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Sinkholes in Turkey’s agricultural heartland cause farmers to be concerned
Due to the dwindling rain and receding water levels, hundreds of sinkholes are appearing in Turkey's agricultural central region. This is causing concern among environmentalists and farmers who view it as an?unsettling sign of climate changes. In Karapinar, Konya, sinkholes are a common sight on farmland that produces?maize?,?wheat? and sugar beet. At times, there can be more than 10 in a single field. Ancient sinkholes in mountainous regions, which were once filled with water, are now mostly dry. According to Fetullah rik, a professor of geology at Konya Technical University who studies sinkholes, the pace at which they form has increased in recent years. The total is now approaching 700. Arik explained that the main reasons for the increase are climate change and the?drought which has affected the entire world since 2000. The groundwater level is decreasing every year as a result. He stated that the rate of groundwater?levels' decline has increased to 4 to 5 metres per year compared to half an metre per annual in the 2000s. This is a cause for concern in Turkey's main agricultural sector. Local farmers are forced to dig additional wells due to the drought and the receding water table. Many of these wells are not licensed, which further depletes the groundwater. Arik added that the demand for water in the Konya basin is extremely high. There are approximately 120,000 wells without licenses compared to 40,000 licensed ones. He said that while the new sinkholes had not yet caused any deaths, they were unpredictable and could endanger the lives of the locals. In the past two years, Mustafa Sik's farm in Karapinar has been ravaged by sinkholes. Sik's brother was working at the farm, a short distance away, in August 2024, when the second sinkhole appeared with a "terrifying, extremely loud rumbling sound." Geologists on Sik's Land found two additional areas where sinkholes may form, but it is impossible to predict when they will occur. "Are we worried? He said, "Of course we are worried." Reporting by Ali Kucukgocmen, Editing by Daren and Alexandra Hudson
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AI data centers force 'peaker power' plants to be brought back into service
The demand for electricity from AI data centers is reviving peaker power plants Peakers emit more pollutants than power plants. The majority of power plants are located in minority and low-income communities By Laila Kearney Dec 23, CHICAGO - A 60s oil-fired plant rises from an industrial site behind Dvorak Park in Chicago's working class Pilsen district. In warmer weather, the park is crowded with children playing on its colorful playground or zooming down slides. Next year, the eight-unit Fisk Power Plant owned by Houston's NRG Energy is scheduled to be retired. The next step was artificial intelligence. As electricity demand from data centers outstripped existing supply, prices shot up on the country's largest power market – PJM Interconnection – alarming about power shortages and making Fisk & other plants like them suddenly profitable. Matt Pistner said that NRG's senior vice president for generation, Matt Pistner, retracted the retirement notice from eight Fisk power-generating units. Fisk is one of a growing number "peaker" units that are being used to power the U.S.'s electrical grid, with the demand for artificial intelligence from Big Tech data centers. Peakers are designed to operate in short bursts when electricity demand spikes. They help prevent blackouts because they can provide power at a moment’s notice. These fossil-fuelled facilities, which are often decades old, emit more pollution and produce more electricity when they're running. The analysis of the filings at the largest power grid in the country shows that 60% of them are for renewable energy sources. PJM has postponed, or even cancelled, plans to retire oil and gas power plants. The majority of plants that avoided shutdowns were peaker units. The Fisk Peakers were built at the site of an old coal-fired power station which operated for more than a century. The coal plant closed in more than a ten-year period after years of opposition from local residents. However, eight peaking units powered by petroleum oil still operate at the site. "We were very disappointed when we learned that the coal station was closing, but still producing power at the site," said Jerry Mead Lucero, a lifelong advocate of the closure of Fisk coal, who lived most of his adult years in Pilsen. Pollution dropped after the coal plant closed, but didn't disappear. According to the Environmental Protection Agency (EPA), sulfur dioxide levels at the site ranged between 2 and 25 tons of sulfur dioxide per year, when the peaker plant, which had eight units, occasionally fired up to feed the grid. "That is not a small amount, considering the chimneys and houses nearby," said Brian Urbaszewski. He's Director of Environmental Health Programs for Respiratory Health Association in Illinois, a nonprofit organization that helps people with respiratory diseases. DIRTY POWER According to research by the federal and academic authorities, peakers are often not equipped with pollution controls such as mercury scrubbers that remove toxic chemicals from power plant emissions and filters for particulates. Environmentalists say that some chimneys or smokestacks are lower, which means pollution is more localized. The U.S. administration of Donald Trump may be more aggressive in extending the life of peakers. It has said that it is exploring all options, including peaker plants, emergency systems and other ways to meet massively increased electricity demand. In an interview with Chris Wright in September, the U.S. Energy secretary said that there are many peaker plants which could be operated more often. He added that air quality regulations had prevented more from being run more frequently. The biggest targets today are the spare capacity in the grid. According to a U.S. Government Accountability Office report, peaker plants produce about 3% of?country's electricity, but they are