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Investors assess the Israel-Hamas deal as gold holds above $4,000.
The gold price held above $4,000 on Thursday as investors analyzed the Israel-Hamas truce deal. Meanwhile, broader geopolitical, economic and political uncertainty, along with expectations of U.S. interest rate cuts, sustained the bullish sentiment. As of 832 GMT, spot gold was unchanged at $4,035.70 an ounce. U.S. Gold Futures for December Delivery fell 0.4% to $ 4,055.20. On Wednesday, the price of gold reached a new record high, reaching $4,059.05. Silver has also been catching up to the gold rally, and is now up 0.7% at $49.21 an ounce after reaching a record high of $49.57 per ounce on Wednesday. Nikos Tzabouras is a Senior Market Analyst with Tradu. The path to new highs remains wide open. U.S. president Donald Trump announced a ceasefire deal and hostage agreement between Israel and Hamas as part of the first phase in his plan to end the war in Gaza, which has claimed the lives of more than 67,000 and changed the Middle East. The U.S. Dollar Index rose by 0.1% and hovered near a high of two months, making bullion priced in dollars more expensive for buyers from overseas. Gold's rise has been attributed to geopolitical factors, such as the Middle East conflict and the war in Ukraine. Also, ETF flows, U.S. interest rate cuts, and tariff-related economic uncertainty have contributed. The yellow metal is set to have the biggest annual gain since 1979, with a 53% increase in the past year. According to minutes from the Federal Reserve's September 16-17 meeting, released on Wednesday, officials acknowledged that the risks facing the U.S. employment market were sufficiently high to justify a rate reduction, but they remained cautious due to stubborn inflation. The markets are pricing in a cut of 25 basis points each for October and December. UBS stated in a report that "the ongoing US government shutdown" has given the gold market a boost, along with mounting fiscal concerns in Japan & France due to recent leadership changes. Gold that does not yield is a good investment in low interest rate environments and times of geopolitical and economic uncertainty. Lukman Otunuga is a senior research analyst with FXTM. He said that if risk sentiment continues improving, gold prices may fall in the short term as investors rush to riskier assets. Silver is up over 70% this year. It has benefited from the same factors that have driven gold's rally, as well as the tightness of the spot market. Palladium, which has been at a two-year high, rose 0.7%, to $1460.14. Platinum fell by 0.2%, to $1660.55.
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Nestle leaves global alliance to reduce dairy methane emissions
Nestle, a food group, announced on Wednesday that it has withdrawn from the global alliance to reduce methane emissions. The alliance aims at reducing the impact of milk farming on global warming. In December 2023 the Dairy Methane Action Alliance will be launched. Members, including Danone, Kraft Heinz, and Starbucks, have committed to measure and report methane emissions in their dairy supply chain and to publish plans for reducing those emissions over time. Nestle didn't say why it pulled out of the Alliance, but it said that it would continue to work towards reducing greenhouse gases, including methane throughout its supply chain and adhered to its net-zero commitment by 2050. Nestle announced on Thursday that it would be partnering with World Farmers' Organisation in order to make food systems more resistant to climate change. CLIMATE ALLIANCES ARE ON THE BACKFOOT This is the latest blow for a corporate coalition seeking to limit global warming. It comes at a time when U.S. president Donald Trump is dismantling a number of climate protection initiatives. A number of major banks have withdrawn from the main group in charge of reducing carbon emissions. Nestle, a Swiss company, said that it "reviews its memberships with external organizations" on a regular basis. As part of this review, Nestle has decided to discontinue its membership in the Dairy Methane Action Alliance. Nestle's 2024 non-financial report stated that by the end of 2024 it had reduced its methane emission levels by nearly 21% from 2018. According to the U.S. Environmental Protection Agency (EPA), methane is 30 times more powerful than carbon dioxide. This makes it an important focus in efforts to reduce global warming. According to Environmental Defense Fund (EDF), which founded the Methane Alliance, livestock is the main source of nearly 40% of all human-caused emissions of methane. Nestle's Logo was Removed from the EDF Website's Main Page, but its name is still displayed on other pages. Nestle's membership with the EDF was terminated after a review of its external partnerships. The EDF did not give a reason for this withdrawal. Katie Anderson, Senior Director, Business, Food & Forests at EDF, said: "We are grateful for Nestle's commitment to reducing dairy emissions with its Dairy Climate Plan, and Net Zero Roadmap." Alexander Marrow reported. Mark Potter (Editing)
