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Gold prices drop as investors prepare for US jobs data
The gold price fell on Tuesday, as investors adopted a cautious approach ahead of the U.S. employment data due later in the day. This could provide clues about Federal Reserve's outlook for interest rate cuts. As of 1300 GMT, spot gold fell 0.2%, to $4,294.20 an ounce. Bullion is up 64% this year. U.S. Gold Futures fell 0.3% to $4,323.40. Gold is down this morning, as investors profiteer ahead of important?U.S. Lukman Otunuga is a senior research analyst with FXTM. He said that data will influence Fed rate expectations for next year. While the combined employment reports for October and November will be in focus, a few key details may not be available due to the lack of data collection following the longest U.S. Government shutdown ever. A survey of economists predicts that nonfarm payrolls in the United States will likely increase by 50,000 jobs in November, after a decline in October. The unemployment rate is estimated at 4.4%. Investors will also be looking at the Consumer Price Index for November and Personal Consumption Expenditures Index due this week to get more clues about monetary policy in 2019. Bullion that does not yield is typically found in environments with lower rates. After reaching a record-high of $64.65 an ounce on Friday, spot silver fell by 1.4% to $63.05 per?ounce. Otunuga said that "Silver is still influenced by the forces that are affecting gold - a wave profit-taking, and ETF withdrawals in advance of high-impact U.S. Economic releases." Metal prices are up 118% in the last year. This is due to the tight physical market, macroeconomic factors that support gold, industrial demand, and the inclusion of the metal on the U.S. Critical Minerals list. Palladium fell?0.6% but remained near its two-month high. Spot platinum also rose?1.8%, to $1.814.73, the highest level since September 2011. The European Commission will likely reverse its decision to ban new combustion engines in the EU from 2035. This move is expected to support internal combustion vehicles that use palladium and platinum. He said that the gold and silver rally this year has attracted investor attention to palladium and platinum.
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Sources: Guinea and EGA are in talks to supply bauxite, according to sources
Guinea and EGA talk to avoid legal battles over assets seized EGA loses GAC license due to row over alumina refinery Nimba Mining to increase bauxite production By Maxwell ?Akalaare Adombila DAKAR, 16 December - Guinea and Emirates Global Aluminium are in discussions over a 'possible bauxite agreement, which would see the company sourcing the 'aluminium /feedstock from Guinea’s state-owned Nimba Mining. Guinea's military government, following a dispute that lasted a year over the construction an alumina refining plant, revoked Guinea Alumina Corporation's licence in July. The company then transferred its mining assets to Nimba Mining. Sources, including a government official said that EGA had threatened legal action over the seizure. The government source stated that "discussions are proceeding well and the goal is to avoid litigation." The sensitive nature of the discussion made it necessary for all sources to remain anonymous. Nimba Mining said it had no information and was not a part of the discussions. Guinea's Mines Ministry and the?EGA didn't immediately respond to comments. EGA SEARCHING FOR SUPPLIES AFTER LICENCE WITHDRAWAL EGA is the largest premium aluminum producer in the world. It's owned equally by Mubadala of Abu?Dhabi and Dubai Investment Corporation. The company invested over $1 billion in GAC. At its peak, GAC exported 14 million tons of goods annually. One source said that EGA's UAE refining plant is designed for GAC ore. While it had historically relied on Guinean Bauxite as a source of supply, the company is now looking for alternatives. Guinea, which is the second largest bauxite producer in the world, has followed the lead of its neighbours Niger and Burkina Faso, who are all governed by military forces, to increase state revenue and exert greater control over their mining industries. Nimba Mining started exporting 1.5 million?tons bauxite GAC stockpiled prior to the licence revocation in late October. Patrice L'Huillier, the managing director of Nimba Mining, told? Patrice L'Huillier, the managing director of the company, told? Nimba Mining intends to resume mining in this month. It aims to export?10,000,000 tons by 2026, and then ramp up to 14,000,000 tons. L'Huillier stated that the licence covered reserves of approximately 470 million tonnes, and Nimba had launched an tender for a refinery capable of processing 1.2 million tonnes in accordance with government policy.
