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Trump approves coal mine expansion for Asia exports
The U.S. The U.S. The Montana-based company can now recover 22.8 millions metric tons federal coal, 34.5 millions metric tons adjacent non-federal coking coal and extend life of the Bull Mountains Mine by nine years. Interior Secretary Doug Burgum is also the co-chairman of Trump's Energy Dominance Council. He said that by unlocking more federally owned coal, it allows the U.S. strengthen ties with its allies overseas. He said that President Trump's declaration of a national emergency in the energy sector allowed us to act quickly, reduce bureaucratic delays, and secure America’s future by ensuring energy independence and strategic trade. Trump declared an emergency on January 20 to accelerate permits, rollback environmental protections and pull the U.S. out of an international climate change pact. Signal Peak sent its initial plan to expand their mining operations to Office of Surface Mining Reclamation and Enforcement (OSMRAE) in 2020. However, it has been subject to federal review and litigation since then. The Interior Department has completed the environmental impact assessment for the mine expansion in accordance with its new policy, which speeds up such reviews by a maximum 28 days. Burgum joined Energy Secretary Chris Wright, Environmental Protection Agency Administrator Lee Zeldin and other energy exports to Asian markets this week in Alaska. Bull Mountains Mine in Montana is located in Musselshell County and Yellowstone County. It employs more than 250 workers, and supplies primarily Japan and South Korea. Environmental groups tried to stop the expansion of this mine due to concerns over its water usage and greenhouse gas emissions. Anne Hedges of the Montana Environmental Information Center said, "It is utter hogwash to think that we must sacrifice our climate, water resources and wildlife to send coal to foreign countries to burn." (Reporting from Valerie Volcovici and Nichola Grroom in Washington; Editing by Barbara Lewis, Matthew Lewis and Matthew Lewis).
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US and China to hold trade talks on June 9 in London
Three of Donald Trump's closest aides are scheduled to meet their Chinese counterparts on Monday in London for talks on resolving a trade conflict between the two world's largest economies, which has been causing global markets to be on edge. U.S. Treasury Sec. Scott Bessent will be represented by the U.S. Trade Representative Jamieson Grer, Commerce Sec. Howard Lutnick, and the U.S. Trade Rep Jamieson Greer in the talks. Trump announced the talks on his Truth Social platform, but did not provide any further details. The identity of the China representative was not immediately known. The Chinese Embassy in Washington didn't immediately respond to an inquiry for comment. Trump wrote that "the meeting should go well." The meeting is scheduled a day after Trump called Chinese President Xi Jinping, in a rare call between leaders amid weeks of brewing tensions over trade and a fight over vital minerals. Trump and Xi have agreed to meet and their staffs will hold discussions in the interim. Both countries face pressure to ease tensions. The global economy is under pressure due to China's control of rare earth minerals, for which it is the leading producer. Investors are also concerned about Trump’s efforts to impose tariffs across the board on products from the majority of U.S. trading partner nations. China has also seen the supply of important U.S. products like chip-designing software cut off. On May 12, the countries reached a 90-day agreement in Geneva, to reverse some of their triple-digit, tit for tat tariffs that they had imposed on each other after Trump's inauguration. The preliminary agreement sparked an international relief rally on stock markets. U.S. indices that were in or near bear-market levels have recovered the majority of their losses. Although stocks rose, the temporary agreement did not address the broader concerns straining the bilateral relationship. These range from the illicit fentanyl traffic to the democratically-governed Taiwan, and U.S. complaints against China's export-driven, state-dominated economic model. Trump, since returning to the White House, has threatened a variety of punitive actions against trading partners. However, he has retracted some of these measures at the last moment. This on-again-off-again strategy has confused world leaders and scared business executives. Beijing views mineral exports in the United States as a way to exert political pressure. If economic growth slows down because companies are unable to produce mineral-powered products, this could lead to domestic political pressure being placed on President Donald Trump. The United States has identified China in recent years as its most important geopolitical competitor and the only nation capable of challenging the U.S. militarily and economically. (Reporting and editing by Costas Pittas, Anna Driver and Trevor Hunnicutt)
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India and central Asian countries express joint interest in rare earths exploration
