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Gold ETFs are a hot commodity as the metal's prices smash records
Analysts said that massive flows into exchange traded funds that track gold helped to drive a spectacular rally which pushed bullion prices to new highs in the past month. On Tuesday, spot gold prices reached a new record of $3.990.85 an ounce, while U.S. futures gold for December delivery surpassed the $4,000 per ounce mark. Analysts cited the record rate at which investors were allocating money into the metal via ETFs. Investors are becoming more cautious about the sky-high stock prices and view gold as a refuge against uncertain geopolitical and economic policies. According to LSEG, gold prices have risen 51% this year. This is the biggest increase since 1979. Roukaya Ibrahim is a commodities strategist with BCA Research. She calculated that global assets in gold ETFs now account for 2,6% of total assets, a significant increase from the 1.9% recorded a year earlier. Ibrahim said that the intensity of investor interests is unprecedented. Clients now talk to her for up to 90 minutes on the phone at a given time about market movement. State Street Investment Management reported that inflows to U.S. exchange-traded funds (ETFs) such as its own SPDR gold shares had reached all-time highs of $35 billion by the end of September. This is a record-breaking amount, surpassing the previous annual record of $29 Billion, set in 2020. According to World Gold Council data, global inflows of gold ETFs have reached $64 billion for the year. This includes $17.3 billion, a new record, in September. The World Gold Council has calculated that gold ETFs saw outflows of $23 billion over the past four years. Analysts believe that gold's value can be maintained despite economic policy headwinds, and the rising geopolitical tensions. Gold can also cushion any gains made this year, as stocks have soared due to the artificial intelligence boom. Gold is a kind-of 'barbelling,' where it becomes a hedge to any failure by the AI-driven tech bubble to deliver its promises, and policy implications of a collapse, said Thierry Witzman, global FX rates strategist, Macquarie Group. David Schlesser is the head of VanEck's multi-asset solution. He said that gold, one of financial assets oldest in history, has been rising along with bitcoin. Schlesser said that both assets are not linked to any government. Schlesser says that "nothing goes up straight and we can expect some tactical pullbacks or volatility" and that, in this case "volatility will be your friend," allowing investors and traders to take advantage of dips. He believes that gold prices will top $5,000 per ounce by 2026, and urges investors not to invest less than 5% of their assets in gold. Goldman Sachs stated in a Monday note that it anticipates the holdings of Gold ETFs to continue increasing in North America, Europe and beyond as the Federal Reserve continues to lower U.S. rates until 2026. Mike Wilson, Morgan Stanley's chief investment officer, suggested that a 20% gold allocation is a good inflation hedge. Adrian Ash, BullionVault's head of research, said: "When established names like Morgan Stanley tell investors they don't have enough gold, there's no wonder that inflows into ETFs and vaulted bullion are on the rise." (Reporting and editing by Megan Davies, David Gregorio and Poline Devtt)
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Anglo CEO still sees future in Africa despite shrinking footprint
Anglo American's CEO Duncan Wanblad stated on Wednesday that the company still views Africa as a part of its future because of its vital mineral resources. This is despite recent restructurings and asset sales in Africa. Anglo American is exiting its platinum and coal operations in South Africa where it was founded more than a century earlier. It will sell diamond miner De Beers and shift its focus on copper, an essential metal for the clean energy transformation. Kumba Iron Ore is the only major asset of South Africa. Wanblad, despite these exits, said Anglo intended to use South Africa's vast mineral resources on the continent of Africa. Wanblad, at a Johannesburg mining conference, said: "I think Africa is where the world needs minerals." He said, "Hopefully we will be as large as we were in Africa within a few years." Africa has large deposits of cobalt and lithium, as well as rare earth elements that are used to make solar panels, batteries, and electric vehicles. Anglo American announced last month that it had reached an agreement with Canada's Teck Resources, to create a new copper giant. Wanblad stated that the diamond market is starting to recover from a slump of three years, and Anglo saw "some real strategic interests" from potential De Beers buyers. De Beers attracted at least six investors by June, and Angola's diamond state company Endiama revealed last month that it had made a bid for a minor stake in the company. These are parties who know the industry and know their assets. They love diamonds. Wanblad added, "This is all positive."
