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Gold falls on profit-taking following rally to over 3-month peak
The price of gold eased on Tuesday, after reaching a high that was more than three months ago. Profit-taking and the stronger dollar tempered gains in advance of important U.S. data on inflation and comments from Federal Reserve chairman Kevin Warsh. After reaching its highest level in May 14 at 0808 GMT earlier, spot gold fell 0.6% to $4624.87 an ounce. U.S. Gold Futures fell 0.4% to $4681.50. Ole Hansen, analyst at Saxo Bank, said that the gold's movement?today was primarily due profit-taking. The dollar recovered some of the losses from last week following the announcement about the buyback. Hansen added, "The reasons investors are falling in love with gold once again haven't gone away. They will continue to support the coming months." The recent gold rally was triggered by the announcement that the U.S. Treasury Department would "double the size" of its liquidity support operations, which will include the purchase of longer-dated bonds and notes. This sent the dollar to a three-month-low last week. The U.S. Dollar gained some strength Tuesday, amid a renewed debasement market. This made greenback-priced gold more expensive for overseas buyers. Markets are now awaiting data from the Personal Consumption Expenditures Report (PCE) due out on Wednesday and Fed Chairman Warsh’s inaugural speech at the annual Jackson Hole Symposium on Friday in order to gauge the policymaker's monetary stance. According to the CME FedWatch Tool, traders are pricing in a 42 percent chance of an interest rate increase in September and a 58 percent chance that the Fed will leave rates unchanged. Investors are less likely to be interested in bullion when interest rates are high, as it does not generate any returns. According to the World Gold Council, gold-backed ETFs received inflows of 46.7 metric tonnes ($6.4 billion) in the last week. This was their highest weekly demand in ten months. Iran has vowed to respond in kind to the U.S. economic sanctions, which the Americans claim will cut off Iran's lifeline. Silver spot fell by 1.6%, to 67.84 dollars per ounce. Platinum dropped 1.4%, to $1.849.27. Palladium dropped 1.8%, to $1.332.75.
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Gold Fields warns of Ghana license risk after half-year profits surge
Gold Fields CEO says uncertainty over the renewals of its mining leases in Ghana weighs on the 'valuation' of the company. The 'South African miner' posted an 81% increase in profit for the first half year, driven by increased gold prices and production. Gold Fields' Tarkwa mining leases in Ghana expire on April 2027. The company has yet to receive formal replies to its renewal request submitted in November 2025. The statement said that "there is still uncertainty about the timing, outcome and terms of any negotiated agreement to extend the Tarkwa Leases." Mike Fraser, CEO of Gold Fields said that uncertainty affected the value of Gold Fields shares. He said they were trading at a lower price than their peers. Fraser said: "We believe that the market has discounted this asset now?in our portfolio." Fraser added that there were "many influences" on the decision-making, but did not elaborate. The company stated that it would consider 'all options available', including exercising legal rights under leases. Fraser stated that "this is the last alternative that we will pursue. But we had to make it clear to our investors that if necessary, we would certainly take these pathways to protect value." Officials from Ghana's Mines Ministry and the Minerals Commission, the sector regulator for the mining industry, did not respond immediately to requests for comments. Isaac Andrews?Tandoh, CEO of the commission, denied in May that the government had delayed the lease renewals. He said that officials met with Gold Fields during that month. He said that the leases would not automatically be extended, saying the company must first present their development plans to the technical committee of the commission and the ministers. Tarkwa, Gold Fields' second-largest producer of gold, was behind Salares Norte, in Chile, during the first half 2026. Its 192,000 ounces accounted for 15% of Gold Fields' total output. Earnings Rise Johannesburg-based miner reported headline earnings of $2.08 per share for the six-month period ending June 30. This is up from $1.15 per share a year ago. It announced that it would pay out a 16.25 rand ($1.01) dividend per share. This is a 132% increase over the interim payout last year. The gold?price has been supported by the safe-haven purchase and?more recently, a weaker Dollar. Gold Fields gold production was 12 percent higher in the first half 2026 compared to the previous period. It kept its full-year guidance of 2.4 to 2.6 millions ounces. (1 dollar = 16.0186 rand). (Reporting and editing by Thomas Derpinghaus and Subhranshu Sahu; Emelia Sithole Matarise and Thomas Derpinghaus)