capable of producing 19%. If we tap into this spare capacity, it could lead to more harmful emissions being released into neighborhoods which are already overburdened by environmental hazards. According to research by the federal government and academics, the majority of the country's peaker plants are located in communities of color with low income. This means that prolonging the life of the plants could cause more pollution to be emitted into the air. In a 2022 study, residents of "redlined" U.S. areas, who were denied financial services like mortgages because they were primarily Black or immigrants, were 53% more inclined to have a peaker built near them since 2000, compared with those in non-redlined communities. The study was led by UCLA Professor of Environmental Health Sciences?Lara Cushing. The Grid is being strained by the power demands The majority of peaker plants in the United States were built in two periods of rapid growth in energy demand: at the beginning of the 20th century, when electrical appliances became commonplace in homes; and then again in the early 2000s as computers and the economy began to grow. After the energy-sucking devices and infrastructure improved, U.S. demand for power decreased and many fossil-fired plants closed. Solar and wind farms began to provide more energy. These only work when the sun shines and the wind blows. The U.S. Congress directed the Government Accountability Office to investigate the use of peaker plant and their impact on American communities. Environmental justice groups urged the U.S. Congress to do so. According to the study, peaker natural gas plants emit 1.6 more sulfur dioxide per unit of electricity generated on a median base compared with non-peaker plants. Fisk is a part of PJM Interconnection - the largest electrical grid in the United States. It spans 13 states, and has the highest concentration of data centres anywhere on the planet. The demand from AI data centres is threatening the grid's reserves and is already driving prices up. The prices paid by PJM power suppliers to run plants during times of high demand jumped more than 800% compared to a summer ago. This made peaker power plants more profitable. Jeff Shields, PJM spokesman, said: "It's clear that the electricity demand in this country is greater than supply –?the market reflects it, and generators respond." "We can't afford to lose our existing generation, while continuing to add new generation in order to meet the needs of the data centers and other heavy loads that power the nation's economy." According to an analysis of the letters sent by power companies to PJM Interconnection, 23 oil, coal and gas power plants were set to retire in PJM territory in 2025. The letters show that since January, U.S. energy companies, grid operators, and the federal governments have postponed or cancelled retirements for 13 of these power plants. The letters showed that 11 of the plants which avoided closure were peakers. The Department of Energy ordered that the 55-year-old "Eddystone", owned by Constellation Energy and located outside of Philadelphia be kept running. PJM requested that the Wagner peaker near Baltimore be kept running while the grid operator coordinated the transmission required for the generator to be removed. Some of the power plants that were retained were originally built to provide power around-the clock, but were later downgraded so they only run in emergencies. Last Line of Defense Fisk's owner NRG Energy believes peakers are vital safeguards for grids that are increasingly needed not only for data centers, but also for electrifying manufacturing and transportation and to avoid blackouts due to winter storms or summer heatwaves. Fisk Peakers are located in Chicago, so the city does not need to import power in an emergency if outside sources of electricity go down. Matt Pistner, NRG Energy, said: "They are the shock absorbers and last line of defense for the system." When they are needed, there's nowhere else to turn. Pistner said that while NRG has power-generating sources ranging from wind and solar to nuclear, oil-fired peaks add an additional layer of security by ensuring fuel can be stored locally. A NRG spokesperson said separately that "during its run time, the power station consistently operates within federal or state environmental regulations - and we are proud to its record". Experts in energy say that there are other options to peakers. Transmission lines that are more reliable could be used to transport electricity from areas of the country where there is an excess of power, to those who have a shortage. Rusco, from the GAO, said that "if we did that, the system could run more efficiently. You would also probably reduce the amount of dependence on peakers." Clean energy advocates believe that batteries, which are being improved to store power longer, can also replace peaker units. As AI power demand increases, communities such as Pilsen that have been successful in closing some sources of pollution over the past few years may find it more difficult to combat peaker plants. John Quigley of the University of Pennsylvania Kleinman Center for Energy Policy said: "It will result in significant cost increases for consumers of electricity and local pollution, and prevent the connection of new clean energy production to the grid." PJM has said that it will continue to connect renewable energy, nuclear power and gas-fired electricity to the grid, regardless of how long peakers remain on. Shields stated that "we need to get every megawatt we can right now." He added that deactivating existing plants "ignores the reality." Northern Illinois has a growing data center market. At least one data centre is already operational in Pilsen, and there are multiple energy-intensive projects being planned for the surrounding areas. T5 Data Centers announced a 20 building campus this year. Mead Lucero is concerned that the Fisk Peaker Units will continue to exacerbate the environmental problems in his hometown. This includes industrial truck traffic emissions, metal scrappers, and a major road cutting through the area. "You combine all these factors and you have a real problem."
