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Gold reaches $4,100 on the back of trade tensions and rate-cut optimism
On Monday, gold broke through $4100 per ounce, a new record, on renewed U.S. China trade tensions, and on expectations of U.S. rate cuts. Silver also reached a new high. As of 01:47 pm, spot gold had risen 2.2%, to $4,106.48 an ounce. After hitting a new record of $4,116.77 at 1747 GMT ET (1747 GMT), spot gold was up 2.2% to $4,106.48 per ounce. U.S. Gold Futures for December closed 3.3% higher, at $4133. Gold prices have risen 56% in the past year, and last week they reached the $4,000 mark for the first. This is due to factors such as geopolitical uncertainty, economic concerns, and expectations of U.S. rate cuts. Central bank purchases are also a major factor. Gold could continue to rise. "We could see prices above $5,000 by 2026," said Phillip Streible. Chief market strategist at Blue Line Futures. Streible said that the structural support of the market is provided by steady central bank purchases, strong ETF inflows as well as U.S. China trade tensions. The geopolitical front saw U.S. president Donald Trump reinitiate trade tensions with China, ending a tense truce between two of the world's largest economies. While traders price in a 97% chance of a Federal Reserve rate reduction in October, and a 100% probability for December. Gold is a non-yielding investment that tends to perform well in low interest rate environments. Standard Chartered's forecast for next year has been raised to $4,488 on average. Standard Chartered Bank's global head of commodities research, Suki Cooper said: "We believe this rally will continue, but a short-term correction is better for a long-term trend." Spot silver climbed 3.1% to $51.82, reaching a record high earlier in the session of $52.12. This was boosted by the same factors that supported gold and tightness on the spot market. Technical indicators indicate that both gold and silver are overbought. The relative strength index (RSI), which measures the relative strength of the two metals, is 80 for gold and 83 in the case of silver. Palladium rose 5.2% to 1,478.94, while platinum gained 3.9%. Reporting by Noel John in Bengaluru, Pablo Sinha, Sherin Elizabeth Varighese, and Kavya Varghese; Additional reporting and editing by Joe Bavier and Alexander Smith; Shreya Biwas.
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Officials say that 19 people were killed by rebels affiliated with the Islamic State in eastern Congo.
Two local officials reported on Monday that suspected Islamic State-backed terrorists killed 19 civilians during an overnight attack in eastern Congo. This has exacerbated the insecurity of this mineral-rich area. Alain Kiwewa is the Lubero territory military administrator, where Mukondo lies, and he told reporters that the death toll may rise. The ADF has not immediately claimed responsibility. Also known as the Islamic State Central Africa Province, (ISCAP), it has been responsible for several attacks in recent weeks, including a September attack on a funeral in which more than 60 people were killed. ADF could not be reached for comment immediately. Assailants from Mukondo were wearing uniforms that looked like those of the Congolese Army, which enabled them to enter Mukondo without being noticed. The attackers then used guns, knives, and clubs to attack people, according to a local priest who refused his name out of security concerns. Espoir Kambale, a leader of the civil society in the region, put the death toll at 19. He also said that eight people were injured and 26 homes had been burned. Kambale said, "We ask ourselves how the terrorists came and attacked us when we thought the village was secure." The population is in a panic. "Some residents fled to the bush and never returned." The ADF began as a Ugandan rebel force, but is now based in the Congolese forests since the late 90s. It has also been recognised as an affiliate by the Islamic State. The recent attacks by the M23 rebels, who are backed by Rwanda, have increased security concerns in eastern Congo. This has prompted U.S. president Donald Trump's administration, to attempt to broker peace. Reporting by Congo Newsroom; Writing by Ayen deng Bior; editing by Rob Corey-Boulet, Lisa Shumaker and Lisa Shumaker
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EU lawmakers oppose cuts to the reach of sustainability laws
The European Parliament’s Legal Committee backed plans on Monday to weaken the EU’s Corporate Sustainability Law, which has been criticized by companies who claim that complying with these rules will hinder the competitiveness for European industries. Corporate Sustainability Due Diligence Directive (CSDDD), adopted by the European Union last year, requires companies to address human rights and environment issues in their supply chain or face a fine of 5% global turnover. The European Parliament's Legal Committee voted on Monday to approve proposals that would only make the rules compulsory for companies with at least 5,000 employees and a turnover of 1.5 billion euros. CSDDD is currently applicable to companies that have 1,000 employees or more and a turnover of over 450 millions euros. The committee also supported dropping the requirement that companies have "transition plans." CUTTING BUSINESS COSTS The (conservative-leaning) European People's Party's aim has always been to reduce costs and simplify rules for businesses," said Jorgen Warsborn, the legislator who drafted the approved text on Monday. "Our vote will bring more predictability to our