indian competitors and twice as much higher than those of U.S. producers. Oddo Kogge, BHF's Oddo, said that the industry had been counting on the German defense plan which, so far, "hasn't produced anything", adding that previous hopes of the 'plan' affecting order intakes in the second half of the year were not realised.
Analysts said that the pace of recovery would now depend on the outcome of the Middle East war, because higher inflation might lead the European Central Bank (ECB) to raise interest rates, which could stall the demand. (Reporting from Gdansk by Javi Larranaga, editing by Milla Nissi-Prussak).
(source: Reuters)