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Gold recovers from a five-week low, but inflation worries cap gains
Gold prices rose from the 'five-week low' they hit the previous day, but gains were modest as high crude oil prices kept inflation concerns alive and clouded U.S. rate outlooks. After a drop of more than 2% on Monday, spot gold was up 0.5% at $4,543.33 an ounce as of 0615 GMT. U.S. Gold?futures delivered in June rose 0.4% to $4,553.10. Ilya Spirak, the head of global macro at Tastylive, said that prices seem to have digested a little after the return of "war trade" across markets on Monday. Gains were however capped by the fact that Treasury "yields" and the dollar rose as the rebound in crude oil stoked inflation concerns. Spivak stated that this weighed against gold, which is non-interest bearing and anti-fiat. Brent crude was hovering?above $113 per barrel, as the U.S. continued to negotiate a truce with Iran while exchanging blows in the Strait of Hormuz. U.S. Military said Monday that it destroyed six Iranian small vessels and intercepted Iranian drones and cruise missiles, as Tehran tried to thwart the new U.S. Naval effort?to open up shipping through Strait of Hormuz. Dollar-priced materials become more expensive to holders of currencies other than the U.S. dollar. While higher crude oil prices can increase inflation, they also increase the probability of higher interest rates. Gold is considered a hedge against inflation, but high interest rates can make other assets that yield more attractive. This reduces its appeal. Markets now see a 37% probability of an increase by March 2027 compared to 27% a week ago. Investors are now awaiting a number of important?U.S. This week's data includes job openings, the ADP employment report and the April payrolls. Silver spot was up 0.4%, at $73 an ounce. Platinum gained 1.4%, to $1971.86, while palladium was up 1.1%, to $1495.43. (Reporting and editing by Rashmi aich and Subhranshu Sahu in Bengaluru.
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Oil prices remain high despite the US-Iran hostilities
The yen was also a focus for traders after it briefly jumped in the previous session, fueling speculation of another 'round' of intervention from Tokyo. The yen was also in traders' sights after it briefly rose during the previous session. This sparked speculation about another round of intervention by Tokyo. The EUROSTOXX50 futures fell 0.3%, FTSE futures dropped 1% and DAX futures declined 0.4%. In Asia, MSCI’s broadest Asia-Pacific share index outside Japan fell 0.6% on thin trade. Markets in Japan and South Korea were closed for holidays. Hong Kong's Hang Seng Index dropped more than 1%, while China's CSI300 Blue-chip Index was barely changed. On Monday, the U.S. launched new attacks on the Gulf as it fought for control of the Strait of Hormuz through dueling maritime blockades. This came shortly after U.S. president Donald Trump launched a new initiative to move stranded ships and tankers through this vital energy-trade chokepoint. Maersk reported that the Alliance Fairfax, an American-flagged vessel carrier operated by Farrell Lines, "exited" the Gulf on Monday via the Strait of Hormuz, accompanied by U.S. Military assets. The renewed hostilities still jolted the markets and served to remind us that the Middle East war is far from over. "We began yesterday with high expectations that operation?Project Freedom? would be a success, on the ground. That it was being marketed as a more humanitarian effort," said Tony Sycamore. But, as we saw, they didn't take that bait at any rate. This really indicates that the stalemate is still in place. It's been an extremely shaky beginning." Brent crude futures dropped 1.3% to $112.93 per barrel while U.S. Crude fell 2.3% to $100 per barrel. Both had risen in the previous session due to increased concerns about supply disruption. Investors were also preparing for this week's earnings reports, including those from Advanced Micro Devices, Pfizer, and others. S&P Global Market Intelligence data shows that 83% of S&P500 companies have already reported and have beaten their EPS estimates. 78.2% have also beaten their revenue estimates. Nasdaq Futures climbed 0.26%, and S&P500 futures were up by 0.17% after both indexes had ended lower overnight. Jeff Buchbinder is the chief equity strategist of LPL Financial. He said that AI-driven expenditures will continue to drive earnings growth in the S&P 500, with the technology sector leading the way. YEN INTERVENTION WORT After Monday's brief surge, the yen has been stable at 157.26 to the dollar. The Japanese currency reached an intraday high of 155.69. Satsuki Katayama, the Japanese Finance Minister, spoke out on Monday against speculative foreign exchange trading. Market participants are on high alert for further intervention. Abbas Keshvani is Asia Macro Strategist for RBC Capital Markets. He said that authorities may intervene again, if the dollar/yen keeps testing 