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Aramco signs deal to increase stake in struggling JV, Petro Rabigh
Saudi Aramco announced on Thursday that it had acquired a 22,5% stake in the joint venture for refining and petrochemicals Petro Rabigh, from Japan's Sumitomo Chemical. The acquisition is part of the turnaround plan for this loss-making venture. This agreement increases Aramco’s stake in Petro Rabigh from about 40% to 60%. It is part of an effort to improve the performance at the joint-venture, which has suffered significant losses over recent years due to a difficult global market for petrochemicals. According to calculations, Petro Rabigh's last full-year profit was in 2021. Since then, the company has accrued net losses totaling 12,4 billion riyals. Petro Rabigh's turnaround plan comes at a time when Aramco, Saudi Arabia’s long-time cash machine, is navigating a period of reduced profit due to lower oil price. In August, the company reported a 22% decline in its second-quarter profits. It also announced cost-cutting initiatives across the company and an intention to divest assets that are not core to free up capital for more profitable investments. Petro Rabigh’s turnaround plan includes the waiver $1.5 billion of shareholder loans, and a future joint injection of 5,26 billion riyals to be split equally between Aramco & Sumitomo. The joint venture stated in a filing that "the board welcomed the steps and measure agreed to be taken" by Saudi Aramco. This shows its support as a significant shareholder for the long-term potential of Petro Rabigh. Sumitomo will now own 15% of the company. Aramco stated that the move would allow it to strengthen the downstream value chain by securing its crude oil placement and converting it more into high-valued products. Aramco will assume the marketing rights of Petro Rabigh products as part of this agreement. Mark Potter edited the report by Yousef Sabah.
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Zelenskiy claims that Russia's gasoline supply may have dropped by up to a fifth following the Ukrainian attacks
The President of Russia, Volodymyr Zelenskiy, said that Ukrainian long-range attacks on Russian energy installations may have cut gasoline supplies by as much as a fifth in Russia. Both sides are intensifying their attacks on the other's energy infrastructure. As diplomatic efforts to end this war have largely stagnated and there has been little movement on the front lines, Russian forces are focusing their efforts on crippling Ukrainian oil refinery capacity while Ukraine is targeting Russia's gas production. Calculations in August indicated that Ukrainian attacks reduced Russian oil refinery by nearly a fifth at certain times. Zelenskiy implied in his comments that the level of shortage is now continuing. Zelenskiy told journalists in a statement released Thursday that "this still needs to verified but we believe they've been able to lose up to 20% of the gasoline supply directly because of our strikes." The Kremlin said that the domestic Russian fuel market was fully supplied. Zelenskiy stated that Ukrainian forces used Neptune and Flamingo rockets produced domestically in recent attacks as part of Ukraine’s efforts to expand its homegrown weapons industry. Zelenskiy said that Russian forces have carried out 1,550 attacks on energy-related targets within Ukraine's Chernihiv and Sumy regions in the last month but only achieved 160 hits. US AND RUSSIA DO NOT SHARE A COMMON PERSPECTIVE Since the summer, Zelenskiy claimed that Ukrainian forces had destroyed a Russian campaign. He said that Kremlin forces will try to "urgently take" the strategic eastern city, Pokrovsk. Moscow has failed to convince U.S. president Donald Trump that it can capture the entire eastern Donbass region. Trump, who was seeking a quick end to the war, expressed frustration in recent weeks with Russian President Vladimir Putin, and a stronger support for Kyiv’s war effort against Moscow. Zelenskiy stated, "We do not believe that the U.S. or Russia share a common perspective on war as of today." "And the U.S. knows that Russia lies." Zelenskiy announced that his chief of staff, as well as Ukraine's Prime Minister, would be visiting Washington in the first week of next month to discuss energy, air defence and sanctions against Russia. (Reporting and editing by Sharon Singleton, Philippe Fletcher, and Dan Peleschuk)
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Minister: Indonesia has issued a rule that will help small mining firms to win concessions.
