2025-08-21 20:34

US dollar up 0.4% US weekly jobless claims rise to highest since June Traders pricing in 79% chance of a quarter-point rate cut by September Aug 21 (Reuters) - Gold prices edged lower on Thursday as the dollar strengthened, while investors awaited U.S. Federal Reserve Chair Jerome Powell's speech at the Jackson Hole symposium for signals on U.S. policy direction. Spot gold fell 0.3% to $3,337.95 per ounce, as of 1:47 p.m. ET (1747 GMT). U.S. gold futures for December delivery settled 0.2% lower at $3,386.50. Sign up here. The U.S. dollar index (.DXY) , opens new tab was up 0.4%, making U.S. dollar-priced gold expensive for overseas buyers. Powell is expected to speak at the Jackson Hole conference about the economic outlook and the Fed's policy stance on Friday. "If (Powell) signals a rate decrease in September, I don't think much will happen because the market is already expecting that," said Marex analyst Edward Meir. "If he says we may decrease rates again in October, November or December, I think the dollar could weaken and gold could push higher," Meir added. Non-yielding gold typically performs well in a low-interest-rate environment. The Fed has kept rates unchanged since December, but traders see a 71% chance of a quarter-point cut by September, according to CME's FedWatch tool. The number of Americans applying for unemployment benefits jumped last week, marking the biggest increase in nearly three months. Meanwhile, the U.S. Justice Department plans to investigate Fed Governor Lisa Cook over mortgage fraud allegations, with a senior official urging Chair Jerome Powell to remove her from the board, Bloomberg News reported Thursday. Fitch Solutions' research company BMI on Wednesday revised its 2025 gold price forecast upward by $150 to $3,250 per ounce. "Prices will remain elevated in the coming weeks as the market braces for a U.S. Fed rate cut in September. Even then, we believe the upside for gold following the rate cut will be limited with most of it already priced in," BMI said in a note. Spot silver was up 0.6% at $38.10 per ounce, platinum rose 1.1% to $1,354.20 and palladium shed 0.6% to $1,107.41. (This story has been corrected to say the US dollar was up, not down, in the first bullet point) https://www.reuters.com/world/china/gold-slips-dollar-firms-ahead-powells-jackson-hole-speech-2025-08-21/

2025-08-21 20:31

NEW YORK, Aug 21 (Reuters) - BP's (BP.L) , opens new tab 440,000-bpd refinery in Whiting, Indiana, continued to flare after flooding disrupted its operations earlier this week, the company said. The facility continued to burn materials in the flare stacks to maintain safe operations, the company said in a social media post on Thursday, adding that floating barriers were placed in Lake Michigan as a precautionary measure due to wind and wave conditions. "There are no known impacts outside the refinery at this time," the company said. Sign up here. Operations at the Whiting refinery were affected earlier this week due to flooding caused by a severe thunderstorm overnight. BP attempted to restart the facility on Wednesday. The units taken offline due to flooding on Monday night could take several days to ramp up and the facility likely will not be operating at full rates until late next week, trading sources said on Thursday. The company did not respond to questions about the refinery's restart timeline. The Whiting refinery, the largest in the U.S. Midwest, produces a wide range of liquid fuels, including gasoline, diesel and jet fuel. https://www.reuters.com/business/energy/bps-refinery-whiting-indiana-continues-flare-days-after-severe-thunderstorm-2025-08-21/

