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Gold prices jump above $4,000/oz after Trump's tariff warning against China
Gold rose above $4,000 an ounce on Friday. This is the eighth consecutive weekly gain after U.S. president Donald Trump's warning about possible new tariffs against China. As of 11:18 AM ET (1518 GMT), spot gold was up 0.8%, at $4.007.39 an ounce. This metal is up 3.2% this week. U.S. Gold Futures for December Delivery rose by 1.3% to $4 024.40. Bullion that does not yield, which reached a record-high of $4,059.05 Wednesday, has traditionally been considered a hedge in times of uncertainty. Gold's recent rally has been attributed to geopolitical risk, central bank purchases of gold, inflows of exchange-traded fund, U.S. interest rate cuts and tariff-related economic uncertainty. Donald Trump, the U.S. president, said that there was no reason for him to meet China's President Xi Jinping as scheduled in South Korea in two weeks. In a Truth Social posting, Trump said that the U.S. was calculating a massive rise in tariffs for Chinese imports. Tai Wong, a metals trader, noted that Trump's tweet has caused stocks to drop a percentage in just minutes, while gold is surging above $4,000 again. "Heating up trade war will cause the dollar to tank and is good for safe havens." The markets are also closely watching the risks associated with the possible collapse of the French Government and the ongoing shutdown of the United States government. Investors expect the U.S. Federal Reserve will cut interest rates in both October and December by 25 basis points. "Overall, there's a risk that gold prices will fall in the short term given how rapidly they have risen over the past few weeks." Over the next two years, however, it is likely that gold prices will continue to rise," said Hamad Hussain of Capital Economics. The U.S. Dollar fell by 0.6% and made greenback-priced gold cheaper for overseas buyers. Silver also benefits from the same factors that are driving the gold rally, along with concerns about the supply deficit and increasing demand for the metal. Silver rose by 2.2%, to $50.21 an ounce. This is a day after it reached a record-high of $51.22. This year, it has gained 70 percent. Silver futures for December 2025 on Comex were trading at $48.03. "Silver’s backwardation sends a loud message -- physical demand is crushing the paper supply... Alex Ebkarian said that if the backwardation continues and physical demand rises, breaking and maintaining silver above $50 is very possible. Backwardation occurs when the spot price of a commodity is higher than its forward price. Platinum was up 0.3% to $1,622.61 while palladium rose 2.8% to $1445.00. Both metals were on track for gains this week.
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Gold Reserve disqualifies judge and advisers at Citgo parent auction
Gold Reserve, a Toronto-listed company, said that it filed motions on Friday to disqualify the court officer overseeing the auction of shares of Citgo Petroleum's parent company in Venezuela as well as the two advisory firms for the Delaware court. The miner is trying to stop the court from declaring the $5.9billion bid of rival Amber Energy, a hedge fund affiliate, Elliott Investment Management as the winner of the auction, since its own $7.9billion bid was not recommended by the court in August. Gold Reserve is among 15 creditors who are lining up for the cash proceeds of an auction of shares of PDV Holding (a unit of Venezuelan oil company PDVSA) as compensation for Venezuelan debt defaults and expropriations. GOLD RESERVE ALLEGES CONFLICTS of INTEREST Gold Reserve also asked for a temporary stay on all decisions regarding any bids made in the process of sale pending resolution of their disqualification motion. In a press release, Gold Reserve said that it wanted to provide full transparency for its investors on these matters. The company wants to disqualify Leonard Stark (the Delaware judge who is overseeing the case) and Robert Pincus (the court officer), for switching his recommendation that Elliott's Amber be the winner of the auction from Gold Reserve. Stark could not be reached for a comment immediately. Pincus's counsel did not respond immediately to a comment request. In September, lawyers representing Venezuela requested the suspension of a major sale hearing because of an alleged conflict involving Weil, Gotshal & Manges, a consulting firm. Stark, however, denied the motion. Gold Reserve has now requested that Weil be disqualified for an allegation that it was representing Elliott during the Citgo sale. Elliott also stated that Weil and Evercore - which are helping the court to evaluate the bids - have relationships with bondholders who could receive auction proceeds if Elliott's bid is accepted. Weil and Evercore didn't immediately respond to comments. On Thursday, the Venezuelan parties filed motions under seal to disqualify Pincus Weil and Evercore. Judge Stark set the court date for 21st October to hear from the parties about the conflicts that have arisen since Pincus changed his recommendation. After that, he is expected to make a final decision on the winner.
