Latest News
-
Gold gains continue after US and Iran peace agreement
Gold prices rose by more than 2% after U.S. officials and Iranian officials announced that they had reached a preliminary agreement to end the war. This lowered oil prices and eased concerns about inflation and rising interest rates. Gold spot rose 2.5%, to $4,322.87 an ounce, by 0312 GMT. This was its highest level since the 9th of June and extended gains for a 3rd straight session. U.S. Gold Futures for August?delivery increased 2.5% to $4344.80. U.S. officials and Iranian officials announced on Sunday that they had reached an agreement on a framework for ending?their conflict, stopping the U.S.-led blockade of Iran, and reopening the Strait of Hormuz. Shehbaz sharif, the Pakistani prime minister, said on X that a pact would be signed?on a Friday in Switzerland. The U.S. Dollar fell to its lowest level in 10 days, making greenback-priced gold cheaper for holders of other currencies, while oil prices dropped more than 4%. Tim Waterer is the chief market analyst for KCM Trade. He said that lower oil prices and a softening dollar due to reduced geopolitical risks and the reopening of Strait of Hormuz are helping to reduce inflation expectations. The combination of the two has provided the precious metals with the best tailwind over the past few weeks. However, the sustainability will depend on the durability of the peace agreement. Since the start of the U.S./Israeli war on Iran, in late February, gold prices have dropped by about 20%. Global oil prices have risen sharply since the Strait of Hormuz was effectively closed. This has stoked inflation fears and raised expectations that interest rates will remain high for longer. Bullion is a non-yielding investment and therefore loses its appeal in a high interest rate environment. According to CME FedWatch, the markets have reduced their expectations of a U.S. interest rate increase in December from 69% to 48% following?the peace agreement, down significantly from last week's 69%. Investors are now awaiting the Federal Reserve's policy announcement and remarks on Wednesday. Rates are expected to remain the same. "Currency debasement fears, fiscal risks and the ongoing geopolitical fracture continue to support?long-term (demand for gold). OCBC stated in a report that a moderated energy-driven inflation could help these themes gain traction. Spot silver increased 3.6%, to $70.39 an ounce. Platinum gained 3.3%, to $1773.70, and palladium rose 3.3%, to $1324.75.
-
Gold prices rise 2% following US-Iran peace agreement
Gold prices rose by 2% on Monday, after U.S. officials and Iranian officials announced they had reached an?understanding to end their conflict. This lowered oil prices and eased concerns over inflation and interest rates. As of 0122 GMT spot gold rose 2% to $4,304.11 an ounce, its highest level since the 9th of June. U.S. Gold Futures for August Delivery rose 2% to $4325.20. U.S. officials and Iranian officials announced?on Sunday that they had reached an agreement on a framework for ending their war, stopping the U.S.-led blockade of Iran and reopening the Strait of Hormuz. In a recent post on X, Pakistani PM?Shehbaz sharif stated that the pact would be signed in Switzerland on Friday. The U.S. Dollar fell to its lowest level in 10 days, making bullion priced in greenbacks cheaper for holders of other currencies, while oil prices dropped more than 4%. Tim Waterer is the chief market analyst for KCM Trade. He said that lower oil prices, a softer dollar and reduced geopolitical risk, as well as the anticipated reopening of Strait of Hormuz are all helping to reduce inflation expectations. The combination of the two has provided the precious metals with the best tailwind in the last few weeks. However, the sustainability will depend on the durability of the peace agreement. Since the U.S. and Israel war against Iran began in late February, gold prices have dropped by about 20%. Global oil prices have risen sharply since the Strait of Hormuz was effectively closed. This has stoked inflation fears and raised expectations that interest rates will remain higher for longer. Gold, though traditionally viewed as an inflation hedge in high-interest-rate environments, loses its appeal as the opportunity costs of holding this?non yielding asset increase. According to CME FedWatch, the markets have reduced their expectations of a U.S. rate increase in December from 69% to 47% following the peace agreement. This is down from 69% the week before. "Currency debasement fears, fiscal risks, and geopolitical fragmentation are still driving long-term demand for?gold". OCBC stated in a report that a moderated energy-driven inflation could help these themes gain traction. Spot silver increased 3.1%, to $70.07 an ounce. Platinum rose 3.1%, to $1.771.27, and palladium rose 3.3%, to $1.325.76.