In a statement released after the India-Central Asia Dialogue's fourth meeting in New Delhi, India and five countries from central Asia expressed an interest in exploring rare earths together. The announcement coincides with global alarm about China's decision not to export rare earth alloys and mixtures. This has affected industries from automotives to clean energy and defence. India and central Asian countries, including Kazakhstan, Kyrgyzstan and Turkmenistan as well as Uzbekistan, also asked "relevant authorities" to convene the India-Central Asia Rare Earth Forum sooner than the September meeting. The statement added that the sides agreed to meet again in 2026. Rare earths is a grouping of 17 elements, whose main uses include the creation of magnets for motion in cars, cellphones and missiles. China produces 90% of the rare earth magnets in the world and mines 60% of it. However, as part of a sweeping response to U.S. tariffs on imports by President Donald Trump, China announced export restrictions for these rare earth magnets. India has been in talks with companies about establishing long-term stocks of rare earth magnets, offering tax incentives to domestic producers, to reduce its dependence on Chinese shipments, according to a report on Thursday. South Asia also plans to offer incentives to recycle 24 essential minerals. The plan is currently being approved as the nation looks to secure minerals for the green energy transition. (Reporting and writing by Shivam Patel; editing by Alex Richardson, David Evans, and Sakshi Dayal)
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US declares Biden fuel efficiency rules exceed legal authority
The Transportation Department has paved the road for looser fuel economy standards in the United States by declaring on Friday that former President Joe Biden’s administration overstepped its authority when it assumed a high uptake of electrical vehicles to calculate rules. The Department made this declaration when it published its final "Resetting of the Corporate Average Fuel Efficiency Program" (CAFE). Fuel economy requirements will be revised by a separate rule issued by the Trump administration. "We make vehicles more affordable in the United States and we are making it easier to manufacture them." In a statement, Transportation Secretary Sean Duffy said that the previous administration used CAFE standards to mandate electric vehicles. In writing the rule under Biden last year, the National Highway Traffic Safety Administration of the Department of Transportation (NHTSA) "assumed that significant numbers of EVs will continue to be manufactured regardless of the standards established by the agency," the department said on Friday. Duffy signed in January an order that directed NHTSA to cancel fuel economy standards set under Biden, for model years 2022-2031. These standards were intended to reduce the fuel consumption of cars and trucks. Late Thursday Senate Republicans have proposed to eliminate fines for failing to meet CAFE standards as part of an extensive tax bill. This is the latest step to make it easier for automakers build gas-powered cars. In 2018, Chrysler's parent company Stellantis, which is owned by Chrysler, paid nearly $400 million in penalties between 2016 and 2019. GM paid $128.2 millions in penalties between 2016 and 2017. Stellantis stated that it backed the Senate Republican proposal, "to provide relief until DOT develops their proposal to reset CAFE standards." The current standards are not in line with the market realities and immediate relief is needed to preserve affordability and freedom. GM has declined to comment. NHTSA, under Biden in June 2024, said that it would increase CAFE requirements for light-duty vehicle to approximately 50.4 miles per liter (4.67 litres per 100 km), from 39.1 mpg at present. Last year, the agency estimated that the rule for cars and trucks could reduce gasoline consumption and emissions by 659 millions metric tons. This would result in a reduction of fuel costs and a net benefit of $35.2 billion. (Reporting and editing by Aidan Lewis, Peter Graff, and David Shepardson)
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Trump approves coal mine expansion for Asia exports
The U.S. The U.S. The Montana-based company can now recover 22.8 million metric tonnes of federal coal, 34.5 millions of adjacent nonfederal coal as well as extend the life of its Bull Mountains mine for nine years. Interior Secretary Doug Burgum is also the co-chairman of Trump's Energy Dominance Council. He said that by unlocking more federally owned coal, it allows the U.S. a chance to strengthen ties with U.S. ally abroad. He said that President Trump's declaration of a national emergency in the energy sector allowed us to act quickly, reduce bureaucratic delays, and secure America’s future by ensuring energy independence and strategic trade. Signal Peak sent its initial plan to expand their mining operations to Office of Surface Mining Reclamation and Enforcement (OSMRAE) in 2020, but it is currently under federal review and subject to litigation. The Interior Department has completed the environmental impact assessment for the mine expansion in accordance with its new policy, which speeds up such reviews by a maximum 28 days. Burgum joined Energy Secretary Chris Wright, Environmental Protection Agency Administrator Lee Zeldin and Japanese and Korean officials in Alaska this week to promote an LNG and other energy exports destined for Asian market. The Bull Mountains Mine, located in Musselshell County and Yellowstone County, employs more than 250 workers, and supplies primarily Japan and South Korea. Environmental groups have attempted to block the expansion due to concerns over water consumption and greenhouse gas emissions. (Reporting and editing by Barbara Lewis; Valerie Volcovici)