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Copper prices fall as the stronger dollar offsets new supply problems
The price of copper fell on Tuesday as the 'dollar strengthened and worries about the global economy growth overshadowed 'new supply concerns triggered by a large number of stock withdrawal requests at?the London Metal Exchange. Benchmark 'three-month' copper on the London Metal Exchange fell 0.18% to $14,247.5 per metric ton at 0701 GMT. The Shanghai Futures Exchange's most traded copper contract edged up 0.21% to 107.980 yuan (16,060.80 dollars) per ton. Red metal and other industrial metals were weighed down due to a stronger dollar, concerns about interest rates, and cautious economic sentiment. This is a reversal from Monday's gains, which were a result of a large increase in LME Copper warrant cancellations - meaning metal?marked to be withdrawn from warehouses - that "stoked new concerns about supply shortages", Daniel Hynes said, senior commodity analyst at ANZ. The dollar index was up by 0.13%. A stronger dollar makes greenback-denominated commodities more ?expensive for buyers using other ?currencies. Concerns about the U.S. interest rate rising longer due to tariff worries and the apparent deadlock in Middle East peace talks have been raised. According to CME's FedWatch, traders were pricing in 42% of a rate increase at the Federal Reserve meeting on September, up from 36%?a week ago. Interest rates that are too high can dampen economic activity and impact on industrial materials like copper, which is used for power and construction. The dreary?conditions?also?helped aluminum shrug off the news that the derailment a Russian aluminium producer Rusal had operated in?Guinea, which had suspended exports of alumina from a 600,000.ton per year refinery?there. The LME fell by 0.54% and the SHFE eased by 0.13%. Other LME metals saw a slight increase in zinc, a slight decrease in lead, a loss of 0.48% for nickel, and 0.08% for tin. Zinc added 0.44% to the SHFE. Lead dropped 0.15%. Nickel lost 0.8%. Tin lost 0.4%.
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Gold prices stabilize after a 3-month high, US inflation data is looming
Investors' attention shifted from the upcoming U.S. Inflation data to Kevin Warsh's speech this week. The spot gold price was steady at $4,645.67 an ounce as of 0651 GMT. It had risen to its highest level since May 14. U.S. Gold Futures increased 0.1% to $4702.00. Tony Sycamore, IG's market analyst, said: "We expect gold dips to be supported by buyers who are looking to buy gold as it moves towards the next resistance level at $4,900/$5,000." The U.S. Treasury Department announced that it would double its liquidity support buyback operation for older-dated 'notes and bonds. The announcement sparked currency debasement concerns. In a recent note, TD Securities stated that "these U.S. Dollar debasement 'fears' should see gold?being well-supported over the next few weeks as the Fed is not sending a clear message it is prepared to combat higher inflation." The risk rates may eventually rise, as crude oil grinds higher. Gold is often viewed as a hedge against inflation, but high rates can reduce its appeal because it?is a non yielding asset. The Fed Chairman Warsh’s inaugural speech at this year's annual Jackson Hole conference has gained added importance as traders and analysts seek guidance on the recent spike in?bond rates and to reassure their independence from the Trump Administration. The U.S. The Personal Consumption Expenditures Report, the Fed’s preferred inflation indicator, is due Wednesday. The geopolitical front saw?Iran promise to retaliate if the U.S. increased its economic sanctions, which Washington claimed would 'cut off Tehran’s lifeline. Silver spot fell by 0.7%, to $68.43 an ounce. Platinum lost 1.1%, to $1854.67, and palladium dropped 1.4%, to $1338.15.