businesses in a world that is unpredictable," said Jorgen Warborn, the lawmaker who drafted the text approved on Monday. The committee asked that the European parliament begin negotiations with EU countries on final rules without a vote by the entire assembly. The committee could force a vote by a group of legislators equivalent to 10% of the assembly. Some of the proposed changes are already likely to be implemented. EU countries have already stated that they support changing the law so that it only applies to companies with at least 5,000 employees. CSDDD is one of the most controversial parts of Europe’s green agenda. Countries such as the United States and Qatar have demanded changes. The EU, they argue, is going too far by imposing these requirements on foreign firms. TotalEnergies and other European companies have called on the EU to scrap the law completely, warning that it could harm the competitiveness of the EU. Investors and activists have reacted negatively to the move, claiming that it undermines corporate accountability while reducing Europe's capacity to attract investment towards meeting climate goals. Amandine van den Berghe, senior lawyer at nonprofit law firm ClientEarth, said: "If these changes are adopted in the end, this law would be stripped of its purpose to serve short-term political convenience." What is a cornerstone for responsible business in Europe has been turned into a bargaining chip. (Reporting from Kate Abnett in Brussels and Inti landauro; Editing by Benoit van Overstraeten, Matthew Lewis).
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Gold reaches $4,100 on the back of trade tensions and rate-cut optimism
On Monday, gold broke through $4100 per ounce, a new record, on renewed U.S. China trade tensions, and on expectations of U.S. rate cuts. Silver also reached a record high. As of 12:17 pm, spot gold had risen 2.4%, to $4,114.31 an ounce. After hitting a new record of $4,116.77 at 1617 GMT ET (1617 GMT), gold prices have risen 2.4% to $4114.31 per ounce. U.S. Gold Futures for December Delivery rose by 3.3% to $4133.90. Gold prices have risen 56% in the past year, and last week they reached the $4,000 mark for the first. This is due to factors such as geopolitical uncertainty, economic concerns, and expectations of U.S. rate cuts. Central bank purchases are also a major factor. Gold could continue to rise. "We could see prices above $5,000 by 2026," said Phillip Streible. Chief market strategist at Blue Line Futures. Streible said that the structural support of the market is provided by the steady central bank purchases, the firm ETF inflows as well as the U.S. China trade tensions. Streible added that on the geopolitical side, U.S. president Donald Trump reignited the trade tensions between China and the United States last Friday, ending a tense truce. While traders price in a 97% chance of a Federal Reserve rate reduction in October, and a 100% probability for December. Gold is a non-yielding investment that tends to perform well in environments with low interest rates. Bank of America analysts and Societe Generale expect gold to hit $5,000 by 2026. Standard Chartered's forecast has been raised to $4,488 on average next year. Standard Chartered Bank's global head of commodities research, Suki Cooper said: "This rally is strong, but a short-term correction will be better for a long-term trend." Spot silver increased 3.1% to $51.82, reaching a record high earlier in the session of $52.07. This was boosted by the same factors that supported gold and tightness on the spot market. Technical indicators indicate that both gold and silver are overbought. The relative strength index (RSI), which measures the strength of the relationship between two assets, is 80 for gold. Palladium rose 6.5%, to $1496.52. Platinum gained 5%, to $1666. Reporting by Noel John in Bengaluru, Pablo Sinha in Mumbai and Sherin-Elizabeth Varghese; Additional reporting and editing by Joe Bavier & Alexander Smith.
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Trump will meet Zelenskiy this Friday to discuss air defense and new weapons
Three sources familiar with the plans said that President Donald Trump would meet Ukrainian President Volodymyr Zelenskiy for a luncheon on Friday. The meeting comes amid increasing discussions over the possible provision of Tomahawk long-range missiles to Kyiv. Both leaders met on Saturday and Sunday. A high-ranking Ukrainian delegation, headed by Prime Minister Yulia Shvyrydenko is scheduled to arrive in Washington, DC, before Friday's meeting, to prepare the groundwork for their talks. One of the sources, who requested anonymity, as the visit had not been announced publicly, stated that the main topics would be air defense, additional U.S. arms for Kyiv, and Russia's possible return to the negotiation table. Zelenskiy is lobbying Washington for the supply of U.S. Tomahawk missiles that can hit Moscow but are only used on military targets, according to Ukrainians. Moscow said that such a move could be a significant escalation. Trump said that he was considering sending Tomahawks into Ukraine. He also stated that he may speak to Russian President Vladimir Putin. Ukraine and the U.S. also appear to be closing in on an historic drone deal, in which Ukraine will share drone technology with United States. European diplomats view such a deal to be an important tool in keeping the volatile U.S. President engaged and supportive of Ukraine. Reporting by Steve Holland in Washington, Tom Balmforth and Gram Slattery from London. Editing by Jeff Mason & Matthew Lewis.
