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Iran talks and lower bond yields set gold on course for its largest daily increase since February
The gold price rose to its highest level in nearly seven weeks on Wednesday and was on track to post the largest daily increase since February due?to lower Treasury rates and hopes of progress regarding opening the Strait of Hormuz. By 11:04 am, spot gold had risen 4.4% per ounce to $4256.85. The spot gold price rose 4.4% to $4,256.85 per ounce at 11:04 a.m. ET (1504 GMT), after reaching $4,258.99 - its highest level since June 18 - and breaking above the 50 day moving average. It now stands at $4,160. U.S. Gold Futures for December Delivery rose by 4% to $4317.40. The early adopters have returned to precious metals, as the probability of rate increases has decreased since last week. The dollar is down sharply, which helps. "The Iran pause also helps," said Tai Wong an independent metals dealer. The dollar fell to six-week-lows against other major currencies and the yield on U.S. 10 year notes was at one-week-lows. President Donald Trump had said that his administration held "very good talks" with Iran in a full-day of negotiations. This fueled hopes that?the five month conflict might be approaching. Gold is down by 24% from its record high of $5 595 in January, and 19% since the beginning of the Iran War, which fueled concerns about energy inflation, and reinforced bets for interest rate hikes. According to the World Gold Council, the demand for gold by central banks in the first half of 2026 will be the lowest it has been since 2022. The World Gold Council reported that the outflows of gold-backed exchange traded funds totalled 45 tonnes in the second quarter. This was when bullion experienced its steepest quarterly decline since 2013. J.P.Morgan stated in a recent note that with central bank purchases?muted?, retail interest elsewhere focused and subdued demand for physical gold in Asia, the rates-sensitive ETF is now the main driver of gold prices. Wong stated that "for the metals industry to really gain steam, rate cuts must be priced in, but for now, this is a story of 2027 at the very earliest." Silver spot rose 4.9%, to $62.44 an ounce after reaching its highest level since the 6th of July. Palladium rose 1.6% to $1.374.75, while platinum remained at $1.735.28. The prices are the highest they have been since June 17th and June 2nd, respectively. Standard Chartered's Suki Cooper said that "Platinum & palladium has priced in many headwinds" since the beginning of the conflict. These include concerns?over a slowing in auto production, a growing market share EVs & the potential for recycling growth. She believes that platinum will be in short supply this year, and palladium will become a surplus by 2026. (Reporting from Sukanya Mittra and Noel John, in Bengaluru; and Polina Devitt, in London. Additional reporting by Anjana Anil. Editing by Shailesh Kumar and Joyjeet Das.
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Gold jumps over 3% due to weaker dollar. Eyes on Mideast developments
Gold prices jumped by over 3% in?Wednesday's trading, mainly due to a weaker dollar. The?dollar fell and Treasury yields dropped, as markets watched developments in the Middle East to get fresh signals about inflation and interest rates outlook. By 09:44 am EDT (1344 GMT), spot gold had risen 3%, to $4199.78 an ounce. Bullion reached its highest level since the 22nd of June earlier in the session. U.S. gold futures increased 2.6% to $4260.80. Tai Wong is an independent metals dealer. He said, "Two consecutive days of lower yields combined with a week of softer dollars seem to have cleared the way for gold and silver." The U.S. Dollar was at its lowest level against the Japanese currency since?three months. This made dollar-priced gold more affordable to overseas buyers. Meanwhile, yields on U.S. 10 year notes were hovering?near a one-week-low. The ADP National Employment Report showed that the growth of private payrolls in the United States slowed down in July. Payrolls increased by 44,000, which was below what economists expected, who had predicted a gain of 70,000. In an interview with CNBC, Minneapolis Fed President Neel Kahkari said that he believed now was the right time to begin slowly increasing interest rates. According to the CME FedWatch Tool, traders?are pricing in about a 57% probability of a rate increase at the central bank's meeting on September. Due to its non-yielding characteristics, higher interest rates may reduce the appeal of bullion. Donald Trump, the U.S. President, said that his administration has had "very positive discussions" with Iran. This fuels expectations for a quick end to this five-month conflict. Spot'silver' rose by 4.2%, to $62.05 an ounce. Platinum gained 0.5%, to $1.725.58, reaching its highest price since June 17. Palladium also climbed 0.5%, to $1.359.80 and reached its highest price since early June. (Reporting by Sukanya Mitra in Bengaluru; Editing by Shailesh Kuber)
