Latest News
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Indonesian President inaugurates Balikpapan Refinery Upgrade worth $7.4 Billion
Indonesian President Prabowo Subianto inaugurated on Monday the $7.4-billion?upgrade to Pertamina’s Balikpapan Refinery. This upgrade increased the facility’s capacity for refining from 260,000 barrels per day to 360,000, making it the largest refinery in the country. Pertamina, Indonesia's state-owned energy company, has spent years improving its refinery capacity and efficiency to meet the rising demand for energy in the country. Energy Minister Bahlil lahadalia stated that the upgrade would enable the refinery's production to increase of 92-octane and 95-octane?and 98?octane?gasoline. He said that private retailers will buy local products made by Pertamina. He did not give a timeframe. Bahlil stated that the refinery would be able to produce 5,8 million kilolitres of gasoline each year. This would reduce Indonesia's gasoline imports from 24 million kilolitres per annum, down to 19. Bahlil claimed that Indonesia will also be able stop importing gasoline, citing the increased production due to the "refinery upgrade" as well as biodiesel mandate. He added, "God willing, we will no longer import jet fuel in 2027. We will only be importing crude oil." The refinery's capacity for liquefied petrol gas (LPG), which was previously 48,000 tons, will increase to 384,000 tons after the upgrade. Pertamina claims that this could reduce LPG imports from 4.9% to just 4% and also gasoline imports. The refinery overhaul included a petrochemicals production facility that could produce 283,000 tonnes of petrochemicals per year, including 225 tonnes of propylene.
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Silver trading, from shares and coins to bars and stocks
Silver is at an all-time record high of $84.60. This follows unprecedented gains in gold, as the dollar fell after the Trump Administration threatened to?a criminal investigation into the Federal Reserve Chairman, and due to tight supply and?high industrial interests. How does silver trade work? Over the Counter London is the largest marketplace for physical silver, as well as gold. Here, banks and brokers take orders from customers around the globe to buy and sell. Trading takes place bilaterally between financial institutions. An investor must be in a relationship to gain access to the market. Bars of bullion in vaults of large banks like JPMorgan and HSBC are the foundations for this market. London vaults will hold 27,818 tons of silver by the end of 2025. Silver. Futures Silver is also traded on futures markets. Shanghai Futures Exchange and CME Group’s?COMEX, in New York, are the two largest. Futures contracts are agreements where the seller promises to deliver silver at a future date to the buyer. They are usually traded through a broker. Futures are usually not held until they are delivered, but instead swapped out for future dates. Both the buyer and the seller can speculate on the price of silver without having to move and store metal. Futures also offer the advantage that you do not have to pay for the entire amount of silver. Instead, you only need to pay a fraction, called a margin. Exchange-Traded Funds ETFs are traded on stock exchanges like the NYSE and LSE along with shares of publicly traded companies. Each share of the fund represents a certain amount of silver in a vault. Apps such as Robinhood allow small investors to trade ETFs with ease. Silver is added to the vault in order to create new shares, bringing the price back to the original metal. BlackRock's iShares Silver Trust is the largest, with 529 million ounces of silver, worth $39 billion today. BARS AND COINS Silver bars and coins are available to smaller investors from all over the world. SILVER MINERS Investors can buy shares of companies that mine for silver. These are also easily traded on platforms such as Robinhood. Silver prices tend to affect the value of these shares, but other factors, such as management, debt, and performance, also influence their value. (Reporting and editing by Jan Harvey in Bengaluru, Anmol Choubey from Bengaluru)
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Trump-Powell fight unnerves gold investors, as record is set at $4,600/oz
On Monday, gold prices rose by about 2%, reaching an all-time record of $4,600 per troy ounce. Silver also broke a new record, after the Trump administration launched a criminal investigation into Federal Reserve Chairman Jerome Powell. Gold spot jumped by 1.9%, to $4,596.05 an ounce, at 0931 GMT. It had earlier reached a session high of $4600.33. U.S. Gold Futures for 'February Delivery' gained 2.3%, reaching $4,606.20. Zain Vawda is a?analyst with MarketPulse, by OANDA. He said that the Fed's independency has been openly questioned, and the "political risks" discount, which was usually reserved for emerging markets, is now affecting the U.S. Dollar, pushing investors towards hard assets. Monday, tensions between Trump and the Fed escalated and Wall Street futures fell and the dollar dropped the most in the last three weeks. The Trump 'administration threatened to indict Powell - over Congressional testimony he provided last summer. Powell called this action a "pretext", for the administration, to gain more control over interest rates. Trump wants to drastically cut them. Goldman Sachs, Morgan Stanley and other major brokerages expect to see two rate cuts of 25 basis points each in September and June. Trump also said that he was weighing up a number of options, including military options for a violent crackdown against Iranian protests. Iran's unrest is occurring as Trump exercises U.S. muscle internationally. He has?ousted Venezuelan President Nicolas Maduro and discussed acquiring Greenland via purchase or force. Gold and other non-yielding investments tend to perform well in low interest rate environments, as well as during times of geopolitical and economic uncertainty. Spot silver increased 5.5% to $84.32 an ounce, after reaching a record high of $84.60 at the start of the day. "The path (for silver), is open towards $90 per ounce and possibly $100 per ounce, if the industrial pressure tightens. Vawda stated that the fact that gold to silver ratio is shrinking usually indicates that silver has more room for growth than gold. After reaching a record-high of $2,478.50 per ounce on December 29, spot platinum rose 4.6% to $2.376.75 an ounce. Palladium rose 3.3%, to $1.875.50 an ounce. (Reporting and editing by Susan Fenton in Bengaluru, with Pablo Sinha reporting from Bengaluru)
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What drives the gold market and how investors buy it?