160, which they have historically protected. In 2022, Tokyo fired "three volleys" of intervention within a few week. He said: "We believe that the intervention will only act as a cap on USD/JPY and not as a catalyst for a protracted yen strength." The Australian dollar, which is traded in other currencies, was last 0.08% down at $0.7162 after the Reserve Bank of Australia raised rates on Tuesday for the third time this calendar year, a move that was widely anticipated. Meanwhile, the U.S. Dollar? firmed up on demand for safe havens. A slew of data, including Friday's nonfarm employment report for April, could influence the Federal Reserve's policy outlook. The U.S. economy is expected to have gained 62,000 jobs after March's 178,000-strong gain. However, problems with seasonal adjustments create a lot of uncertainty. The markets currently expect that the Fed will leave its interest rate policy on hold for the rest of this year due to the inflationary pressures from the global energy crisis. Spot gold, meanwhile, rose by 0.3%, to $4,533.68 per ounce. This is well within the ranges of recent trading. (Reporting and editing by Christopher Cushing, Muralikumar Aantharaman, and Rae Wee)
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Nine workers die in Colombia coal mine explosion
The national mining agency announced on Monday that a coal mine explosion had killed nine workers and injured six others in Colombia's Cundinamarca Province. This comes several weeks after the agency issued recommendations to reduce the risk of the site. The explosion occurred in the La Ciscuda mine, operated by Carbonera Los Pinos. The company was unable to be reached immediately for comment. The mining agency stated that the accident appeared to be caused due to a buildup of gasses. It also said that during a visit on the 9th April, it identified methane and other gases that could be dangerous. The ANM said in a statement that coal deposits could contain concentrations of coal dust and methane. Six workers survived and were treated at a regional hospital. The majority of serious accidents occur at coal and gold mines that are illegal, informal or do not have proper safety measures. Reporting by Nelson Bocanegra, Writing by Daina Bet Solomon, Editing by Christian Schmollinger & Lincoln Feast.
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Santos says gas tax proposal caused reputational damage to Australia
Santos' head said that Australia's reputation for being a stable destination for energy investments was damaged by the proposal to impose 25% tax on gas exports, even after the federal government had backed away from it. Kevin Gallagher, CEO of Santos, said that the tax proposed by lawmakers was motivated by "activism", rather than by economics. He said that "common sense" prevailed when the centre-left Labor Government backed away from the tax proposal. He warned that the prospect of taxing energy projects with long-term lives had unnerved foreign investors. He said that repeated interventions and 'threats of changes' had created anxiety among foreigners, on whose capital Australia relies to fund large oil & gas developments. He said that capital flows to countries where they feel "welcomed and safe", and instability of policy could divert investments elsewhere. Gallagher, speaking at an event in Sydney, said: "It is impossible to underestimate the damage done." Gallagher reiterated his concerns that global markets had underpriced geopolitical risks, stating that investors hadn't fully factored the potential volatility of the?U.S. and Israeli war against?Iran. He warned that expectations of a rapid resolution were overly optimistic. The conflict could continue, "delaying the stabilisation of markets and keeping commodity prices volatile as strategic reserves will eventually need to be built up." He said: "There is a belief that everything will return to normal very quickly. The markets will be balanced, and everything will return to normal." "I don't think so." (Reporting and editing by Thomas Derpinghaus; Byron Kaye)
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Gold recovers from a five-week low, but inflation worries cap gains
Gold prices rose on Tuesday, but gains were modest as crude oil prices remained high and inflation fears remained alive. After a drop of more than 2% on Monday, spot gold increased 0.3% by 0417 GMT to $4,533.40 an ounce. U.S. gold futures for delivery in June rose 0.2% to $4,542.50. Ilya Spirak, the head of global macro at Tastylive, said that prices seem to have digested a little after the return of "war trade" across markets on Monday. Gains were however capped by the rise in Treasury "yields" and the dollar as an increase in crude oil stoked inflation concerns. Spivak stated that this weighed against gold, which is non-interest bearing and anti-fiat. Brent crude was hovering?above $113 per barrel, as the U.S. continued to negotiate a truce with Iran while exchanging blows in the Strait of Hormuz. The