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The US dollar rate is expected to rise as the inflation fears and Iran war clouds US rate outlook
On Monday, gold prices dipped a little in a thinly traded session, as inflation concerns?clouded the outlook for U.S. monetary policies, and markets waited to see what developments would come out of U.S. Iran peace negotiations. As of 0307 GMT, spot gold was down by 0.2%, at $4,606.38 an ounce. U.S. Gold Futures for June Delivery fell 0.6% to $4,517.40. The markets in China, Japan, and the UK will be closed on holidays. Jerome Powell, the Federal Reserve chair, completed eight years as head of U.S. Central bank on Wednesday. Interest rates were held and there was growing concern about inflation. Tim Waterer is the chief market analyst for KCM Trade. He said that gold was still feeling the effects of the Fed's hawkish messaging from last week, especially the notable voices who pushed back against any further easing. Federal Reserve officials who disagreed with the policy statement last week said that the U.S. Central?bank must be clear about the fact that it can no longer cut interest rates due to the shock caused by the war in Iran. Oil prices rising could encourage central bankers to keep interest rates high for longer. This would put pressure on non-yielding investments such as gold, as investors look to other options that offer higher returns like Treasury yields. The oil prices were lower but still above $100 a barrel. This was due to the uncertainty surrounding a possible U.S.-Iran Peace Deal. An unknown projectile hit a tanker in the Strait of Hormuz on Monday. This was shortly after U.S. president Donald Trump announced that Washington would begin helping to free ships stranded by the U.S. and Israeli war against Iran. Iranian state media reported Washington had?sent its response to Iran's fourteen-point proposal through Pakistan and that Tehran is now?reviewing? it. We see gold trading largely in the $4,400 to $5,500 range by the end of this year. Waterer said that the upper half of this range would be dependent on a 'durable reduction of Middle East tensions, and an easing of inflation. Spot silver increased 0.5% to 75.69 dollars per ounce. Platinum gained 0.8% at $2,003.90 and palladium rose 0.5%, to $1,532.87.
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After Trump's promise to help free stranded ships in the Strait of Hormuz, oil prices drop
?Oil Prices eased on 'Monday, after U.S. president Donald Trump'said he would start an effort to release ships stranded at the Strait of Hormuz. However, the absence of a U.S. Iran peace deal kept the prices above $100. Brent crude futures dropped 64 cents or 0.59% to $107.53 per barrel at 2308 GMT, after falling $2.23 on Friday. U.S. West Texas Intermediate is now at $101,10 per barrel, down by 84 cents or 0.82% after a loss of $3.13 on Friday. Trump said in a Sunday post on the Truth Social website that "for the good of Iran and the Middle East and the United States we have told these Countries that we will safely guide their Ships out of restricted Waterways so that they can freely get on with their businesses." The price of oil remained at $100 per barrel, with no sign of a peace agreement and limited traffic through the Strait of Hormuz. The U.S. continued to negotiate with Iran over the weekend, as both countries assessed the other's response. Analysts at ANZ said that "Peace negotiations have stalled because both sides refused to move from their respective'red lines. Trump has prioritized a nuclear agreement with Tehran, while Iran proposed to "set aside nuclear matters until after the war is over and the enemies 'agree? to lift the opposing blockades against Gulf shipping. On Sunday, the Organization of the Petroleum Exporting Countries (OPEC+) announced that they would increase oil production targets for seven members by 188,000 barrels a day in June, the third consecutive month of increases. The increase is identical to that for May - minus the share of United Arab 'Emirates which left OPEC at the beginning of 'May 1. The higher volume is largely a paper increase as long as the Iran War continues to disrupt Gulf Oil supplies through the Strait of Hormuz. (Reporting and editing by Edmund Klamann, Sonali Paul and Florence Tan)
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Police report two dead and three injured in explosion south of England
Police said that two people?died? and three others, including a child, sustained minor injuries?after an explosion? at a home in Bristol, southern England. Authorities are treating the cause as suspicious?, they added. Avon and Somerset Police Superintendent Matt Ebbs described the incident as domestic in nature. The police said that while the investigation is still at an early stage, they are not looking for anyone else in connection with the blast. The police said that there appeared to be no damage to any other property.