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Port Hedland's unions present a counter-proposal for a wage agreement to BHP before the September 8th talks
The Combined BHP Ports unions have placed a counterproposal on a wage deal for its Port Hedland operation in Western Australia, ahead of their meeting on September 8. This comes after workers rejected a BHP proposal. BHP's spokesperson stated in an email that they continue to "make progress" towards an agreement which will address the key concerns raised by their employees. The union said that the proposal that BHP made that workers rejected before the meeting would have "maintained significant inequalities among workers." A meeting with the Fair Work Commission is scheduled for September 15th. BHP spent'months' at the bargaining tables with unions representing around 450 operators and maintenance workers to negotiate a new wage?deal. BHP employs over 800 people in the port. The unions claim that workers want enforceable protections for 'wage and conditions.' They argue that extreme heat and long hours away from their families mean they shouldn’t be paying lower rates than city workers.
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Oil wobbles as shares drift ahead of Nvidia earnings
After the U.S.'s "economic D-Day", sanctions against Iran, turned out to not be as severe as they had feared. U.S. Treasury rates are down from their recent highs after a report stating that the Treasury Department may tap into its cash account to fund increased debt buybacks. This could reduce the requirement for additional short-term bill sales. Investors are well aware of the high expectations that Nvidia will have to meet. Analysts expect quarterly revenues to nearly double, to $92 billion. Full-year earnings are expected to range between $103 billion and $105 billion. "Those are high expectations that must be met," said Fabien Yp, a IG market analyst. "Judging by Nvidia's past performance, it won't be shocking if they achieve the headline figures, but the bigger piece is that people are trying understand if there are any concerns about the circular deals driving its 'growth' and a sustainable growth percentage in the coming quarters." MSCI's broadest Asia-Pacific share index outside Japan fell 0.1%. Japan's Nikkei recovered from early losses and traded 0.3% higher, while South Korea's Kospi dropped 0.2%. China's CSI300 blue chip index fell 0.2% while Hong Kong Hang Seng Index was down by 0.3%. Alibaba's $10.2 billion share offering at a steeply discounted price to fund its AI ambitions, as well as Samsung Electronics' disappointing shareholder-return program, were two factors that weighed on the tech sentiment. Nasdaq Futures rose 0.36%, while S&P500 Futures gained 0.1%. EUROSTOXX Futures declined by 0.2%, FTSE Futures remained flat, and DAX Futures gained 0.13%. SANCTIONS AND THE FED The Trump administration issued a warning on Monday to countries that they must cut off their business with Iran, or else face secondary sanctions. This was part of an "economic D-Day" which the Trump administration referred to. However, the Treasury Department did not impose any sanctions. Brent crude futures were down 0.04% at $92.13 per barrel on Tuesday. U.S. crude climbed 0.1% to $85.08 per barrel, both measures falling more than 2% the previous session. Iran has promised to retaliate for the increased U.S. sanction and expressed confidence in major trading partners' ability to resist Washington’s pressure campaign. Joseph Capurso is a strategist with Commonwealth Bank of Australia. He said: "We don't expect China, Iran's biggest trade partner, to bow to U.S. demands to stop commerce with Iran." The U.S. campaign against Iran threatens the trade truce that the U.S. has with China before the next leaders' meeting. The threat of being cut off from the dollar-based system has stoked rumours about some countries and their banks needing to buy dollars as a precaution, lending support?to the greenback. The U.S. Dollar extended gains against its Canadian counterpart, and stood last at C$1.3860 following a gain of more than 0.5% the previous session. Donald Trump, the U.S. president, threatened on Monday to increase U.S. tariffs to 50% on all Canadian cars, trucks, and auto?parts starting January 1. This escalated a trade war after negotiations broke down last week. The euro fell 0.08% to $1.1656, and sterling slipped 0.04% at $1.3624. Investors will be watching the Federal Reserve Chair Kevin Warsh’s speech on Friday in Jackson Hole Wyoming. They are hoping to get some clarity about U.S. Interest Rates. Standard Chartered analysts stated that "Fiscal Uncertainty?is not likely to fade anytime soon... but there is still scope for the Warsh-led Fed?to ease some monetary uncertainty by clarifying their?reaction functions - namely, how long they are willing to hold rates to see inflation reach its 2% goal." All eyes will be on the Jackson Hole address by Chair Warsh for a sign, if no other guidance. Spot gold fell 0.3% to $4,635.89 per ounce. Bitcoin crossed the $80,000 mark for the first since mid-May. It last traded at $81,506.75, 2% higher.