2025-08-21 20:31

Brent, WTI rise for a second consecutive session Russia, Ukraine blame each other for stalled peace process US crude and gasoline stocks fall, lifting demand outlook NEW YORK, Aug 21 (Reuters) - Oil prices rose by nearly a dollar a barrel on Thursday as Russia and Ukraine blamed each other for a stalled peace process, and as earlier U.S. data showed signs of strong demand in the top oil consuming nation. Brent crude futures rose 83 cents, or 1.2%, to settle at $67.67 a barrel, a two-week high. U.S. West Texas Intermediate crude futures gained 81 cents, or 1.3%, to close at $63.52 a barrel. Sign up here. Both contracts climbed more than 1% in the prior session. The path to peace in Ukraine remained uncertain, turning oil traders cautious after a selloff over the past two weeks on hopes that U.S. President Donald Trump would soon negotiate a diplomatic end to Russia's war with its neighbor. Both Moscow and Kyiv have since blamed each other for stalling the peace process. Russia on Thursday launched a major air attack near Ukraine's border with the European Union, while Ukraine claimed to have hit a Russian oil refinery. "Some geopolitical risk premium is slowly being pumped back into the market," oil trading advisory firm Ritterbusch and Associates told clients on Thursday. The uncertainty in the peace talks means that the possibility of tighter sanctions on Russia has resurfaced, said Tamas Varga, an analyst at PVM Oil Associates. Oil prices were also supported by a larger-than-expected drawdown from U.S. crude stockpiles in the last week, indicating strong demand. U.S. crude stockpiles fell 6 million barrels in the week ended August 15, the U.S. Energy Information Administration reported on Wednesday, while analysts had expected a draw of 1.8 million barrels. "These tight domestic stockpiles stand in contrast to the oversupply outlook projected by both the IEA and EIA for 2026, challenging traders' broader market expectations," StoneX analyst Alex Hodes told clients. Investors were also looking to the Jackson Hole economic conference in Wyoming for signals on a possible Fed interest rate cut next month. The annual gathering of central bankers begins on Thursday, with Fed Chair Jerome Powell scheduled to speak on Friday. https://www.reuters.com/business/energy/oil-rises-1-stalled-russia-ukraine-peace-talks-strong-us-demand-2025-08-21/

2025-08-21 20:30

TSX ends up 0.6%, at 28,055.43 Surpasses August 13 record high Materials group adds 2.1% Energy gains 1.7 as oil settles 1.3% higher Aug 21 (Reuters) - Canada's main stock index rose on Thursday to another record high as resource shares notched gains and investors awaited a key speech by Federal Reserve Chair Jerome Powell. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 176.67 points, or 0.6%, at 28,055.43, eclipsing the record closing high it posted on August 13. Sign up here. "The TSX is having a great year versus the U.S. market and that's in the face of tariffs and all these other threats that the Canadian market is looking like a decent place," said Greg Taylor, chief investment officer at PenderFund Capital Management. Canadian Prime Minister Mark Carney spoke with U.S. President Donald Trump and had "a productive and wide-ranging conversation" on trade challenges and other issues, Carney's office said in a statement. The U.S. has increased tariffs on Canadian goods to 35% from 25% but many products are exempt under a continental trade agreement. The Toronto market has advanced 13.5% since the start of the year compared to a gain of 8.3% for the S&P 500, helped by a heavy weighting in gold mining shares. "The gold price has been flat for three months but the gold stocks look like they're ready to go and seasonally they usually have a pretty good September," Taylor said. "There's a little bit of concern that Powell and the Fed are going to be a bit more hawkish tomorrow but once we get through that it could be setting up a decent environment for gold and real assets." Three Fed officials appeared lukewarm to the idea of an interest rate cut next month, speaking ahead of Powell's highly anticipated keynote address on Friday to the annual Jackson Hole conference in Wyoming. The materials group (.GSPTTMT) , opens new tab, which includes gold mining shares, rose 2.1%. Energy was up 1.7% as the price of oil settled 1.3% higher at $63.52 a barrel. https://www.reuters.com/world/americas/tsx-closes-above-28000-first-time-resource-shares-climb-2025-08-21/

2025-08-21 19:51

OTTAWA, Aug 21 (Reuters) - Scott Moe, premier of the western Canadian province of Saskatchewan, said on Thursday that he would travel to Chinasoon for talks on persuading Beijing to drop its new tariffs on canola. China hit Canadian canola seed imports with preliminary 75.8% duties last week following an anti-dumping investigation, escalating a year-long trade dispute. China is by far Canada's biggest canola seed market. Sign up here. Canada exported almost C$5 billion ($3.63 billion) of canola products to China in 2024, about 80% of which was seed, and the steep duties would likely all but end those Chinese imports if they are maintained. "Myself will be in China in the next couple of weeks with potentially another opportunity for engagement before the end of the calendar year," Moe told a televised news conference after a meeting with industry officials and federal Agriculture Minister Heath MacDonald. "(We will) work alongside our federal government to ensure that we are advocating and advancing to ultimately ... find the resolution to this trade challenge." Moe reiterated a call for federal aid for the industry. Prime Minister Mark Carney last week said Ottawa was focusing on a series of supports but did not give specific details. https://www.reuters.com/world/china/saskatchewan-premier-go-china-discuss-canola-tariffs-2025-08-21/