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OPEC+ increases oil production quotas for the third time since Hormuz's closure
?OPEC+ decided on Sunday a modest increase in oil production for June. This will remain largely a paper increase as long as the Iran War continues to disrupt Gulf Oil supplies through the Strait of Hormuz. OPEC+ announced in a press release after an online conference that seven OPEC+ member countries would increase their oil production targets in June by 188,000 barrels a day, marking the third consecutive month of increases. The increase is identical to that for May, minus the United Arab Emirates' share. They left the group May 1. OPEC+?sources said that the move was intended to demonstrate the group's readiness to?raise supply once the war ends and to signal that OPEC+ continues to do business as usual despite the UAE leaving OPEC+. "OPEC+ sends a double-layered message to the market : continuity despite UAE's departure, and control despite a limited physical impact," said Jorge Leon. He is an analyst with?Rystad, and he was formerly OPEC. The Strait of Hormuz is a major constraint on the physical supply, even though output has increased on paper. It's less about adding barrels, and more about letting OPEC+ know that they still have the final say. Saudi Arabia, the top OPEC+-producer, will have a quota of 10.291 millions bpd by June. This is far more than its actual production. In March, the kingdom reported a production rate of 7.76 millions bpd. Saudi Arabia, Iraq Kuwait, Algeria Kazakhstan, Russia and Oman were the seven members that met on Sunday. OPEC+ now has 21 members, including Iran, after the UAE leaves. In recent years, only the seven nations plus UAE were involved in the monthly production decisions. The hike will remain a significant symbol until the Hormuz re-opens. The Iran War, which began February 28 and resulted in the closure of the?strait of Hormuz, has slowed down exports by OPEC+ member Saudi Arabia, Iraq, Kuwait and the?UAE. These?producers had been the only ones in the group that could increase production before the conflict. Oil executives from the Gulf have stated that it could take months for the flow of oil to return to normal. Analysts predict that jet fuel shortages will occur in the next one to two weeks and global inflation will spike. Crude oil production from all OPEC+ member countries averaged 35.06 mbpd in march, down 7.70 mbpd compared to February. Iraq and Saudi Arabia made the largest cuts because of constrained exports. The statement stated that the seven OPEC+ member countries will meet again on 7 June. Reporting by Alex Lawler and Olesya Astakhova, writing by Dmitry Zhdannikov, editing by William Maclean, Joe Bavier
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Russian TV reports that Slovakian PM Fico will attend the Victory Day Parade in Moscow.
Robert Fico, the Slovakian Prime Minister, is one of only a few 'global leaders' who will be attending a'scaled-down' 'edition' of Russia's Victory Day 'parade this month in Moscow. This was announced by Russian state TV on Sunday. Fico, following Viktor Orban’s loss of the election in Hungary last week, is now seen as the most pro-Russian leader within the European Union. Hungary and Slovakia continue to receive Russian gas despite EU efforts to reduce the reliance of the bloc on Russian energy. Fico also broke ranks with EU when he visited Moscow in 2024 - two years after Russia invaded Ukraine. He also met with Russian leader Vladimir Putin in the Kremlin in the aftermath of the parade on Red Square last year, provoking a backlash from both the Slovakian opposition as well as Brussels. Alexander Lukashenko, the Belarusian president, will be in Moscow for the celebrations on May 9. The parade is one of the highlights of the Russian calendar, celebrating the victory of the Soviet Union, of which both Russia and Ukraine are a part, over Nazi Germany during World War Two. The Kremlin announced on Wednesday that Moscow would hold a streamlined version of the 'parade' this year, without displaying?the usual large display? of weaponry. This is due to an increased threat from Ukrainian attacks.
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As heavy rains strike northeastern Brazil, at least six people are dead and thousands of others have been displaced.
The federal government announced on Saturday that heavy rains have caused tens of thousands to be displaced in the states of Pernambuco, and Paraiba. Pernambuco experienced flooding and landslides due to heavy rainfall in Recife, the capital of the state, and surrounding areas. Two people were killed in Recife, and two more in the neighboring town of?Olinda. Around 1,500 people were left homeless or displaced. According to the Integration and Regional Development Ministry of Brazil, in 'Paraiba two people were killed and 1,800 left homeless or displaced. The worst affected cities included Conde, Joao Pessoa, and Campina Grande. The National Center for Risk and Disaster Management sent out 22 alerts in the midst of the rainy season. The 'operational level has been raised to maximum alert due to the impacts in Pernambuco, Paraiba, and the weather forecasts for the region," said the'ministry. Although the rain has stopped and conditions are improving, it is still important to remain vigilant throughout Saturday. Luiz 'Inacio Lula Da Silva, President of the Republic of Brazil, said that he spoke with local authorities and offered his support. "The government continues monitoring?the situation in order to provide all the necessary assistance," he said.
