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Gold prices rise as traders wait for central bank decisions amid inflation fears
Gold prices were largely stable on Monday as traders remained 'cautious' ahead of central bank meetings. They feared that the persistent rise in oil prices would lead to a more hawkish stance. As of 0910 GMT, spot gold was down 0.1% at $4,704.01 an ounce. U.S. Gold Futures for June Delivery fell 0.4% to $ 4,719.90. Fawad Rasaqzada is a market analyst for City Index and FOREX.com. He said that the main message traders are preparing to hear 'is that central bankers will be more hawkish in their approach than they previously were because oil prices have increased and inflationary pressures have increased. The (gold) market is likely to be cautious going into the central banks meetings. Brent oil rose above $105 per barrel as?shipments across the Strait of Hormuz were limited, limiting global oil supply. The rise in oil prices since the start of the U.S./Israeli war against Iran has fueled inflation fears, as well as concerns about rising interest rates. Gold is often viewed as an inflation hedge. However, rising interest rates make other assets that yield higher returns more appealing, which reduces its appeal. It is expected that the Fed will keep interest rates unchanged in its policy announcement on Wednesday, at the conclusion of its two-day meeting from April 28 to 29, Investors will also be watching the Bank of Japan and other central banks this week to see what impact the war has had on the economy. The dollar has weakened, making the greenback price of bullion more affordable to holders of other currencies. Donald Trump, the U.S. president, said that Iran could 'phone to negotiate a ceasefire to their two-month conflict.' On Monday, Tehran’s foreign minister arrived in Russia to?seek out support from President Vladimir Putin. On Saturday, hopes of?reviving the peace effort? receded after Trump cancelled a visit by two U.S. ambassadors to Iran's war mediator Pakistan. Silver spot fell 0.3%, to $75.49 an ounce. Platinum rose 0.6%, to $2,023.80. Palladium dropped 0.4%, to $1,490.25. (Reporting and editing by Louise Heavens in Bengaluru, with reporting by Pablo Sinha from Bengaluru)
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Sources say diesel and jet fuel exports to Northeast Asia will recover in May.
Trade sources say that the?exports of Northeast Asian jet fuel and spot diesel are expected to recover in May, as refiners take advantage of?record margins?and an improved crude oil supply. Data showed that refiners in South Korea, Taiwan and Japan sold more diesel and jet-fuel cargoes loading during May than in April. However, the volume was still below pre-Iran War levels. This month, the refining margins for Asia reached a record high of $60 per barrel. The increase in exports helped to ease the record spot premiums of diesel and jet fuel that were affecting countries in Asia Pacific, as the conflict had cut off most of the oil supply in the region through the Strait of Hormuz. Data shows that SK Energy in South Korea, GS Caltex in?S-Oil, and Hyundai Oilbank have sold a total more than 10 cargoes of diesel for loading next month. This is more than double the volume from April. The data showed that 'Taiwan Formosa Petrochemical Corp. sold one each of 10ppm and 500ppm sulphur diesel for May compared to none in April. Each cargo contains around 300,000 barrels. The sale volume is still below the pre-conflict level of 25 cargoes. Two trade sources reported that these refiners sold five cargoes of 300,000 barrels or more for jet fuel in May, as opposed to three for April. The rise in supply eases prices Although spot premiums and refinery margins have eased due to the recovery of fuel exports they are still several times higher than before the war began on 28 February, indicating that there is a limited supply as refineries throughout Asia and?the Middle East struggled with lower production. Last week, these diesel cargoes were sold at "premiums" below $5 per barrel to Singapore quotations on a free-on-board Korea basis, down from $10 or higher two weeks earlier, according to tender records. LSEG data show that Asian?refiners? margins on transport and industrial fuels were nearly $62 a barrel on Monday. This is down from a high of $86 a barrel on March 30 but three times higher than at the end of February. Jet fuel cracks, at $69 per barrel, are still more than three-times the price of?end February, even though they've dropped from their peak of $94 on 30 March. Cash premiums on aviation and heating fuels have fallen to around $18 per barrel. They are still more than twice as high as they were at the end of February. (Reporting and editing by Florence Tan, Alexander Smith and Trixie Yap)
