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Gold prices rise as inflation pressure is reduced by the soft US employment report
Gold prices remained nearly unchanged despite hitting a six month low on Thursday. This was due to a weak U.S. employment report, which offset the pressure of strong inflation data. It also increased expectations for higher interest rates in advance of the Federal Reserve meeting next week. At 11:27 am, spot gold was unchanged at $4.081.99 an ounce. ET (1527 GMT), having hit its lowest level since late November during the earlier session. U.S. gold futures for August were down 0.7% to $4,103.60. Data revealed that U.S. Weekly Jobless Claims?rose to 22,99,000 for the week ending June 6, exceeding expectations of 219,000. David Meger of High Ridge Futures, director of metals and trading, said that a weaker job market would support gold prices. He added that "we have seen?inflationary pressures increase both yesterday and today; the potential for higher interest rates has supported the dollar and pushed the gold market." U.S. producer price increases were higher than expected in May. Data on Wednesday also showed that U.S. consumer prices rose at their fastest rate in three years in the month. Since the U.S. and Israel war against Iran began in late February, spot gold has been under pressure as rising oil costs fuel expectations of high interest rates for a prolonged period. Gold is often viewed as a hedge to inflation but higher interest rates can weigh down on the metal. Investors are awaiting the Fed meeting next week, Kevin Warsh's inaugural as chairman. Rates are expected to remain unchanged. According to CME Group's FedWatch, traders are currently pricing in a 69% probability of an increase in the U.S. interest rate by?December. The U.S. and Iran exchanged air strikes on the geopolitical scene, with President Donald Trump threatening further strikes if Tehran did not agree to an immediate 'peace deal. Iranian sources claim that talks have intensified on a preliminary agreement. Silver spot rose 0.5%, to $64.04 an ounce. Platinum gained 0.6%, to $1674.76. Palladium rose 3.1%, to $1252.99. (Reporting and editing by Jonathan Ananda in Bengaluru, Anushree mukherjee in Bengaluru, Noel John)
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The US military would be at risk if they were to take Kharg Island
Donald Trump stated on Thursday that he wanted to seize Kharg Island, the?Iran oil infrastructure hub. Analysts believe the U.S. could seize the Island 'quickly', but that the move would put U.S. soldiers in danger and could prolong the war rather than shorten it. Where is Kharg Island and why is it important? Kharg Island is located in the northern Gulf about 400 km (483 miles) north of the Strait of Hormuz. It is located in water that is deep enough for tankers to dock, even if they are too big to reach the shallow waters of the Iranian coast. Before the start of the war on February 28, 90% of Iran's oil was exported from this island. Seizing the island would disrupt Iran's oil trade and put enormous pressure on Tehran. Iran is the third-largest producer of oil in the Organization of Petroleum Exporting Countries. What is the'state of play? U.S. forces conducted strikes against Kharg between March and April. Trump claimed that they had "totally destroyed" all military targets and suggested they could target the oil infrastructure next. U.S. officials said at the time that the administration was considering whether or not to send ground troops to the island. Kharg hasn't been attacked since then, but the United States continues to blockade Iranian ports and has targeted oil tanks near the island. Trump said on Thursday that he would "like" to take over the oil hub but did not give any specific plans. "My preference was always to take Kharg Island... that's my preference." "I don't think America can stomach it," he said to Fox News. The war has already severely reduced Iran's oil exports. CAMERA-WIRING DRONES Experts said that U.S. forces could seize the island fairly quickly. However, this would not necessarily result in a swift and decisive ending to the war. In March, Ryan Brobst and Cameron McMillan from the Foundation for the Defense of Democracies stated that a seizure or occupation of Kharg Island would be more likely to escalate and prolong the war rather than to bring about a decisive victory. They claimed that U.S. soldiers would be subjected to