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Gold gains due to dollar weakness and safe-haven demand
Gold prices rose over 2% Monday due to a weaker US dollar and demand for safe-haven assets, as the market awaits the Federal Reserve's policy announcement later this week. At 9:44, spot gold rose 2.3% to $3.315.62 per ounce. ET (1344 GMT). U.S. Gold futures rose 2.5% to $3324.50. Dollar index falls 0.5% making gold less expensive for other currency holders. On Sunday, U.S. president Donald Trump announced a tariff of 100% on films produced abroad. This sparked concerns about the possible fallout from a global trade conflict. Jim Wyckoff is a senior analyst with Kitco Metals. He said, "We're seeing a continual flow of safe haven demand that keeps gold prices high. Prices will trade above $3,000 at least in near-term." "I don’t think there will be any changes in interest rates at this meeting, but we'll watch it closely to see if they are leaning towards any particular direction." Investors are waiting for Fed Chair Jerome Powell to make his comments on Wednesday in order to gain insight into the direction of interest rates. Since December, the Fed's policy rate has been in a range of 4.25% to 4.50%. This meeting is expected to see the Fed leave rates unchanged, but this may be the final time that the outcome will be so clear-cut with Trump's trade tariffs casting uncertainty on the economy outlook. Gold has reached multiple record highs this year and is expected to continue its upward trend in the future. Goldman Sachs believes that gold will continue to outperform silver, but notes that due to the strong correlation between flows, a renewed demand for silver in 2025 is likely to boost its prices as well. Spot silver increased 1.3% to 32.39 dollars an ounce. Platinum rose 0.4% to $963.76. Palladium fell 0.7% to $947.15. Reporting by Ashitha and Sarah Shivaprasad from Bengaluru. Mark Potter edited the article.
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World court dismisses Sudan's genocide case against UAE over alleged Darfur interference
The International Court of Justice dismissed Sudan's claim that the United Arab Emirates were fueling genocide by supplying arms to paramilitary groups in Darfur, saying they lacked jurisdiction. Sudan complained to the U.N.'s highest court that the UAE violated the Genocide Convention in Darfur by supporting paramilitary groups, but the UAE said it should be dismissed. The court agreed with the UAE arguments on Monday, rejected Sudan's demand for emergency measures, and ordered that the case be removed. A summary of the ruling stated that due to the lack jurisdiction, "the court's statute prohibits it from taking any positions on the merits" of Sudan's claims. The UAE has hailed this as a legal win. This decision affirms that the case was completely baseless. Reem Kettait, the UAE Ministry of Foreign Affairs' deputy assistant minister of political affairs said that the court's ruling that it lacks jurisdiction confirms this case shouldn't have been brought. The facts are clear: the UAE is not responsible for the conflict in Sudan. The atrocities of the warring parties have been well documented. The court, by a vote 14-2, rejected Sudan's application for emergency measures in order to prevent ethnically-motivated attacks against the Masalit Tribe. This tribe has been at the center of intense ethnic-based assaults by the paramilitary Rapid Support Forces (RSF) and other Arab militias. Sudan accuses UAE of arming RSF which is fighting against the Sudanese Army in a civil war that has lasted for two years. The UAE denies this charge, but U.N. officials and U.S. legislators have found it credible. The ICJ is U.N.'s highest court. It deals with disputes between countries and violations of international agreements. Sudan and the UAE both signed the 1948 Genocide Convention. (Reporting by Benoit Van Overstraeten and Anthony Deutsch. Gareth Jones, Mark Potter and Gareth Jones edited the story.
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Saudi Arabia reports a first-quarter loss of $15.65 billion
Saudi Arabia's first-quarter 2025 deficit increased to $15.65bn from $3.30bn a year earlier as oil revenue fell 18%, to 149.810bn riyals (about $39.95bn), the finance ministry reported on Monday. In the first quarter of this year, Saudi Arabia's total revenue dropped 10% to 263.616 riyals. However, its public expenditure rose 5% to 3222.317 riyals. Saudi Arabia's revenue has been affected by declining oil prices in recent years, as well as voluntary production cuts. Riyadh is pushing ahead with projects that are part of Vision 2030, its ambitious plan to revamp its economy and reduce its dependency on oil. Non-oil revenue in the kingdom increased by 2% from a quarter earlier, to 113.806 billion Riyals. Saudi Arabia is one of the eight members of OPEC+, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia. In April they agreed to accelerate a plan for phasing out oil production reductions by increasing output in May. The Kingdom forecasts a budget surplus of 101 billion Riyals in 2025, as it continues to implement its plan for boosting growth and achieving an economic transformation requiring hundreds of billions in investment. In the first quarter, the Saudi public debt reached 1,329 trillion riyals. The kingdom has a low ratio of debt to GDP and lenders are confident in it. It was one of the largest emerging markets debt issuers by 2024. It will allocate hundreds of billions to fund large-scale projects that aim to reduce its dependence on oil while also fostering the growth of tourism and private sector. The government's top priority is to boost non-oil growth. To do this, the kingdom has increased its efforts to attract tourism investment and expand the private sectors. Saudi Arabia approved in November its budget for the year 2025, which forecasted a deficit of 101 billion Riyals.