-
Singapore introduces central bank gold vaulting services and an OTC gold clearing system
Singapore is establishing an over-the counter gold clearing system and introducing central bank gold vaulting services. This comes as the city state looks to establish itself as a gold trading hub. Gan Kim Yong, the Deputy Prime Minister, told the Asia-Pacific Precious Metals conference on Monday that the Singapore Exchange will?establish a gold clearing system over-the-counter for Loco Singapore or physical gold in Singapore by the end this year. He said that six banks will be clearing members: DBS, Deutsche Bank ICBC Standard Bank J.P. Morgan OCBC, UOB. Gan stated that the Monetary Authority of Singapore (MAS) will offer central bank vaulting services in October to give foreign central banks and sovereign entities a safe option to store gold reserves. Gan stated that this strengthened Singapore's position as a jurisdiction in which reserve assets could be held securely, managed actively, and connected to wider market liquidity during Asian Trading Hours. He said that the SGX was also looking into a gold futures contract which would improve price discovery and risk-management in Loco Singapore. The MAS is removing a 5% limit on investment in precious metals as part of 'tax incentive schemes' for family offices and funds that qualify. Changes were made by a working group that was formed earlier this year. They are part of a series moves taken by local banks in order to "broaden" gold trading, as well as other financial centers looking to expand their gold services. Reports in May indicated that the Hong Kong Exchanges and Clearing was also planning to relaunch futures for gold, as the city strives to become a global hub for gold trading. DBS, Singapore’s largest?bank based on assets, announced last week that it would offer tokenised gold to retail customers. Meanwhile, OCBC, a competitor, has said they will allow institutional and private banking clients to buy, sell, and store gold in Singapore. (Reporting and editing by John Mair; Reporting by Jun Yuan Yong)
-
Gold gains more than 1% following US-Iran peace agreement
Gold prices rose by more than 1% on Monday after U.S. officials and Iranian officials announced they had reached an agreement to end their conflict. This lowered oil prices and eased concerns about inflation and rising interest rates. As of 0010 GMT spot gold rose 1.8% to $4,297.42 an ounce. This is its highest level since the 9th of June. U.S. Gold Futures for August Delivery rose 1.9% to $4,318.10. U.S. officials and Iranian officials announced on Sunday that they had reached an agreement?on the framework of a peace deal to end their conflict, stop?the U.S. Blockade of Iran, and reopen Strait of Hormuz. Shehbaz sharif, the Pakistani prime minister, said on X that the pact would be signed in Switzerland on Friday. Following the announcement, oil prices fell by more than 4%. The U.S. Dollar also hit a new 10-day low. Since the beginning of the U.S./Israeli war on Iran in late February, gold prices have been under intense pressure. Global oil prices have risen sharply since the Strait of Hormuz was effectively closed. This has fueled inflation fears and raised expectations that interest rates will remain high for longer. Gold is no longer a good inflation hedge in high-interest-rate environments, as the opportunity cost of owning the non-yielding assets increases. The markets see a 64% probability of a U.S. According to CME FedWatch, the odds of a?U.S. interest rate increase in December are down from 69% the previous week. (Reporting by Noel John and Anjana Anil in Bengaluru; Editing by Subhranshu Sahu)
-
Oil drops 4% after US and Iran reach peace agreement to reopen Strait of Hormuz
On Monday, oil?prices fell to their lowest level since?March after U.S. president?Donald?Trump and Iran’s deputy foreign minister announced they had reached a preliminary agreement to end the conflict and resume traffic through Strait of Hormuz. Brent crude futures dropped $3.58 or 4.10% to $83.75 per barrel at 0004 GMT, while U.S. West Texas Intermediate fell $4.01 or 4.72%, closing at $80.87. Both contracts fell more than 3% Friday. Pakistan's prime minister, who has been acting as a?mediator, announced that the U.S. will sign a Memorandum of Understanding with Iran in Switzerland this Friday. Trump announced on Sunday that the Strait of Hormuz will be "toll-free" and that an U.S. Naval Blockade of Iranian Ports would also cease. Iran's semiofficial Mehr news agency reported that the draft agreement called for the reopening of the Strait of Hormuz in 30 days under Iranian arrangements. Tim Waterer is the chief market analyst for KCM Trade. He said that traders are pricing in the prospect of restored oil flow. Since the Strait of Hormuz was closed for over three months by the war, the world has lost millions of barils of oil and natural gas. The Strait of Hormuz is a chokepoint that supplies a fifth of world oil and LNG. Investors also watch with caution how quickly Middle Eastern oil producers can resume production and exports after the damage caused by the war, and whether there will be more ships entering the region. The Commonwealth Bank of Australia's commodities strategist Vivek Dhar said that the oil flow through the Strait of Hormuz only needs to be 60-70% of its pre-war level to bring oil markets back to their pre-war expectations of oversupply. Kazem Gharibabadi said that a more comprehensive?agreement will be negotiated over a period of 60 days during which there is a ceasefire. The E4 nations (UK, France, Germany, and Italy) said that they were prepared to lift sanctions against Iran in response to its nuclear program. Tony Sycamore, IG's market analyst, said that given the uncertainty surrounding the next round in 60 days and the nuclear issue, it was hard to imagine crude oil prices dropping much more from this point. (Reporting and editing by Jamie Freed; Florence Tan)
-
Markets applaud Iran deal but wait for oil to start flowing