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Berkshire CEO Abel: 'We're back at first base'
Greg Abel, CEO of Berkshire Hathaway, welcomed on Saturday a recent court ruling that could limit liability at its PacifiCorp Utility business. The company is defending against lawsuits related to wildfires in Oregon and northern California. Abel, speaking at Berkshire Hathaway's annual shareholders meeting in Omaha Nebraska, said that the Oregon state court decision on April 8, stating that a major wildfire case cannot proceed as a mass action, relieves PacifiCorp of pressure as it attempts to convince regulators to allow it to charge enough for power. He said that the threat had been reduced. PacifiCorp is defending itself against a lawsuit over a number of?wildfires? in Oregon and California. Among them, several victims have blamed the company for failing to turn off power lines at a windstorm that occurred during Labor Day weekend 2020. A 2023 Oregon jury found PacifiCorp grossly negligence, potentially exposing the Portland utility to liability of tens or even hundreds of millions of dollars in future damages trials. PacifiCorp said that it faced claims of up to $55 billion in the past. The Oregon appeals court ruled that the trial judge had erred by instructing the jury to assume that PacifiCorp was guilty of wrongful conduct for all fire victims. Prior to that decision, 171 Plaintiffs were awarded approximately $1.1 billion during a series "mini-trials", which began in January 2024. The trials were expected to continue until 2028. Abel said: "They told me to go back to the beginning and start again." PacifiCorp is working with several Western?U.S. States should cap their liability for wildfires and create state-administered funds to compensate victims. Utility companies like PacifiCorp believe that this arrangement offers them a safety net, allowing them to invest in grid infrastructure and maintenance without worrying about indeterminate litigation straining their liquidity. Abel stated that PacifiCorp wants to create a "regulatory contract" in which it could charge enough for customers to justify spending on infrastructure without taking excessive risks, but is met with resistance from politicians and regulators who don't want to see rates go up. California has increased its wildfire fund to $18 billion after multiple fires ravaged parts of the Los Angeles region in January 2025. Abel called Utah's protections that allow large utilities to surcharge their customers and limit liability for some claims the "gold standards." Oregon, in particular, has not yet followed. Berkshire Hathaway Energy is the immediate parent of PacifiCorp. Berkshire purchased the utility in 2006 for $5.1 billion. Reporting by Jonathan Stempel, Omaha, Nebraska. Editing by Colin Barr and Sharon Singleton.
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Thyssenkrupp and Jindal agree on a halt to the sale of a steel unit
Thyssenkrupp announced on Saturday that it had 'paused' talks with India's Jindal Steel International about a potential'sale' of the 'German industrial group's' steel unit. This is a setback to CEO Miguel Lopez’s restructuring efforts. Reports in March indicated that discussions may be canceled due to disagreements over pension liabilities, investments, and energy costs. Four people who are familiar with the issue were cited. Jindal Steel International made a bid indicative?for Thyssenkrupp Steel Europe in the past year. This led to months of due diligence, and negotiations on a possible purchase of Europe's?second-largest steelmaker. Thyssenkrupp stated that "the?original assumptions, and prerequisites of a possible sale of Thyssenkrupp Steel... have changed significantly in recent months," adding that it was a mutual decision to stop the talks. The EU's safeguard measures have boosted Europe's steel industry, protecting it from cheap Asian imports. Analysts say that the steel industry is set to rebound, and the first quarter 2026 may'represent an inflection-point,' pointing out a rise in the price of steel on the continent. (Reporting and Editing by William Maclean, Keith Weir and Keith Maclean)
US-Iran talks of peace falter as US dollar gains strength
Gold prices fell on Monday due to a'stronger dollar' and renewed inflation concerns, which clouded future interest rate cuts following the collapse of the U.S. - Iran peace talks over the weekend.
As of 1:37 pm, spot gold was down by 0.3% to $4,734.50 an ounce. ET (1737 GMT), having hit its lowest level since April 7, earlier in the session. U.S. Gold futures settled at $4,767.40, a?0.4% decrease.
Holders of other currencies will now pay more for metals priced in greenbacks.
It's a headline-driven market. "All eyes are on crude oil price because crude oil will direct inflation, and that will direct Federal Reserve policy," said Phillip Streible. Chief market strategist at Blue Line Futures.
After the negotiations failed, the U.S. The military announced that it would blockade ships leaving Iran's port, while Tehran warned of retaliation against its Gulf neighbours.
The announcement sparked a spike in oil prices, which fueled inflation fears and limited the ability of central banks to lower interest rates. The higher rates make zero-yield gold less appealing, despite the fact that it is a good inflation hedge.
According to CME's FedWatch Tool?, the markets now expect a rate cut in the U.S. by year-end. This is down from 40% one month ago.
Since the U.S. and Israel?war on Iran began on February 28, spot gold has dropped over 10%.
Analysts at SP Angel stated that they saw the war-induced gold selloff as a positive for its long-term prospects. They noted that speculative positions had been reduced. Silver spot was down 0.2% to $75.71 an ounce.
In a recent note, Paul Wong, market strategist for Sprott Asset Management said that uncertainty over the future of oil supply will likely drive a'strong structural demand' for silver, through increased investment in solar photovoltaics.
Palladium rose 3%, to $1,566.15, while platinum gained 0.3%, to $2,050.80. Ashitha Shivaprasad reported from Bengaluru, and Jonathan Ananda, Diti Pjara and Janane Venkatraman edited the article.
(source: Reuters)