U.S. Military said Monday that it destroyed six Iranian small vessels and intercepted Iranian drones and cruise missiles, as Tehran tried to thwart the new U.S. Naval effort to?open shipping through Strait of Hormuz. Dollar-priced materials become more expensive to holders of currencies other than the U.S. dollar. While higher crude oil prices can increase inflation, they also increase the probability of higher interest rates. Gold is a good inflation hedge but high interest rates can make other assets more appealing. Markets now see a 37% chance that the U.S. interest rate will increase by March 2027 compared to 27% a week ago. Investors are now awaiting a number of important U.S. data this week. These include job openings, the ADP employment report and April payrolls. Silver spot was unchanged at $72.73, platinum rose 1% to $1964, and palladium gained 0.8%, reaching $1,492.27. (Reporting and editing by Rashmi aich and Subhranshu Sahu in Bengaluru.
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Indian shares fall, rupee falls to record low due to high oil prices
On Tuesday, Indian shares dropped and the rupee reached a new low as investors assessed March-quarter earnings. As of 9:56 a.m. IST, the?Nifty 50 index was down 0.45% to 24,010.20 and the BSE Sensex fell 0.41% at 76.954.34. The rupee has reached a new low. Brent crude soared to an intraday peak of $115.3 per barrel on Monday, after Iran intensified?attacks against the UAE and vessels in the Middle East Gulf region, including several in the Strait of Hormuz. Oil prices remain high despite the fact that they have dropped to $113 early on Tuesday due to a'signal the U.S. Navy will loosen Iran's closing of the Strait. The third largest importer of crude oil in the world, higher?prices for crude are negative as they increase inflationary pressures. They also drag down economic growth and corporate profits. The resumption in hostilities along the Hormuz Strait, and the subsequent rise in oil prices, are headwinds to the markets, said VK VK Vijayakumar. He added that the rupee's slide is not favourable for foreign?flows. The foreign outflows of Indian equity have already exceeded the 2025 record outflows. Twelve of the sixteen major sectors posted losses on?the day. Small-caps and mid-caps, which are broader, were less affected. Financials dropped 0.75%. The top two stocks of the benchmark indexes, HDFC Bank and ICICI Bank, each fell 1%. Larsen & Toubro lost 1.3% before its quarterly results, later that day. Drugmaker?Wockhardt has risen 10.5% in the March quarter after swinging into a?profit. After reporting a profit increase of more than twice as much in the fourth quarter, Realtor Sobha rose 3.6%.
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What is freedom? What is freedom?
Rae Wee gives us a look at what the European and global markets will be like tomorrow. The operation "Project Freedom", led by U.S. president Donald Trump, hasn't started off well. The U.S. flagged Alliance Fairfax, operated by Maersk, may have left the Gulf via the Strait of Hormuz with U.S. Military assets. The U.S. also claimed to have destroyed six small Iranian boats. An oil port in United Arab Emirates that hosts a large U.S. base was also set on fire by Iranian missiles. Seoul's Foreign Ministry said, however, that the authorities would investigate the cause of the fire on a South Korean operated ship in the Strait. Shipping?in the Strait of Hormuz is largely at standstill. Tuesday's markets were in a precarious state due to the fragility of the U.S./Iran ceasefire. Stocks in Asia fell and oil prices remained well above $100 a barrel. The Westpac Banking Corporation in Australia was the latest to warn of the dangers posed by the Middle East conflict, after reporting lower than expected?first-half profits. The global energy crisis is causing governments in Asia to suffer more and more as they scramble to find alternate fuel sources in order for their economies not be affected by the worst. Data on Tuesday revealed that the Philippine's annual inflation rate accelerated to its highest level in three years in April. A surge in fuel prices raised the possibility of further policy tightening. The earnings season has also begun, with the likes of Pfizer and AMD set to announce their results later that day. S&P Global Market Intelligence data shows that 83% of S&P500 companies have already released results and have beaten their EPS estimates. 78.2% also exceeded their revenue estimates. A number of 'central bankers from the Bank of England and the European Central Bank, as well as the Federal Reserve, are due to speak at various events. This follows the policy meetings last week, where several turned more hawkish. Tuesday's key?developments: Sam Woods, Bank of England speaks Christine Lagarde, Philip Lane and the European Central Bank speak Michael Barr, Federal Reserve and Michelle Bowman talk - Earnings from AMD, Pfizer KKR PayPal AMC Entertainment Job openings in the U.S.