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Silver joins the rally for new highs as gold extends its record run
Silver continued to rise, reaching a new record, and gold reached a new high. A weaker dollar, coupled with persistent geopolitical uncertainties, boosted the demand for this safe-haven. As of 1041 GMT the spot gold price rose by 0.8%, to $4,482.70 an ounce. This follows a session high of $4,497.55 per ounce. U.S. Gold?futures, for delivery in February, rose 1% to $454.70. "Expectations of a dovish Fed; markets losing confidence in?greenback; geopolitical pressures; central bank purchases .... The lust for gold among investors is still massive due to the combination?of factors mentioned above," said Carlo Alberto De Casa. The U.S. Dollar extended its losses for a second day, and was on track to record its largest annual decline since?2017. Last week, U.S. President Donald Trump ordered a "blockade", of all sanctioned tankers entering or leaving Venezuela. He also said that he did not rule out war with Venezuela. Markets are pricing in two rate cuts by 2026, as Trump's announcement of a new Federal Reserve Chair?early next season reinforces expectations for dovish policy. Bullion prices have risen by more than 70% in the past year, as investors sought refuge from global tensions. Silver spot rose 0.9%, to $69.61 an ounce. It had previously reached a record high at $69.98. White metal prices have risen by 141% in the past year due to a combination of supply shortages, industrial demand and investment inflows. Both gold and silver are continuing to attract strong buying. This behavior suggests that $4.500 and $70 is?being treated as a reference point within ongoing trends and less as a hard ceiling. Both metals are therefore firmly supported?now and during the holidays," Ahmad Assiri said, referring to Pepperstone's research strategist Ahmad Assiri. The spot platinum price rose 3%, to $2,183.63. This is the highest it has been in 17 years. Palladium also rose 3.2%, to $1,815.76, a new three-year record, tracking gold and silver. (Reporting from Pablo Sinha in Bengaluru and Arunima Kumar; editing by Subhranshu Sahu).
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Copper nears record high on weaker Dollar and Supply Outlook
The copper price rose on Tuesday. It was near the'record highs' that were reached in the previous session. A?weaker? dollar and concerns about tighter supplies fueled speculative purchases. By 0957 GMT, the benchmark three-month copper price on London Metal Exchange had risen 0.4% to $11,971 per metric tonne. On Monday, it reached a new record high of $11,996. Copper is on track to achieve its biggest annual gain in 2009 after disruptions to mine supply and the outflow of stocks into the United States. Bets on the fact that copper demand will be boosted by the green energy shift. There is no shortage from the perspective of global supply. According to the International Copper Study Group, the market was in surplus for the first 10 months of this year. Copper has been flooding the United States. The prospect that President Donald Trump will impose an import tariff on copper refined from 2027 is a major factor in the tightening of availability for traditional consumers. Exports of copper refined from China, the world's largest metal consumer, soared in November to reach their second highest monthly level ever. More than a third were bound for the United States. Goldman Sachs predicts that the copper price will average $11,400 in 2026, with tariff uncertainty still lingering. According to the bank's base-case scenario, prices will begin to fall in the second half of 2026 and the early part of 2027 as the U.S. begins to reduce its stockpiles. Nickel, among other LME metals rose 1.7% to $15530 per ton, after reaching its highest level since October 9, on bets Indonesia would reduce its mine production in 2026. Aluminium rose by 0.5%, to $2,957 per ton. Zinc gained 0.9%, to $3,112,50. Lead was up 0.9%, at $1,988, and tin increased 0.7%, to $43,400. (Reporting and editing by David Goodman.)