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European stocks drop as traders await US employment data; Wall Street futures are down
Wall Street was also set to start lower on Tuesday as traders were cautious ahead of important?U.S. jobs data. Investors were eagerly awaiting the October and November U.S. The October and November?U.S. employment reports are due in the later session after the data collection was delayed during the U.S. shutdown. After the Fed's comments when it reduced rates last week were interpreted as being less hawkish that anticipated, this could affect expectations for the U.S. Federal Reserve monetary policy in the coming year. This would strengthen expectations for further rate cuts by 2026. The stock markets dropped during Asian trading. MSCI's broadest Asia-Pacific share index outside Japan fell to its lowest level in three weeks. Data showed that the growth in China's manufacturing output stagnated in November to a low of 15 months. European indexes opened lower as well and were unable to gain any ground. At 1219 GMT the STOXX 600 index was down by 0.1%, London's FTSE 100 down 0.5%, and Germany's DAX down 0.4%. The progress in the Russia-Ukraine talks has contributed to a decline in European defence stocks. The pullback is still a concern, given that stock markets are expected to reach record highs by 2025. In fact, the STOXX 600 is on course for a 14.8% increase in 2025. The MSCI world index fell by 0.3% for the day, but was up 19.8% over the course of the year. The U.S. jobs report is expected to show that the federal government's "cost-cutting" led to a decrease in nonfarm payrolls in October. This will be followed by an increase in job growth in November. "Either the economy accelerates or you get good numbers." You may not have a good number, and therefore expect the Federal Reserve to cut rates further," said Kevin Thozet. He is a member of Carmignac’s investment committee. U.S. index futures point to a lower opening for Wall Street. Nasdaq and S&P 500 both fell by 0.1%. On Monday, the yield curve between U.S. ten-year and two-year notes was at its steepest level since April's tariff shock. CENTRAL BANK 'MEETINGS', MORE DATA Investors will also be watching for U.S. Inflation data on Thursday. However, a few key details may not be available. Also, central bank meetings, including decisions about rate policy from the Bank of England and the European Central Bank, as well as the Bank of Japan, are expected. The U.S. Dollar Index was down around 0.1% to 98.144. This is close to a multi-week low against the yen and euro. The euro rose 0.1% to $1.1765. The European PMI data revealed that the growth of euro zone business activity was slower than expected by 2025. Lower energy prices have pushed the eurozone's terms-of-trade - the ratio of exports to imports - closer to the highest levels in the past four years. In a client note, ING's global head of markets Chris Turner wrote that this is a "clean?euro-positive". The yields on government bonds in the Eurozone were not much changed. The German 10-year bond yield was 2.8543. Data showed that the unemployment rate in Britain was at its highest since the beginning of 2021, and the pay growth in Britain's private sector had been the lowest in five years. The UK's five-year and ten-year gilt yields rose after stronger-than-expected UK flash PMI data. Oil prices dropped, falling below $60 per barrel for the very first time since months. Traders believed that a Russia-Ukraine deal was more likely. This raised expectations of sanctions being eased and more oil becoming available, which would lead to lower prices. (Reporting and editing by Sharon Singleton in Paris)
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Sources say that Ivory Coast miners are now paying higher royalties following a failed resistance.
Three industry sources have confirmed that gold mining companies in the Ivory Coast are now paying an 8% royalty backdated to January after months of disputing its legality. The world's largest cocoa producer has replaced the previously linked 3%-6% contract rate with a flat 8%?rate. The miners refused to pay at first, claiming that it was illegal because their contracts protected them from fiscal changes. They then entered into negotiations with the government in order to get the new royalties scrapped. The three people who are familiar with the issue, but declined to be identified because they weren't authorised to talk to the media, claimed that companies have since begun paying. One executive said, "Everyone is now agreeing to pay. The question is if penalties apply." He added that companies were hurrying to settle in order to avoid fines. The Ivory Coast mines chamber, as well as its finance and mines ministries, did not respond immediately to comments. David Whittle, West Africa Chief Operating Officer at Fortuna Mining confirmed compliance. "We have made our 8% payments backdated to when they were introduced. He said: "We didn't think negotiations would go anywhere." Whittle stated that the gold price had taken care of it, referring its approximately 65% rise this year. Perseus Mining, Endeavour Mining, Fortuna, Allied Gold, and Montage Gold are some of the key mining companies operating in Ivory 'Coast. West African states are increasing fiscal pressure on miners as gold and commodity prices rise. This is straining relationships with operators who say the measures may curb investment. Guinea, Mali and Niger, all led by the military, are taking direct measures to extract concessions from operators. Other countries, like Ghana and Ivory Coast, have introduced new laws and levies in order to increase state revenue.