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Clashes as hundreds of protesters clash in Indonesia's Papua
A police official said that students and civilians clashed in Papua, Indonesia's insurgency hit region on Monday. Residents demanded the removal of military personnel. The military operation that was conducted in the area earlier this month is alleged to have resulted 15 deaths, including children and women. Operation was conducted against armed separatists that have been seeking independence for the resource rich Papua since 1969 when a vote supervised by?the United Nations placed it under Indonesian rule after more than 60 years of Dutch colonial rule. Last week, the country's human right watchdog confirmed the deaths. It also called on the government to review its operations in the area. The military has not yet acknowledged the casualties. Cahyo Sukarinto, the spokesperson of the Papua Provincial Police, stated that on Monday, 'around 800 protesters' rallied at three different locations in Jayapura (the capital city of Papua Province) before gathering in the centre. Cahyo said that local anger was sparked by the deaths that occurred during recent military operations. Cahyo reported that tear gas and water cannons were used to disperse the protesters after they threw stones at police. Cahyo said that 'five police personnel were injured, but no injuries were reported among protesters. Local media Tribun Papua published footage of police officers in protective gear wielding batons as they approached protesters. After the initial clashes, the protests continued in a peaceful manner. Several regional legislators arrived at the site to listen to the demands of the protesters. Grasberg is the second largest gold and copper mine in the world, owned by both the Indonesian Government and the U.S. mining company Freeport.
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Investors wait for clarity on US-Iran talks before buying gold
Investors remained largely 'on the sidelines' on Monday as they awaited clarity regarding the stalled talks between Iran and the United States. As of 0728 GMT, spot gold was up by 0.1%, at $4,714.51 an ounce. Last week, gold fell 2.5% and ended a four-week streak of gains. U.S. Gold Futures for June Delivery fell?0.2% at $4,729.40. Kyle Rodda is a senior financial analyst at Capital.com. He said, "We are just watching to see if there is any progress in the U.S.-Iran talks?in the next few days. That's going be the biggest driver of gold." After a report that said Iran had given the U.S. through Pakistani'mediators' a new offer on reopening Strait of Hormuz and ending the war, the dollar eased. U.S. President Donald Trump said that Iran can call if they want to negotiate a ceasefire to their two-month conflict and stressed the fact that it will never possess a nuclear device. Trump cancelled the trip of two U.S. ambassadors to Pakistan, a war mediator for Iran. This was a blow to peace prospects. As the Middle East's energy exports were disrupted by the stagnant talks, oil prices rose. A rise in crude oil prices may increase inflation rates by increasing transportation and production costs. Gold is considered an inflation hedge, but high interest rates can make other assets that yield more attractive. This reduces its appeal. Investors are now awaiting the U.S. Federal Reserve interest rate decision on Wednesday. Rodda said that the Fed's stance on the rest of this year could be either a positive or negative for gold, depending on whether they are indicating their intention to keep the policy unchanged. This is because the energy crisis has inflationary effects. Silver spot rose by 0.1%, to $75.75 an ounce. Platinum gained 0.8%, to $2,026.85. Palladium fell 0.4%, to $1,490.60. (Reporting and editing by Sherry Jac-Phillips in Bengaluru, Subhranshu Sahu, Ronojoy Mazumdar).