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Gold reaches $4,100 on the back of trade tensions and rate-cut optimism
On Monday, gold broke through $4100 per ounce, a new record, on renewed U.S. China trade tensions, and on expectations of U.S. rate cuts. Silver also reached a new high. As of 10:50 am, spot gold had risen 2.1%, to $4,099.55 an ounce. After hitting a new record of $4,103.58 at 1450 GMT ET, gold prices rose 2.1% to $4099.55. U.S. Gold Futures for December Delivery rose 3% to 4,120.10. Gold prices have risen 56% in the past year, and last week they reached the $4,000 mark for the first. This is due to factors such as geopolitical uncertainty, economic concerns, and expectations of U.S. rate cuts. Central bank purchases are also a major factor. Jeffrey Christian, managing partner of CPM Group, said that gold and silver prices rise when investors become concerned about the current state of the economy or politics. Donald Trump, the U.S. president, reignited the trade tensions between China and the United States on Friday. This ended an uneasy truce that existed between the two world's largest economies. While traders price in a 97% chance of a Federal Reserve rate reduction in October, and a 100% probability for December. Gold is a non-yielding investment that tends to perform well in environments with low interest rates. Bank of America analysts and Societe Generale expect gold to hit $5,000 by 2026. Standard Chartered's forecast has been raised to $4,488 on average next year. Standard Chartered Bank's global head of commodities research, Suki Cooper said: "This rally is strong, but a short-term correction will be better for a long-term trend." Spot silver increased 3.3% to $51.95, reaching a record high earlier in the session of $52.07. This was boosted by the same factors that supported gold and tightness on the spot market. Technical indicators indicate that both gold and silver are overbought. The relative strength index (RSI), which measures the relative strength of a currency, is 80 for gold. Palladium rose 5.4% to $1.482.00, while platinum gained 4.6%. (Reporting from Sherin Elizabeth Varighese and Pablo Sinha in Bengaluru, Additional reporting by Kavya Baliaraman; Editing and Joe Bavier by Alexander Smith and Joe Bavier)
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EU legislators back further reductions to the sustainability law
The European Parliament’s Legal Committee on Monday supported plans to further reduce the EU's Corporate Sustainability Law, which has been criticized by companies who say that complying with these rules would hinder European industries' competitiveness. Last year, the European Union adopted the Corporate Sustainability Due Diligence Directive (CSDDD), which requires companies to address human rights and environment issues within their supply chains or risk a fine of 5% global turnover. On Monday, the European Parliament’s Legal Committee approved proposals to limit the application of the regulations to only those companies with at least 5,000 employees and a turnover of 1.5 billion euros. CSDDD currently covers companies with at least 1,000 employees and a turnover of more than 450 millions euros. The committee also supported dropping the requirement that companies implement "transition plans" in order to align their activities with climate change goals. The EPP has always sought to simplify the rules and reduce costs for business -- even going beyond the original Commission proposal. "Our vote today will bring more predictability to our businesses in a world that is unpredictable," said Jorgen Warborn. He was the legislator who drafted and approved the text on Monday. The committee asked that the European parliament now begin negotiations with EU countries on final rules. The EU Parliament as a whole will decide whether or not to proceed with this request next week. It appears that some of the changes are already likely to be implemented. EU countries have said that they are in favor of changing the law so it only applies to companies with at least 5,000 employees. CSDDD is one of the most controversial parts of Europe's Green Agenda. Countries like the United States, Qatar and others have demanded changes, claiming that the EU has overstepped by imposing demands on foreign companies. TotalEnergies and other European companies have called on the EU to scrap the law completely, warning that it could harm the EU's economic ability to compete with foreign competitors. Investors and activists have reacted negatively to the move back on ESG regulations. They say that it undermines corporate accountability, and Europe's ability attract more investment towards climate goals. Some companies also have resisted. In an August survey conducted by the think-tank E3G with YouGov of 2,500 European company leaders, 63% said that they were in favor of large companies implementing a climate change plan. Only 11% disagreed. (Reporting and editing by Kate Abnett, Inti Lanauro)
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Mexico: Torrential rains and flooding cause at least 64 deaths, 65 missing
The government announced Monday that the torrential rains which ravaged Mexico last week left 64 dead and 65 people missing. Landslides were triggered, power was cut in some municipalities, and rivers burst through their banks. Mexican authorities have sent thousands of personnel to clean up, evacuate and monitor the areas most affected by last week's rains in Gulf Coast states and Central States. Laura Velazquez is the national coordinator for civil protection. She said that Hidalgo, along with Veracruz was the worst affected state, with 29 fatalities and 18 missing persons reported in Veracruz and 21 deaths and 44 missing persons in Hidalgo. Authorities said that electricity was cut for five municipalities in Mexico, but it has now been restored to a large extent. (Reporting Ana Isabel Martinez, writing Stefanie Eschenbacher, editing Mark Heinrich).