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Gold reaches record price of $4,000; stocks boosted by rate outlook
Investors jumped on the news of lower interest rates on Wednesday. They also shrugged off the political turmoil in France and Japan. Meanwhile, a prolonged U.S. shutdown pushed gold to $4,000 an ounce, a record high. Gold prices have risen by more than 50% in the past year, to over $4,000 per ounce. This is due to the prospect of Federal Reserve rate cuts and the demand for safe-haven assets resulting from economic and political concerns. Gold is traditionally seen as a safe haven of value in times of uncertainty. The weaker dollar has also been a factor in this rally. It was driven by central banks, retail traders, and fund managers. Hedge EVERYTHING Chris Weston is the head of research for Pepperstone. Thierry Wizman is a global FX & Rates Strategist at Macquarie Group. He said that gold's rally was the collective "hedge", against the potential failure of Wall Street’s AI-driven technology boom. "A collapse in that optimistic "vision" could trigger an inflationary solution for the world's overhang of sovereign debt, instead of a productivity-based solution." European stocks rose 0.4% as gains in energy and banks helped offset a decline in autos. BMW shares fell 7% after the German luxury automobile maker cut its earnings forecast for 2025. U.S. Stock Futures are up by 0.1-0.25, indicating that New York will see more gains later. In France, caretaker Prime Minister Sebastien Lecornu On Wednesday, the government said that a budget agreement could be reached by the end of the year. This would reduce the likelihood of an early election. His cautiously positive tone helped a modest rise in French bonds. OAT yields fell 4.5 basis points for the day to 3.524%. However, it did not help the euro which was headed for a third consecutive daily loss, trading at around $1.1628, its lowest level in over a month. Nina Stanojevic is a senior investment specialist with St. James's Place. She said, "It's a new prime minister, and the market has been volatile." It raises two areas for uncertainty. First, it is unclear if we will have another snap election in the near future. This would impact French OATs. YEN SLIDES This week, political shifts in Japan have also pushed the yen down. Investors are waiting for the announcement of Sanae Takaichi, who is expected to become prime minister in the near future. The last time it was 152.40 dollars per yen. Investors are concerned about Takaichi’s weekend victory, as her preference for lower interest rates and increased spending may have an impact on the Bank of Japan. The Bank of Japan might not be able to raise rates as much in the future as expected. This has weighed down the yen. The yen has dropped over 3% in the past week. This is on track to be its steepest weekly drop in an entire year. This has sparked fears of Japanese intervention. Hirofumi Suzuki, chief currency strategist of SMBC, stated that if the yen headed towards 160 in one to two weeks "FX interventions by the Japanese Government would be viewed more likely". The New Zealand Dollar fell by nearly 1% following the Central bank The Fed slashed the benchmark rate by fifty basis points, and left the door wide open for more easing. This suggests that policymakers are worried about the fragile state of the economy. The dollar index (which measures the U.S. dollar against six other currencies) hit its highest level since the end August. However, sentiment was still gloomy as the shutdown entered its eight day. The shutdown also prevented the publication of several key economic reports. The Federal Reserve is expected to reduce rates by 45 basis points between now and year's end, according to the markets. Investors dismissed concerns about an excess of supply this year, and oil prices rose on Wednesday. Brent crude futures increased 0.8% to $65.97 per barrel. U.S. West Texas Intermediate Crude increased by 0.9% to reach $62.28. (Dhara Ranasinghe and Ankur Banerjee contributed additional reporting from London and Singapore, respectively; Sam Holmes and Sharon Singleton edited the article).
