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Gold prices fall after Trump declares Iran deal 'over
Gold prices dropped on Wednesday, as oil prices soared and inflation fears intensified after U.S. president Donald Trump declared that the?interim deal aimed at ending conflict with Iran is "over". Gold spot dropped by 2%, to $4.025.67 an ounce at 11:35 am EDT (1535 GMT), after reaching its lowest price since July 1. U.S. Gold Futures for August Delivery fell 2.9% to $4.035.20 an ounce. David Meger is director of metals at High Ridge Futures. He said that the main reason for the move today was the "increased escalation" in tensions between Iran and the U.S. With a possible ceasefire ending, risk assets have traded lower across the board, including gold. Iran has retaliated against U.S. military targets in Bahrain and Kuwait in a 'flame-up of hostilities' after U.S. forces attacked Iranian targets in response to attacks on oil tankers in Strait of Hormuz. Crude oil prices rose by more than 5%. Inflation can be fueled by higher?energy costs, and central banks may raise interest rates in order to control price pressures. Gold is often seen as a hedge to inflation but the metal's non-yielding nature makes it less attractive in an environment with high interest rates. The Federal Open Market Committee minutes for its June 16-17 meeting are due at 2:00 pm EDT (1800 GMT) to provide further hints on the monetary policy. Meger stated that the market is searching for information to help clarify the path of future rate increases. According to the CME FedWatch Tool, traders are now pricing in a 70% probability of an increase in U.S. interest rates in September. This is up from 62% Tuesday. In a note published on Tuesday, Bank of America said that its 2026 gold forecasts have been reduced by 14%, to $4360, based on a more hawkish Fed. However, it added that $5,000 is still within reach once the tightening cycles ends. Silver spot fell by 4.5%, to $57.33 an ounce. Platinum dropped 4.4%, to $1.568.93. Palladium was down 4.9%, to $1.213.93.
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Denmark is ready to defend "every inch" of NATO, including the Danish Kingdom, says PM
Mette Frederiksen, Danish Prime Minister, said that Denmark was'ready to defend all of NATO, including the Kingdom of Denmark. This came a day after Donald Trump, U.S. president, reiterated the U.S. position that Greenland belonged under U.S. control. Greenland's prime minister Jens-Frederik Nielson also rejected Trump remarks on Wednesday. Trump's statements that the U.S. should control or acquire Greenland - a semiautonomous Danish territory - have caused tensions between Washington and Copenhagen - both founding members in NATO – and more broadly, U.S. relations with Europe. Negotiations are underway. Frederiksen reiterated that Greenland is not for sale, and said "we are prepared to defend every inch of NATO, including our territory." She said: "One of many reasons we built NATO years ago was that if something happened to one of us, everyone should stand up for the other." Greenland's Nielsen responded to Trump's latest claim on Facebook, writing: "Repeated requests for the control or takeover of our country will not change that." Greenland is not for sale, he said. Lars Lokke Rasmussen, Danish Foreign Minister, told journalists in Ankara separately that Denmark is still engaged in diplomatic negotiations with Greenland as well as the U.S. The result of these talks is yet to be announced. Rasmussen stated that "we have an agreement with the U.S. Administration that we will try to find a solution within the frameworks of the Kingdom's red lines that addresses also the U.S. 'legitimate security interests." "Because these interests?exist and we share them and we are responding to them,"? he said. Rasmussen stated that he was "firmly" convinced that it is possible to achieve a deal which would satisfy Greenland and Denmark, as well as the United States, by expanding a 1951 U.S. - Danish defence?agreement, that allows Washington wide military access?to Arctic island. Nielsen stated in May that the talks included increasing the U.S. presence in the Arctic. Reporting by Louise Rasmussen, Essi Lehto and Hugh Lawson; editing by Jacqueline Wong Philippa Fletcher
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India expects 300 GW of power demand in the next year and supports local clean-energy manufacturing
Manohar Lal, India's Power Minister, said late on Wednesday that India must 'prepare to meet peak demand for electricity of approximately?300 gigawatts in the coming year. He also urged faster development of 'clean energy - supply chains at home. Lal, who spoke at the India Energy Storage Week, said that India had already reached a peak demand record of 271 gigawatts. The demand could reach 276-280 GW in this year and then climb to 300 GW by next year. He said that demand would continue to rise every year as data centres expand, AI adoption grows and EV use increases. Preparations will be required for a demand of around 300 GW in 2019. Minister said that the increase in electricity demand will require more?investment into energy storage and grid infrastructure, as India continues to?expand renewable energy capacity. He also called for a faster use of equipment produced locally in clean energy projects. India, he said, should reduce its import dependency even if the initial costs were higher. India imports many components for solar energy storage and other projects. This includes batteries and cells. Lal stated that "nothing is bigger than the nation" citing the necessity to conserve foreign currency and improve energy security in the face of?geopolitical uncertainties. Lal's remarks come at a time when India is seeking to increase?domestic production across?renewable-energy and energy storage supply chains while reducing its reliance on foreign suppliers. Minister also linked the "push for independence" to increasing geopolitical insecurity, citing recent tensions in West Asia as well as volatility on global energy markets. Lal stated that "whether it's power, gas, or petroleum, we have to develop our own capabilities in the country." India has taken a number of measures to expand renewable energy and encourage manufacturing at home. (Reporting and editing by Sethuraman N; Aurora Ellis)