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Investors wait for clarity on US-Iran talks before buying gold
Investors remained largely on the sidelines as they awaited clarity regarding the ongoing peace talks between Iran and the United States. As of 0553 GMT, spot gold was unchanged at $4,709.50 an ounce. Last week, gold fell 2.5% and ended a four-week streak of gains. U.S. Gold Futures for June Delivery fell?0.3% at $4,725.10. Kyle Rodda is a senior financial analyst at Capital.com. He said, "We are just watching to see if there is any progress in the U.S.-Iran talks in the next few days. That's what's going be the biggest driver of gold." Dollar eased, lending support to the bullion after a report that said Iran?through Pakistani mediators gave the U.S.a new proposal regarding reopening?the Strait of Hormuz?and ending the war. Donald Trump, the U.S. president, said that Iran can call if they want to negotiate a ceasefire in their two-month conflict and added that it will never possess a nuclear device. Trump on Saturday cancelled the trip of two U.S. ambassadors to Pakistan, which is the main mediator in the Iran-Iraq war. This was a blow for peace prospects. As the Middle East's energy exports were disrupted by the stagnant talks, oil prices increased. A rise in crude oil prices could cause inflation by increasing transportation and production costs. This would increase the probability of interest rates rising. Gold is considered an inflation hedge. However, the high interest rates are making yield-bearing investments more appealing, which reduces its appeal. Investors are now awaiting the Federal Reserve's interest rate announcement on Wednesday. Rodda said that the Fed's stance on the issue could be either a support for gold or a headwind depending on whether the Fed indicates it is 'potentially maintaining policy unchanged throughout the upcoming year due to?the inflationary effects of the energy crises. Silver spot fell by 0.1%, to $76.61 an ounce. Platinum rose 0.2%, to $2,015.63, while palladium dropped 0.6%, to $1,487.73. (Reporting and editing by Sherry Phillips, Subhranshu Sahu, and Noel John from Bengaluru)
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Lightning kills 14 in Bangladesh as storms rage
Officials said on Monday that at least 14 people were killed by lightning strikes in several areas of Bangladesh as seasonal thunderstorms swept the country. Several districts reported deaths after heavy rains and intense lighting were brought by sudden storms. Local authorities reported that the majority of?victims? were farmers who were working on open fields and labourers trapped in exposed areas. Other people were also injured and transported to nearby 'hospitals. Some of them are in critical condition. In Bangladesh, lightning kills hundreds of people every year. The country declared lightning strikes as a natural catastrophe in 2016, after more than 200 deaths in just the month of May, including 82 on one day. Experts claim that the 'rise in fatalities from lightning strikes' is a 'linked to?deforestation. This has resulted in the loss of many tall trees which helped draw lightning away from people. Lightning-related deaths are frequent?during pre-monsoon?months of?April-June,?when increasing heat and humidity creates unstable weather conditions. Reporting by RumaPaul; Editing and proofreading by RajuGopalakrishnan
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EU steelmakers to rebound after Iran war hits Asian counterparts
Analysts say that after a half dozen flat earnings seasons in the European Union, steelmakers are poised for a recovery. The first quarter of 2026 may be an inflection-point. Steel prices increased faster than anticipated in recent months, despite the fact that demand has not?recovered?to 2022 levels. This is due to rising energy prices and a decrease in imports outside of the EU as a result of the EU's newly implemented safeguards. The price of hot-rolled coils in Europe has increased by around 20% over the last six months. Oddo BHF analyst Maxime Kogge said that, excluding demand, the planets have aligned themselves for the sector. In the past, we only had a few one-off measures to combat imports. "Now the system has been fundamentally strengthened structurally," Kogge said. He was referring to EU's?carbon tax on high-emissions imports and the trade policy that will halve the import quotas from July 1. According to LSEG data, higher steel prices are expected to boost profits for EU steelmakers. They will almost all be posting higher first-quarter profit compared to last year's same period and the previous quarter. The war in the Middle East is surprising to find that it has brought them some benefits, but not