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Toyota and Sumitomo Metal advance cathode material for solid state batteries
Toyota and Sumitomo Metal Mining announced on Wednesday that they had made progress in the development and production of cathode material for all-solid state batteries for electric vehicles. Solid-state batteries promise improved safety, longer life and faster charging than conventional lithium-ion battery that uses flammable liquids as electrolytes. The cost of manufacturing, the complexity of raw materials and their availability are all factors that have a large impact on mass adoption. Toyota, the largest automaker in terms of sales, plans to introduce EVs using all-solid state batteries by 2027 or 2028. Sumitomo Metal, a Japanese company that specializes in powder synthesis, has developed a cathode with 'high durability'. Their statement stated that they will work to improve the performance, safety, and quality of cathode material, as well as reduce costs. They also added that their goal is to make the first use of solid-state batteries for EVs in the real world. A spokesperson for the company said that Sumitomo Metal intends to begin mass production of its newly developed cathode material as soon as April 2028. The spokesperson stated that "we will prioritise supplying Toyota and then respond flexible to the market demand." Toyota and Idemitsu Kosan are also working together on solid-state batteries. The oil refiner is developing another important material, lithium sulfuride. (Reporting and editing by Edwina G. Gibbs; Yuka Obayashi)
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Madagascar protesters reject President's offer to talk
On Wednesday, youth protesters in Madagascar rejected an invitation to participate in President Andry Raoelina's 'national dialogue' with different groups. They accused his government of repression following weeks of demonstrations on the African island nation. The protests, which began on September 25, are a response to similar "Gen Z' movements" in Kenya and Nepal. They represent the greatest challenge to Rajoelina’s government since its re-election to office in 2023. They give voice to widespread discontent about poverty and corruption at the highest levels. Rajoelina dismissed his cabinet in an attempt to quell unrest last week. He appointed a new premier and announced plans for a nationwide dialogue that will begin on Wednesday afternoon. He stated that spiritual leaders, youth representatives and students would attend the discussions. The government's response to the protests was violent, which did not ease the public's anger. In a statement posted to their verified Facebook page, the protesters stated: "We reject this mockery dialogue." "We reject the President's invitation for talks." We refuse to engage in dialogue with any regime that assaults and humiliates the youth of its country in the street. Students were expected to return to the streets on Wednesday after a 48-hour deadline was given by protesters to Rajoelina on Monday evening to accept their demands, or face a nationwide strike. The protests began over water and electricity shortages. However, the demands now include Rajoelina's resignation, an apology to the country, and dissolution of the senate. According to the United Nations, at least 22 people were killed and 100 injured during the unrest. The government has refused to accept these figures without providing any of their own? Rajoelina, late on Tuesday night, appointed new Ministers of Defence and Public Security and asked them restore public order. He said: "Do not tolerate the incitement of violence," without going into further detail about possible measures. Madagascar's protests come at a time when its economy, which is heavily dependent on exports, is vulnerable. Madagascar is known as the producer of most of the vanilla in the world, but other exports such as nickel, cobalt and textiles are vital for foreign earnings and jobs. According to the World Bank, the country's GDP per capita fell by 45% from 1960 to 2020. (Reporting and writing by Elias Biryabarema, Editing by Ammu Kanampilly and William Maclean; Reporting by Lovasoa Raary)
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Environmental concerns abound in Albania's new UNESCO World Heritage Site
Strong winds blow plastic scraps from an open landfill in Albania into the Vjosa River. A large pipe dispenses sewage a few hundred metres downstream into the fast-flowing river. Other diggers use gravel to make concrete. This, say experts, alters the path of the river and causes its banks to become unstable. In a recent statement, UNESCO announced that the Vjosa Valley in Albania was one of 26 new Biosphere Reserves. This initiative is part of a global effort to "protect some of the richest and most vulnerable ecosystems on the planet". The valley, which stretches from northern Greece all the way to Albania's Adriatic Coast, seems to fit the criteria for an ecologically rich area in many places. The valley is home to rare plants, endangered Egyptian vultures, and otters. The river meanders along gorges lined with trees and through lush valleys. The government declared the area a national reserve in 2023. The designation will be a boon to Albania, which is a Balkan nation of 2.4 millions people. Tourism to the country's coastline and mountains has exploded in the last few years. Albania is also aiming to join the European Union before the end of this decade. Environmentalists worry about the future beneath the picturesque scenery. Besjana Giuri, from the non-governmental environmental organisation Lumi (River), said that "international recognition papers such as UNESCO don't solve problems" during a visit to the valley she made last week. UNESCO has not responded to any requests for comments. It had stated in previous reports that it would apply rigorous criteria to grant Vjosa Biosphere Reserve status. Sofjan Jupaj, Albania's Minister of Environment, admitted the problems in an interview. He stated that his ministry will spend over 150 million Euros to treat sewage and close all landfills. Many people have already suffered the consequences. They say that oil wells and pits of bitumen line the river, increasing pollution. Agron Zia (55), took his sheep and goats to the riverbank last week. He pointed to the landfill, where plastic was being blown by the wind into the air and caught in the branches of trees nearby. "I remember swimming here every summer when I was a child. He said that it hurts to know that your children can't go swimming because of the sewage and garbage.