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Gold prices drop as investors prepare for the upcoming U.S. employment data
Investors grew cautious on Tuesday ahead of the key U.S. employment data that is due later in the day. This data will shed light on potential Federal Reserve interest rates cuts. As of 1102 GMT, spot gold fell 0.6%, to $4,277.20 an ounce. Bullion is up 64% for the year. U.S. Gold Futures fell 0.7% to $4,305.30. Gold is down today as investors profited ahead of the?key U.S. economic data that will determine Fed rate expectations for next year, said Lukman otunuga senior research analyst at FXTM. He added that the weakness below the psychological mark of $4,300 is keeping the bears in play. The combined employment reports for October and November are the focus of attention, but a number key details will not be available due to a lack?data collection after the longest U.S. Government shutdown ever. A survey of economists estimated that U.S. nonfarm employment would likely increase by 50,000 jobs in November, following a?decline expected in October. The unemployment rate, however, was estimated at 4.4%. Investors will also be looking at the Consumer Price Index and Personal Consumption Expenditures index for November, which are due this week, to get more clues about monetary policy in 2019. Bullion that does not yield is typically found in environments with lower rates. Silver spot fell 1.5%, to $62.98 an ounce after reaching a record high on Friday of $64.65. Otunuga said that "Silver is still influenced by the forces that are pushing gold up - profit-taking, and ETF withdrawals ahead of major US economic releases." The metal has risen 118% in value for the year. This is due to the tight physical market, macro-economic factors that support gold, industrial demand, and its inclusion on the U.S. Critical Minerals list. Palladium, on the other hand, dipped 0.2%, to $1.563.69 but remained near a 2-month high. The European Commission will likely reverse its ban on new combustion-engine vehicles in the EU from 2035. This move is "likely" to support internal combustion engines, which use palladium and platinum, said Nitesh Sha, commodities strategist at WisdomTree. He added that this year's gold-and-silver rally had also attracted investor attention to palladium and platinum. (Reporting and editing by Leroy Leo in Bengaluru, with Pablo Sinha reporting from Bengaluru)
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Shareholder rights could be weakened by the new Trump order that reins in proxy advisors
Corporate governance analysts and lawyers said that a new White House directive aimed at reining in proxy advisory firms is a major step in a Republican effort to weaken investors' role and give more power to CEOs. U.S.?President Donald Trump last week told the U.S. Securities and Exchange Commission and others agencies to increase oversight over proxy advisers Institutional?Shareholder?Services and?Glass, Lewis & Co, who help mutual fund companies and big institutional investors decide on how to vote in corporate elections. They are able to influence their clients because they hold important positions in Fortune 500 companies around the world. Trump's order said the proxy firms often use their power "to advance and prioritize radical politically-motivated agendas," including supporting environmental and social issues at the expense of shareholder returns. The directive is at the core of a debate which has divided U.S. shareholders and European investors: How much should climate change or diversity in the workforce factor into investment decisions? More than Money "This is more than just fiduciary duty." Sarah Wilson, CEO at British proxy adviser Minerva Analytics, said that this is a geopolitical "warfare" through the financial markets. She said that Minerva’s clients are primarily based in Europe and the United Kingdom. They want to maintain their Russell 3000 investments, but they worry about Trump’s?order, and similar actions taken by Republican-led state. Wilson explained that "our clients are not rabid socialists, but they do want to get good returns in the long run with a risk-adjusted return." Trump's order directs, among other things the SEC to "revise?or repeal all rules" relating to shareholder proposals. This has investor activists worried that one of their main tools to pressurize companies could be taken from them. Shareholders are often seen as being more accountable when they support proxy measures that call for limits on CEO compensation or voting for board directors. The agencies could