missiles and drone attacks. This could include "first-person-view drones", which are used by millions of people in Ukraine. They said that if the Iranian regime were to launch a successful attack, they would release online videos showing the deaths of American soldiers. TROOPS WILL NEED BACKUP Former commander of U.S. Central Command Joseph Votel told TWZ.com that 'while only 800-1,000 troops will be needed to hold Kharg Island they would also need logistical support and protection. Votel stated that the troops would be vulnerable and he doubted if capturing the island would give any tactical advantage. He called it "odd", but the U.S. would do it if necessary. (Reporting and editing by Andy Sullivan and William Maclean; reporting by David Brunnstrom)
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Dollarama's sales continue to grow, topping quarterly estimates
Dollarama, a discount retailer in Canada, beat its quarterly profit and sales estimates on Thursday. Cost-conscious shoppers sought out Dollarama for low-cost essentials. Its shares rose 7% at the start of trading. The high cost of gasoline linked to the Middle East war has put pressure on household budgets. Walmart, Target and Dollar Tree, as well as Dollar General, Dollar Tree, and other discount retailers in the United States have flagged a cautious environment for spending over the past few weeks. Dollarama also forecast a 3%-4% growth in comparable sales for the year. CEO Neil Rossy said: "We expect that our strong value proposition will continue to resonate with customers." The Reject Shop, a discount chain in Australia, was purchased by the company to expand their business outside of Canada. The company also operates in Mexico via its Dollarcity subsidiary which continues to grow. Brian Morrison, TD Cowen's analyst, said: "Progress in Mexico and Australia confirms our?view that the business model can be portable and they are the next engines for outsized growth." Dollarama reported net sales of C$1.85 ($1.32 'billion) in the?first three months, compared to analysts' estimates of C$1.82?billion, according to LSEG data. It reported quarterly earnings of C$302.3 millions, or C$1.11 per?share for the three months ending May 3. This compares to C$273.8million, or C$98 Canadian cents, per?share from a year earlier. The company's earnings were C$1.05 on a?adjusted base, compared with the expected 99 Canadian cents. (1 Canadian dollar = 1.3981 dollars) (Reporting and editing by Vijay Kishore in Bengaluru)
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Gold prices rise as inflation pressure is reduced by the soft US employment report
After hitting a six month low on?Thursday?, gold prices remained largely?stable? as the strong inflation data offset the pressure of a weak U.S. jobs survey. This also increased expectations for higher interest rates in advance of next week?s Federal Reserve meeting. At 9:17 am, spot gold was unchanged at $4.076.88 an ounce. ET (1317 GMT), having hit its lowest level since November 21, earlier in the session. U.S. gold for August delivery was down 0.9% to $4,097.10. The data showed that U.S. Weekly Jobless Claims? rose to 229,000 in the week ending June 6, exceeding expectations of 219,000. David Meger of High Ridge Futures, director of metals and trading, said that a weaker job market would support gold prices. He added that "we have seen?inflationary pressures continuing to rise, both yesterday and today; the potential for higher rates has supported the dollar and pressed the gold market." U.S. producer price increases were higher than expected in May. Data on Wednesday also showed that U.S. consumer prices rose at their fastest rate in three years in the month. This was boosted by surging energy prices. Since the U.S. and Israel war against Iran began in late February, spot gold has been under pressure as rising oil prices fuel expectation of long-term high interest rates. Gold is seen as a hedge against rising inflation but higher interest rates can weigh down the metal. Investors await the Fed meeting next week, Kevin Warsh's inaugural as chairman. Rates are expected to remain unchanged. According to CME Group's FedWatch, traders currently "price" a 69% probability of an increase in the U.S. interest rate by December. The U.S. and Iran have traded air strikes on the geopolitical scene, with President Donald Trump threatening further strikes if Tehran does not immediately agree to a 'peace pact. Iranian sources say that talks have intensified on a preliminary agreement. Silver fell by 0.3% per ounce to $63.52, platinum rose 0.4% to 1,670.85 dollars, and palladium increased 1.7% to $1236.58. (Reporting and editing by Thomas Derpinghaus, Jonathan Ananda and Noel John from Bengaluru)