Gold soared over the $4,600 per ounce mark in a single day on Monday. A resurgence of geopolitical tensions as well as expectations of a looser U.S.monetary policy contributed to bullion reaching its first record peak of 2026 following a series of all-time records last year. There are several ways to 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 is the hub of the spot gold markets. The London Bullion Market Association sets standards for gold trading, while providing a framework to facilitate over-the counter trades between banks, dealers and institutions. China, India and the Middle East 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 is part of the?New York Mercantile Exchange, and it's the biggest gold futures exchange in terms of trading volume. Shanghai Futures Exchange (China's largest commodities exchange) also offers gold 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. This allows people to get exposure to the gold price without having to take delivery of?the metal. According to data from the World Gold Council, 2025 will be the year that global gold ETFs experience their strongest ever inflows, with North American funds leading the way. Inflows jumped to $89 billion annually. BAR?AND COINS Metals traders can sell bars and coins to retail consumers in stores or online. Both gold bars and coins can be used to invest in physical gold. What drives the market? Investor Interest and Market Sentiment The rising interest of investment funds has been one of the major factors behind the price movements in bullion. News, market trends and world events have all contributed to speculative gold buying or selling. FOREIGN EXCHANGE RATE Gold is an effective hedge against volatility in the currency markets. It has historically moved in the opposite directions to the U.S. Dollar, as a weaker 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 trade tariffs, which have been in place for the past year, have sparked global trade wars and rattled currency markets. Trump's capture and assassination of Venezuelan President Nicolas Maduro, along with his aggressive statements about acquiring Greenland? are adding to the market volatility. The gold price is also affected by the global central banks' policies. Gold is less expensive to hold when interest rates are lower, because it does not pay interest. CENTRAL BANK GLOBAL GOLD RESERVES The central banks have a large amount of?gold as reserves. Demand from the sector has increased in recent years due to macroeconomic and political uncertainty. In its annual survey, the World Gold Council reported in June that despite high gold prices, more central banks planned to increase their gold reserves in a year. World Gold Council data shows that net central bank purchases for November totaled 45 metric tonnes, bringing the total amount of gold purchased by emerging market central banks in the first 11 months to 297 tonnes. China continued to add gold to its reserves. Its holdings reached 74.15 millions troy ounces by the end of the month, up from 74.12 in the month before. This was the 14th consecutive month that China has been on a buying spree. (Compiled and edited by Bangalore Commodities and Energy Team)
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Merz, Germany's Merz, suggests that a trade agreement between India and the EU could be concluded by January 31
After meeting with Indian Prime Minister Narendra Modi, German Chancellor Friedrich Merz suggested that the European Union could sign a Free Trade Agreement with India as soon as this month. Merz, during a trip to Ahmedabad in western India, said that the presidents of the European Commission and European Council will travel to India to sign the agreement at the end 'January' if the deal is completed by then. Merz, who was visiting India for the first time since his appointment as chancellor, said that they would "in any case" take a major step to ensure this free-trade agreement is implemented. Negotiations were expected to be concluded by the end this year. According to German government sources there is a high expectation that a deal will be signed by the end of January, after "very intense" talks between Merz Modi. Speaking at a separate Gujarat event, Indian Trade Minister Piyush Goyal said that an agreement is almost?at its final stage. "RENAISSANCE UNFORTUNATE PERSONALISM" Merz stated that the world is experiencing a "renaissance in unfortunate protectionism" which harms Germany, and India. He did not mention any specific countries. The United States is pressuring India to stop buying Russian gas and oil, which Washington and the European Union say is used to fund the war in Ukraine. Last year, the U.S. - China trade war caused supply chain disruptions for months due to Chinese export controls of minerals used in autos and other areas. This affected German carmakers. Beijing also placed restrictions on certain semiconductors used widely in the automotive industry following the Dutch government's move to take control of Chinese chipmaker Nexperia. The EU's signing of a trade deal with India will follow its decision on Friday to conclude a trade deal with South America’s Mercosur Group. It would be another step towards creating their own trade networks, as the United States continues to shake up the global trade. Merz said that Germany is particularly interested in working more closely with India on security matters to reduce India's dependence on Russia. In addition to the agreements signed on critical minerals, health and an innovation centre for artificial intelligence, both countries also signed a Memorandum of Understanding to this effect. Modi told a joint press conference with Merz that "the MoUs?being signed today will give new vigor and strength to our?cooperation." India continues to work closely with Russia in terms of security and much its military equipment is manufactured in Russia. India is one of the biggest buyers of Russian oil and gas, along with China. Germany wants India to reduce its energy imports and stop Indian companies from circumventing Russian sanctions. India has rejected this demand. Reporting by Andreas Rinke, Shivangi Acharya, and Sakshi dayal in New Delhi. Writing by Miranda Murray. Editing by FriederikeHeine and Susan Fenton.