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IMF hopes to engage in discussions on the central banks' change to forward guidance
A top official at the International Monetary Fund said that they hope to engage central banks in coming months about changes in how they use forward guidance for monetary policy. She stressed the importance of communication in these uncertain times. Petya Brooks, deputy research director at the International Monetary Fund, told reporters on Wednesday that while forward guidance was a valuable tool in the past it is understandable that policymakers will revisit the scope and modalities over time. Kevin Warsh, the new Federal Reserve chairman who assumed office in May, announced plans to review communication policies and reduce forward guidance for monetary policy. He organized a consensus in his first meeting as the?chair to adopt a simplified policy statement, which removed any references to rate actions that the central bank may take 'in the near future. Warsh reaffirmed his position at the annual forum of the European Central Bank in Sintra (Portugal) last week. He said that it is important for central banks make decisions based on the "real economy." At the same event, Christine Lagarde of the European Central Bank, Andrew Bailey of Bank of England and Tiff Macklem of Bank of Canada expressed their reservations regarding forward guidance. Brooks stated that the IMF is taking note but stressed the importance of continued communication, particularly given the volatility and uncertainty in the current economic environment. She said that in a high-uncertainty environment, central bank communication is crucial to give a sense of (how) central banking thinks about shocks, their impact and monetary policy. She said that while forward?guidance was a helpful tool in the past (especially at the zero lower boundary), it is only natural to revisit its scope and modalities as time goes by. We are taking note and hope to discuss this issue in the months ahead. Pierre-Olivier Gourinchas was the former IMF chief economist and told reporters before he left last month that central banks should move away from "strong forms" forward guidance, as it has in the past bound them to future actions regardless of economic conditions. Reporting by Andrea Shalal, Editing by Chizu nomiyama
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Wall Street is jittery as Trump declares interim Iran deal "over"
Wednesday, oil prices rose more than 5% and global bond and stock prices fell as investors fled risky assets after U.S. president Donald 'Trump' said that the memorandum signed with Iran for ending the Gulf Conflict was "over". Wall Street opened lower, as renewed tensions in the Middle East weighed down sentiment. This was further reinforced by a warning from the International Monetary Fund about the impact of the conflict on global growth for this year. Investors are also closely watching the minutes of the Fed meeting, which will be released later on Wednesday. This is the first Fed meeting under the new chairman Kevin Warsh. They're looking for hints about how he might steer the central banks policy and messaging. The Dow Jones Industrial Average fell nearly 1% during early trading. European shares fell 1%. The MSCI index of global stocks fell by 0.71%. Trump said that he didn't want to have talks with Tehran. He was in Ankara, Turkey, for a NATO summit. He said, "As for me, dealing with them is a waste." OIL PRICES CLIMB After the U.S. and Iranian forces exchanged attacks in Gulf, market sentiment was already fragile. Brent crude futures jumped 5.65% to $78.42 per barrel, the highest in a single day since late may. U.S. crude climbed 5.28% to $74.21 per barrel. Although this was far below the peak of $120 at the heights of the conflict, the inflation risk was still enough to cause a new wave of volatility in the bond markets, especially since the months of conflict had reduced global oil inventories. The U.S. Strategic Petroleum Reserve has seen its crude oil stocks fall to their lowest levels since 1983. This leaves the markets more susceptible to future supply shocks. Chris?Beauchamp is the chief market strategist for IG. He said: "It really weighs on sentiment." The benchmark yield on 10-year U.S. Treasury notes rose for the seventh consecutive day, reaching a new one-month record of?4.58%. The VIX volatility indicator was up by 8.8% but it was still lower than the March highs. Investors have been questioning the value of top performing semiconductor and AI stocks in recent weeks. Shares of Samsung Electronics fell for the second session in a row on Wednesday, even though the company reported a 19-fold increase in profits. Analysts and investors worry that the demand for memory chips'may slow down in the second half of this year. The dollar index on currency markets, which measures the greenback against currencies such as the yen, the euro and others, dropped 0.07%, to 101.1. The yen was hovering around 162.5, which is not far off from its 40-year lows. Reporting from Amanda Cooper in London, and Pete Schroeder Washington. Additional reporting by Tom Westbrook Singapore. Editing by Kevin Buckland and Jan Harvey. Hugh Lawson.