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Mukesh Ambani's Reliance Group enters Mumbai slum redevelopment sector
Reliance Group, owned by Indian billionaire Mukesh Ambani, has won the bid to redevelop Dharavi, a slum of 101.4 acres in western Mumbai. This is its first entry into a market where Adani Group, a rival, is already redeveloping Dharavi, one of Asia's largest slums. The Mumbai-based Slum Rehabilitaion Authority announced late Wednesday that a consortium led by Reliance 4IR Real Estate?Private Limited won the bid to develop the Juhu Galli cluster of slums in Andheri. It said that the project will deliver over 28,000 homes of rehabilitation for those who are eligible and currently live in Juhu Galli. JSW Group, a metals giant, and Shapoorji Pallonji Group also submitted bids. Slum rehabilitation in Mumbai was traditionally handled by mid-sized developers working under the Slum Rehabilitation Authority. Projects were often delayed due to fragmented landholdings or the need to obtain consent from residents. Maharashtra, which is under the Bhartiya Janata Party of Prime Minister Narendra modi, has made policy changes in recent years that have brought large conglomerates into the sector. In November 2025 the?state announced the new framework for redevelopment of slum clusters, which allows developers to develop large contiguous lands of at least fifty acres without the need of consent from residents. Developers can also benefit from higher building limits and additional rights to develop, allowing them to create more space for sale once the slums are redeveloped. Reliance must pay 7 billion rupees (73 million dollars) to the Slum Rehabilitation Authority over the next two years in order to cover the temporary rents of the residents. The authority also said that it must?deposit an additional?one-year of temporary rent costs, and a performance warranty of 1 billion rupees (about $10 million) to cover the residents' temporary rentals. The Slum Rehabilitation Authority stated that "the successful bidding process shows the growing interest among India's top corporate houses to partner with the government in order to tackle Mumbai's housing issues through large-scale redevelopment projects." Adani Group was awarded the contract to transform the Dharavi Slum in Mumbai by 2023. However, the project has been plagued with legal issues, and residents have protested. (Reporting and editing by Susan Fenton; Dhwani Paandya)
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ROI-Red-hot SpaceX IPO may burn retail buyers: McGeever
The media frenzy around Elon Musk's SpaceX's public listing is raging. This poses a serious risk to investors, especially retail investors. In a large initial public offering (IPO), the share allocation to small investors is typically less than 10%. Large institutional investors are left with the majority of newly listed shares. This is a good thing for small investors, as a new launch can be a flop during the first few days of trading or highly volatile in weeks and months to come. Large institutions have deep pockets and the ability to tolerate market volatility. They also have a high threshold for loss. Retail investors cannot expect to experience the same level of risk. SpaceX's IPO is not typical, and it's not just the $1.75 trillion valuation. Retail investors will receive around 30% of $75 billion worth of shares. This leaves people more vulnerable to price volatility and volatility than normal. RED FLAGS There has never been a better time for individuals to participate in a major IPO. Fidelity Investments took the unprecedented step of lowering their eligibility requirements for participating in an IPO, from $500,000 to only $2,000. Robinhood Markets clients, SoFi customers, and E*Trade clients are not required to have any money in their account, whereas Charles Schwab requires a minimum of $100,000. Small investors may be lured in. Retail flows tracker Vanda Research reports that the usual increase in equity purchases after U.S. Tax returns in April was tepid. This could be because some investors were raising liquidity in anticipation of the SpaceX IPO. Retail investors should