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Silver reaches $65 for the first time, gold increases as US unemployment rate rises
Silver soared above the $65 mark on Wednesday for the first time, while gold edged up a bit as 'weaker U.S. labor data rekindled expectation of interest rate cuts, pressing the dollar and boosting the demand for precious metals. Spot silver rose 2.8%, reaching a new record of $65.63 per ounce. Gold spot prices rose 0.4%, to $4,321.56 per ounce, by 0230 GMT. U.S. gold futures gained 0.4% to $4350.50. Many of the end-of-year reports have stated that precious metals are the best performing asset class. "I would attribute the silver appreciation of today to speculative flow," GoldSilver Central's MD Brian Lan stated. The rally was a response to U.S. data that showed the Unemployment rate The percentage of respondents who said they were satisfied with their lives has risen to 4.6%, higher than a recent poll Forecast The 4.4% figure is a good example. Lan said that the unemployment data had definitely benefited precious metals, and weakened the dollar. This has led investors to look at other asset classes with higher returns in order to hedge against risk. Dollar index was near the two-month-low touched on Tuesday. This made greenback priced bullion attractive to foreign buyers. The U.S. Federal Reserve announced last week that it would be reducing interest rates by a quarter-point for the rest of the year. Chair Jerome Powell’s comments, however, were not as hawkish as expected. Traders still expect two cuts Each 25 basis points in 2026. In a low-interest rate environment, non-yielding investments like gold typically perform well. Investors are now awaiting key U.S. Inflation readings. The Consumer Price Index is due Thursday, and the Personal Consumption Expenditures -index, which is the Federal Reserve's preferred measure of inflation - due Friday. Meanwhile, ?U.S. Treasury Secretary Scott Bessent On Tuesday, Trump said that Kevin Warsh and Kevin Hassett are both qualified to be the head of the Federal Reserve. He added that Trump's picks should have an "open mind." Palladium, which had earlier reached a session high of $1,602,60, was unchanged at $1,602.60. (Reporting and editing by Rashmi aich in Bengaluru, Ronojoy Mazumdar, and Ishaan arora from Bengaluru)
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Iron ore at a one-week high, supported by improved spot market liquidity
The price of iron ore futures rose to an all-time high on Wednesday. This was due to the accelerated buying in the spot market, as steelmakers restocked feedstocks in preparation for consumption during 'the Lunar New Year holidays in February. By 0212 GMT, the most traded iron ore contract at China's Dalian Commodity Exchange rose 1.05% to reach 766.5 Yuan ($108.84). It reached its highest level since December 11, at 769 Yuan, earlier in the session. As of 0202 GMT, the benchmark January 'iron ore' on the Singapore Exchange had risen by 0.59% to $103.15 per ton. The price of iron ore in January was up 0.59% at $103.15 a ton, as of 0202 GMT. Analysts said that improved liquidity on the spot market has lifted the mood. Mysteel, a consultancy, reported that iron ore transactions?in both the portside and maritime markets jumped by 18,2% and 76.8% respectively on Tuesday. There seems to be less pressure to cut further in December in order to meet a national goal set earlier this year. Beijing pledged to restructure the giant steel industry in March by cutting output. Prices of seaborne iron ore Goldman Sachs predicted $95 for the fourth quarter. Coke and coking coal, the other ingredients used in steelmaking, both grew by 0.33% % respectively. The majority of steel benchmarks at the?Shanghai Futures Exchange rose. The rebar price rose 0.1%. Hot-rolled coil was up 0.03%. Wire rod increased 1.64%. Stainless steel was unchanged. (Reporting and editing by Subhranshu Sahu; $1 = 7.0422 Chinese Yuan)
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US orders TransAlta coal unit in Washington State to remain open
The U.S. energy secretary signed an executive order on Tuesday that will 'keep a unit at TransAlta coal power?plant open for most of the winter in Washington State, the latest step taken by the Trump Administration to support fossil fuels. The order instructs the unit 2 at Centralia Generating?Station, to remain open. The order says that it is to close at the end of 2025. However, it will remain in force until March 16, 2026. Chris Wright, Energy Secretary of the United States, said in September that he expected that many coal plants would delay their retirement to provide electricity for artificial intelligence. Wright stated that the U.S. Government had held discussions with utilities across the country and expected the majority of coal plants in the United States nearing retirement will delay their closure. When coal is burned, it releases more carbon dioxide than any other fossil fuel. The U.S. coal-burning power plants have increased their output this year due to the demand for electricity from manufacturing and artificial intelligence. Last month, the administration of President Donald Trump reordered for the third time the J.H. Campbell The Michigan coal-fired power plant will remain open, even though its majority owner claims that it has already cost him tens and millions of dollars. This plant will continue to operate until mid-February.