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Gold drops as US job data clouds prospects for rate cuts
Gold prices slipped on Friday after a stronger-than-expected U.S. jobs report dampened hopes for imminent Federal Reserve rate cuts this year, while silver soared to its highest level since 2012. As of 10:45 am, spot gold was down 0.6%, at $3,333.69 per ounce. ET (1445 GMT), and has risen 1.2% in the past week. U.S. Gold Futures fell 0.6% to $3356.50. According to a report by the Labor Department, non-farm payrolls rose 139,000 in may, as opposed to estimates of a 130,000 increase, according economists polled. The unemployment rate was 4.2% in line with expectations. The data came in line with expectations, which is negative for gold, as it suggests that the Fed will stay on hold for some time, said Marex analyst Edward Meir. Based on the trading of short-term interest rate futures, traders are hesitant to make bets on a Fed third rate reduction by year's-end. Gold is a hedge for inflation and geopolitical unrest. Gold is less attractive as a result of higher interest rates, since it does not yield any return. There was little clarity on trade policy after the call between U.S. president Donald Trump and Chinese leaders Xi Jinping, which took place on Thursday. These are difficult negotiations that won't be resolved over the phone. Meir said that if the headlines on tariffs turn negative, it's good for gold. After hitting a record high of more than 13 years, spot silver dropped 0.3% to 36.04. Silver's gains "appear to have been driven by speculative flow, who saw it as way too cheap in comparison with gold. The break above the 35/oz mark amplify the move," Giovanni Staunovo said, an analyst at UBS. Palladium, meanwhile, rose 3.4%, to $1,039.78, the highest level since March 20, 22. Platinum also rose 3.4%, to $1168.72. Both metals are expected to see weekly gains.
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Copper prices rise in the near future due to falling LME stocks
Due to concerns about the near-term supply of copper at the London Metal Exchange, due to the falling stock levels in LME registered warehouses, contracts with shorter maturities have been priced higher than those with longer maturity. A month ago, the discounts on nearby LME copper against forwards with longer dates were converted into premiums as COMEX prices continued to be higher than those of the LME. The premium of cash LME copper over benchmark 3-month futures The price of a ton was $75 on Thursday, but it jumped to $93 at the close. This is the highest level in over two years. The discount was $63 back in early April. The backwardation is a sign of some sort of shortage. "Normally, it's in contango," explained Dan Smith of Commodity Market Analytics. The total copper stock in the LME's warehouse system has been reduced by half since mid-February, to 132.400 tons. This is the lowest level in nearly a year. The 54,600 tonnes of available stocks (those not marked for shipment) are the lowest level since July 2023. Alastair Muuro, Senior Base Metals Strategist EMEA at Marex, explained that the sharp movement in the spread was due to new cancellations of LME stocks. He said that the premium was lower on Friday because there were no new major cancellations of title documents, such as warrants. Stocks continued to leave LME registered warehouses. Recent mine supply disruptions, traders diverting metals to the U.S. and Washington's investigation into the possibility of tariffs on imports of copper are fueling fears. Despite the fact that there is not a dominant holder of LME copper warrants (0#LMEWHL>) ahead of expiration of contracts on Wednesday the third of each month, one party had more than 90% of cash copper contracts as of June 4, helping to maintain the premium. 0#LMEWHC> (Reporting and editing by David Evans; Polina Devitt)
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Fuego volcano in Guatemala spewing ash has forced more than 700 people to evacuate
Guatemala's Fuego Volcano emitted ash miles high into the sky on Friday, as authorities evacuated 700 people as a precaution. Seismology agency INSIVUMEH reported that a lava flow was forming around the crater, which is located about 18 km away from Antigua Guatemala. It added that some ash plumes could reach up to 5 km in the air. Authorities have warned of an increase in activity around the active volcanic cone this week. "We evacuated more than 700 people who spent the night in shelters." "We evacuated them out of caution," said disaster agency CONRED on Friday. It added that people had been relocated from nearby Escuintla and Sacatepequez, as well as Chimaltenango. In a Friday evening report, INSIVUMEH reported that a lava stream could be seen stretching for 1.2 kilometers. It said that "this continues to accumulate in a unstable manner around crater, and in the higher parts of the ravines which could collapse and lead to more pyroclastic flow". Fuego is well-known for its regular activity. Fuego's most violent eruption, in June 2018, killed over 200 people. The Central American nation has 37 volcanoes. Many of these are dormant, or even extinct. Reporting by Sofia Menchu; Writing by Aida Pelaez-Fernandez, Editing by Sarah Morland & Andrew Heavens
Asian and Middle-East jewellers flood the market after gold rush
Jewellers in Asia and the Middle East struggle with displays that are losing their sparkle, as customers rush to cash-in their old jewellery and coin.