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Fortescue suspends senior executive under sexual harassment probe
Fortescue is Australia's third largest miner. On Tuesday, it announced that a senior executive was suspended while he was under investigation for allegations of sexual harassment. Fortescue took the allegations "extremely serious" and hired MinterEllison as an investigator, it said in a last-week statement. Australian Financial Review first reported the allegations against the senior executive, who has not been named, earlier this month. The miner stated on Tuesday that Fortescue had continued to seek external legal and governance guidance as the investigation progressed. The employee who is the subject of the allegations has decided to not work for Fortescue until the investigation is completed. Fortescue Energy Chief Gus Pichot said in a earnings call last Thursday that legal advice indicated the employee did not require suspension. He said that they had taken extensive legal and governance advice from external sources. "We are confident we're following the right process," he added. The issue of sexual harassment at mine sites has been persistent in Western Australia, and led to a state investigation in 2021. Fortescue received a class-action lawsuit in July, alleging workplace misconduct including sexual harassment and gender discrimination. The lawsuit was filed by the law firm JGA Saddler. They also launched similar "class-action suits" against Rio Tinto in 2024. These cases are still pending in the courts. Fortescue reported last week a 20% decrease in "psychosocial breaches", which includes?sexual harassment and ethics issues, with 98 incidents reported in the most recent financial year. The company with 16,154 employees said that it dismissed 11 people for violating its code of conduct in relation to sexual harassment and discrimination. The report found that there were 13 instances of inappropriate sexual contact and 10 cases of sexual harassment. It also discovered one case of sexual assault. (Reporting by Melanie Burton; Editing by Kate Mayberry)
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EARLY MORNING BID EUROPE - Waiting for Nvidia to complete the next leg of AI rally
Rae Wee gives us a look at what the future holds for European and global markets. The?session began in Asia with a muted tone, as stocks drifted ahead of Nvidia’s upcoming?earnings, where high expectations are being placed on the artificial intelligence darling. Alibaba's $10.2 billion sale of shares at a steeply discounted price to fund its AI plans and Samsung Electronics disappointing shareholder-return program in the previous session weighed on technology shares. A roughly 45% drop in?the share price of Unitree after a five-fold increase on its Shanghai debut triggered concerns over bubble risk, retail investors losses, and flaws within the IPO system. The shares of China's most-known humanoid robotics manufacturer were mostly flat on Tuesday after days of declines following its listing. It is up to Nvidia now to drive the next leg in the AI rally. This is because of its role as a bellwether of the broader AI ecosystem, which includes chipmakers and companies that finance the rapid expansion of datacenter capacity. Oil prices are also falling after the U.S.'s threat of an "economic D-Day," or a wave of sanctions against Iran, turned out to not be as serious as they had hoped. The U.S. announced on Monday a new round of sanctions to 'cut off Iran’s economic lifeline.' However, it stopped short of the harshest measures and instead warned the world not to do business with the Islamic Republic. Tehran has promised to retaliate and expressed confidence that major trading partners will resist Washington's pressure. Investors are watching for a series of data releases this week from Europe, including German GDP data and the German Ifo Survey on Tuesday. These could provide insight into the cost to the economy of higher energy prices over a longer period. Key developments on Tuesday that may?influence the markets: - Germany's GDP, Ifo survey – Reopening 2-year German Government Debt Auction - Reopening 7-year UK Government Debt Auction Confidence of U.S. consumers according to the Conference Board Thomas Barkin, President of the Federal Reserve Bank of Richmond (Editing: Saad Sayeed).
Mike Dolan: The euro/yuan, German auto problems and the latest shock in China.
China's export engine will post another trillion-dollar trade surplus in this year. It is ignoring tariff tensions and energy shortages, while focusing on the still undervalued Yuan.
While the focus is on Washington, the second-largest economy in the world is growing rapidly. Its?global influence is just as strong as that of Washington.
