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Gold gains on risk aversion before US data
Investors sought out safe-haven assets on Wednesday, and the Federal Reserve minutes of its latest meeting as well as a delayed U.S. employment report were viewed for clues about future rate movements. As of 0915 GMT, spot gold rose 0.5% to $4,088.03 an ounce. U.S. Gold Futures for December Delivery gained 0.5% per ounce to $4,087.90. Lukman Otunuga is a senior research analyst with FXTM. He said, "Gold has glistening slightly this morning, despite the cautious mood, after rebounding from $4,000 in the previous session." Investors will be watching the minutes of the Federal Reserve's meeting on October, which is due later that day, and the September jobs report. The economists polled expect that the September employment report will show 50,000 new jobs added in the month. If the incoming U.S. statistics support a lower rate, then gold prices could push towards $4,130 or $4,200. However, more hawkish remarks by Fed speakers, coupled with stronger-than-expected data could drag prices back toward $4,000 as traders slash expectations around lower U.S. rates," Otunuga said. Separately on Tuesday, data revealed that the number Americans receiving unemployment benefits reached a two-month-high in mid-October. The minutes of the Fed meeting will shed light on policymakers' disagreements over how to deal with inflation and changing labour trends. The CME FedWatch tool revealed that traders reduced their bets on a rate reduction next month from 63% to just under 46%. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. Zain Vawda is an analyst at MarketPulse, and he believes that weak labour data may lead to a gold rally. However, stronger data or signs of labour market strength could pressure prices, leading to a possible break below the psychological support level of $4,000 per ounce. Other metals rose as well. Spot silver increased 1.5% to $51.44 an ounce. Platinum gained 0.7% to reach $1,544.72, while palladium climbed by 1% to $1414.68. (Reporting from Noel John, Bengaluru. Editing by Kate Mayberry.)
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EU Industry Chief Says Raw Materials Recycling is Solution to China Dependency
Stephane Sejourne, the EU's industry chief, said that recycling could be the answer to the EU's dependence on China for critical raw material imports. The Critical Raw Materials Act, which entered into force in 2013, has set the EU a recycling target of 25% by 2030 to meet the demand for critical minerals. Less than 1 percent of rare earths are recycled in the EU. Sejourne, speaking at a Brussels conference, said that the EU should also speed up the process of negotiating deals for raw materials critical to its economy instead of waiting to sign multi-year agreements. Sejourne stated that the EU's 17 strategic metals, minerals and alloys identified by Sejourne will need to be accelerated to increase the production of gallium and rare-earth permanent magnets by sixfold. Sejourne stated that the process of obtaining permits should be simplified, as "too many" projects have been abandoned in the past. The Commissioner stated that part of the blame lies on the shoulders of companies, as a U.S. China deal to defer new restrictions on rare-earth exports is unlikely to last. Sejourne added that "Companies need to also reevaluate the risk they are taking and stop purchasing 100% Chinese". "The United States has signed a stop the clock deal with China and Europe has benefitted but I doubt that it will last for 12 months". Sejourne will present the EU’s new economic security and resource package to be presented on December 3. Reporting by Julia Payne, Alessandro Parodi and Sudip Kar Gupta; Editing by Elaine Hardcastle and Sudip K. Gupta
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Greek utility PPC plans an investment of $12 billion in energy transition
Public Power Corporation, Greece's largest utility firm, announced on Wednesday that it plans to invest between 2026-2028 10.1 billion Euros ($11.70 billion), to accelerate its energy transformation. The group also targets earnings before interest taxes, depreciation, and amortization (EBITDA), which will be 2.9 billion euro by 2028. This is up from 1.3 million euros in 2023. Dividends are expected to increase by nearly fivefold, reaching 1.2 euros for each share, by 2028. By 2028, the plan will include 6.3 gigawatts of new renewable energy in Greece and Southeastern Europe. This will bring its total installed renewable power to 12,7 GW or 77%. To ensure the stability of power grid supply, the utility plans to invest 1.5 GW in flexible assets such as batteries, gas-fired plants, and hydropower units. PPC stated that it will maintain a net debt to EBITDA ratio below 3.5, and about 70% of its investments will be funded by cash flow. The group also targets a 85% reduction in greenhouse gases in 2028, compared to 2019 levels. PPC's total installed capacity is expected to reach 16.6 GW in 20 28 GW, up from the 12.4 GW predicted in 2025.