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Dollar drops, gold reaches record highs as US prosecutors pursue Powell
Dollar and Wall Street futures fell and gold rose?on monday as Federal Reserve chair Jerome Powell claimed that the Trump administration threatened him with criminal charges over the refurbishment of the central bank's HQ. This has heightened concerns about the Fed’s independence from political influences and added to the?a?frenzied start to 2026. Already, the U.S. captured Venezuela’s Nicolas Maduro. They have also ramped up the talk of taking over Greenland. S&P futures dropped more than 0.5%. Meanwhile, safe-haven metals like gold - that investors use as a hedge against inflation and turmoil - reached another record high. Money markets have priced in an increased chance of U.S. short-term interest rate cuts. Europe also opened with a 0.2% drop from its record highs. The Swiss Franc, another safe-haven currency, strengthened by 0.6% at 0.796 to the dollar. The euro also gained 0.4%. Lee Hardman, MUFG's Lee Hardman, said that the latest development marked a'significant escalation' in the fight between Trump and Powell. He added that the "repeated attacks on the Fed independence" continue to present downside risks for dollar. Fed funds?futures has added about three basis point more in cuts in this year. This is small, but it points out the risk that Fed will be pushed to become more aggressive. Gold prices rose to a record-high of more than $4600 per ounce. This was also boosted by the rising geopolitical tensions surrounding Iran. However, oil prices did not react. Trump said that he is weighing several strong options, including military options to respond to the violent crackdown of Iranian protests, which are posing one of the greatest challenges to the clerical regime in the country since the 1979 Islamic Revolution. Abbas Araqchi, Iran's foreign minister, said via English translation on Monday that the situation was "under control". Brent crude futures fell 9 cents to just above $63 per barrel during early London trading. U.S. West Texas intermediate crude dropped 10 cents to $59.02 per barrel. The clerical establishment in Iran intensified its crackdown against the protests, and both benchmarks increased by more than 3%. Saul Kavonic is the head of MST Marquee's energy research. He said that while oil prices have increased in recent days, they are still underestimating risk, given the possibility of a wider conflict affecting the Strait of Hormuz. He added that "the market says, 'Show Me the Disruption to Supply' before it materially responds." TRUMP VS POWELL For traders, the second week of the year will be dominated by U.S. inflation figures, Chinese trade data and an array of U.S. earnings, starting with JPMorgan Chase on Tuesday and BNY a day later. Powell, the Fed chief, had called the threat by the Trump administration of criminal charges a "pretext", aimed at forcing the central bank into cutting interest rates. Powell's term is due to expire in May. In a statement, Powell said that "this unprecedented action must be viewed in a broader context" of the threats and pressures from the administration. Economists say the latest developments represent a dramatic intensification of the conflict between Powell and Trump that dates back to Powell's first year as chairman in 2018. Andrew Lilley is the chief rates strategist of Barrenjoey Investment Bank, a Sydney-based investment bank. Investors will not be happy, but this shows that Trump doesn't have any other levers at his disposal. The FOMC will keep the cash rate at what they want it to be. The dollar was the most affected currency, even when compared to currencies that are typically considered risky like Australian and New Zealand Dollars. The dollar index fell 0.4% in Europe, and is on course to have its largest one-day decline since mid-December. The greenback suffered a terrible 2025. It dropped more than 9% compared to major peers as interest rates differentials shrank as the Fed cut its rates, and concerns about U.S. budget deficits and political unrest swirled. Ray Attrill, head of currency strategy at National Australia Bank, said: "This open war between the Fed and U.S. government... is clearly not good for the U.S. Dollar." (Additional reporting provided by Tom Westbrook, Ankur Banerjee and Alexander Smith; editing by Alexander Smith).