reduce shareholder power if they follow Trump's orders. This would make it more difficult for investors to influence companies via proxy campaigns. Sanford Lewis, an attorney representing shareholder activists, stated that the order is based on premise issues such as diversity or the environment do not relate to financial performance. Lewis stated that the White House is "trying their view on investors". Take Politics Away U.S. trade groups have praised the order as it will remove politics from business decisions and protect profits. Charles Crain is the managing vice president of the National Association of Manufacturers and said that Trump's plans will protect against the firms' excessive influence. He also addressed issues such as what he called the "investment advisors' over-reliance" on these entities. Michael Littenberg of Ropes and Gray said that the order was part of a larger debate about?how investors can be protected while markets are robust. He said, "We're in the middle of what will likely be a once-in a generation governance recalibration." Unnamed White House officials said that the order was meant to increase investors' focus on maximising returns. "The only thing this executive order interferes with is the monopolistic ?practices of foreign-owned proxy advisors that seek to advance radical politically-motivated agendas," the official said. PUNCHING BAGS In 2020, Deutsche Boerse will buy the majority of Institutional Shareholder Services, a top proxy advisor. Glass Lewis is owned and operated by Canadian private equity firm Peloton capital, headed by Stephen Smith. Trump and his appointees began to reduce shareholder influence as soon as they took office. They have given boards greater control over annual meeting ballots, and put new filing requirements for index fund managers BlackRock or Vanguard, if management exerts pressure. Top CEOs such as Elon Musk, Jamie Dimon and other top executives have targeted proxy advisers. They also received support from pension fund and Democratic leaders. The firms took steps to reduce environmental shareholder resolutions in response to a larger backlash against their support for ESG investing. These shifts didn't spare them from ongoing scrutiny, even before Trump’s order. They also faced criticism from Republican-led states. Dan Crowley is a partner at the Washington law firm K&L Gates. He said that Trump's executive order has continued to reduce shareholder engagement. The order "perpetuates a fiction that investors are either concerned about ESG on the one hand, or about pecuniary return on the other. In reality, most large investors are concerned about ESG because of their potential impact on long-term risk-adjusted financial returns."
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Chinese court sentences 27 for antimony ingots smuggling
The Chinese court sentenced 27 people to jail and fined them for exporting antimony ingots without export licenses. This ruling demonstrates how China is tightening its controls on'strategic mineral'. China is the largest producer of antimony in the world. It is used for batteries, chips and flame retardants, as well as the defence industry. Beijing added antinomy in September 2024 to its export list. China announced last month that it had lifted a 'ban' on the export of antimony and gallium to the United States after a meeting between Presidents Xi Jinping & Donald Trump. However, the metals are still subject to a broader 'export control, which requires shippers to obtain a licence from Beijing. The Shenzhen Intermediate People's Court announced on WeChat that the main defendant Wang Wubin was sentenced to 12 years in prison, and fined $141,899. According to the statement, Wang conspired to smuggle antimony ingots out of the country by concealing, disguising and making false declarations without export licenses. Other 26 defendants face fines and prison terms ranging from four to five years depending on the volume of metal smuggled. In the case, Chinese customs seized 96 metric tons more of antimony than was smuggled, according to the court's statement. Hong Kong authorities announced in April that they had seized an antimony cargo. At the time, no arrests were announced. Exclusively reported in July, unusually large amounts of antimony had poured from Thailand and Mexico into the United States after China banned U.S. exports last year. Colleen Jones and Gareth Jones edited the Beijing newsroom by Colleen howe.
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Why does the Trump administration put pressure on Venezuelan?
