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Gold drops as inflation fears rise over Middle East conflict
Gold prices dropped on Monday, as tensions in the Middle East increased inflation fears and reinforced expectations that central banks may continue to tighten monetary policy. Gold spot was down 1% to $4,489.34 an ounce at 1:50 pm EDT (1750 GMT), following a two-week peak on Friday. U.S. Gold Futures closed 1.9% lower, at $4,506,30. Holders of other currencies will now pay more for metals that are priced in U.S. dollars. Jim Wyckoff, an analyst at American Gold Exchange, said that if bond yields continue to rise and rates start to stabilize or trend downward, gold will remain under pressure. Iran claimed it attacked a U.S. base after U.S. strikes on Iranian military targets over the weekend. U.S. president Donald Trump said, however, that talks with Iran were "continuing at a rapid rate." Oil prices rose, increasing inflation concerns linked to the Iran Conflict, which could cause central banks to increase interest rates in order to reduce rising price pressures. According to CME Group’s FedWatch tool, traders have estimated that there is a 54% probability of at least one rate hike in the U.S. by year's end. Gold is often considered a hedge against inflation, but its appeal tends to diminish in an environment of high interest rates because it doesn't generate any yield. The market will be watching a series of U.S. job data releases that are due to be released this week as well as?remarks by Federal Reserve officials. Ole Hansen, analyst at Saxo Bank, said: "Once geopolitical stability is achieved and energy shocks begin to subside, we expect investors will refocus their attention on the structural themes that have supported the bull market for gold in recent years." He said that central banks will continue to be net buyers in the next year. Spot silver remained flat at $75.26 per ounce. Platinum gained 0.7%, reaching $1,929.60, and palladium increased by 0.9%, to $1366.44. Morgan Stanley stated in a Friday note that palladium was moving towards equilibrium as the supply constraints were offset by a weakening of auto demand. (Reporting and editing by Shailesh Kuber and Barbara Lewis; Ashitha Shivaprasad, Bengaluru)
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US crude exports reach record highs in May, as the war with Iran tightens up global oil supplies
Ship tracking estimates revealed on Monday that U.S. crude oil exports reached a record of?5.6m barrels per day during May, as the Middle East Crisis boosted demand from Asian and European refiners for U.S. oil. U.S. and Israel's war against Iran caused the biggest ever disruption in the global energy market, with refiners scrambling to find alternatives to Middle Eastern supplies. The Strait of Hormuz is the conduit for a fifth of all oil and gas in the world. A key waterway was effectively shut down when the war began at the end February. According to Kpler data and analytics, U.S. West Texas Intermediate crude prices were trading at a significant discount to Brent, a global benchmark. Physical U.S. crude is typically priced at a difference to WTI. A large discount to Brent allows foreign buyers to buy U.S. oil more affordably and ship it around the world. WTI traded in March at a 20.69-percent discount to Brent futures, the largest in 13 years. Middle East supply disruptions led Brent to increase faster than WTI. When the bulk of deals to export crude in May were completed in April, the spread was an average discount of minus $8.86 compared to minus $4.85 on average before the war. Exports to Europe, and Asia, reached record levels in May. Asia took 2,45 million barrels per day (bpd) of the barrels exported, maintaining its position as the top buyer in the second consecutive month. Europe came in second with 2.4 million barrels per day. The demand from Japan - which typically imports its crude oil from the Middle East - accounted for a large share of Asian imports in May. At 808,000 barrels per day, this was a 32% increase on the previous month, and set a new record. Matt Smith, Director of Commodity Research at Kpler, said: "It is not surprising to see Asia pull so much due to the loss of barrels in the Mideast Gulf." In May, U.S. crude oil bound for the Mediterranean Sea and Black Sea reached a new record, with Bulgarian, Croatian, Turkish and Greek buyers emerging. The increase in European demand is also attributed to the record imports from Italy of 335,000. Rohit Rathod is a senior analyst for Vortexa. He said that the Asian purchases were primarily driven by necessity, while European purchases were primarily driven by favorable shipping?economics and lower rates of transatlantic freight. About 5% of U.S. oil exports were barrels from strategic petroleum reserves. Oil barrels from the U.S. strategic petroleum reserve, which is currently releasing 172 million barrels to fight the spike in crude oil prices, are headed for European and Asian buyers. EXPORTS SET TO WEAKEN Exports are expected to slow in June after a bumper month of May. This is because the hopes for a peace agreement have eased supply concerns, and WTI's price discount to Brent has narrowed. WTI's Brent discount was wide in early May but it has narrowed in the second half. It is currently trading at around -$6 on Monday. Consultancy Energy Aspects estimated exports at about 4.9 millions bpd in June and 4.60 million for July. Georgios Sakelariou, chartering expert at Signal Maritime said that they expected exports to drop by more than 1 million bpd compared to the month of May. The company also reported seeing at least 10 fewer Very Large Crude Carrier for dates in June compared with May. Analysts and sources said that low inventories of WTI in the United States would also encourage more barrels to be stored domestically. This will reduce exports. Prices for the top U.S. Export grades, WTI Midland Crude at East Houston and Mars Sour Crude, both fell into July trade due to a decline in demand. MEH traded Friday at a $1.15 premium to WTI, compared to a $7.75 premium in April for delivery in May. Mars traded on Friday at a $1.50 premium, compared to a high of $27.50 in April.
