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Iran talks and lower bond yields set gold on course for its largest daily increase since February
Due to lower Treasury yields, and the 'hopes' for progress in opening the Strait of Hormuz, gold prices rose a record high on Wednesday. By 12:50 pm, spot gold had risen 4.1% per ounce to $4242.96. At 1650 GMT, gold had reached $4,258.99 - its highest level since June 18 - and was above the 50 day moving average. It now stands at $4,160. U.S. Gold futures for delivery in December rose by 3.6%, to $4.303 per ounce. Early adopters are returning to precious metals, as the probability of rate hikes has decreased since last week. The dollar is down sharply, which also helps. "The Iran pause" also helps," said Tai Wong, an independent metals dealer. The dollar fell to six-week-lows against other currencies and the yield on U.S. 10 year notes was at one-week-lows after President Donald Trump claimed that his administration had held "very good talks" with Iran in a five-month-long conflict. Falling yields make gold cheaper for overseas buyers, while the lower dollar makes it cheaper for domestic buyers. Gold is still down around 24% from its record high of $5,595 reached in January. It has also fallen 19% since the Iran War sparked fears of energy inflation, and boosted bets for interest rate increases. 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 reached 45 tons during the second quarter. This was when bullion experienced its steepest quarterly drop since 2013. J.P.Morgan stated in a report that with central bank purchases muted, retail attention elsewhere, 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." After reaching its highest level since July 6, spot silver increased 4.4% to $62,106 per ounce. Palladium increased 0.9%, to $1365.34, while platinum fell 0.2%, to $1730.94. The metals reached their highest levels since June 17 and 2, respectively, in relation to the Iran peace negotiations. Standard Chartered's Suki Cooper said that palladium and platinum have been priced with many headwinds, including concerns about slowing auto production and the growing EV market share. She also noted the potential for growth in recycling. 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 prices rise as Nasdaq stocks fall
On Wednesday, the major stock indices were mixed, near flat. The Nasdaq was weighed down by SpaceX shares, and U.S. crude oil prices fell. Gold?prices on commodity markets rose to the highest level in almost seven weeks after recent talks about Iran. Spot?gold rose 4.09% to $4,242.92 per ounce. SpaceX shares fell by more than 8%. On its first earnings call as an open company, the company boasted of faster than expected returns on its AI investments. However, investors were still concerned about how long Starlink could continue to fund costly investments. Shares of Advanced Micro Devices fell more than 5% after results that exceeded analysts' expectations failed to live up to investors' high expectations. U.S. crude dropped?0.15%, to $75.64 per barrel. Brent rose to $79.79 a barrel. This is a 0.54% increase on the day. Two regional officials and a senior Iranian source said that the proposed deal between Iran & Oman would grant Tehran control over ships entering Gulf via Strait of Hormuz. This is the largest concession to Iran yet. Adam Sarhan, CEO of 50 Park Investments, New York, says that tech shares have slowed down after a period of strong gains. He said that "tech stocks have come a long way in a very short time." It's a bit too far and too fast. It's normal to see some profit-taking here, but I believe we will go higher. Short term, the market is just a bit overbought. The semiconductor index is down by 0.1% Wednesday, but still up over 7% this week. The Dow Jones Industrial Average rose by 424.80, or 0.78 percent, to 54,509.86. The S&P 500 gained 3.23, or 0.04 percent, to 7,739.40. And the Nasdaq Composite dropped 97.21, or 0.37 percent, to 26,487.78. MSCI's global stock index rose by 5.12 points or 0.45% to 1,150.81. The pan-European STOXX 600 ended up 0.04% and reached a new all-time high. The drugmaker Novo Nordisk was down, despite a positive second-quarter profit beat. This was due to disappointing sales of the Wegovy weight loss pill. HSBC shares fell as well, a day following?its results. Investors digested the analysts' reactions to the figures. Japan's Nikkei index rose to its highest level since July 23. Meanwhile, South Korea's stock market closed 3.8% higher. Treasury yields remained unchanged following the benign announcement of the U.S. quarter refunding. Investors continued to focus on economic data, culminating with Friday's employment report. The 10-year Treasury yield was flat at 4,627%. However, the 2-year Treasury yield -- which is more sensitive to expectations about Federal Reserve policy -- increased by?2 basis point at 4.214%. The markets also reduced the probability that the Fed will raise rates in September to 57%, from 67%. After a historic intervention, the Japanese yen has stabilized. The dollar's value against the Japanese yen has?weakened by 0.03%, to 157.67. Japan and the U.S. launched a rare, joint yen buying intervention last week. They also pledged to take further action if needed to support the currency. The dollar index (which measures the greenback versus a basket including the yen, the euro and other currencies) fell by 0.11% last week to 99.75. Meanwhile, the euro rose 0.13%, reaching $1.1544.