Secretaries of State Marco Rubio, and Defense Pete Hegseth are holding closed briefings on Tuesday for all U.S. Senators and Representatives about the Trump Administration's Venezuela strategy. Many lawmakers are still unsure of President Donald Trump's goals, even three-and-a half months after more than 20 deadly U.S. attacks on boats near Venezuela and a massive military buildup in the Caribbean. Below, we'll take a look at a variety of issues that seem to be contributing to this pressure campaign. In October, the Trump administration told Congress that it was in an "armed conflict" against drug cartels. Maduro, who denies this, is a key player in the supply of illegal drugs to Americans. The administration has also designated Cartel de los Soles and Tren de Aragua as foreign terrorist organisations. In 2020, when Trump was still a first-term president, the U.S. Justice Department charged Maduro with narcoterrorism. Venezuela, according to U.S. statistics, is a transit country for cocaine bound for Europe or the U.S., and a haven of criminal groups who traffic drugs. However, it is not the source for fentanyl - the drug that is linked to the majority of U.S. fatal overdoses. TRUMP?MONROE DOCUMENTATION Trump released his National Security Strategy this month, arguing the U.S. must revive the Monroe Doctrine of the 19th century, which declared that the Western Hemisphere was Washington's influence zone. The strategy places the hemisphere as the number one priority of Trump's foreign policies, and uses U.S. influence to deny Beijing the access to resources like military installations and vital minerals. Maduro, who has been under U.S. strict sanctions, has signed energy and mining agreements with China as well as Iran and Russia. A pressure campaign that led to a more U.S. friendly government would boost American influence in the region. Maria Corina Machado - the Nobel Peace Prize-winning leader of Venezuela's opposition - said that she "absolutely supports" Trump's policy. Machado claimed that Trump has placed Venezuela at the top of his list for national security in the United States. She said, "We've been asking for this for years so it's finally here," on CBS's "Face the Nation". OIL Maduro said that Washington wanted Venezuela's oil. Venezuela currently sells its oil mainly to China. Venezuela has the largest oil reserves in the world. Analysts say that access to oil, which is a powerful bargaining chip when dealing with Trump who supports the fossil fuel industry, could be an important tool for Maduro. Several Western companies remain active in Venezuela, including Chevron, a U.S. company with a special licence. The country's industrial sector has lagged behind. Production is low compared to the size of the reserves. Venezuela has also been unable to attract investment or obtain the equipment and parts that it needs due to years of sanctions. Analysts predicted that Trump would be interested in Venezuela's oil reserve, but the bigger issue is the country with oil and other natural resources located in the hemisphere and closely aligned to U.S. competitors like China and Russia. "The idea that this country has?oil and minerals and rare earths, in our hemisphere, and that its main allies are China and Russia is something that doesn’t really fit Trump's world view," said David Smilde. A Venezuela expert at Tulane University. Rubio, Trump's Cuban-American Secretary of State, and other close allies have advocated tough measures against Cuban Communist government for years. They view Maduro and his government as essential to Cuban leaders Miguel Diaz-Canel, and they hope that a change in Venezuela will weaken Cuba. IMMIGRATION The Trump administration is moving to end the legal status for hundreds of thousands of Venezuelans in the United States. They are pursuing the "mass deportations" policy that propelled him to victory during his successful re-election campaign last year. According to Pew Research Center's analysis of U.S. Census Bureau statistics, the Venezuelan population in America grew from 95,000 people to 640,000 between 2000 and 2021. This was during a time when the South American nation faced political, economic, and social turmoil. Venezuelans would be less inclined to leave their homeland if the instability was reduced.
Investors turn cautious as they await US year-end data
Gold prices fell on Tuesday as investors became cautious in anticipation of important U.S. inflation and jobs data that could give clues to Federal Reserve policy for the New Year.
As of 0637 GMT, spot gold fell 0.3%, to $4,290.33 an ounce. Bullion is up 64% this year, breaking multiple records along the way.
U.S. Gold Futures fell 0.4% to $4,316.40.
"We are right at the previous?high of $4,380 that was set in mid-October. The market is asking if there is enough conviction to continue higher or if momentum is starting to fade.
According to CME's FedWatch, traders?have priced in a 76% chance of a U.S. 25-basis point rate cut?in January. Some?even expect two cuts. The data docket for this week is expected to provide new clues as to how quickly the Fed will ease policy in 2026.
After a 43-day shutdown of the government, data collection was curtailed, including October's unemployment rates.
Fed Governor Stephen Miran stated that current inflation is above target but does not reflect the underlying dynamics of supply and demand which are driving price increases.
The markets are also awaiting the weekly jobless claims - and the Fed's preferred measure of inflation, the Personal Consumption Expenditures Index, which is due this week.
Bullion that does not yield is typically found in environments with lower rates.
Silver spot fell 1.4%, to $63.03 per ounce after reaching a record high of $64.65 an ounce on Friday.
Tim Waterer, KCM Trade's Chief Market Analyst, said that silver still has a bullish tone as the?industrial demands show no signs of abating after a 121% rise this year due to a firm industrial demand and tightening inventory.
The spot price of platinum rose 1.3%, to $1.806.46, and palladium grew 1%, to $1.582.68. (Reporting from Ishaan arora and Sherin Elizabeth varghese, Bengaluru. Editing by Sherry j. Phillips and Harikrishnan Nair.
(source: Reuters)