2025-08-21 19:12

Aug 21 (Reuters) - The Trump administration is considering a plan to reallocate at least $2 billion from the CHIPS Act to fund critical minerals projects and boost Commerce Secretary Howard Lutnick's influence over the strategic sector, two sources familiar with the matter told Reuters. The proposed move would take from funds already allocated by Congress for semiconductor research and chip factory construction, avoiding a fresh spending request as it seeks to reduce U.S. dependence on China for critical minerals used widely in the electronics and defense industries. Sign up here. Boosting Lutnick's role over critical minerals financing would also help centralize the administration's approach to the sector, a push sought by White House officials after the rollout of the Pentagon investment in rare earths company MP Materials (MP.N) , opens new tab last month sparked questions about the U.S. government's minerals strategy, one source said. The White House did not respond to requests for comment. Pentagon officials were not immediately available to comment. MP Materials declined to comment. The Commerce Department oversees the $52.7 billion CHIPS Act, formally known as the CHIPS and Science Act. The act, signed into law by then-President Joe Biden in 2022, has provided funding so far for research while also seeking to lure chip production away from Asia and boost American domestic semiconductor production. But since taking office in January, Trump has moved to change the CHIPS Act - legislation he has called "a horrible, horrible thing" that amounts to a giveaway to companies - largely by renegotiating grants to chipmakers. Repurposing some funds for mining-related projects would align in part with the spirit of the CHIPS Act as the semiconductor industry requires abundant supplies of germanium, gallium and other critical minerals over which China has tightened its market control, said the sources, who are not permitted to speak publicly about the deliberations. "The administration is creatively trying to find ways to fund the critical minerals sector," said the first source. The plans are under discussion and could change, the sources added. Mining companies themselves could benefit, but also processing and recycling firms. Most of the minerals considered critical by the U.S. government are not processed inside the country. Kent Masters, CEO of North Carolina-based Albemarle (ALB.N) , opens new tab, the world's largest producer of lithium for rechargeable batteries, told Reuters last month that the company's stalled plans to build a U.S. lithium refinery are "difficult now without some type of government support or partnership." It was not immediately clear if the Trump administration aimed to use the funds for grants or equity stakes in mining companies, but Lutnick aims to "get the $2 billion out the door" as soon as possible, the first source said, adding that the administration aims to find other funds to reallocate in the near future. A former U.S. official said the Biden administration considered using CHIPS Act grants for rare earths but decided it was uneconomical, required many environmental exemptions and was best left for the Department of Energy to handle. The administration is also looking to use CHIPS Act-related funding to take equity stakes in Intel INTC.O and other chip makers in exchange for cash grants, Reuters reported on Tuesday. Trump moved quickly to expand U.S. critical minerals production since taking office in January by signing executive orders to boost deep-sea mining and domestic projects. On Tuesday he met with the CEOs of Rio Tinto RIO.L and BHP BHP.AX at the White House despite the ongoing negotiations with European leaders over Russia's invasion of Ukraine, a move aimed at underscoring his support for U.S. mining. The CHIPS Act deliberations come after the Energy Department last week proposed $1 billion in spending for some critical minerals projects, with funds tied to the 2021 Bipartisan Infrastructure Law. LUTNICK The White House aims to give Lutnick a greater role over funding decisions for critical minerals by giving him oversight of the decision making process within the administration, the sources said. The Pentagon's multibillion-dollar investment in MP Materials and its move to extend a price support mechanism - a deal negotiated by Deputy Defense Secretary Steve Feinberg - was seen by White House Chief of Staff Susie Wiles as uncoordinated as it sparked confusion over whether Washington would guarantee a price floor for all miners and forced the administration to clarify that it does not intend for MP to have a rare earths monopoly, the two sources said. Much of the funding for MP's deal - including Washington's equity stake, loans and purchase agreements - still needs to be allocated by Congress. Two weeks after the Pentagon announced its MP investment, administration officials rushed to meet at the White House with rare earths firms and their customers to underscore broad support for the entire sector, Reuters reported. Lutnick will now help coordinate the administration's funding decisions, taking the lead from the Pentagon and other agencies, the sources said. Lutnick ran brokerage firm Cantor Fitzgerald (CNTOR.UL) before he joined Trump's cabinet. Cantor is a large shareholder in Critical Metals Corp (CRML.O) , opens new tab, which Reuters reported in June is under consideration for a loan from the U.S. Export-Import Bank. https://www.reuters.com/world/us/trump-weighs-using-2-billion-chips-act-funding-critical-minerals-sources-say-2025-08-21/