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Dealmaking in the US oil and gas upstream sector plunges during the second quarter due to volatility
Enverus, an analytics firm, said that the volatility of oil prices has tempered investor confidence and led to a four-fold decline in dealmaking in the U.S. Upstream Oil and Gas Sector in the second quarter this year. "Crude price volatility linked to the Iran conflict, and a softer gas outlook, likely widened bid-ask and complicated valuations. This pushed the announced?value down to its lowest quarterly total in years," Andrew Dittmar said, principal analyst at Enverus Intelligence. The Bureau of Land Management, in a record-breaking lease sale in May, made the most money, earning around $4 billion from the sale of oil and gas drilling rights on federal lands, mostly in Texas and New Mexico. The sale included 33,530 acres in New Mexico’s Permian Basin, which is part of America's most prolific oilfield. According to Enverus, the BLM assets were subject to fierce competition due to a shortage of drilling sites that produced more oil. Shell's sale of its Na Kika platform in June to subsidiaries of Talos Energy and Ridgewood Energy, which totaled around $1.7 billion, came in second. The assets are expected to produce 37,000 barrels per day of oil equivalent by?2025. The second quarter's dealmaking value was the weakest it has been since 2020. That is when the COVID-19 epidemic wiped out oil demand, and prices fell to multi-year lows. According to LSEG's data, Brent?crude?futures closing prices fluctuated from a high of $118 a barrel to a low $72 a barrel between April and June as the Iran war continues to disrupt global energy flows. (Reporting and editing by Liz Hampton, Barbara Lewis and Georgina McCartney)
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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.
As US interest rate hikes are boosted by Middle East tensions, gold falls 2%
On 'Thursday', gold fell by 2% to a two-week low as rising Middle East tensions drove up oil prices and U.S. Treasury Yields, causing inflation fears and reinforcing expectations for higher U.S. rates.
Gold spot was down 1.7% to $3,989.66 an ounce at 12:35 pm EDT (1635 GMT), after dropping as much as 2.0% earlier. It had reached its lowest level since July 1. U.S. Gold Futures fell 1.4% to $3.994.10. Oil prices increased by over 1% after concerns about Middle?East energy supply grew. Iran had asked Yemen's Houthis if they were ready to shut down the Red Sea oil route if the U.S. struck Iranian power infrastructure.
The higher oil prices fuel inflation fears, increasing expectations of high interest rates. This reduces the appeal of gold as a non yielding asset.
Bart Melek is global head of commodity strategies at TD Securities. He said that the rising oil prices and higher Brent levels are causing gold to be under pressure.
According to the CME FedWatch Tool, traders are pricing in an approximately 55% chance of the Federal Reserve raising rates in September.
The yields on the benchmark 10-year U.S. Treasury notes have risen. The U.S. Dollar gained 0.2% making bullion more costly for overseas buyers. Fed Chair Kevin Warsh declared this week his determination to bring down?inflation? without revealing how. Data released Tuesday revealed that U.S. Consumer inflation decreased in June. Meanwhile, Wednesday's data showed a decrease in the Producer Price Index.
Even if some of the near-term data softens, the persistently high price of energy would make it hard for the Fed adopt a more dovish position. Investors prefer the dollar to?zero-yielding?gold for the same'reason', Fawad Rasaqzada said in a Forex.com note.
Silver spot fell 3.1%, to $55.96 an ounce. Platinum dropped 2.2%, to $1.637.68. Palladium was down 3%, to $1.273.50. (Reporting and editing by Diti Pjara and Jonathan Ananda in Bengaluru)
(source: Reuters)