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World stocks are awash with festive cheer, but the yen is on watch
The yen rose after Tokyo's sternest warning to date about its willingness to support the battered yen currency. European shares were slightly higher in the early trading, while U.S.?futures remained?little altered on the day. Gold also reached a new record just short of the $4,500-per-ounce threshold. The U.S. economy, which was delayed by the record-breaking government shutdown, was the focus of a week that saw many countries on holiday. The U.S. third quarter growth numbers are expected to show that the U.S. continued to grow with a strong 3,3% clip. This would still be a slight drop from the previous quarter, due to the sharp decline in imports following a surge earlier in the year before the introduction of tariffs. James Rossiter of TD Securities, London's head of global macro-strategies said: "It feels like we can relax a little bit now that the holiday risk premium is down." "On GDP we are looking for upside risks, with a number as high as 3.5%. Consumer demand is growing at a good clip." It should be a day of good news. MSCI’s world stock index rose by 0.2% and is now nearing the record highs reached earlier in the month. MSCI’s broadest index for Asia-Pacific shares outside Japan also increased by 0.4%. Tokyo’s Nikkei closed flat. Nvidia shares rose overnight after a report that stated the company aimed to ship its second most powerful AI chip to China by the Lunar New Year holiday, which is mid-February. Novo Nordisk shares listed in Frankfurt opened Tuesday's early trading nearly 10% higher after the U.S. FDA approved its weight loss pill. This move gives the Danish company an advantage in the race for the market of a powerful oral medication to help people lose weight. It is also a way to gain ground on its rival Eli Lilly. As we near the end of the year, investors are increasing their equity and commodity exposures. This is according to Jose Torres senior economist at Interactive Brokers. For now, traders will take their cues from the general feeling among participants that little is standing in the path of a Santa Claus rally manifesting. China's blue-chip index CSI300 rose by 0.2%. According to the summary of a Tuesday housing policy conference, China will intensify its efforts to stabilize its property market and accelerate urban renewal in 2026. INTERVENTION RISK KEEPS YEN IN CHECK Investors weighed up the chances of an imminent intervention by Japanese authorities to support the currency. Satsuki Katayama, Japan's Finance Minister, said on Tuesday that Tokyo has the right to intervene in currency markets to stop sharp falls in the yen. This is the strongest warning yet about Tokyo's willingness to do so. The yen rose 0.7% to 155.88 against the dollar. The yen also gained against the euro and Swiss franc. The BOJ increased rates on Friday at the end of its December policy meeting. This was widely anticipated and Governor Kazuo ueda gave few hints about the future extent of rate increases. "Their message was so uninspiring... You hike, but you must hike with conviction." "They didn't hike with confidence," said Alicia Garcia Herrero. Chief economist for Asia Pacific, Natixis. The dollar fell against major currencies with the Euro up 0.2% to $1.1782, and Sterling 0.3% higher at $1.3500. Gold and silver spot prices also reached record highs. This was driven by the demand for safe havens due to escalating geopolitical turmoil, following news that the U.S. had pursued another oil tanker from Venezuela. The oil prices remained largely unchanged, with Brent crude futures trading around $62 per barrel and U.S. Crude at $58. (Reporting from Dhara Ranasinghe and Rae Wee, in London; editing by Frances Kerry).
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Vattenfall, a Swedish nuclear company, has applied for state assistance for the construction of new reactors.