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Trump orders blockade on sanctioned oil tankers entering or leaving Venezuela
U.S. president Donald Trump on?Tuesday?ordered the blockade of sanctioned oil tankers that enter and leave Venezuela. He also?added?that he now regards the nation's leaders as a terrorist foreign organization. Trump said on Truth Social that the Venezuelan regime has been designated a FOREIGN TERRORIST?ORGANIZATION for terrorism, drug smuggling and human?trafficking. "Therefore today, I am ordering a TOTAL AND COMPLETE BLOCKING OF ALL SANCTIONED OIL TANNKS going into and out of Venezuela." Trump's remarks came just a week after the U.S. The United States seized an oil tanker sanctioned by the U.N. off the coasts of Venezuela. This was the latest in a campaign to pressure the Venezuelan government led by Nicolas Maduro whom Trump blamed for 'drugs entering the U.S. At an event held on Tuesday night, before Trump's post, Trump's campaign included an increased military presence in the region, and over two dozen military attacks on vessels in the Pacific Ocean and Caribbean Sea near Venezuela that have killed at least ninety people. Trump has also said that U.S. land attacks on South American countries will occur. Soon start . (Reporting from Washington by Jasper Ward, with additional reporting by Julia Symmes Cobb. Editing by Scott Malone.
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The UK will provide financial assistance to help save the last ethylene plant in Nigeria
In a partnership with chemicals group INEOS, the British government announced on Wednesday that it would provide financial assistance to Grangemouth, which is the last ethylene production plant in Britain, so as to protect chemical production and hundreds?of jobs. Ethylene can be found in plastics of a?medical grade? and other chemical products, such as water treatment and key industries like advanced manufacturing, aerospace and automotive. Grangemouth in Scotland was Britain's first oil refinery. But crude oil processing ended there in April. The operator Petroineos stated that the facility was closed because it lost about $500,000 per day and became uncompetitive against larger, "more modern" refineries in Africa, the Middle East and Asia. The plant's main operation changed after the refinery was closed to include the production of chemicals like ethylene. INEOS announced that it would invest 150?million pounds (201.20 millions) at its Grangemouth facility, backed up by a '75-million-pound government loan guarantee - and a 50 million grant. The government says that the package will improve energy efficiency, reduce carbon emissions, and boost productivity. Peter Kyle, the business minister said that "the UK government's decision will protect Grangemouth and its strategic national importance as well as secure 500 vital jobs for the area." He added, "By partnering up with INEOS, we're backing the plant and its future for the long term. We give certainty to the workers as well as the supply chain moving forward." In recent years the chemicals industry in Europe has been facing significant challenges, including high energy prices, with around 40% of European ethylene capacity recently having?closed? or being at risk. The government announced in August that it was not going to provide financial assistance to the struggling bioethanol sector. This left a sector already battered from the UK's tariff agreement with U.S. president Donald Trump, facing imminent collapse.
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Brazil asks regulator to terminate Enel's Sao Paulo power contract
Brazilian Mines and Energy minister Alexandre Silveira announced?on?Tuesday that the government will urge the power regulator Aneel to begin the process of terminating the?contract?with local unit of Italian company Enel?in Sao Paulo. Silveira said that Enel had lost the right to provide services in Sao Paulo after meeting with Mayor Ricardo Nunes of Sao Paulo and Governor Tarcisio de Freitas. Last week, strong winds caused by an 'extratropical storm' disrupted the power supply to over 2 million customers?in the Sao Paulo metro area. Among them were 1.4 million in the city of Sao Paulo. Enel declined to respond immediately to a request for comment. Aneel also declined to comment. After severe weather events in recent years, which left millions of customers without power for several days in the city, the utility company has been harshly criticized. Implications of the announcement weren't immediately clear. Silveira's statement was similar to one he made last year after another major outage of power in Sao Paulo. Termination is a decision that is made only after the company has been subpoenaed to appear before regulators. This process guarantees that it will be able to defend itself. Aneel had previously served Enel with a subpoena for previous actions that were?considered inadequate to restore power after extreme weather events. Aneel’s board began to evaluate a new subpoena last month. However, a decision had to be postponed because of a review request. Reporting by Isabel Teles, Leticia Fucuchima and Fernando Cardoso. Editing by Kylie Madry, Jamie Freed and Kylie Madry.