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Elliott buys A$1 billion stake of Northern Star in Australia, calls for strategic review
Elliott Investment Management disclosed a stake in Northern Star Resources worth over A$1 Billion ($714.60 Million) on Monday. The company called for the Sydney listed miner to appoint a new 'CEO' and conduct a strategic review, including a possible sale. The activist investor from the United States cited Northern Star’s underperformance against peers, “repeated operations missteps”, seven missed outlooks in four years and “deeply inadequate disclosures when compared to senior global peers”. The Australian Financial Review reported the first stake on Monday. It said that Elliott would be among the top five shareholders of the miner. Northern Star didn't immediately respond to our request for a comment. The miner’s shares have dropped over 31% in the past year. Evolution Mining and Perseus Mining, on the other hand, are down by?2% and 8?%, respectively. Gold producer Kalgoorlie Consolidated Gold Mines has suffered operational'setbacks'. However, it launched a A$500m buyback program in April. It said that the current share price "does not fully reflect the future potential and quality of our assets". Stuart Tonkin, the managing director of the company, announced his resignation last month after 13 years. Elliott, a company that manages assets worth $79.8 billion, stated in its presentation that Northern Star should also re-establish its board of directors with directors with gold mining operational expertise. Elliott stated that Northern Star's value of its assets is materially underestimated. The Kalgoorlie gold mine, for example, has the potential to become one of the largest gold mines in the world. And the Hemi greenfield project is among the most appealing greenfield 'gold projects' in the developed world. Elliott said that "Northern Star’s recent pattern of operational missteps?, cost overruns, and inconsistent strategic directions demands urgent action."
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Orla Mining suspends Mexico mine operations because of union blockade and stoppage
Orla Mining announced on Monday that it had temporarily halted operations in its Camino Roco?goldmine in Zacatecas after what the company called an 'illegal work stoppage and blockade'?by unionized employees. We were unable to reach the union immediately for comment. Orla, in a press release, said that the dispute was over negotiations regarding worker productivity bonuses and profits-sharing entitlements. She added that "the work stoppage" did not comply with Mexican law including a strike notification. Orla has said that it is in discussions with the?union leadership' to resume safe operations and to return employees to work quickly. The Canadian miner stated that all equipment necessary?to maintain?the safety of the operation and the environment continues to be monitored and operated. On Tuesday, June 2, the Department of Federal Labour Conciliation will meet with representatives of the company and unions. Orla said that "given the current duration of the production interruption, and the nature heap leach processing the Company will assess the potential impact of the work stoppage?on its full-year guidance for Camino?Rojo," The heap leaching method is a mining technique whereby a chemical solution?is dripped on piles of crushed ore in order to?dissolve the precious metals such as gold and extract them. The mine produced 96.764 ounces of gold?in 2025. In May, Equinox?said that it would purchase Orla?Mining as part of an all-stock transaction to create a North American producer of gold worth approximately $18.5 billion. (Reporting and editing by Nia William in Bengaluru, Anushree?Mukherjee from Bengaluru)
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EU may maintain Russian oil price caps at $44 per barrel as a way to exert pressure on Moscow