Retailers and industry experts warned that if the rush to sell continues it could lead to lower imports in major markets, which would potentially dampen gold's rise.
The spot gold price surpassed $3,000 per ounce on 14 March, and has continued to climb since then to reach a year-to date gain of more than 15%. This is due to a powerful combination between political and financial uncertainties.
This stunning rise follows a nearly 30% increase in 2024. It has led to increased business in India's biggest bullion market, Zaveri Bazaar.
Unmesh Patel, a textile trader from India, said that he made more than 25 percent on four 10-gram gold coin purchases he made less than seven month ago. The Indian government had cut import duties for the metal.
He said, "I decided to sell rather than wait for the prices to rise even further."
Since July when import duties were reduced, the domestic gold price in India has risen by more than 32 percent, reaching a new record of 89 796 rupees for 10 grams.
"If prices remain this high throughout the year, India's total demand could fall by over 30% in 2025," stated Prithviraj Kottir, President of the India Bullion and Jewellers Association.
He added that "buyers find it difficult to keep up with price increases, and their budgets don't grow either."
WEDDING SEASON SLUMB
Dealers report that despite the wedding season in India being in full swing jewellers have seen less than half of their usual customer traffic.
Even those who make purchases, like Vaishnavi M. the bride-to be, opt to swap old jewellery for new in order to minimize costs.
Vaishnavi M., from Kerala in southern India, said: "The rates would ruin my wedding budget...the plan was to exchange some old jewellery of my mother."
India's scrap supply of gold totaled 114.3 tons in 2018. The World Gold Council predicts that this figure will rise to 2025.
Imports are the main source of gold for India, and China is the largest consumer.
According to a Dubai bullion dealer, jewellery hubs across the Middle East have seen a similar drop in demand.
The dealer stated that "Indian tourists shop in Dubai a lot to avoid import duties, but they are also holding back."
Andrew Naylor is the Head of Middle East Public Policy and Middle East at the World Gold Council. He said that 60% of the gold consumed in the UAE goes to jewellery. When prices are high, the consumers will purchase lighter products.
He said, "Our data shows, however, that the value and volume of jewellery purchased last year has increased despite lower sales."
The lacklustre retail purchases seen in China 2024 are continuing. People who want to own physical gold can buy coins and bars because jewellers charge extra for the craftsmanship. Peter Fung is the head of Wing Fung Precious Metals.
There are more gold sellers than buyers in other major Asian markets.
Customers are opting for cheaper jewellery, or selling their existing gold to secure a loan or sell it.
Brian Lan, the managing director of GoldSilver Central in Singapore, reported that five new shops have opened recently around Chinatown, selling gold-plated sterling silver.
Lan said, "We've seen clients bring back jewellery they don't use or that is broken from home to liquidate."
These trends show the delicate balance that exists between gold's value as an asset and its role as a culturally traditional commodity.
Analysts say that the future outlook for jewellery is gloomy. However, investment demand for gold will likely remain strong.
(source: Reuters)