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India's gold ETFs reach record $10 billion AUM with largest-ever September inflow
India's physical-backed gold exchange traded funds (ETFs), which are backed by the metal itself, saw their biggest monthly inflows in September. This pushed assets under management to an all-time high of $10 billion as investors flock to the precious material amid weak stock returns. Gold imports by India, the second largest consumer of gold, will increase as more money flows into ETFs. This is expected to boost global prices which have reached record levels this week. However, the surge in imports may increase India's trade surplus and put pressure on its weaker rupee. India has traditionally been dominated by gold jewellery, bars and coins. However, urban investors are increasingly investing in gold ETFs, as the prices continue to rise to new highs. The World Gold Council (WGC), according to its data, reported that gold ETFs received $902 million in September or 7.3 tonnes, bringing their total holdings up to an all-time high of 77.3 tons. Inflows into Indian gold ETFs are at a record high of $2.18 billion, exceeding all previous annual figures. In contrast, inflows in 2024 were $1.28billion, $295.3m in 2023 and only $26.8m in 2022. WGC stated that the rise in gold ETFs is due to a weaker currency and increased investor demand. People were looking for a place to invest when faced with weak domestic stocks, geopolitical uncertainties and trade uncertainty. Gold prices in the local market, which reached a record high of 122 829 rupees for 10 grams on Wednesday, are up 60% this year, compared to 21% growth last year. India's benchmark Nifty50 has gained around 6% in 2025, after gaining 8.8% in the previous year. Vikram Dawan, the head of commodities at Nippon India Mutual Fund which manages India’s largest gold ETF, explained that investors who had previously allocated little or no money to gold, are now increasing their allocation. They are putting significant amounts into gold and driving inflows to ETFs. Dhawan explained that this shift in allocation could mean that investors will continue to purchase gold even if the price corrects. This would further increase inflows. (Reporting and editing by Sharon Singleton; Rajendra Jadhav)
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Hollywood and Bollywood groups lobby Indian panels to protect content against AI models
Letters show that Hollywood and Bollywood groups lobby an Indian panel to increase copyright protection so that artificial intelligence companies cannot use their intellectual property for training AI models. AI companies are at odds with content owners around the world, and governments are developing rules to govern this new technology. While Japan allows AI firms to use copyrighted material, the European Union's rules are stricter and allow content owners to opt out. The film industry is especially concerned that AI could scrape copyrighted online videos, images and clippings like trailers and promotions - and even more importantly ingest pirated material onto their platforms. India's copyright law doesn't account for AI use. This year, the government created a panel of lawyers, government officials, and industry executives, to examine if copyright laws are sufficient to handle AI-related disputes and to make recommendations. WORRIED FILM STUDIOS LOBBYING HARD Motion Picture Association (MPA), the association that represents Warner Bros., Paramount, and Netflix, as well as Producers Guild of India, have both argued India shouldn't tinker its copyright laws and should instead promote a licensing regime. MPA India's Managing Director Uday Sing responded to the panel’s private inquiry about why India shouldn’t allow blanket training exemptions to boost AI innovation in a letter dated August 2, saying that the move would "undermine incentives to create new works" and "erode copyright protections in India." In his letter, Nitin Tej Ahuja, the CEO of the Indian guild told panelists that "licensing copies rights is essential for creators to earn revenue and sustain their business." The MPA refused to comment while the Guild did not reply to questions about the letters which are not publicly available. Himani Pande of the Indian commerce ministry, who chairs this panel, has not responded to any questions. A source with direct knowledge of the panel said that it is currently finalising its recommendations, which will be presented to senior officials within weeks. INDIA'S VIBRANT MUSIC MARKET India is home to one of the most dynamic film industries in the world. In May, a Deloitte/MPA report said that India's film and TV industries generated revenues of $13.1 billion last year. This has been growing by 18% every year since 2019. Deliberations are taking place at a time when a Bollywood