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In a TikTok video, an Afghan man is found guilty of threatening to kill Reform UK leader Farage
A British court found an Afghan man guilty on Friday of threatening to kill Nigel Farage in a TikTok clip. Farage is the leader of Reform UK, a populist party that leads the opinion polls of Britain. Fayaz, Khan was found guilty by a London jury of one count of making an explicit threat to kill Farage through a video that he posted in October of 2024. The prosecution said Khan, who has an AK47 assault rifle tattooed across his face, posted a response video to Farage's in which he said "pop, Pop, Pop" while making gun gesticulations. Farage testified on Tuesday that Khan's threats made him "genuinely concerned". He described the video as being "chilling". Khan will be sentenced for making a death threat and an additional charge, of entering Britain without permission. He previously pleaded to this charge. FARAGE IN A WITNESS BOX Farage posted a YouTube video in which he talked about "young men of fighting age" coming to our country. Khan's videos of his journey between Sweden and Britain were also included. Khan responded two days later with a post in which he said "Englishman Nigel don't talk sh*t about me", made gun gesticulations and headbutted to the camera. Farage claimed that being a prominent politician made him the target of criticism: "Abuse (is) part of public life. But, that's something I'm not used to seeing." "Given that he was so close to guns, and loved guns, I felt genuinely concerned." Farage's lawyer Charles Royle told Khan that Khan's video "suits [his] narrative", but Farage responded: "It does not suit my narrative. It's a truth." Khan had pleaded guilty, and told the police that after his arrest his video was not an actual threat. He also said that he was playing a role in his posts on social media. The jury found him guilty by a majority of 10-2. (Reporting and editing by Hugh Lawson; Sam Tobin)
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Gold on track for 8th straight weekly gain as demand for safe-havens and rate cuts bets sets gold on course to increase its value
Gold prices rose Friday, and are on track to reach an eighth consecutive weekly gain. This is due to expectations that the U.S. Federal Reserve will cut rates this month. Meanwhile, economic and political uncertainties have added to gold's appeal as a safe-haven. As of 8:41 AM ET (1241 GMT), spot gold had risen 0.3%, to $3.985.60 an ounce. This week, the metal is on track to gain 2.6% in a single-week. U.S. Gold Futures for December Delivery rose by 0.7% to $4001.50. Bullion that does not yield, which reached a record-high of $4,059.05 Wednesday, has traditionally been considered a hedge in times of greater uncertainty. Gold's recent rally has been attributed to geopolitical risk, central bank buying of gold, inflows of exchange-traded fund, U.S. interest rate cuts expectations, and tariffs. Hamad Hussain is a climate and commodities economist with Capital Economics. He says that the gold price has been supported by investor concerns about fiscal sustainability in general and expectations of US Fed rate reductions. The minutes of the U.S. Federal Reserve meeting in September revealed that policymakers were willing to cut rates to address risks on the labour market, but inflation concerns continued. Investors expect two Fed rate reductions of 25 basis points in October and December. The markets are closely watching the risks associated with the possible collapse of the French Government and the current government shutdown in the United States. Bullion priced in greenbacks is now cheaper for foreign buyers. "Overall, there's a chance of a temporary price drop given the rapid rise in gold prices in recent weeks." Over the next two years, Hussain said that gold prices will likely continue to rise. Silver's rise is fueled by the same factors that have driven gold's price up, as well as concerns over a shortage of silver and rising demand. After reaching a record-high of $51.22, silver rose by 1.7%, to $49.95 an ounce. This year, it has gained 73%. Silver futures for December 2025 on Comex were trading at $48,25. Alex Ebkarian is the COO of Allegiance Gold. He said, "Silver’s backwardation sends a clear message: physical demand is crushing paper supplies ....If physical demand continues to rise, breaking and maintaining above $50 silver is very possible." Backwardation occurs when the spot price of a commodity is higher than the futures price. Palladium, meanwhile, gained 3.8% and platinum 0.6%, respectively, to $1.464.51. These metals are both headed for gains this week.