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Quotations-EU unveils plans for reversing the 2035 ban on combustion engines
On Tuesday, the European Commission made public proposals to reverse an effective prohibition on the sale of new cars with internal combustion engines from 2035. This was in response to pressure from Germany and other major automakers. The package proposes to reduce the 2035 target to 90% of the 2021 tailpipe emissions, while also introducing measures to speed up the transition to electric vehicles and give manufacturers more flexibility. The major reactions to the decision are: BMW GERMAN LUXURY CREAMAKER It is a first important step that the EU Commission does not pursue technology bans anymore as a "guiding" principle, but acknowledges the viability of combustion engines in the future." STEFFEN KAWOHL IS A POLICY ADVISOR FOR THE GERMAN MITTELSTAND (DMB). The automotive industry will still undergo a transformation, even if the combustion engine ban is lifted. This would only be justified if the German economy used the extra time to accelerate the transition to fossil free mobility. STELLANTIS IS A FIAT TO JEEP MAKER. The proposals don't address the current issues facing the industry. The package does not provide a viable path for the light commercial vehicle segment, which is currently in a critical state, nor the flexibility requested by the industry to be implemented for passenger cars in 2030. DOMINIC PHINN HEAD OF TRANSPORTATION AT CLIMATE GROUP The watering-down of the phase-out of petrol and diesel engines is a slap in the face to leading companies in Europe who have invested billions of dollars in electric fleets, and need the stability that it offers. MERCEDES BENZ GERMAN CARMAKER "The EU Commission took a positive step towards more flexibility and neutrality in technology for us, as manufacturers." The EU has reacted to the stagnant ramp-up of electric mobility in Europe. CHRIS HERON SECRETARY GENERAL OF E-MOBILITY EUROPE "By reopening our doors to plug-ins and non-scalable biofuels we slow down in an extremely competitive global race." The future of transportation is electric. But the question is, will Europe build it or import it? FRIEDRICH MERZ - GERMAN CHANCELLOR It is good that after a clear signal from Germany, the Commission has now opened up the regulation of the automotive industry. It is important to be more open to technology and flexible in order to align climate targets with market realities, businesses, and jobs. JAN DORNOFF RESEARCH LEADER AT THE INTERNATIONAL CONSULTANCIL ON CLEAN TRANSPORTATION The Automotive Package shows that the European Commission is committed to the electrification of cars, as shown by the small and affordable electric car initiatives. "But the proposed changes to CO2 standards will delay the necessary transformations." ANTONIO TAJANI, ITALY'S FOREIGN MINISTER "We have stopped the prohibition on combustion engines by 2035... A choice which protects 70,000 Italian jobs alone." Yes, we must protect the environment. But, at the same time, we must safeguard the dignity of individuals, those who create jobs and do business. BEN NELMES, CEO OF NGO NEW AUTOMOTIVE "The battery industry needs clarity and consistency from Europe. By rewriting the rules, the European Commission undermines trust in their own regulations. They are gambling with Europe's future economic prosperity. JULIEN THOMAS TP ICAP MIDCAP ANALYST "In our opinion, these measures are generally favorable to European manufacturers. Especially those who produce high volumes of light commercial vehicles, where regulatory uncertainty caused sales to drop?this year)." FRENCH CARMAKER RENEUL The Renault Group is pleased that the European Commission has adopted a package of automotive legislation that will address some of the biggest challenges facing the European Industry. "We are particularly impressed by the importance of the acceleration of the adoption of electric cars, both via the introduction of a new category of small electric cars under 4.2 meters and through an initiative in Europe to green fleets." GERMAN CARMAKER VOLKSWAGEN The European Commission's pragmatic proposal for "new CO2 goals" is economic sound in general. The fact that electric small vehicles will receive special assistance in the future is a very positive thing. It is pragmatic to open the market up to vehicles with combustion engines and compensate for their emissions. This is in line with current market conditions. VOLVO CAR "Asserting short-term gains at the expense of long-term commitments risks undermining Europe’s competitiveness in years to come." Investments in public infrastructure and a consistent, ambitious policy framework will bring real benefits to customers, the climate and Europe's industrial strength. "Volvo Cars is ready to make the switch from hybrids to all-electric vehicles with a bridge that spans long ranges. "If we can do this, so can others." THOMAS PECKRUHN PRESIDENT ZDK, GERMANY ASSOCIATION OF MOTOR VEHICLE TRADE "Our businesses are faced with the same problems that European regulations fail to address: high costs of charging, a lack of infrastructure, and a suitability for consumers' everyday use. Climate-neutral transportation only works when it's affordable, reliable and practical for the people. "Anything else is just a theory." The article was written by Mathias de Rozario, Gdansk. Matt Scuffham edited the piece.