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The Russian central bank claims that higher fuel prices in Russia have accelerated the consumer price increase
The Russian central bank published the minutes of its July 24 meeting on Wednesday. They stated that higher fuel prices in Russia accelerated the consumer price growth in June by 0.3% and by 0.2% in the first half. After Ukrainian drone attacks on oil refining facilities disrupted the supply, Russians experienced a 'fuel shortage across all 11 time zones of the country. This led to long queues, higher gas prices, and rationing in some regions. Authorities say that the?situation? has stabilised?in many areas. Central bank officials said that the total direct and indirect impact on inflation of the fuel price increase will not exceed 1.5% for the entire year. The benchmark interest rate was cut to 14% from 14.25% on July 24, despite an 'inflation spike linked to Ukrainian drone strikes on major oil refineries and ecommerce warehouses. The regulator stated that most?board members thought there was room for more rate cuts in this?year, although the scope had shrunk. Reporting by Elena Fabrichnaya, Writing by Anastasia Teterevleva, Editing by Andrew Osborn
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TAE, a developer of fusion energy, signs an agreement for future fuel supply options with helium-3
TAE Technologies, a developer of fusion energy, announced on Wednesday that it had signed a deal with Black Moon Energy, whose private company could 'provide helium-3 as a fuel option in the future for its planned power plant. Nuclear fusion is still a long way from commercial power plants. Developers are still trying to prove the performance of reactors, attract capital, and ensure long-term supply. TAE has raised over $1 billion from Alphabet, Google, and Chevron. It is planning to build its first fusion plant, Da Vinci. The power plant will be able to generate 50 megawatts of electricity. Site selection is planned for later this year and operations are expected to start in 2031. The company stated that future power plants will be designed to produce between 350 and 500 megawatts. According to the companies, this agreement also includes collaboration in commercial development. Michl Binderbauer, TAE's chief executive officer, said that the agreement could offer a "alternative fuel supply option" as the company transitions to commercial power generation. Trump Media announced in December that it would acquire TAE through an all-stock transaction valued at more than $6 billion. This deal would create a publicly-traded fusion-energy firm. In 'June, the companies had planned to spin-off Trump Media's legacy business in social media, including Truth Social, and other assets into a separate listed entity. The Foothill Ranch, California-based firm expects to file merger-related documents to U.S. regulators, and complete the transaction by the end of 2026. This is subject to regulatory approvals, and other closing conditions.
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India eyes Venezuela blocks operatorship; regains Russia's Sakhalin-1 stake
India's Oil and Natural Gas 'Corp (ONGC) hopes to sign agreements soon with Venezuela 'to operate two oil 'blocks under the South 'American nation's 'new petroleum 'law', its finance chief'said 'on Wednesday. ONGC Videsh (ONGC Videsh is the overseas investment arm of the state-run ONGC) holds a stake of 40% in the San Cristobal oil field, and along with other Indian firms, a stake 18% in the Carabobo-1 Project. "Now, we are able to work freely on Venezuelan projects." We had restricted our operations in Venezuela because of sanctions-related risks," said finance director Anupam agarwal on a?analyst's call following the company's earnings for the June quarter. He said Venezuela offered additional incentives under its 'petroleum laws' and that ONGC was experienced in 'operating fields of similar geology? in India. He said, "We are taking over operatorship of some projects from PDVSA, we believe we will soon see positive developments." RUSSIAN SKHALIN-1 ASSET Agarwal stated that ONGC regained their 20% stake in Russia's Sakhalin-1 project for oil and gas after a four-year gap. He said that the restored stake increased the group's revenue contribution to the project from 5 billion to 6 billion rupees. After the West imposed broad?sanctions against Moscow in response to its invasion of Ukraine, Sakhalin-1 was transferred by Russia to a new domestic operator. ONGC has agreed to pay?payments to the Sakhalin-1 Abandonment Fund?in roubles, using dividends that have been frozen in Russia. This will allow it to keep its 20% stake, as was reported last year.