In Asia, stocks and bonds rose and the dollar dropped after U.S.-Iran agreed on a peace agreement to reopen the Strait of Hormuz. The deal also included a lifting of the U.S.'s blockade against Iran. U.S. crude oil futures dropped more than 4%. S&P 500 Futures rose 0.8%. The dollar fell broadly. The yen increased to 159.7 dollars per yen and the euro increased to $1.1616. Here are the comments of market analysts on this deal: MRE?SPEIZER MARKET STRATEGIST WESTPAC, AUCKLAND "It is positive for risky assets, positive for currencies that are risky, and negative for the U.S. Dollar." There are still some minor concerns. The skirmish between Israel and Lebanon is still a concern. The signing date is Friday. That's still a very long time away in such an environment. If all goes well, there'll be another leg in this mini rally. "Inflation is likely to persist for a while, even if inflation expectations slip." It takes time for supply chains to be fixed and oil to become available again. BRIAN JACOBSEN is the Chief Economic Strategist at ANNEX Wealth Management, Wisconsin. This should make life easier for the Federal Reserve. Gasoline prices should fall as oil prices do. Some will doubt whether this is a lasting deal, but the Fed shouldn't set monetary policies based on speculation. They'll probably remove the language that said they had an "easing bias" at their next meeting. But, at least, they won't use language that suggests a hike bias. JASON WONG SENIOR MARKET STRATEGIST BNZ WELLINGTON The market's reaction to this has been anticipated and I believe it can be contained. We're already close to the end of what you see today on your screens. The market will expect things to gradually return to normal. The market is no longer under threat." NICK TWIDALE, CHIEF MARKET STRATEGIST, ATFX GLOBAL, SYDNEY: "I believe we'll be seeing the dollar drop over the next few sessions. We will probably see some risk currencies like the Aussie and the yen increase a little. But I don’t expect to see a lot of movement. There will be a lot to wait and see on how fast the Strait reopens, and how long before oil flow returns to normal. It will take months, not weeks. I don't believe we will see oil at $70 too soon. KRISTINA CLIFTON, SENIOR CURRENCY STRATEGIST COMMONWEALTH BANK AUSTRALIA SYDNEY It's a good thing for the world economy that the Strait of Hormuz is reopening. Our view is that oil and gas flow will take time to fully resume. The markets will be watching to see how fast production and traffic can return. It will take some time for traffic to return to normal. MAHJABEEN ZAMANI, HEAD OF FOREX RESEARCH IN SYDNEY, ANZ: The markets have been waiting and inching for this good news, while a positive vibe has already been embedded in the pricing. "As I look at the cyclical FX market, I believe there is still room for growth from where we are now. You might see oil break $80 today, just because it's a happy day... but then the market may realize that the terms may not be as lucrative. We think oil prices will "remain on the high side due to infrastructure damage." CHRIS WESTON HEAD OF RESEARCH PEPPERSTONE MELBOURNE "It appears credible, and the market has moved on." We are now examining what the cargo and logistics will look like through the?channel after the structural changes and damage to refineries. "I believe there will be a lot more risk assets that are going to try and move on other factors, such as the ramping up of demand. People are now looking at earnings once again and central banks expectations this week. I think this trade is short volatility. This will allow equity risks to increase. A further drop in long-end yields is welcome. Reporting by Tom Westbrook in Singapore and Ankur Banerjee; editing by Jacqueline Wong, Kim Coghill
-
Protesters torch Tesla and smash windows of UN offices in Geneva anti G7 march
Geneva police fired tear gas at protesters on Sunday who had set a Tesla car alight and broken windows of an UN agency as they vented anger at the Group of Seven summit that was about to be held across the border in France. A peaceful march of 20,000 people was held, but later protesters targeted symbols they deemed to be emblematic of capitalism and multilateralism. These included the Tesla parked in the street and the UN Office. Witnesses reported that demonstrators ripped bricks out of the ground to throw at police while children cried when tear gas wafted across downtown Geneva's sun baked streets. Over the years, protests at G7 summits have become common. Many demonstrators use the summits to denounce capitalism, globalisation and inequality. Demonstrators claimed they were there to protest the G7, which they viewed as a symbol for?concentrated economic and political power. Tesla owner Elon musk, who has'served as an adviser to U.S. president Donald Trump', became the first billionaire in the world last week. "To me it is a meeting between the rich and the poor that demonstrates once again how rich people can get even richer, while the rest of us are left behind," protestor Pippa saugy said. The G7 summit will take place in Evian-les-Bains from June 15-17, where the leaders of France and Britain, Canada, Germany Italy, Japan, the United States and the European Union are expected to attend. The Middle East and Ukraine wars are expected to dominate the agenda. Leaders will also'seek to avoid' a confrontation with Trump, who is trying to finalise an Iran peace framework deal. Businesses in Geneva were boarded up and hundreds of riot officers were deployed on the streets amid prior fears about violence. Mattia Piccard was irritated by the heavy police presence. Piccard stated that the purpose of this was to scare?demonstrators and to discourage them from protesting. Clelia Colin, a second demonstrator, wanted to bring up the issue of gender equality. Colin said, "The values that the G7 represents are misogynistic and contribute to inequality." (Reporting and editing by Christina Fincher.)