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After a rally to $11,000/t, copper prices fall on the back of profit-taking
The copper price fell on Friday, as investors took profits after the metal had rallied to its highs in 16 months the previous session. This was due to concerns over tight supply. In official open-outcry trade, the price of three-month copper at the London Metal Exchange fell by 0.9% to $10.765 per metric ton. On Thursday, it reached $11,000 and moved closer to the all-time high of $11,104.50 in May 2024. After Freeport declared force majore at its Grasberg mine, in Indonesia, at the end September, investors have piled into copper. Data released on Thursday showed that the copper production of Chile's Codelco fell 25% in August following a deadly mine collapse. Discounts on the LME Cash Price to the 3-month Copper Contract The price of a ton dropped to $26 from $57 one month earlier. Copper, which is used in construction and power, has been unable to rally due to a lackluster demand. David Wilson, BNP Paribas' analyst, said that demand for industrial metals is generally not very good. To have a bull cycle that lasts, industrial commodities need to be characterized by a strong demand story. Copper inventories in China's top metals consumer, China, have risen 15% since late September. The Yangshan premium on copper has also increased. The price of copper, which reflects the demand for imports, remained at $49.50 per ton. This is its lowest level since August 19. In official activity, lead was down 0.8% at $2,013 per ton, disregarding the LME data that showed 118,000 tonnes of the metal marked as ready for delivery from LME-registered storage facilities, which brought the cancelled stock to 70%. LME aluminium dropped 0.4% at $2,786.5. Zinc rose 0.4% at $3,022.5. Nickel was down by 0.9% to $15,350. Tin fell 1.4% to 36,550. (Reporting and editing by Kirsten Doovan, Vijay Kishore, and Polina Devitt)
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Sources say that Barrick Mali's mining will be restarted by the provisional administration
Two sources have confirmed that blasting will begin on the Loulo underground mine of Barrick Mining in Mali, four months after a provisional court-appointed administration was given control. The Loulo-Gounkoto Gold Complex has been operating under a provisional administration since the beginning of the year, but only to the extent that it transports ore to the plant to be processed. One source said that the provisional administrators planned to resume mining operations in September but they delayed the date because of negotiations with subcontractors. Some of them had not been paid after Barrick suspended its operations in January. UNPAID BILLS SETTLED; PIT MINE STILL SUSPENDED Sources said that the blasting, which involves using explosives to break down gold deposits, would resume once the administrators settled unpaid invoices with subcontractors Sandvik, and Maxam. First source: Activities will not resume at the open pit mine of the complex next week, because the principal subcontractor who operates that site is still unpaid. Barrick has suspended operations in Loulo-Gounkoto following tense negotiations with Mali’s military-led Government over the implementation of a new mining law that increases taxes and gives state ownership rights to assets. This led a Bamako Court in June to name provisional administrators led by the former Malian Health Minister Soumana Maadji to restart operations at this complex. The second source reported that Loulo has produced 1,07 metric tonnes of gold since the suspension from ore stockpiles that were mined prior to the suspension. A spokesperson from the Mali mines ministry refused to comment. Makadji, Barrick, Sandvik, and Maxam spokespeople did not respond immediately to requests for comments. BARRICK AND MALI TALKS CONTINUE. ARBITRATION RESULTS EXPECTED Barrick has been in contact with the Malian Government intermittently all year. A round of negotiations took place in August. Barrick announced Mark Bristow's sudden departure a few weeks later. A source familiar with the situation said that the parties are also involved in an international arbitration before the World Bank arbitration court. The arbitral court is expected to make a decision on the legitimacy this month. The World Bank's arbitral body has not responded to any requests for comments. According to a document from the mines ministry seen last week, Mali's industrial production of gold fell by 32% on an annual basis to 26.2 tonnes at the end August. This was largely due to the Barrick suspension. (Reporting and editing by Divyarajagopal and PortiaCrowe; Editing and Veronica Brown by Joe Bavier.)
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Russian draft law limits power companies' dividends in order to encourage them to invest more
According to a draft of a law, the Russian Energy Ministry wants to limit dividend payments by electricity companies to raise funds for major infrastructure upgrades. All Russian companies engaged in the generation, transmission and distribution of electricity would be affected by this proposed measure. Currently, companies set their dividends and borrow money to finance investments. The new law will force them to prioritize investment over dividends when allocating their profits. This is according to an industry source as well as a source who has been involved in the drafting of the bill. One source said that there are many large-scale projects for power generation in Russia. It makes sense to direct a portion of dividends towards these new projects. Energy companies, officials, and regulators are looking at new ways to attract investments for energy construction through 2042. This is despite high interest rates, restricted access to financing, and restrictions on imports of equipment due to Western sanctions against Russia. These projects are considered necessary to prevent shortages and modernize the electricity system. The Russian government plans to build 90 gigawatts by 2042. This, together with grid upgrades is expected to cost approximately 40 trillion roubles (US$492 billion). In 2008, Russia finished the reform of the Soviet-era RAO UES power monopoly, dividing it by business types and privatizing the majority of thermal generation companies in order to attract investments for the first wave of upgrades of the ageing system. The state still controls dispatching and grid operations, even though shares in most grid companies were listed. Many distribution network companies also have large free floats and pay dividends. In practice, the largest investors -- grid operator Rosseti and Rushydro as well as companies within the Gazprom group of Energoholding -- pay very little or no dividends. InterRAO is the only operator of Russia's imports and exports for electricity. It pays out 25 percent of its profit in dividends. Dmitry Bulgakov is an analyst with the investment company BCS. He said that the proposed changes appeared to be unfriendly for non-state investors, especially minority shareholders. "Refusing or limiting dividends is a negative thing for the companies in this sector. "We are not changing the valuation or outlook of these stocks at this time, but we will continue to monitor developments," said he.