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Gold prices fall after Trump declares Iran deal 'over
Gold prices dropped on Wednesday, as oil prices surged and inflation fears intensified after U.S. president Donald Trump declared that the conflict with Iran is "over." Gold spot dropped 0.8%, to $4.072.69 an ounce at 09:11 am EDT (1310 GMT), after reaching its lowest level in the previous session since July 2. U.S. Gold Futures for August Delivery fell 1.8% to $4.083.20 an ounce. David Meger is the director of metals and futures at High Ridge Futures. Iran has escalated hostilities after U.S. forces attacked Iranian targets as a response to attacks against tankers in Strait of Hormuz. Crude oil prices increased by more than 5%. Inflation can be fueled by higher energy prices, and this could lead to higher interest rates in order to control the price pressures. Gold is often seen as a hedge to inflation but the metal's non-yielding nature makes it less appealing in an environment with high interest rates. The Federal Open Market Committee minutes for its June 16-17 meeting are due at 2:00 pm EDT (1800 GMT) to provide further clues about monetary policy. Meger stated that the market is searching for information to help clarify the path of future rate increases. According to the CME FedWatch Tool, traders are now pricing in a 67% probability of an increase in U.S. interest rates in September. This is up from 62% Tuesday. In a note published on Tuesday, Bank of America said that its 2026 gold forecasts will be reduced by 14% to $4,360 due to a more hawkish Fed. However, it added that $5,000 is still within reach once the tightening cycles ends. Silver spot fell by 2.42%, to $58.5681 an ounce. Platinum dropped 3.6%, to $1.582.13, while palladium declined 4.3%, to $1.221.97.
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Trump on Iran: US likely to strike them again Wednesday night
U.S. President Donald Trump warned Iran the United States would likely launch additional strikes on Wednesday night, following the attacks of the previous day. "I'll give a little warning. We're going hit them hard tonight," Trump said to reporters before his meeting with Ukrainian president Volodymyr Zelenskiy at the NATO Summit in Turkey. Trump had said to reporters in Ankara that a memorandum-of-understanding between the United States & Iran, which served as an initial ceasefire agreement, was "over". He did not say that Washington would go back to full-fledged warfare, and it was not clear if the negotiations to turn the ceasefire into an agreement permanent would continue. "I don’t know if there will be a deal." Trump stated that he may not make a deal. Iran claimed that it had?targeted U.S. sites in Bahrain?and Kuwait?after U.S. forces struck Iranian targets as a response to attacks against tankers in the Strait of?Hormuz. In addition to the renewed hostilities, the increased tensions have raised'safety and... security concerns in the Strait of...Hormuz. Shipping data shows that at least four oil and.gas.tankers turned back, rather than try to cross the vital supply route. Reporting by Gram Slattery, Doina Chiacu, and Humeyra Pauk; editing by Michelle Nichols
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Scientists warn that China's ability to cope with catastrophic storms will be tested in 2026.