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Copper prices rise as Fed rates are influenced by US job data
The price of copper edged up after a three day decline on Wednesday as investors awaited delayed U.S. employment data. However, uncertainty about the Federal Reserve’s rate decision kept gains in check. The Shanghai Futures Exchange's most active copper contract closed the daytime trading at 86,080 Yuan ($12106.72) per ton. This is a 0.17% increase. As of 0718 GMT, the benchmark three-month price for copper at the London Metal Exchange increased by 0.25%. Investors are cautiously trading ahead of the official U.S. September job data, which was delayed due to the government shutdown. This is a crucial reference for the direction of the country's interest rate policy ahead of December's Federal Reserve call. Fed officials are pushing back against the notion that a rate cut in December was a done-deal, leaving the markets uncertain about one of the main pillars which supported its previous rally. Copper was also supported by concerns about supply, which were sparked worldwide by mine interruptions. Freeport-McMoRan announced on Tuesday it will resume production in Indonesia's Grasberg Mine by July 2026. This is in line with its previous guidance. The mine was shut down after a mudslide that claimed the lives of seven workers. Freeport anticipates that copper and gold production in 2026 will be similar to levels of 2025. The stronger Chinese currency helped stabilize the market, as it made commodities priced in dollars cheaper for Chinese investors. Official data released on Tuesday showed that China's refined output of copper in October decreased 4.9% from month to month but registered an annual increase of 8.9%. Aluminium, zinc, nickel, tin, and lead were the only metals to show a loss. The LME saw a slight increase in aluminium, while lead, nickel, tin, and zinc were all up. $1 = 7.101 Chinese Yuan Renminbi (Reporting and editing by Ronojoy Mazumdar, Lewis Jackson and Tom Daly).
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Iron ore reaches a two-week high due to China's firm demand and reduced supply
Iron ore futures rose to their highest level in over two weeks on Wednesday, thanks to a strong demand from China's top consumer and a falling supply in the United States. The January contract for iron ore on China's Dalian Commodity Exchange closed the daytime session 0.76% higher, at 791.5 Yuan ($111.32), a metric tonne. It had earlier reached its highest level since November 3, at 797 Yuan. As of 0710 GMT the benchmark December iron ore traded on Singapore Exchange had risen 0.14%, to $104.55 per ton. It hit its highest level since November 4, at $104.95. Analysts and traders said that Chinese steel mills adopted a low inventory strategy for raw materials over the last three years, as their margins were squeezed due to falling steel prices during a prolonged property slump. This means that mills will need to return more often to the spot market in order to replenish their cargoes, improving spot liquidity which, to some degree, acted as a cushion during a price decline. Ge Xin is the deputy director of Lange Steel. As a result, the hot metal production remained at a relatively high level. Hot metal is a blast-furnace product that is used as a gauge to determine the demand for iron ore, while flat steel is usually used in manufacturing. The lower domestic supply also supports ore prices. Official data released on Tuesday showed that China's run-of mine, or raw ore which will be processed to concentrate and pellets, fell by 2.9% in October compared to the previous year to 84.03 millions tons. Analysts cautioned, however, that the potential for further price increases in ore may be limited. They cited high portside inventories as well as forecasts of a growing supply of seaborne goods. Coking coal and coke, which are used in the production of steel, both fell by 2.81% a 1.62% respectively. The Shanghai Futures Exchange has seen a decline in the steel benchmarks. The price of rebar fell by 0.49%. Hot-rolled coils dropped by 0.18%. Stainless steel declined 0.2%. Wire rod rose 0.55%. $1 = 7.101 Chinese Yuan (Reporting and editing by Ronojoy Mazumdar; Amy Lv, Lewis Jackson)
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Gold prices rise on risk-off sentiment ahead of Fed minutes and US jobs data
Gold prices rose Wednesday, as investors sought clues about the Federal Reserve’s interest rate path. They awaited the minutes of the Federal Reserve’s latest policy meeting. As of 0633 GMT, spot gold rose 0.5% to $4,089.59 an ounce. U.S. Gold Futures for December Delivery gained 0.6% per ounce to $4,090.30. Investors are now awaiting the minutes of the Fed's most recent meeting. These will be released in the afternoon, along with the September non-farm employment report due on Thursday, after the U.S. shutdown. The economists surveyed by expected the report to show employers adding 50,000 jobs in September. The number of Americans who received unemployment benefits reached a two-month-high in mid-October, according to data released on Tuesday. Tim Waterer, KCM Trade's Chief Market Analyst, said that the strong USD and uncertainty about the timing of the next Fed rate reduction has hampered gold's momentum. Gold has been viewed by investors as a safe play due to a recent bout of risk aversion, which has helped limit the decline. The dollar remained strong against its competitors. Gold becomes more expensive when the dollar is stronger. The global equity markets have been in a downward spiral this week. The S&P 500 is on a 4-day losing streak due to concerns over the valuations of AI stock. The U.S. Fed cut interest rates last month by 25 basis points. However, Chair Jerome Powell expressed caution about another rate reduction this year due in part to a lack of data. CME Group’s FedWatch tool shows that traders now expect a rate reduction at the Fed’s meeting on December 9-10. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. Other metals rose in price as well. Spot silver increased by 1.3%, to $51.33 an ounce. Platinum added 0.5%, to $1.542.17. Palladium increased 0.8%, to $1.411.86.