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Swift Anglo-Teck merger approval shows Canada's pro-business shift, dealmakers say
Dealmakers said that Canada's approval of the merger between British miner Anglo American, and Canada's Teck Resources for $53 billion signals an effort to 'attract investment' to offset the impact on U.S. Tariffs. Melanie Joly, Canada’s Innovation, Science, and Economic Development minister, announced late Monday night that Canada had approved the buyout of Teck Resources, in its entirety, by Anglo American, under the Investment Canada Act. This cleared a regulatory obstacle to create a global heavyweight for copper. Joly stated in a press release that the deal is beneficial to Canada. Her office has not responded to any further comments. Canada approved the deal in just three months. This is much quicker than usual for mergers in this sector. Ottawa's?rapid decision signals a major shift in its approach to foreign takeovers in sensitive sectors like critical minerals. Analysts claim that the government prioritizes attracting capital to deal with the difficult trade environment created by U.S. president Donald Trump. Anglo-Teck has said that it made "a series of concessions" to the government. This included a commitment to invest C$4.5 billion (about $4.5 billion) in Canada over a period of five years. Canadian lawyers have said that the "faster approval" is part of the efforts by Prime Minister Mark Carney to show the rest of the world that Canada welcomes business. Calvin Goldman, former head of Canada’s Competition Bureau and now running his own consulting firm for national security reviews, foreign investment, and Canadian investments, said that business investments are based on one principle: minimising uncertainty. Goldman said that the Canadian government was trying to send a message with this report, which is that it would?reduce uncertainties; it is a positive message. Investment Canada Act which governs mergers and acquisitions within the country has set a high standard for approval of deals that involve critical minerals. In 2024, Canada approved Glencore's $7 Billion acquisition of Teck Resources' Steelmaking Coal Unit with strict conditions in order to maintain jobs. Joly's predecessor said that Canada would only approve deals involving vital minerals under "exceptional conditions." Sandy Walker, partner with Dentons Canada, said that the statements made by the previous minister were made before Canada was faced with the economic challenges resulting from 'the tariff war. Walker continued, "This government seems to be highly motivated now to encourage economic activity and investment." In Canada, however, there is still a lot of controversy about foreign ownership in mining companies. Ipsos conducted a poll in October of this year that found the majority of Canadians believe that the federal government must prevent foreigners from buying Canadian companies that are in the natural resource sector. This includes mining, oil, and gas. (Divyarajagopal, Toronto; Editing done by Caroline Stauffer and Lisa Shumaker).
Gold rises 1% due to safe-haven demand and a weaker dollar in advance of US jobs data
Gold rose 1% to hover around a seven-week-high on Monday, supported by the weaker dollar and expectations of interest rate cuts. Safe-haven purchases were also boosted due to geopolitical concerns. Silver gained, but held below its record high from Friday.
Gold spot rose 1%, to $4343.96 per ounce at 0949 GMT. Bullion reached its highest level since October 21 last Friday.
U.S. Gold Futures rose 1.2% to $4.377.80 per ounce.
Dollar?hovered near a 2-month low achieved last week making greenback priced gold more affordable to overseas buyers. Benchmark 10-year U.S. Treasury Yields also edged down.
Giovanni Staunovo, a UBS analyst, says that "stronger demand from investors, three months of solid central bank demand (as well) as investors beginning to anticipate even lower interest rates in 2026" are all factors supporting gold.
In a vote that was divided, the U.S. Federal Reserve announced a rate cut of 25 basis points last week. Further easing will depend on inflation and the state of employment.
Investors are watching this week's U.S. Non-Farm Payrolls Report for more clues about monetary policy.
Gold and other non-yielding investments benefit from a low interest rate environment.
The Russian central bank stated on Friday that the European Union's plans to use Russian assets as collateral for a loan to the Ukraine were illegal. It also said that the Russian central bank reserved the right of using all means available to protect its interests.
Silver spot rose by 2.8%, to $63.76 an ounce. It reached a record-high of $64.65 before closing sharply lower.
Metal prices have risen 120% in this year due to tighter supplies and the inclusion of critical minerals on the U.S. list.
Silver benefits from the same factors that support?investment demands for gold (i.e. Lower rates should also benefit the industrial sector due to the fiscal and monetary stimulus measures.
Palladium rose 2.4%, to $1.523.11, while spot platinum increased 1.1%, to $1.763.67 per ounce.
(source: Reuters)