China's housing crises, demographic decline, and bilateral trade conflicts with Washington, which have occurred amid the geopolitical tensions since the pandemic and amidst the geopolitical tensions that followed, have?overshadowed the biggest economic shock of the century, according to some -- even though China's economy is still posting impressive numbers.
Chinese customs data released on Tuesday revealed that exports in June rose 27% in dollar terms from a year ago, their best performance for four months. This was a significant acceleration from May. Imports, which reflect the impact of the AI boom on trade in tech equipment and chips, also exceeded estimates. They rose 36% over the past year, a five-year record.
China's surplus trade in June was $126 billion, a significant increase from the $105 billion of the previous month. The gap for the year to date is now $576 billion compared to $586 billion in June last year, even though exports and imports have been growing faster over several months. This puts the record surplus of $1.19 trillion from last year in danger.
China's race to create its own tech ecosystem is not just about the AI frenzy or the tech arms races. It also involves developing its own technology to bypass U.S. restrictions on key components. China exported over 1 million cars in one month for the very first time as sales of electric vehicles surged. This is almost twice the monthly level of car exports China had at the beginning of last year. Most of the increase was absorbed by Europe and Latin America. These booming auto exports are likely to hit Europe's automakers the hardest. Volkswagen, the German automaker, said this week that it might need to cut 50,000 jobs more to keep up with the fierce competition and tensions in transatlantic trade. This confirms reports that it was looking to reduce its workforce by 100,000 within the next few years.
German automakers also struggle to sell in China's subdued car market. BMW issued a profit warning only last month on its exports.
The euro zone, and Germany specifically, are under enormous pressure, with U.S. Tariffs in the West and Chinese Imports from the East, and energy prices rising again due to the simmering Iran War.
There is no simple solution to this problem, which is complex both politically and economically. Europe needs Chinese battery technology for example, yet it is late to protect its higher-tech industry and is clearly concerned about the impact of its auto sector. European policymakers have only recently begun to consider exchange rates in the context of both the problem and its solution.
Persuading China to Float
The exchange rate is a potential remedy. It's a major point of contention for Europeans. Friedrich Merz, the German opposition leader who visited Beijing in February, raised the issue and said this week that the yuan's undervaluation distorts competition. He said that an appreciation of the yuan would allow China to avoid more severe trade retaliation.
Merz stated on Monday that "we are now trying steer the dialog with China towards a solution... an effort to persuade China's currency to be allowed to float free, including within the context of the competition in the capital market."
The yuan is gaining ground this year against the euro and dollar. The euro/yuan exchange rate is still higher than a decade ago despite the fact that Europe's trade surplus with mainland China more than doubled. Some economists believe that the euro's real value has increased by up to 40% since COVID, partly because of differences in producer prices inflation following the pandemic.
According to a study by Deutsche Bank's Shreyas gopal, Europe is currently experiencing "China Shock 2. He concluded, using multiple valuation models that the yuan is still 15% undervalued compared to the euro, despite this year's 5% increase. This puts it at the extremes seen in the period 2005-2008, with Germany being the biggest victim.
He added: "Nearly our models suggest the undervaluation is more pronounced for the yuan against a hypothetical Deutschmark rather than the euro."
China's "mercantilism", despite the attention being focused on Wall Street and Silicon Valley, remains one of the most powerful economic forces in history. Export-led models are now being driven by currency controls and tight regulations, causing a third China shock that is eroding prospects for so-called Middle Powers.
Subramanian wrote in an op ed on the Project Syndicate website that "consigning America to self-doubt, and a diminished power, while also destroying Europe's biggest power, Germany economically, is a 'accomplishment.' There are few precedents in history." "Chinese economic developments and Fed policies have done more to change the world than US mercantilism in this millennium."
It may seem that simple exchange rates are not able to solve the problem, but they can still be seen as a part of it. In this regard, Europe could find itself -- for the first time in recent memory -- on the same side as U.S. president Donald Trump. The opinions expressed are those of Mike Dolan a columnist at.
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(source: Reuters)