EU diplomats told reporters on Monday that the European Commission could propose to leave the G7 price limit?on Russian oil unchanged when it reviews the price cap in July. This would be a 'effort to reduce Moscow's windfall resulting from the Iran War and the subsequent?oil shock. This 'idea' was floated by the Commission in meetings with European Union representatives over the weekend. It could be included in their 21st package against Russia in response to its war in Ukraine. Last year, the Group of Seven nations, including allies and the U.S. agreed to a price cap that would move based on the market. This was done in order to make the system more effective. In order to reflect the lower average oil price, the countries reduced the price of a barrel from $60 to $47.60. They then revised it down to $44.10 in January. The price cap was set to be implemented in late 2022. Its goal was to reduce Russia’s revenue sources without causing an oil price spike. Third?countries are allowed to buy Russian oil at the maximum price by using Western shipping services and insurance. The cap still applies to up to 30% of the?seaborne Russian crude oil, while the remainder is transported by a shadow-fleet. The West wants to maintain pressure on Russia but Moscow has been enjoying some financial relief since the Strait of Hormuz was closed. Prior to the beginning of the conflict on February 28, one-fifth the world's oil and natural gas flowed through the Strait of Hormuz. Sources said that the Commission could also propose that future price reviews cannot exceed $60 per barrel, regardless of current average prices, given the outlook for sustained high prices throughout the rest of the year. Brent oil futures traded around $93 per barrel on Monday, and analysts have raised their average 2026 oil price predictions 40% since February to 'around $90 a barrel. This measure may be a compromise for the idea that was stalled of a complete ban on maritime services?on Russian Oil, which would have?ended the cap system. The EU countries adopted the legal basis of the ban as part of the previous sanctions package. However, they added the caveat that a decision on the phase-in will not be taken until further coordination with G7. Reporting by Julia Payne, Editing by Paul Simao
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Stocks near record highs, as AI optimism overshadows Iran tensions
Investors were less concerned about the escalating tensions between Iran and the United States, which have driven oil prices higher, as global stocks held onto record highs. U.S. officials said they had struck Iranian military bases?over the weekend, and Iran's Revolutionary Guards responded by claiming to have targeted a U.S. base. Iran's news agency Tasnim reported on Monday that Iran has halted indirect?negotiations after Israel ordered troops into Lebanon to fight Tehran-backed Hezbollah. Fresh hostilities could complicate diplomatic efforts to bring an end to the three-month war. Wall Street's benchmark S&P 500 index was largely flat, but near record highs. Energy and technology stocks led gains, while consumer discretionary and materials and utilities were the biggest losers. The Dow Jones Industrial Average dropped 0.43%. The S&P 500 declined 0.05%. And the Nasdaq Composite rose by 0.11%. The pan-European STOXX 600 fell by 1.1%. Nvidia announced a new chip that will bring AI to laptops and desktops. This raises the stakes for the competition between other technology and semiconductor companies. The MSCI All-World Index fell?0.20% on Monday after reaching a new record high. Mark Hackett is the chief market strategist for Nationwide in Philadelphia. He said: "We're in an unusual market period where fundamentals and technicals are convergent to drive the markets higher. We have strong earnings revisions, relentless buying, and a strong economy." Investors fear being on the wrong side of a major development if it occurs. Brent crude futures jumped nearly 7%, to $97.43 per barrel.
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Sources say Holcim will get EU approval for the 1.85 billion Euro Xella acquisition, after offering to sell Romanian assets.