Indonesia's mining minister announced on Thursday that the country has released a regulation to assist small and medium-sized businesses as well as cooperatives in securing mining concessions, without going through a competitive process. The new regulation is a follow-up to a law that was passed in February, which gives priority access to small firms, such as the business units of religion groups, to some mining areas. Prior to this law, the only companies that had priority access to certain mining areas in the resource rich country were state-owned firms. Bahlil lahadalia, the mining minister, told a conference of economics that only those cooperatives and SMEs that meet certain criteria would be given priority access. When will justice be served if the tendering process is continued? Bahlil made a speech. Indonesia awarded a coal mine concession to each of the islamic groups Nahdlatul Ulama (Nahdlatul Ulama) and Muhammadiyah on Borneo Island last year. Indonesia is a major producer of nickel and thermal coal, and also has deposits of bauxite and copper. The country is also trying to extract rare Earths that are found in nickel and tin by-products. (Reporting and writing by Fransiska Naangoy, Gayatri Suryo; editing by David Stanway).
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Shanghai copper reaches a 16-month high due to supply concerns
Shanghai copper prices jumped by more than 16 months on Thursday, as China resumed trading after National Day. Concerns over supply from large mines supported the price in an already tightening market. The Shanghai Futures Exchange's most traded copper contract closed the daytime trade 4.22% higher, at 86 730 yuan per metric ton ($12,165.97). The contract reached its highest level since May 22, 2020 at 86.950 yuan. As of 0704 GMT on Wednesday, benchmark three-month copper at the London Metal Exchange had risen 1.92% to $10,873.5 per ton. This was a significant increase from its previous gain. It has now reached a new 16-month high. The International Copper Study Group reduced its estimate of 2025 market surplus to 178,000 tonnes from 289,000 due to disruptions in major mines, including Freeport’s massive Grasberg mining complex in Indonesia which has been closed for a full month. The group expects to have a deficit of 150,000 tons in 2026 compared to its previous estimate, which was a surplus of 209,000 tons. Teck Resources reduced its production forecast at its flagship Chilean copper mining project Quebrada Blanca until 2028 on Wednesday. The dollar's downward trend also helped copper prices. The weaker dollar means that commodities priced in dollars are cheaper for traders who use other currencies. The most active contact closed daytime trading at 287.770 yuan per ton, up 3.49%. This was due to a more aggressive crackdown in Indonesia, the top exporter of tin. On Monday, Indonesia transferred assets, including smelters, equipment and PT Timah, a state-owned tin mining company, to the miner. President Prabowo subianto urged all authorities, including the military, Custom Office and Coast Guard, to continue efforts to stop illegal mining. Nickel surged by 2.52%, while lead gained 1.21%. $1 = 7.1289 Chinese yuan $1 = 7.1289 Chinese Yuan (Reporting and editing by Dylan Duan, Lewis Jackson)
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After a record-breaking run, gold takes a break.
On Thursday, gold took a break from its record-breaking run as investors booked profits. This was a day after the bullion broke the $4,000 barrier for the first ever time on the back of economic and geopolitical uncertainty and the hope that the U.S. will continue to cut interest rates this year. As of 0642 GMT spot gold fell 0.2%, to $4,029.86 an ounce. It had hit a record-high of $4,059.05 per ounce on Wednesday. U.S. Gold Futures for December Delivery fell by 0.6% to $4.047.80. Israel and Hamas reached an agreement on Wednesday to implement the first phase in U.S. president Donald Trump's plan to end the bloody war that has raged for two years between Israel and Hamas. The U.N. calls this conflict a genocide. Capital.com analyst Kyle Rodda said: "It's hard to ignore the importance of the Phase-one agreement between Israel and Hamas, given that geopolitical risk is one of the main reasons gold has been rising. But it's likely just an excuse for taking profits after another record was set." According to minutes from the Federal Reserve's September 16-17 meeting, released on Wednesday, officials acknowledged that the risks facing the U.S. employment market were sufficiently high to justify a rate reduction, but they remained cautious due to stubborn inflation. According to the CME FedWatch, markets are pricing a 25 basis-point reduction in each October and December with probabilities of 93% et 78%. He added, "We continue to see the situation as constructive since all fundamentals (for Gold) are still pointing upwards." Gold that does not yield is a good investment in low interest rate environments and times of geopolitical and economic uncertainty. The global markets have struggled in the past week due to political turmoil in Japan, France and the United States, as well as a government shutdown that continues. This has led many investors to seek safety in gold. Gold is up 54% in the last year due to strong central bank purchases, an increase in demand for gold-backed Exchange-Traded Funds (ETFs), and a weaker US dollar. Silver spot gained 0.4%, to reach $49.06 an ounce after reaching a record high of $49.57 per ounce on Wednesday. Palladium jumped 1.1% to 1,465.73 and platinum fell 0.6% to $1653.52. (Reporting and editing by Ishaan arora in Bengaluru, Ronojoy Mazumdar, Rashmi aich and Sumana nandy)