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Tyson Foods beats quarterly profit estimates, chicken sales rise
Tyson Foods surpassed Wall Street expectations on Monday for the second-quarter profits, thanks to increased demand for chicken products and lower costs. Premarket trading saw shares fall 2% after the quarterly revenue missed estimates. The meat company was also concerned about the trade policies of U.S. president Donald Trump, as tariff disputes might affect domestic demand and American imports. The U.S. consumer's sentiment declined for the fourth consecutive month in April, amid concerns over tariffs and economic impacts. Some consumers have already switched to cheaper meat products. Tyson has said that the tariffs could lead to some disruptions in sales and that exports are less than 10%. The demand for chicken increased as the average price declined by 1.1% during the quarter ending March 29. However, an increase of 8.2% in beef prices hurt its steak and other cuts. The beef prices in the United States have increased after ranchers reduced their cattle herds because of a drought that lasted for years and dried up the pastures used to graze. Arun Sundaram is an equity analyst with CFRA Research. He said that while the beef segment continues to be challenged by a tight supply of cattle, the margins for the chicken segment are improving, thanks to strong demand. Tyson's beef business reported an operating loss adjusted to $149 million, down from $34 million the year before. The income in the chicken business increased from $160 to $312 millions. LSEG data shows that Tyson's overall earnings per share were 92 cents, compared to analysts' estimates of 82 cents. Analysts had predicted $13.14 billion for quarterly net sales. The company has confirmed its revenue forecast for the year. Stephens wrote in a letter that "Chicken is resilient and we expect it to continue." According to a regulatory filing, Tyson has increased its legal contingency account by $250 million in response to claims that its pork division was involved with price fixing. Smithfield Foods, a Tyson competitor and the largest U.S. pork producer, announced on Tuesday that China is no longer a viable marketplace due to retaliatory duties. Reporting by Neil J Kanatt from Bengaluru, and Tom Polansek from Chicago. Pooja Deai and Mark Potter edited the story.
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India's R R Kabel will see a surge in volume by 2026 due to US tariffs.
A top executive at Indian wire and cable maker R R Kabel’s said on Monday that the company expects its volume to grow by more than twice in fiscal 2026. The U.S. Tariff Policy presents "an opportunity" for trade, as China's tariffs are increasing, he added. R R Kabel's finance chief Rajesh JAIN said that the company expects volume growth to be between 16 and 18% in fiscal 2026. This is partly due to U.S. Tariff policy, which affects Indian exporters more than their Chinese competitors. India's exports are more competitive because of higher levies against China. "I had only one client until last year. Now I'm already in discussions with four or five large customers." Jain stated that China may face challenges, but we will not. Volumes grew by 7%, which was below the company's target of 15%. This is due to a slower construction pace caused by Indian elections, and disruptions on export markets resulting from tensions at the Red Sea. Jain stated that the fluctuating tariffs of President Trump, which have unstabilized global markets and threaten trade stability, were beneficial to the company. The U.S. imposed a 10% base tariff on all exports. Additional reciprocal levies include a 26% rate for India. These are scheduled to begin on July 8, 2018. China, on the other hand, faces a tariff of 145% as both countries seek to reach a trade deal. R R Kabel exports about 10% of its revenue to the U.S. Exports account for 26% of the company's sales, which is a higher percentage than its larger competitors Havells or Polycab. Reporting by Hritam mukherjee in Bengaluru and Ananta agarwal; editing by Tasim zahid
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Three police officers killed in Dagestan, Russia
Authorities in Dagestan, a southern Russian region, reported that three police officers were shot dead in a shootout on Monday after unknown gunmen opened up on their vehicle. The local interior ministry reported that the attack on the officers who were members of a traffic unit occurred at around 12:30 local time (1120 GMT). The ministry confirmed that one of the attackers had been killed. In a video that was not verified and published on Telegram, the bodies of police officers were seen lying in a street next to a police car. While passersby inspected the bodies, they heard more gunshots down the street. Another video showed a man dressed in black shooting on the street before fleeing. Unverified images of two men lying in pools blood were published by Telegram channels. Dagestan is a predominantly Muslim region that has been the victim of several deadly attacks over the past few years. Counter-terrorism forces in March killed Four militants associated with the Islamic State were allegedly plotting an attack on a regional branch office of the Interior Ministry. (Reporting and Writing by Lucy Papachristou, Gleb Stolyarov and Guy Faulconbridge; Editing by Guy Faulconbridge).