Vattenfall, a Swedish utility, has requested state funding to build new nuclear reactors at Ringhals, the company announced on Tuesday. This is the first time a company has done so as part of a program the government hopes will bring about a revival in nuclear energy. Videberg Kraft, the majority-owned subsidiary of state-owned 'Vattenfall', plans to build small modular reactors at its Ringhals nuclear plant in south-west Sweden. In a press release, Desiree Comstedt said that the state's support would be crucial for this project. She is head of Vattenfall's new nuclear energy. The?government stated that the amount and conditions of any financing will be subject to negotiations with?Videbergkraft. The European Commission will have to approve the financing. Sweden's right-of centre government has pledged to revive Sweden's nuclear power sector. The government is aiming to build 10 full-size nuclear reactors by 2045, in addition to the six currently operating. Ulf Kristersson, Prime Minister of Sweden, said on X that "new fossil-free electricity production is crucial for the electrification" of Sweden's industry and transport. The industry and power sector are wary about investing billions in projects that may prove unprofitable, as the costs of renewable energy such as solar and wind continue to drop. The government will share in the risk and cost of building a new capacity of around 5,000MW through a combination?of cheap loans of up to 440 billion crowns (47.76 billion dollars) and price guarantees. Vattenfall has shortlisted Rolls-Royce 'SMR' and GE Vernova (US) as possible suppliers for the reactors. It will choose either three BWRX-300 GE Vernova reactors or five Rolls-Royce GE Vernova BWRX-300 GE Vernova?reactors, totaling 1,500 MW. The government will choose one by the end of next year. However, it has stated that a final decision regarding new nuclear reactors?will not take place until 2029. All of Sweden's reactors today were built between the 1970s-80s. The electricity produced in Sweden is almost completely fossil-free. Hydropower accounts for about 40%, nuclear power 30%, and wind energy 20%.
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Silver joins the rally for new highs as gold extends its record run
Silver continued to rise, reaching a new record, and gold reached a new high. A weaker dollar, coupled with persistent geopolitical uncertainties, boosted the demand for this safe-haven. As of 0857 GMT spot gold was up 1% at $4,488.94 an ounce after reaching a session record $4,497.55. U.S. Gold?futures, for delivery in February, rose by 1.1% to $4.520.10. "Expectations of a dovish Fed; markets losing confidence in the greenback; geopolitical tensions; central bank purchases .... The lust for gold among investors is still massive due to all these factors," said Carlo Alberto De Casa. The U.S. Dollar extended its losses for a second day, and was on track to experience its largest annual decline?since 2017. On the geopolitical side,?U.S. Last week, President Donald Trump ordered a "blockade", which would prevent all sanctioned oil tanks from entering or leaving Venezuela. He also said that he did not rule out war with Venezuela. Markets are pricing in two rate cuts by 2026, as Trump's announcement of a new Federal Reserve Chair?early in the next year confirms expectations for dovish policy. Bullion prices have risen by more than 70% in the past year, as investors sought refuge from global tensions and lower interest rates. Silver spot rose 0.7%, to reach $69.51 an ounce. It had previously reached a record high of $69.98. White metal prices have risen by 142% in the past year due to a combination of supply shortages, industrial demand and investment inflows. Both gold and silver continue to attract strong buying. This behavior suggests that $4.500 and $70 is?being treated as more of a reference point within ongoing trends and less as a hard ceiling. Both metals are therefore firmly supported?for now and the holidays. The spot platinum price rose 3%, to $2,183.90. This is the highest level in 17 years. Palladium also rose 2.8%, to $1,811.20. These gains were accompanied by a rise in gold and silver. (Reporting from Pablo Sinha in Bengaluru and Arunima Kumar; editing by Subhranshu Sahu).
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Japan will test rare-earth mud mined from deep seabed
The government-backed project's head announced on Tuesday that Japan will test mine rare-earth rich mud off Minamitori Island in the deep oceanbed, 1,900 km (1,180 mi) southeast of Tokyo. This will be the first time in history that rare-earth mud has been continuously lifted from a depth around 6,000 metres onto a vessel. Tokyo and its Western allies are seeking stable supplies of vital minerals as China, the world's largest supplier of rare-earth minerals, tightens up export controls. Shoichi Ishii is the program director for the Cabinet Office’s national platform?for innovative ocean development. He told reporters that one of their?missions was to create a supply chain of domestically produced rare Earths in order to guarantee a?stable and reliable supply of minerals vital to industry. As part of its efforts to improve maritime and economic security, the Japanese government has pushed ahead with a major national project. The test in January will be focused on connecting the deep sea mining system, and confirm its ability to lift up to 350 metric tonnes of rare-earth-mud per day. The environmental impact will be monitored onboard the ship and?on the seabed during the entire operation. A production target has not been set. However, if the trial is successful, it will be conducted at full scale in February 2027. Ishii stated that the government-funded project spent around 40 billion yen ($256 millions) since 2018. However, estimated reserves were not disclosed. Ishii said that on June 7, a Chinese 'naval fleet' entered Japanese waters while their research vessel conducted rare earth surveys in Japan's Exclusive Economic Zone (EEZ) surrounding Minamitori Island between May 27 and June 25. He said: "We are deeply disturbed by the intimidatory actions taken against us, even though our activities were limited to surveys of seabed resources within our EEZ."