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India eyes Venezuela blocks operatorship; regains Russia's Sakhalin-1 stake
India's Oil and Natural Gas 'Corp (ONGC) hopes to sign agreements soon with Venezuela 'to operate two oil 'blocks under the South 'American nation's 'new petroleum 'law', its finance chief'said 'on Wednesday. ONGC Videsh (ONGC Videsh is the overseas investment arm of the state-run ONGC) holds a stake of 40% in the San Cristobal oil field, and along with other Indian firms, an 18% share in the Carabobo-1 Project. "Now, we are able to work freely on Venezuelan projects." We had restricted our operations in Venezuela because of sanctions-related risks," said finance director Anupam agarwal on a?analyst's call following the company's earnings for the June quarter. He said Venezuela offered additional incentives under its 'petroleum laws' and that ONGC was experienced in?operating similar geology - fields?in India. He said, "We are taking over operatorship of some projects from PDVSA." We believe that we will soon see positive developments. The new agreements have been signed. RUSSIAN SKHALIN-1 ASSET Agarwal stated that ONGC regained their 20% stake in Russia's Sakhalin-1 project for oil and gas after a four-year gap. He said that the restored stake increased the group's revenue contribution to the project from 5 billion-6 billion rupees per quarter, up to a total of?10 billion Indian?rupees (about 105.13 millions dollars). After the West imposed broad?sanctions against Moscow in response to its invasion of Ukraine, Sakhalin-1 was transferred by Russia to a new domestic operator. ONGC has agreed to pay?payments to the Sakhalin-1 Abandonment Fund?in roubles, using dividends that have been frozen in Russia. This will allow it to keep its 20% stake, as was reported last year.
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Reliance's luxury unit brings Kim Kardashian SKIMS to India
Reliance Brands is the luxury retail arm of Reliance Retail. They have partnered with Kim Kardashian's SKIMS in order to bring this shapewear brand into India. This comes as global companies race to enter India's growing fashion and beauty market. The company, which is a subsidiary of Mukesh-Ambani's Reliance Industries, said that it would launch the SKIMS name across both physical and digital channels?starting in Delhi and Mumbai. Indian beauty retailers are racing to introduce international brands into the country as Gen Z and younger consumers gravitate towards global trends in beauty and brands backed by celebrities, thanks to social media. This year, Indian beauty and fashion retailer Nykaa teamed up both with Selena Gomez’s Rare Beauty as well as Shiseido Group’s NARS Cosmetics. SKIMS is a new partnership that will add to Reliance Retail’s growing portfolio of foreign brands, including Rihanna’s Fenty Beauty, Fenty Skin and designer brands like Stella McCartney and Valentino. The entry of SKIMS comes at a time when India's shapewear industry is booming, with a mix?of?homegrown direct to consumer brands, such as Underneat, competing for customers. SKIMS, founded in 2019, has recently opened'stores in London and Dubai after raising $225m in funding which valued the company at 5 billion dollars.
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Phillips 66 surpasses its quarterly expectations as the Iran War boosts US refining profits
Phillips 66'reported a nearly 4-fold increase in'second-quarter profits on Wednesday, crushing Wall Street expectations, as the Middle East conflic? squeezed global fuel suppli?es and sent U.S. refinery margins soaring. The Iran War has been a boon to U.S. refiners, as buyers from around the world have scrambled for alternative fuels amid fears of disruptions in Middle Eastern exports. Fuel exports from the United States have reached record levels, especially for diesel and other refined fuels. Phillips' refining segment reported a record jump in earnings adjusted to $3.09 Billion from $392 MILLION a year ago. The?realized profit margin? in the second quarter?more than?doubled from a year ago to $24.08 a barrel. The company's quarterly net profit was $3.85 billion. This is its highest quarterly profit since the 2022 Russian invasion of Ukraine, which disrupted global supply chain and increased refinery earnings. In premarket trading, shares of the company increased 1.4% to $208,67. Phillips 66’s renewable fuel segment reported a quarterly adjusted profit of $544 million compared to a loss of $133 millions a year ago. After years of margin pressures, U.S. refiners have begun to see better returns on renewable fuels. This is due to a recent rise in the blending of biofuels mandates as well as a rise in diesel prices related to the Middle East conflict. According to data compiled and published by LSEG, Houston-based Phillips 66 posted an adjusted profit of $9.41 for the three months ended June 30 compared to analysts' average estimates of $7.44.