World No. World No. The agreement, announced last October, will allow Holcim to diversify into the 'growing European refurbishment market, worth approximately 250 billion euros per year. Holcim made an offer last month to sell certain assets to the European Commission. As part of the European Commission’s review of Holcim’s acquisition of Xella in Romania,?Holcim has offered to sell its standalone Adjud autoclaved aerated concrete business (AAC) in?Romania pending the regulator’s test of market," the statement said. Prior to this, the imminent EU approval as well as the proposed sale of Romanian business had not been reported. Zug, Switzerland-headquartered Holcim ?is betting on its building products business, which offers higher growth and profitability than its traditional cement ?and aggregates business, driven by demand for roofing, insulation ?and prefabricated systems. The?Xella agreement highlighted its focus on higher-priced sustainable products in order to boost its margins. The?Commission declined to comment on the Holcim offer. It is the EU?competition enforcer, and it has sought feedback from competitors and customers. The EU's?competition enforcer will decide by June 12 on the agreement. The exchange rate is $1 = 0.8612 euro (reporting by Foo Yon Chee; additional reporting by Oliver Hirt, Zurich; editing by Susan Fenton).
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Inflation worries are rising due to the Middle East conflict, and gold is down nearly 2%.
Gold prices dropped nearly 2% on Monday, as tensions in the Middle East increased 'inflation fears' and reinforced expectations that central bankers may continue to tighten monetary policy. As of 10:01 am EDT (1401 GMT), spot gold was down by 1.9%, at $4.451.65 an ounce. This is after it hit a two-week peak on Friday. U.S. Gold Futures dropped 2.5% to $4479.20. The U.S. Dollar firmed up, making metals in that currency more expensive for holders of other currencies. Jim Wyckoff is a market analyst for American Gold Exchange. He said that if bond yields continue to rise and rates start to stabilize or trend down, gold will be under pressure. Iran claimed it had attacked an American airbase following the weekend U.S. strikes on Iranian military targets. Iran's Tasnim News Agency reported that Iran's negotiation team had'said' it would stop exchanging messages with the United States via mediators. Oil prices continued to rise, adding to inflation concerns linked to the Iran war, which could cause central banks to increase interest rates in order to combat rising price pressures. According to CME Group’s FedWatch?tool, traders have estimated that there is a 56% probability of at least one rate hike in the U.S. by year's end. Gold is often seen as a hedge against inflation, but its appeal tends to diminish in an environment of high interest rates because it doesn't generate any yield. Participants in the market will be focusing on a series U.S. job data releases that are due to be released?this coming week. They'll also pay attention to remarks by Federal Reserve officials. Ole Hansen, analyst at Saxo Bank, said that once the geopolitical environment stabilizes and the energy crisis begins to fade away, investors will refocus on structural themes which have supported the bull market for?gold in recent years. He said that he expects central banks to continue being net buyers in the next year. Spot silver dropped?1.7% at $73.96 an ounce. Platinum lost 0.4% to $1,908.91. Palladium fell by 0.8% to $1343.04. Morgan Stanley stated in a Friday note that palladium was moving towards equilibrium as the supply constraints were offset by a weakening of auto demand. (Reporting and editing by Shailesh Kuber and Barbara Lewis; Ashitha Shivaprasad, Bengaluru)
Zelenskiy claims that the Ukrainian military can strike Russian logistical systems throughout occupied territories
Volodymyr Zelenskiy, the President of Ukraine, said on Monday that Ukraine was now capable of 'hitting Russian logistical?throughout occupied areas of Ukraine' and had caused shortages of fuel throughout Crimea and Russian-held regions.
In his video nightly address, Zelenskiy said: "Our troops can now reach Russian military logistic across the?entire depth of the temporarily-occupied territories."
"In reality, there are virtually?no roads safe for the occupiers in the south and the east of our country."
In recent months, Ukraine has intensified its?strikes against targets at medium range and others hundreds of kilometers away from Ukraine's border. It is focusing on Russia’s oil industry.
Zelenskiy stated that between January and May, Ukrainian forces struck 15 Russian oil refineries.
He said that Ukraine's actions provided "further evidence that there will not be peaceful times for the occupier?on our land."
This is also reflected by shortages. Above all, fuel shortages are a problem in Crimea and other areas which remain under occupation.
After Ukrainian drone attacks slowed down road supplies in the south-eastern part of Ukraine, drivers in Crimea, a Ukrainian peninsula that was annexed to Russia in 2014, faced a rationing of gasoline on Monday. (Reporting and editing by Chris Reese; Oleksandr Kozoukhar and Ron Popeski)
(source: Reuters)