be wary of large tech IPOs. Sam Grelck is an equity strategy analyst with Truist Advisory services. He has tracked 30 tech-related IPOs in the last 15 years. His findings indicate that a significant drop within SpaceX?s first year of trading is highly probable. Within 12 months after the first day of trading, shares in each of these 30 companies experienced a double-digit drop. Some of the drawdowns reached as high as 90%, while the average was only 55%. He advises investors to be ready for "elevated volatility" and possible significant drawdowns, when investing in new listings. His findings show, however, that even if the performance is uneven, returns are positive for the first three month following the IPO. The returns over six and twelve months tend to be negative. The ride is always bumpy. BOLD ASSUMSIONS Will SpaceX's ride be smoother? The numbers that support the IPO seem to suggest otherwise. Goldman Sachs, one of the underwriters for the IPO, estimates that by 2030, total revenue will grow from $18.7bn to $474bn, and its AI segment's revenue will increase 100 times to $322bn from $3.2bn. Anthony Saglimbene, Ameriprise's chief market strategist, says: "By any reasonable measure that is a bold assumption." Morgan Stanley analysts, who are also underwriters, have forecast that total revenue will reach $3.4 trillion in 2040. SpaceX waived the requirement that employees wait for six months to sell their shares. Analysts warn that early investors and employees could profit from their positions by selling shares to retail investors. A rush of sales from insiders of a company could be met by a wall of?buying?from individual. It might not be, and many retail investors may suffer big losses during a downturn while sophisticated shareholders leave early. At the top? Many analysts warn that, on a broader level, the mania around the SpaceX IPO signals that the?top of the market is now. Of course, not everyone is in agreement. Noah Weisberger is the chief U.S. Equity Strategist at BCA Research. He notes that only 20% of mega IPOs occur during market peaks. The previous mega-IPO wave is nothing compared to what's coming up in the next few months. SpaceX will be launching a monster IPO, followed by AI darlings OpenAI & Anthropic whose offerings are expected to reach $1 trillion valuations. Retail interest in other mega-public?listings is sure to skyrocket if?SpaceX proves a success. If it fails, those who invested their?savings in the largest IPO ever will be searching for shelter. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
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KKR creates $10 billion AI Infrastructure Company with Nvidia and Vistra
A KKR led group launched a new 'company' on Thursday with more than 10 billion dollars in?committed?capital to finance the buildout of AI -infrastructure. This is the latest attempt?by a alternative -asset -manager to capitalize on the growing demand for AI-services. Kuwait Investment Authority (KIA), AI chip giant Nvidia, and utility firm Vistra, are all anchor investors in Helix Digital Infrastructure. The company is led by Adam Selipsky, former Amazon Web Services CEO. The surge in U.S. construction of data centers has caused a shortage of electronic components and strain on power supplies, slowing the development of key facilities for Big Tech's AI goals. Private equity is a funding source for this industry because of?the rising costs and the?growing size of projects. Apollo and Blackstone announced on Tuesday that they will finance a $35 Billion expansion of AI capability for Anthropic by using Broadcom's customized chips as part a new partnership. Vistra, a preferred power supplier, will replace Nvidia as the preferred AI datacenter designer. Helix 'can add more institutional investors once the founding 'commitments have been?closed. KKR said that their infrastructure platform, which manages assets worth over $100 billion, includes $70 billion across digital and power. Selipsky stated that "large users of digital infrastructure need to reduce complexity in order to unlock new capacities." He left his position as AWS's chief in May 2024 after having doubled the division's operating profit and sales since he was appointed in 2021. (Reporting by Anhata Rooprai in Bengaluru; Editing by Shilpi Majumdar)
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Russell: China's May data is confusing, but the Iran war has not affected iron ore prices.