-
Zelenskiy: Ukraine has hit a chemical and oil plant in Russia
Volodymyr Zelenskiy, the President of X, wrote Sunday that Ukraine had hit a?oil facility?in Russia's Yaroslavl region and a?chemical plant?Azot?in the Tula region?overnight. Zelenskiy stated that the Azot facility was crucial for Russia's explosives manufacturing, and that attacks on Russian military logistics were also conducted in parts of Ukraine occupied by Russia. Zelenskiy, who frequently refers to Ukrainian strikes against Russia as "long-range" sanctions, said that Ukraine was executing its plan for?long-range sanctioning Russia and the tasks assigned regarding mid-range attacks in response to Russia's refusal?to end this?"war". Mikhail Yevryaev said that a massive Ukrainian attack on the region had occurred. He said that although most drones were downed, others had managed to get through and hit fuel storage areas, causing an 'large fire. He warned that a drone attack would occur later in the day. Ukraine has increased its attacks on Russian military-industrial and oil refineries this year. During the war, Ukraine has developed drones and missiles that can hit targets inside Russia.
Indian shares to rally in support of Gulf peace agreement and oil slide
Indian shares will open higher on Monday as they track a global rally. Oil prices, however, have fallen after U.S. president Donald Trump?and Iran’s deputy foreign minister announced an initial agreement to end the war and resume traffic through Strait of?Hormuz.
Shehbaz Sherif, the Pakistani Prime Minister, who served as a facilitator in these negotiations, announced that the countries would sign a Memorandum of Understanding in Switzerland this Friday.
As of 7:38 am IST, the GIFT Nifty Futures were trading at 23983.5. This means that Nifty 50 will open 1.5% above Friday's closing price of 23,622.90.
The Nifty and BSE Sensex rose by about 2% and 2.3% respectively on Friday, as the optimism of a diplomatic break in the U.S./Iran four-month war boosted risk appetite.
Other?Asian stocks jumped 2.4% while Brent crude fell 4.1% to $84. A barrel, which is the lowest price since March.
The lower oil prices have a positive impact on India, which is the third largest oil importer in the world. They help to ease the pressure on the rupee, inflation and India's trade deficit.
The diplomatic resolution of the Middle East has reduced geopolitical risks, and this is particularly beneficial for India as it reduces inflationary pressures, improving the macroeconomic outlook, said Pravesh Gour, senior technical analyst with Swastika Investmentmart.
According to NSE data, foreign portfolio investors sold Indian stocks worth 10,82 billion rupees (113.77 millions) on Friday, while domestic institutions bought shares worth 53.41 trillion rupees.
FPIs sold a record amount of $30.7 billion in the past year. This was due to pressure from the Iran War and the limited exposure they had to the AI rally. Analysts said a resolution of the Middle East conflict would help boost foreign outflows.
Since the beginning of the Iran War in late February, both the Nifty and Sensex are down 6.2% and 7.1% respectively.
Watch Stocks to?
The oil marketing companies, tyre and paint manufacturers, and airlines may benefit from the drop in crude price
** Dr. Reddy announces the first-to-market release of Bosulif in the U.S.
Aurobindo Pharma reports that the U.S. Drug regulator has classified its Telangana manufacturing plant, Eugia Pharma as "official actions indicated" with 11 observations following its inspection. ($1 = 95.1000 Indian Rupees). (Reporting and editing by Bharathrajeswaran, Bengaluru.
(source: Reuters)