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Gold increases by more than 2% due to dollar weakness and safe-haven demand
Gold prices increased by more than 2% Monday. This was due to a weaker US dollar and a surge in safe-haven investments after President Donald Trump's new tariffs reignited fears about a global trade conflict. As of 1144 GMT, spot gold was up 2.3% to $3,313.21 per ounce. U.S. Gold Futures rose 2.4% to $3322. Gold is more appealing to other currency holders because the dollar index has fallen by 0.4%. Trump announced on Sunday a tariff of 100% on films produced outside the U.S., but provided little detail on how it would be implemented. Carlo Alberto De Casa is an external analyst for Swissquote. He said: "The U.S. Dollar is slowing down, and that's a positive thing for gold. More investors are betting the Fed will reduce rates fairly soon, after last week's U.S. Gross Domestic Product data was below expectations and now, with what's happening with oil." The U.S. Federal Reserve will likely keep rates unchanged on Wednesday. However, the market's focus will be on Jerome Powell, his remarks, and economic projections. Trump reiterated his call to the central bank for interest rate cuts, saying he would not remove Powell from his position as Fed Board Chair before Powell's term expires in May 2026. Gold that does not yield acts as a hedge to inflation and global uncertainty. It tends thrive in an environment of low interest rates. Trump said on Sunday that the U.S. met with many countries including China on trade deals and that his priority for China was to achieve a fair deal. Goldman Sachs stated in a report that "We expect gold to continue to outglitter silver, with Chinese solar production slowing due a high U.S. risk of recession and central bank gold purchases remaining strong through 2025." Other metals rose in price, with spot silver up 1.3% at $32.38 per ounce. Platinum was up by 0.1%, to $961.41, and palladium by 0.7%, to $960.13.
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Eskom's outlook for power has lifted the rand to a five-week high.
The South African rand strengthened Monday, reaching its highest level in five weeks. State utility Eskom stated that it was optimistic regarding the power outlook for the winter in the Southern Hemisphere, and aimed to avoid any electricity cuts within the next four month. Since more than a century, power outages have plagued Africa's industrialised nation. This has hampered economic growth. Investor confidence is still shaky despite Eskom's attempts to reduce power outages to the levels recorded in 2023. This is due to 14 consecutive days of blackouts in January-April Chief Executive Dan Marokane called this year's setback a temporary one. At 1110 GMT the rand was trading at 18,2850 per dollar, which is 0.7% higher than the Friday close. The dollar last traded slightly lower against a basket currency as investors awaited more details about U.S. China trade relations and the Federal Reserve policy meeting this week. Citigroup expects South Africa's currency to gain against the U.S. Dollar, as the premium on the real rate in Africa's most developed economy and the firmer commodity exports are expected to outweigh the domestic political uncertainty. Bhumika Gupta, a strategist from South Africa, and Luis Costa, a foreign exchange specialist from Brazil said that they expected the rand to weaken to less than 18 dollars per rand. Societe Generale's strategists, on the other hand, said that South Africa is still facing domestic and geopolitical uncertainty, so they predict the rand will reach 20 rand per dollar by the end of June. The S&P Global Purchasing Managers' Index will be released on Tuesday. Manufacturing and foreign reserve data are due on Thursday. Early deals showed that the benchmark South African 2030 government bond had a lower yield, which was up by 2 basis points at 8.845%. Reporting by Sfundo parakozov and Colleen GOKO. Mark Potter and Sharon Singleton edited the article.
Vietnam's Duc Giang Chemicals in talk with sell stake to foreign financier, sources say
Vietnam's Duc Giang Chemicals remains in speak with sell a minority stake to a. foreign strategic financier in a deal that might value the. nation's 2nd biggest chemical business at as much as $2 billion,. 2 people with understanding of the matter said.
The talks also consist of an alternative choice for the. financier to take ownership of the business's aluminum project,. which mines and processes bauxite into alumina in the central. highlands province of Dak Nong, among individuals said.
Duc Giang Chemicals is dealing with an advisor on the offer,. individuals stated. Considerations were continuous and no last. decisions have been made, they added, decreasing to be determined. as the talks were private.
Hanoi-headquartered Duc Giang Chemicals, whose shares have. gained 24% so far this year and which according to LSEG. commanded a market price of practically $1.8 billion since Tuesday,. did not reply to requests to comment.
Earnings raised will be used to additional expand the company's. businesses and production capacity, stated among the people.
Duc Giang Chemicals is among the world's most significant exporters. of yellow phosphorus, a key element to make electronic chips,. fertilizer and lithium batteries, representing a third of. international exports, the people added.
China, formerly a major exporter of yellow phosphorus, has. restricted exports over the last few years to secure products in its. domestic market.
Duc Giang Chemicals has actually set a target of generating 1.1. trillion dong income from exporting yellow phosphorus this. year, almost half of its overall income.
The business, which likewise produces detergent, fertilizers,. chemical items and batteries, taped a net profit of 3.2. trillion dong ($ 128.3 million) last year, down 46.2% from the. year before.
Duc Giang was established in 1963 as a state-owned business. It has operated as a joint stock business since 2004, according. to its website.
(source: Reuters)