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Nuclear fusion firm Gauss unveils Europe's first power plant design
Gauss Fusion is a German tech company that announced on Thursday that it would hand over Europe's very first fusion plant design within 10 days to the German Chancellery. Milena Rodeda, CEO of Gauss Fusion, was to present the design during a climate conference hosted by Germany's BDI Industry Federation. This event is just a few days after the German Government announced a 2 billion euro Fusion Action Plan that will last until 2029. Why does it matter? Germany has said that it wants to go beyond basic research to adopt an industrial-led approach. It is positioning itself as the global leader in the race for fusion energy, a technology which replicates the process of the sun's power to generate electricity. The conservative government of Germany supports technology as part of its energy agenda. What is the context? The competition is increasing on many fronts, including between private and public companies, between governments in Europe, China and the United States, and also between different technologies, such as plasma confinement or the use of lasers. Fraunhofer, a German organisation for applied science, said last week that coordinated investment and research in Germany could lead to the production of world-leading laser systems in three to five year. KEY QUOTES The Conceptual Design Report brings together the expertise of hundreds of experts across Europe, and proves the technologies, materials, and supply chains needed for fusion. This was stated by Roveda in a recent press release. In the same press release, Frederic Bordry, CTO at Gauss, said that the CDR is addressing these challenges. What's next? Gauss Fusion will begin its next design phase after an independent panel reviews the CDR in January 2026. ($1 = 0.8597 euro) (Reporting and editing by Vera Eckert)
Gold rises above $4,000 key level after US rate cuts bets
Gold held steady on Thursday and remained above $4,000, which it had crossed for the very first time the day before. This was amid expectations of more rate cuts in the United States this year, as well as signs of eased tensions in Middle East.
As of 0439 GMT spot gold was unchanged at $4,037.95 an ounce, wiping out a 0.5% decline in the early trade. On Wednesday, the metal reached a new record high of $4.059.05.
U.S. Gold Futures for December Delivery fell by 0.3% to $4056.80.
Federal Reserve officials acknowledged that the risks facing the U.S. employment market were sufficiently high to justify a rate reduction, but they remained cautious due to stubborn inflation. The minutes of their September 16-17 meeting, released on Wednesday, reflect this.
The CME FedWatch tool indicates that the markets are pricing in 25 basis-point cuts in both October and December with probabilities of respectively 94% and 79%.
Israel and Hamas reached an agreement on Wednesday to implement the first phase of U.S. president Donald Trump's plan to end the bloody war in Gaza that has lasted for two years. The U.N. calls it a genocide.
Capital.com analyst Kyle Rodda said: "You can't ignore the significance of the agreement between Israel and Hamas, given that one of the main reasons gold has been rising is due to geopolitical risk. But it's likely just an excuse for taking profits after reaching another record."
He added, "We continue to see the situation as constructive since all fundamentals (for Gold) are still pointing upwards."
Gold is up 54% in the past year due to strong central bank purchases, an increase in demand for gold-backed Exchange-Traded Funds and a weaker US dollar.
The global markets have also been struggling this week due to political turmoil in Japan, France and the United States, as well as a government shutdown that continues. This has led to a flight of safety into gold.
Gold that does not yield is a good investment in low interest rate environments and when there are geopolitical and economic uncertainties.
Silver spot rose by 0.2%, to $48.98 an ounce after reaching a record high of $49.57 per ounce on Wednesday. Palladium rose 1.5% and platinum fell 0.4%. (Reporting and editing by Sumana Nady, Ronojoy Mazumdar and Ishaan Aroo in Bengaluru)
(source: Reuters)