The U.S. and Israel war against?Iran has not affected the price of iron ore, but this relative calm hides a shift in the dynamics of the steel raw material. China purchases about three quarters of the global seaborne iron ore and uses it to feed mills that produce just over half of the world's total steel. Iron ore for the United States is largely sourced by Australia and Brazil. Other producers such as South Africa and Guinea contribute a small amount. This trade bypasses the Strait of Hormuz. The narrow waterway that connects Iran to Oman has been closed off since February 28, when the U.S., Israel and other countries launched an air campaign against Iran. Since the beginning of the conflict the iron ore price has remained relatively stable, unlike other commodities such as crude oil, refined goods, liquefied gas, coal and aluminum. So far in this year, Singapore Exchange iron ore contract prices have been trading at a range of $14 per metric tonne with a base price of $105 per ton. The price of marine bunker fuel rose from $98.20 per ton on February 20 to $111.91 per ton on May 11, amid concerns among Chinese buyers about a possible shortage due to the closure of the Strait of Hormuz. Iron ore prices have also moderated as concerns about fuel shortages have eased. They ended at $101.65 per ton on 10th June. Customs data show that China imported 516.26 millions tons of coal in the first five month of this year, an increase of 6.3% compared to a year ago. MAY DATA DISCREPANCY According to official statistics, imports in May were 97.71 mt, a 6% drop from April, and a 3-month low. The commodity analysts DBX Commodities (DBX) and Kpler (Kpler) had predicted a soft imports in May. DBX estimated seaborne iron ore arrivals in May at 105.56 millions tons, while Kpler estimated 106.4 million. Although data from tracking services does not always match up with customs, an 8 million ton gap for a single month is rare. It is likely that official numbers will rebound in June, as the lower May import number may have been due to cargoes arriving at the end of the calendar month being pushed back into June for assessment. China's imports of iron ore have performed better than China's steel industry. The latter has seen its output fall by 4.1% to 331.12 millions tons in the first quarter of this year. Iron ore inventories in China's port, which hit a record of 166.91 millions tons in the week ending March 13, can explain a part of the gap between the imports of solid iron ore and the production of soft steel. SteelHome consultants say that they have since declined to 159.09 millions tons during the week ending June 5. The 132,0 million tons of the same week 2025 are 21% higher. The decline in domestic iron ore grades and volumes is another factor that drives imports. According to MySteel, China's first-quarter iron ore production was 326.8 mt, a 1% decrease from the previous year. The drop in 2025 is 2.8%, from 1.04 billion tons in 2024 to 983.7 millions tons. China's iron ore is a mix of iron and other minerals, with a content between 20% and 30%. This means that it must be upgraded in order to match import grades of 60% to 65%, which is a costly, energy-intensive process. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
US producer prices rise more than expected in may amid a jump in energy costs
The Middle East conflict has driven up the price of energy products, resulting in a?largest annual gain in three-and-a half years.
The Labor Department's Bureau of Labor Statistics announced on Thursday that the?Producer Price Index?for?final Demand?advanced 1.1%?last month?after a downwardly-revised 1.1% surge in March.
The economists polled had predicted the PPI would rise 0.7%, after an earlier reported 1.4% increase in April. The PPI rose 6.5% in the year to May, which is the highest increase since November 2022. Nearly 80% of PPI's rise was due to a 2.8% increase in goods prices, mainly energy products. Prices of?services rose by 0.3%.
Fuel prices have risen due to the U.S. and Israeli war against Iran. This includes gasoline and diesel. The Strait of Hormuz shipping restriction has strained global?supply chain, leading to shortages of a variety of goods including fertilizers and aluminum.
On Wednesday, the government announced that consumer prices rose above 4% for the first three-year period.
In order to achieve its inflation target of 2%, the U.S. Central Bank tracks Personal Consumption Spending price indexes.
Financial markets have priced in an increase of the Federal Reserve's rate due to rising inflation and labor market stability. The bar for tightening policy is high, say economists. They argue that the oil price shock has so far been confined to transportation. At its next meeting, the U.S. Central Bank is expected to maintain its benchmark overnight interest rates in a range of 3.50%-3.75%. The Fed is expected to abandon its easing policy, but economists are not so sure.
After the CPI report was released, economists predicted PCE inflation would?increase by 0.4% in may after?rising at the same rate in April. Forecasts for PCE inflation were forecast to rise 4.0% over the 12-month period ending in May. This would be the biggest increase since May 20,23. It had risen 3.8% in April. Reporting by Lucia Mutikani; Editing and proofreading by Andrea Ricci
(source: Reuters)