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Japan's largest fire in 50 years destroys 170 buildings and kills one
On Wednesday, a fire destroyed more than 170 structures and claimed the life of one person in an area along the southern coast of Japan. Military and firefighting helicoptors were scrambling in a bid to put out this country's biggest urban fire in nearly half a century. Aerial footage broadcast by television stations showed the destruction of houses and thick smoke plumes rising from Saganoseki, a hilly district in Oita that overlooks a harbour famous for its Seki-brand premium mackerel. Local media reported that the flames also spread to nearby forested hills and an uninhabited island, more than one kilometer off the coast. This was likely caused by strong winds. Japan's Fire and Disaster Management Agency reported that the blaze began on Tuesday night and had burned 48,900 sqm - about the size of seven football fields. It forced 175 residents of the district - located 770 km (478 mi) southwest of Tokyo - to flee into an emergency shelter. The agency said that the cause of the fire is being investigated. Local media reported that a person was found dead. Police sources were cited. A woman in her fifties was hospitalised with mild burns. In a recent post on X, Japanese Prime Minister Sanae Takayi expressed her heartfelt sympathy to residents who were evacuating. She wrote: "The Government will provide maximum support in collaboration local authorities." Kyushu Electric Power reports that the fire caused power outages in around 300 homes of the district. It is the biggest urban fire in Japan, barring earthquakes. The size and number of buildings involved make it the most intense urban fire since 1976 in Sakata. A fire in Itoigawa, Japan, burned 147 structures and 40,000 square meters. There were no fatalities. (Reporting and editing by Saad Saeed; Kantaro Koiya)
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Malaysia's Tenaga Nasional suffers losses in excess of $1 billion due to crypto power theft
The energy ministry reported that Tenaga Nasional Bhd, Malaysia's national utility company, has suffered losses in excess of $1 billion due to illegal power usage from cryptocurrency miners. This was between 2020 and this August. The ministry of energy and water transformation said that TNB had found that 13,827 buildings illegally mined cryptocurrency during the period. The ministry stated that the illegal use of power for cryptocurrency mining has resulted in financial losses of approximately 4.6 billion Ringgit ($1.11billion), adding that TNB works with authorities to stop power theft. Electricity Supply Act criminalizes tampering or bypassing meters. According to the ministry, TNB was able, following joint operations, by the police, communications regulator, anti-graft agency, and other enforcement agencies, to seize bitcoin miner machines from the premises in question. TNB has created a database to help curb the issue. The database contains all records on owners and tenants who are suspected to be involved in theft of electricity for bitcoin mining. This database is used as a reference internally to monitor and identify suspicious properties and as a basis for operational inspections. The ministry also added that smart meters will be installed in electricity distribution substations, to monitor energy consumption and detect power manipulations in real-time.
Lukoil Finland's petrol stations will close due to US sanctions
Finnish petrol station operator Teboil is owned by Russian oil giant Lukoil and said that it was preparing to close its operations when fuel ran out due to U.S. sanction against its parent.
Teboil announced that stations would close in stages once the fuel stock is sold out.
The United States last week imposed sanctions on Lukoil for its involvement in the war in Ukraine. On Friday, the Trump administration gave potential buyers clearance to speak to the Russian company regarding buying their products.
Non-Russian assets
According to the website of Teboil, there are 430 Teboil stations in Finland. This is about one fifth of all 2,250 Teboil stations that exist in Finland.
Teboil was on Monday
It was expected that Lukoil would sell the chain in its ongoing efforts to sell foreign assets.
Last month, the Financial Supervisory Authority of Finland warned banks and other Finnish financial institutions that they should be cautious when dealing with Lukoil or companies owned directly or indirectly by it. (Reporting and editing by Terje Solsvik, Anna Ringstrom)
(source: Reuters)