What drives the gold market and how investors buy it?
Gold prices hovered just below $4,500 an ounce on Tuesday. This was due to expectations of a looser U.S.monetary policy, and the lingering geopolitical conflicts that have driven gold prices up to record highs.
Bullion, the classic safe haven in times of economic and/or political uncertainty, reached a new record high earlier this session, reaching $4,497.55.
Yellow metal prices have risen more than 70% this year. This is the biggest annual increase since 1979. The rise has been driven by a combination of safe-haven demands, bets made on U.S. interest rate 'cuts,'?robust Central-Bank buying, dedollarisation trends, and ETF purchases.
What are the different ways you can invest in gold?
SPOT MARKET
Big banks are usually the gold buyers for large investors and large buyers. The spot market is determined by the real-time dynamics of supply and demand.
London has the largest influence on the spot gold markets, thanks to the London Bullion Market Association. The association establishes standards for gold trading, provides a framework for over-the counter trade, and facilitates transactions between banks, dealers and institutions.
China, India, Middle East, and the United States, are also major gold trading centres.
Futures Market
Futures exchanges are another way for investors to get exposed to gold. They allow them buy or sell commodities at a set price, on a specific date in the future.
COMEX, part of the New York Mercantile Exchange (NYMEX), is the world's largest gold futures exchange in terms of volume of trading.
Shanghai Futures Exchange is China's largest commodities exchange and offers gold futures contracts. Tokyo Commodity Exchange (TOCOM) is another major player on the Asian gold market.
EXCHANGE TRADED PRODUCTS
Exchange-traded product or exchange-traded fund issue securities that are backed by actual metal, allowing people to get exposure to gold without having to take delivery of it themselves.
The exchange-traded fund market has become the largest category of investment for precious metals. According to data from the World Gold Council, inflows into gold-backed exchange-traded fund totaled $64 billion year-to-date by October. A record $17.3 billion was added just in September.
BARRES AND COINS
Metals traders can sell bars and coins to retail consumers in shops or online. Both gold bars and coins can be used to invest in physical gold.
DRIVERS:
Investor Interest and Market Sentiment
The price of bullion has been affected by the rising interest in investment funds over recent years.
Speculative gold buying and selling can be fueled by the sentiment generated by news, market trends, or global events.
FOREIGN CHANGE RATE
Gold is an excellent hedge against the volatility of currency markets. Gold has historically moved opposite to the U.S. Dollar, as a weakening dollar makes gold priced in dollars cheaper for holders other currencies.
MONETARY POLICY & POLITICAL TENSE
Precious metals are widely regarded as a safe haven in times of uncertainty.
Donald Trump's tariffs on Chinese goods and the imposition of extra duties have ignited a global war of trade, shaking currency markets and causing fears of an increase in U.S. prices. Trade war that has rattled financial markets and raised recession fears is intensifying. Trump has increased tariffs for Chinese imports from 84% to 145% while China has increased tariffs for U.S. products from 125% to 84%.
Gold's trajectory is also affected by the policy decisions made by global central banks. Gold's opportunity cost is reduced by lower interest rates, since it does not pay interest.
CENTRAL BANK GLOBAL GOLD RESERVES
Gold is held by central banks as reserves. The demand for central bank reserves has been strong in recent years due to macroeconomic and political uncertainties. The World Gold Council's annual survey, conducted in June, revealed that more central banks intend to increase their gold reserves in the next year, despite the high price of the metal.
The World Gold Council reported in late October that global gold demand increased 3% on an annual basis to 1,313 tons in the third quarterly of 2025. This was the highest quarter-total ever recorded, due to a surge in investment demand. China continued to add gold to its precious metal reserves, increasing its holdings from 74.09 millions fine troy-ounces at the close of October to 74.12 at the end November, continuing its buying spree.
(source: Reuters)