Sources say Jacobs' QXO will buy Kodiak at $2.25 billion to take on Lowe's and Home Depot.
QXO Building Products, headed by billionaire Brad Jacobs and his team, has agreed with Kodiak Building Partners to purchase the smaller private distributor for $2.25 million. According to two people who have direct knowledge of the deal, QXO is led by billionaire Brad Jacobs and has agreed to buy smaller private distributor Kodiak Building Partners for about $2.25?
Jacobs, chairman and CEO at QXO has been trying to compete with retail giants Home Depot, Lowe's and Lowe's for building product distribution.
QXO has acquired Beacon Roofing Supply for $11 billion last year. Beacon Roofing Supply was purchased for $11?billion by QXO. This comes after Jacobs' hostile takeover bid against Atlanta-based Home Depot last June.
Jacobs' efforts to increase QXO's $5? The loss slowed Jacobs' push to expand QXO's roughly $5? His next moves will be under increased pressure as he faces a revenue base of $50 billion.
QXO competes in wholesale building materials distribution with Home Depot, valued at $388?billion, and Lowe's, valued at $160?billion. Lowe's, valued at $160 billion and $388?billion, is the leader in wholesale distribution of building materials.
One person said that the Kodiak?deal will be followed in the next few months by other transactions, including private or public companies. Both spoke under condition of anonymity as the information was private.
Kodiak declined comment. Jacobs didn't immediately respond to our request for comment.
According to previous disclosures, Jacobs's earlier takeover attempts were backed both by?Affinity Partners?, the investment firm founded Jared Kushner?, U.S. president Donald Trump's daughter-in-law?, and Sequoia Heritage.
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QXO shares many suppliers with Kodiak - 16 out of Kodiak’s top 20 vendors supply QXO. This allows the acquirers to increase their purchasing power and sell more products to the customers they already know.
Jacobs said that he plans to use artificial intelligence at QXO to better forecast demand, manage inventory and cut costs.
QXO and Kodiak are in the same industry, but they sell different products.
QXO now offers a broader range of construction supplies, including lumber, trusses and gypsum, which are important to regional and large contractors and homebuilders. According to its website, Kodiak offers fabrication and installation services in-house.
According to the terms of this deal, QXO is paying $2?billion cash and issuing 13.2?million QXO shares to?Kodiak's owners. The person said that the option was retained by QXO for the repurchase of these shares at $40 each. The deal will see QXO issue 13.2?million shares of QXO to the owners of 'Kodiak.' They retain an option to purchase these shares at $40 per share, according to this person.
Kodiak generates an annual revenue of $2.4? Kodiak has an annual revenue of $2.4?
According to people familiar with the deal, QXO paid an enterprise value that was equivalent to approximately 10.7 times Kodiak’s projected earnings in 2025 before interest, taxes and depreciation, and around?0.95 sales.
As high U.S. interest rates continue to put a strain on home building and large renovation and repair projects, distributors are preparing for a recovery as the rate is expected to fall.
QXO recently gained a?extra cash and borrowing space to?fund purchases, including a $3?billion convertible preferred funding led by Apollo?and Temasek.
In the last two years, consolidation has increased in the building products industry.
Home Depot agreed to buy SRS Distribution in 2024 for approximately $18.25 billion and then acquired GMS through SRS. Lowe's responded with its $8.8 billion purchase of Foundation Building Materials and an earlier acquisition of Artisan Design Group. Lowe's countered with its $8.8? Reporting by Sabrina Valle, New York; editing by Dawn Kopecki & Jamie Freed).
(source: Reuters)