enough to offset the negatives. The war in the Middle East has made European steelmakers more efficient and competitive, even though it is a source of uncertainty and threatens to halt further purchases and investments. Hansjoerg pack, senior portfolio equity director at German asset manager DWS, said that Asian peers were more affected by the Middle East's energy than European counterparts, because of their greater dependence on it. Bank of America analysts wrote earlier this month that higher shipping costs had helped "regionalize" the steel market, and buyers' behaviour in Europe has changed. Customers have been shifting purchases to domestic producers because of fears of "supply disruptions". DEMAND DESTRUCTION Still, questions linger. In April, after the Middle East flare-up, the World Steel Association lowered its forecast for steel demand in Europe and Britain in 2026 from 3,2% to 1,3%. This will slow down the recovery. The energy sector is also a major concern. Bank of America, in a separate report, warned that European steelmakers would face industrial power prices more than half as high as their Chinese and Indian competitors and twice as much higher than those of U.S. producers. Oddo Kogge, BHF's Oddo, said that the industry had been counting on the German defense plan which, so far, "hasn't produced anything", adding that previous hopes of the 'plan' affecting order intakes in the second half of the year were not realised. Analysts said that the pace of recovery would now depend on the outcome of the Middle East war, because higher inflation might lead the European Central Bank (ECB) to raise interest rates, which could stall the demand. (Reporting from Gdansk by Javi Larranaga, editing by Milla Nissi-Prussak).
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Ugandan lawmakers approve budget 2026/27, which represents a 16% increase year-on-year
Uganda's Parliament has approved the government's budget proposal of 84.4 trillion Ugandan shillings (US$22.7 billion) to cover the fiscal year 2026/27 July-June, which is 16% higher than the previous year. Chris Obore, the Parliament's spokesperson, said that lawmakers approved the budget on Friday evening. The'ministry of Finance' has previously stated that a majority of the planned expenditure will be funded by tax revenue, while the remainder will come through domestic borrowing. The'ministry' has justified the'surge in spending by saying that the extra funds will help finance a planned $3.2 billion railway project, and a toll road connecting the capital Kampala with an industrial city to the east. Uganda expects to begin 'crude oil production' this year. The finance ministry said on X Saturday that the economic growth will?hit 10,4% in 2026/27 due to an expected windfall of crude revenue. Early June, the Finance Minister will officially present to Parliament the final budget and any revenue-raising measures for 2026/27.
Iron ore prices are not much different as restocking before the holidays offsets increased shipments
Iron ore prices were little altered on Monday as falling inventories and a restocking of steelmakers by top consumer China offset higher shipments and a weaker steel margins from Australia, whose major supplier.
The day-trade price of the most traded iron ore contract on China's Dalian Commodity Exchange was 786 yuan (115.12 dollars) per metric ton.
As of 0701 GMT, the benchmark May ore price on Singapore Exchange was up 0.23% at $106.85 per ton.
Analysts said that Chinese steelmakers continue to replenish feedstocks including iron ore ahead of the May Day Holiday break from May 1-5. This has supported prices.
A decline in iron ore stocks at major Chinese ports also supported the market.
Steelhome's data shows that stocks fell 1% in a week to 163.12 millions tons, the lowest since February 27.
The gains were however limited by the higher steel supply and the shrinking margins.
Mysteel, a consultancy firm, reported that shipments of iron ore to China from Australia's top supplier rose 15.8% in a week.
BHP Group concluded sales contract negotiations with China’s state-owned buyer of the key ingredient in steelmaking, ending months of dispute that had?unsettled market.
Official data released on Monday showed that Chinese steelmakers suffered a combined loss in the first quarter of 2026 of 3,34 billion yuan compared to a profit of 7,51 billion yuan a year ago.
Coking coal and coke, among other steelmaking components, advanced by?1.19% et 0.63% respectively.
The Shanghai Futures Exchange's steel benchmarks were mixed. Rebar, hot-rolled coil and wire rod were flat. Wire rod fell 0.28%. Stainless steel rose 1.29%. ($1 = 6.8277 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson)
(source: Reuters)