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Merz: Germany wants to increase security cooperation with India in order to reduce Russia's reliance
Germany is looking to work more closely with India on security matters, in order to reduce India's dependence on Russia. On Merz's maiden visit to South Asia, Merz signed a memorandum to this effect, along with agreements on critical minerals and the health sector, as well as an artificial intelligence innovation center. "India and Germany?work together to build resilient, secure and trusted supply chains. Modi said at a joint news conference that the?MoUs signed today will give a new'strength and momentum to our cooperation. India is still closely involved in the security policy of Russia, from where it gets much of its military hardware, and is also one of China's largest gas and oil buyers. Germany wants India to reduce its energy imports and stop Indian companies from circumventing Russian sanctions. India has rejected this demand. Merz called on India and the European Union?to conclude negotiations on a?free trade agreement during his visit, which was intended to give a 'boost to the conclusion of a deal before the end January. Merz said that the world is experiencing "a revival of protectionism" and this harms Germany and India. Reporting by Andreas Rinke, in Gandhinagar, and Sakshi dayal, in New Delhi. Writing by Miranda Murray. Editing by Friederike Hines.
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Swedish steel startup Stegra signs a deal with Thyssenkrupp Material
Swedish steel startup Stegra announced?on?Monday that Thyssenkrupp Material?Processing Europa has signed an agreement for the?delivery of steel from Stegra’s plant that is being built in Sweden and that the German company will support the ramp up of output. The German company will purchase significant amounts of non prime steel from 2027 to supply various industries across Europe, according to a Swedish statement. Stegra explained that non-prime steel is a byproduct that does not meet the highest standards of quality that some applications require. However, it is still a durable and strong material that can be used for a variety of purposes. In a statement, Stephan Flapper, Stegra's chief commercial officer said: "A partner for?steel that is not prime is essential for the expansion of our steel mill. We?seek this as the beginning of a long-term relationship." The Swedish?group revealed that in October It was seeking The company has not yet announced a funding agreement. Reporting by Terje Solsvik and editing by Stine Jacobisen
Gold reaches $4,600/oz first time in history as Powell-Trump spat fuels safe-haven demand
On Monday, gold broke through $4600/ounce, and silver also hit a new record. Investors bought safe-haven assets amid increased geopolitical uncertainty, and the criminal investigation into Federal Reserve Chairman Jerome Powell.
Gold spot jumped 1.7%, to $4.584.74 an ounce at 0752 GMT. Bullion reached a record-high of $4,600.33 during the day.
U.S. Gold Futures for February Delivery increased by 2.1% to $4,595.30.
Tim Waterer, KCM Trade’s chief market analyst, said: "Iranian events, potential U.S. participation, and the Fed chair being the subject of a criminal investigation... U.S. Futures turned lower after the Powell news. This was a greenlight for gold to run higher."
A rights group reported that more than 500 Iranians have been killed by unrest, while Tehran warned it would target U.S. military bases if Donald Trump follows through on his threats to strike Iran on behalf of the protesters.
Iran's unrest is a result of Trump's international flexing of U.S. muscle, after he ousted Venezuelan president Nicolas Maduro and discussed annexing Greenland either by force or purchase.
Powell claimed on Sunday that the Trump administration threatened to indict him for his testimony before Congress. The Fed Chair called this action a "pretext", which was meant to pressure the central banks into lowering interest rates. This sent the dollar and U.S. stock futures lower.
Goldman Sachs has re-evaluated its Fed rate cut forecasts. It now expects two 25-basis point reductions to be made in June and September of 2026, instead of the previously anticipated March and June.
In a low interest rate environment, and in times of geopolitical or economical uncertainty, non-yielding investments tend to perform well.
Soni Kumari, ANZ commodity strategist said: "If the current situation continues, I think that (silver prices) will soon push towards $90/oz... While there is a?still uncertainty in policy and there are now some restrictions coming from China whose impact we have yet to see."
Silver spot rose by 5.1%, to $84.06 an ounce. It had earlier reached a record high of $84.60.
After reaching a record-high of $2,478.50 per ounce on December 29, spot platinum rose 3.3% to $2348.74.
Palladium rose 2.7%, to $1864.19 an ounce. (Reporting by Ishaan Arora in Bengaluru; Editing by Sumana Nandy and Subhranshu Sahu)
(source: Reuters)