Scientists warn that extreme weather conditions will only become more common this year. Weather systems are expected to bring severe weather conditions that will test the resilience of both the densely populated urban areas and rural communities. The National Climate Center of China expects that up to six typhoons will form in the South China Sea and the Northwest Pacific in July. This is more than the normal 3.8. Three of these storms could land, which is more than the average of 1.8. It said that the intensity of cyclones would also be higher. Scientists claim climate change is exposing the second largest economy in the world to more destructive weather events. This year, the El Nino pattern that could fuel stronger typhoons (as hurricanes are called in Asia-Pacific) and increase temperatures, has been a cause for concern. China is preparing for Super Typhoon Bavi, the second tropical storm to hit in one week. Bavi, which measures more than 1,000 km in diameter and has winds exceeding 290 kph (182 mph), briefly touched down on the U.S. Island of Rota at the Western Pacific. Last week, the typhoon Maysak hit China's southernmost province Hainan. It then swept quickly into the Chinese region Guangxi where it caused the most damage. Maysak's remnants also caused at least two tornadoes to form in central China. Benjamin Horton is the dean of City University of Hong Kong's School of Energy and Environment. He said, "The problem of these events is they just keep increasing." Horton warned that the magnitude of these events was increasing, and that there wasn't time to recover or become resilient. He expects to see more frequent and intense cyclones in this year, which will drop unprecedented amounts rainfall, leading to floods, landslides and crop damage, as well as a loss of life. He said, "This will just repeat itself over and over again." WATER, WATER EVERYWHERE Hengzhou, which is at the epicenter of the Guangxi flooding, was hit with heavy floodwaters after the dams of local reservoirs failed. Officials have confirmed that at least six people are dead in Guangxi and 375,000 other people are affected. Death toll expected to increase. A call for assistance posted on Chinese social networks on Tuesday stated that "at least 1,000 people are trapped in the mountains, and it is dark everywhere. We need urgent rescue." The post has not been independently verified. CCTV reported that after the failure of an intermediate-sized reservoir, on Monday, large quantities of silt and mud were carried by floodwaters into downstream villages and farms. CTV reported that in some homes, floodwaters had reached the second-floor, trapping people on roofs while violent torrents of water rushed all around them. Hengzhou is a largely rural city with more than one million residents. It has six reservoirs of medium size and over 200 smaller ones. The canal project, which is expected to be completed in September, will cost 70 billion yuan (10.3 billion dollars). Hui Su is the chair professor of Department of Civil and Environmental Engineering, Hong Kong University of Science and Technology. El Nino shifts typhoons westward towards China's coastline, increasing risks. Climate change also makes storms more destructive and wetter. The United Nations weather agency increased its forecast last week?for a rapid emergence of an El Nino in the months to come. El Nino, defined by the World Meteorological Organization, is a periodic increase in sea surface temperature over the eastern and central Pacific Ocean. This could potentially raise global temperatures, and lead to extreme weather.
Flowco's owners prepare to take oilfield services firm public in 2025, sources state
The personal equity owners of Flowco have begun preparations for an initial public offering of the oilfield companies that could value it at as much as $ 2 billion and come as early as the first half of 2025, according to individuals familiar with the matter.
Jefferies, JPMorgan Chase and Piper Sandler have actually been tapped as the lead underwriters for the stock exchange flotation, the sources said, cautioning that the timing and the size of the offer went through market conditions.
Flowco has filed in complete confidence with U.S. regulators for its IPO, the sources stated, requesting privacy to go over private information. A personal submission of documentation allows companies to make preparations for their flotations far from the glare of public-market financiers.
Flowco was created just recently by a three-way merger in between oilfield companies specializing in services that assist improve the rate of oil and gas extraction from wells. In June, its owners Global Energy Capital and White Deer Energy struck a. deal to combine Flowco Production Solutions, Estis Compression. and Flogistix.
Global Energy, White Deer, Flowco and Jefferies did not. respond to requests for comment. JP Morgan and Piper Sandler. declined to comment.
The prepared stock market launch from Flowco would come at a. time when the U.S. oil and gas industry continues to deal with. analysis over the unfavorable impact of fossil fuels on the. environment - something that has hindered some investors from. putting money into such companies.
That, nevertheless, has actually not hindered oil and gas business from. pursuing stock exchange launches, as higher crude prices over the. last 2 years have actually improved the efficiency of energy producers. In turn, this has supported those companies that provide services to. them, such as Flowco.
Natural gas manufacturer BKV priced its offering last. week, raising $270 million. Oilfield services companies HMH Holding,. Hornbeck Offshore Providers and PHI Group are likewise getting ready for. possible stock market launches in the coming months.
(source: Reuters)