couple is suing YouTube for AI policies, after their manipulated videos spread online. The position of the film studios is different from that of the Business Software Alliance (which represents AI companies like OpenAI) which, in its public submissions made in July, argued for New Delhi to ensure exceptions allowing lawful AI usage. MPA members remain concerned. The association said India shouldn't consider allowing the use of content for AI models that have an opt-out option, as this would put the responsibility on movie studios. This could force them track their own work and stop it from being shared on multiple AI platforms. MPA India stated that such exceptions would "hinder future investments and development of high quality local content." Warner filed a lawsuit against AI service Midjourney, claiming that it had blatantly stolen the studio's work to create images and videos featuring Batman, Superman and Bugs Bunny. Midjourney claims that the way in which it trains its AI models is fair use. Reporting by Arpan chaturvedi, Aditya Kalra and Raju Gopalakrishnan; editing by Raju gopalakrishnan
LNG is stepping up to solve Europe gas woes, but at a price: Russell
Concerns that Europe is facing a natural gas supply crunch this winter season are overblown, with the liquefied natural gas (LNG) market currently stepping up to prevent any shortage, albeit at greater rates.
European gas prices climbed to the highest level in two years last week, with the benchmark front-month agreement at the Dutch TTF center reaching 49.03 euros per megawatt hour on Nov. 22, comparable to $14.97 per million British thermal units (mmBtu).
Costs have actually rallied about 40% since mid-September amidst worries that the staying Russian pipeline materials to Europe will be halted, or face additional curtailment.
New U.S. sanctions on Russia's Gazprombank, the financial institution some remaining European importers of Russian gas usage to process payments, have actually also raised issues about the future of supply.
Throw in some early cold weather and the expiry at the end of the year of the transit agreement for Russian gas through Ukraine and it's hardly unexpected that rates have actually been rallying.
However there is little indication that Europe will run short of natural gas, and the worldwide LNG market is currently adjusting to show the current characteristics.
Europe's November imports of the super-chilled fuel are on track to increase to the greatest considering that February, with product analysts Kpler tracking arrivals of 9.16 million metric loads.
This is up from 7.56 million lots in October and 6.37 million in September, which was the most affordable month-to-month total in 3 years.
The boost in imports is largely being fulfilled by increased deliveries from the United States, the world's largest LNG exporter and the swing supplier between the Atlantic and Pacific basins.
Europe is on track to import 4.32 million tons of U.S. LNG in November, the most because February and up from October's 3.13 million, according to Kpler information.
In contrast, Asia's imports of U.S. LNG are approximated to drop to 2.19 million tons in November, the most affordable because march and below 3.21 million in October.
Asia's overall imports of LNG are anticipated to decline in November to 23.13 million tons, the lowest since June and down from 24.39 million in October.
PRICE LEVEL OF SENSITIVITY
The drop is mostly because of weaker imports in the South Asian countries of India, Pakistan and Bangladesh, with India, the fourth-biggest purchaser in Asia, expected to land 2.21 million lots in November, down from 2.36 million in October.
India is among a group of Asian buyers that tend to be cost sensitive, and the current rise in spot LNG costs will act as a. brake on the country's demand.
Area LNG for delivery to North Asia << LNG-AS > increased to $14.60. per mmBtu in the week to Nov. 22, an 11-month high and up from. $ 13.60 the previous week.
The cost has actually been rising gradually in current months and is. now up 76% from its 2024 low of $8.30 per mmBtu.
Nevertheless, it's still except peak in 2023 of $17.90 per. mmBtu, reached in late October as energies in Asia stocked up. ahead of winter.
The current forecasts for winter season in North Asia are for a. cooler season than in 2015, which might serve to boost need. for LNG, particularly in leading importers China, Japan and South. Korea.
Combined with the possibility of higher European need for. LNG, it's likely that area rates will continue to increase.
The greater prices will increasingly crowd out the more. price-sensitive purchasers, such as India.
But this isn't an indication that the market is under tension,. rather it reveals that it's working as it should.
The views revealed here are those of the author, a columnist. .
(source: Reuters)