Fallout from Mexican president's Pemex 'rescue' set to welcome successor
Mexico's outbound president has taken steps to promote a smooth handoff for national oil business Pemex, three sources informed , but the newest moves will likely delay a day of reckoning for the world's most heavilyindebted oil company.
Recently, President Andres Manuel Lopez Obrador presented fresh assistance for Pemex, part of his longstanding goal to make Mexico self-sufficient in the production of motor fuels, revealing a brand-new tax break worth about $6.4 billion.
The boost follows a tremendous $90 billion in federal government assistance administered to Pemex given that Lopez Obrador took office in late 2018, spanning tax cuts and capital injections, most of it to service a crushing financial obligation load of some $106 billion.
The business's distressed finances might fall to former Mexico City Mayor Claudia Sheinbaum, Lopez Obrador's greasy successor and present front-runner in polls ahead of June's election.
Mexico's next president takes office in October.
A Sheinbaum presidency would look to cut Pemex's dependence on federal government funds, one source close to her team told , using tax cuts to maximize company costs in other places.
Sheinbaum has also committed to pursing Lopez Obrador's. vague but oft-repeated objective of energy sovereignty.
A source close to Pemex, on the other hand, said the current round of. support will be utilized to cover $17.2 billion in debts to service. service providers, such as Halliburton and Baker Hughes.
All this is part of a strategy of organized transition aimed. at a soft landing for the next administration, stated a. high-ranking Pemex source, who spoke on condition of anonymity.
Concerns that currently enjoy Lopez Obrador's seal of. approval, however, could constrain his successor, the source. included.
The popular president declared victory on his Pemex policy. earlier today.
I think that we have actually currently saved Pemex, said Lopez. Obrador, promoting a reduction in its financial debt compared to. six years back.
Those liabilities fell almost 7%, from 1.99 trillion pesos. in 2018 to 1.86 trillion, as of last September.
' FINANCIAL FAILURE'
According to computations from the Mexican Institute for. Competitiveness (IMCO) based upon Pemex information, the company needs to. make $53 billion in regular debt payments between October and. September 2027. Financial obligation payments this year alone reach almost $11. billion.
Pemex also deals with debt maturities of some $35 billion, mainly. tied to its bonds, between 2025 and 2030.
Despite whatever given to it, 2024 and 2025 financial obligation. pressures are really strong, stated IMCO economic expert Jesus Carrillo.
Pemex has been (Lopez Obrador's) financial failure ... a rescue. that never came, he included.
Neither Pemex, the president's office nor the finance. ministry responded to requests for remark for this story.
Some sources acknowledged that measures of success have been. downsized however said that some development has been made.
The concept is to leave Pemex better than we found it,. stated one business source, admitting that numerous problems have not. been fixed.
The source near Sheinbaum's group pointed to the progressive. slashing of the company's profit-sharing DUC tax, among the. most important for state coffers, from a 65% to 30%.
The source added that the tax cuts look for to guarantee that Pemex. can keep more of its own revenue, and stop being a burden on. state financial resources.
Still, the oil business's crude output - extremely its. main income - has actually continued to slide during Lopez. Obrador's term, from 1.8 million barrels per day (bpd) to 1.6. million bpd, despite his promise to grow it.
And while that decrease has been partly offset by growing. condensate output, the president's leading concern of refining more. oil in your home has disappointed his initial goal.
Domestic refining is up to about 791,000 bpd, but still far. from his goal of processing a minimum of 1 million bpd.
There is awareness within Pemex that the goals will not be met. this year, said one company source.
However in an election year, promises abound..
(source: Reuters)