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PMI: Growth in the UAE's non-oil private sectors slows down as Iran War weighs on it
A?survey on Tuesday showed that the UAE's private non-oil sector expanded at the slowest rate since February 2021, as the Iran War?hammered tourism and shipping, impacting sales and exports. The S&P Global Purchasing Managers Index for the UAE fell from 52.9 to 52.1, but remained in growth territory over 50. The subindex fell to 52.5 from 54.5 in March, the lowest reading in over five years. The drop in foreign sales, excluding the pandemic season, was the biggest since the survey started in August 2009. The output still increased?strongly but at a slower pace. This was helped by the existing infrastructure and project work. The purchasing growth was'modest' as high costs, weak sales, and supply constraints slowed demand. David Owen, Senior Economist at S&P Global Market Intelligence, said: "The non-oil sector in the?UAE?showed a further decline in momentum during April. Operating conditions showed their lowest performance since more than five year," "That said... the strength of the non oil private sector, as highlighted by yet another increase in output, means that companies expect to see growth continue for the next twelve months." The International Monetary Fund said in April that energy disruptions caused by the Iran War will have a 'heavy impact' on the economies of Gulf oil and natural gas exporters. In April, the UAE experienced a sharp increase in price pressures. Input cost inflation reached its highest level since July 2024 and sales prices rose at their fastest rate since June 2011. Expectations for the coming year have risen to a 3-month high. The headline PMI for Dubai, the region's main business and tourism center, fell to 51.6 from 53.2 in march, a 55 month low. However, more firms expressed optimism regarding a recovery of demand conditions in general. (Reporting and editing by Hugh Lawson; Staff Reporting)
Palm oil prices rise on Malaysian biodiesel optimism
The price of Malaysian palm oil futures rose for the second consecutive session on Tuesday as investors became more optimistic about Malaysia's plans to produce biodiesel. By midday, the benchmark palm 'oil contract on the Bursa Derivatives Exchange for July 'delivery' had gained 42 ringgit (0.91%) to $4,664 ringgit (1,177.18 USD per metric ton). Malaysia will start producing biodiesel in June with a blend of 15% palm oil, called B15. This will help to lower diesel prices, said the country's vice prime minister on Monday.
Paramalingam Supramaniam is the director of brokerage Pelindung Bestari. He believes that for a successful B15 biodiesel to be implemented in Malaysia, it would take close to 1,5 million metric tonnes of crude palm oil per year.
Supramaniam said that traders will also be waiting for the full-month production numbers for April from the Malaysian Palm Oil Association, which are expected to provide a good indication of the output trends in the second quarter.
The Chicago Board of Trade reported a 0.33% decline in soyoil.
The Dalian Commodity Exchange will resume trading after the holiday on May 6.
Palm oil follows the price movement of rival edible oils as it competes to gain a share in the global vegetable oils markets. Oil prices fell by more than 1% following a 6% increase in the previous session, based on signs that the U.S. Navy was loosening Iran’s grip on the Strait of Hormuz.
Palm oil is less attractive as a biodiesel feedstock due to weaker crude oil futures.
The ringgit (the currency used to trade palm oil) fell 0.3% against the US dollar, making it slightly cheaper for those who hold foreign currencies. Technical analyst Wang Tao believes that palm oil could extend its?gains to a range between?4,693 and 4,713 per metric ton. This is due to a wave c.
(source: Reuters)