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Carlyle and Qatar Investment Authority buy BASF's coatings business.
BASF agreed to sell its majority stake in the coatings division to Carlyle, a private equity firm and Qatar Investment Authority. The unit is valued at 8.91 billion euros (7.7 billion euro). The companies announced in a joint press release that BASF will retain a 40 percent stake in its coatings business. It also expects to receive an inflow of cash before tax of approximately 5.8 billion euro upon completion of the deal. BASF sold its coatings division at the beginning of the year as part of a broader strategy to focus on closely integrated businesses and those that are physically connected in the major chemical plants around the world. BASF stated that when combined with Sherwin Williams' sale of decorative paints earlier this year, the transaction values BASF's whole coatings division as an enterprise value of 8.7 billion euro, including debt, or approximately 13 times the earnings before interest tax, depreciation, and amortization (EBITDA) for 2024. The company began exploring strategic options in the second quarter for its remaining coatings operations, with a view to making a final decision by the end of the year. The company has stated that proceeds from a possible divestment would allow an earlier start of a previously-announced share buyback between 2027-2028, which is at least 4 billion euro.
China's CATL will raise at least $4 Billion in Hong Kong listing
According to the prospectus it filed on Monday, Chinese battery manufacturer CATL aims at raising at least HK$31.01bn ($3.99bn) through its Hong Kong listing. This is the largest new share sales in the city for this year.
According to documents filed with the Hong Kong Stock Exchange, the maker of batteries used in electric vehicles will sell 117.9 millions shares at a maximum price of HK$263 each.
If the offer size adjustment and greenshoe options are used, then the size of this deal could reach $5.3 billion.
The prospectus revealed that more than 20 cornerstone shareholders, including Sinopec, Kuwait Investment Authority and Kuwait Investment Authority have subscribed for CATL shares worth $2.62 billion.
With the offer size adjustment, up to 17,7 million additional shares can be sold to raise an extra HK$4.65billion ($598,00 million). The greenshoe option allows for the sale of up to 17,7 million additional shares.
The filings indicated that the price of the shares is expected to be determined between Tuesday and Friday. A final price will be announced no later than May 19.
CATL will sell its Hong Kong shares at a slight discount to Shenzen's Friday closing price if they are priced at HK$263 per share. If the Hong Kong shares are below this level, the discount is larger.
CATL stated in its prospectus that it had been granted a Hong Kong Stock Exchange exemption to not publish the minimum price at which shares can be sold, as this could have an impact on the trading of the Shenzhen listed stock.
The prospectus stated that 109,1 million shares will be sold to institutional investors. Hong Kong retail investors can bid on 8,8 million shares.
This will be the biggest share sale in Hong Kong since Midea Group raised $4,6 billion last year.
CATL shares will begin trading at the Hong Kong Stock Exchange from May 20.
CLOSING EYE ON US - CHINA TRADE WAR
The filings revealed that U.S. investors onshore will not be allowed to purchase CATL shares as part of the Hong Kong deal. However, many of these funds have overseas operations and would be eligible to participate.
In January, the company was listed on a list of Chinese companies that U.S. Defense Department claimed worked with China's Military. CATL stated in its prospectus that it was working closely with the U.S. Department to correct the 'false label'.
It said: "It doesn't restrict us from doing business with entities, other than a few U.S. government authorities. Therefore is expected to not have a substantial adverse impact on business."
CATL's book-building comes at a time when the U.S., China and other countries held constructive talks on de-escalating the trade war in Geneva. However, the 145% tariffs on Chinese goods by Washington and the 125% tariffs on U.S. products by Beijing remain in effect.
Tariff policies are rapidly changing. We cannot assess with accuracy the impact that such policies will have on our business. However, we will monitor the situation closely.
CATL previously stated that the impact of U.S. Tariffs would be minimal, as this market only accounts for a small portion of the company's business.
The Biden administration's policies have severely restricted its North American business. These policies excluded Chinese batteries under an EV subvention scheme.
CATL licenses its battery technology in order to assist its U.S. customers, including Ford and Tesla, to build their own battery plants rather than building its. Such partnerships are often criticized by U.S. lawmakers.
(source: Reuters)