2024-11-29 06:13
Demand was strong at beginning of the week - Indian trader Demand seen improving with the onset of wedding season in India China has issued import quotas to manage gold flows - analyst Nov 29 (Reuters) - Physical gold premiums were steady in India, as a rise in demand from this week's price correction was later countered by higher rates, while demand in other major Asian hubs and top consumer China remained subdued. Bullion prices in India rose to 76,504 rupees per 10 grams on Friday, up from 74,852 rupees earlier this week. "Demand was strong at the beginning of the week due to lower prices, but weakened towards the end as prices increased," said Amit Modak, chief executive of PN Gadgil and Sons, a Pune-based jeweller. Indian dealers this week charged a premium of up to $3 an ounce over official domestic prices, inclusive of 6% import and 3% sales levies, unchanged from last week. The wedding season has begun in India, and demand has been gradually improving, said a Mumbai-based dealer at a private bullion importing bank. Dealers in China offered discounts between $19 and $21 an ounce. . "No haste to buy at this high level ... and after Donald Trump becomes the U.S. president we can see a clear picture for gold," said Peter Fung, head of dealing at Wing Fung Precious Metals, Hong Kong. International spot gold prices recouped some losses from earlier in the week, driven by concerns over the Russia-Ukraine conflict and U.S. President-elect Donald Trump's fresh tariff plans. "China has issued import quotas to manage the flow of gold into the country. Additionally, the potential depreciation of the RMB due to trade tensions could further stimulate domestic gold demand," said Bernard Sin, regional director of Greater China at MKS PAMP. Traders in Singapore sold gold between a $0.50 discount to a $2.20 premium, while in Hong Kong, gold was sold at $1.40-$2.50 premiums. . For the next few days, the market will monitor gold's direction and "we do have some wholesale selling" as we approach year-end, said Brian Lan, managing director at GoldSilver Central. In Japan, traders quoted a $3 discount to a $1 premium. Sign up here. https://www.reuters.com/markets/commodities/asia-gold-india-gold-premiums-steady-price-fluctuations-stabilise-demand-2024-11-29/
2024-11-29 06:09
JAKARTA, Nov 29 (Reuters) - Indonesia will check miners' compliance with environmental rules and other regulations and "reexamine" production quotas for those found to be in breach, a senior mining official said on Friday, amid efforts to ensure the sustainability of its reserves. Indonesia's vast natural resources include copper, gold, tin and nickel, and miners are granted annual production quotas under a document known as an RKAB, which is valid for three years. "The RKAB that has been issued will be reviewed, whether they (miners) are complying with the rules," Tri Winarno, a senior official at the Energy and Mineral Resources Ministry told reporters on the sidelines of an industry conference. Indonesia has emerged as one of the world's biggest producers of nickel products following a 2020 ban on the export of raw nickel that triggered a massive expansion of its domestic processing industry. In recent months, however, nickel smelters have complained about a shortage of ore, forcing some of them to import from the Philippines. Tri said the government would review miners' compliance with all regulations, including environmental rules. Ensuring "longevity and sustainability" of Indonesia's ore reserves is a government priority, Tri told the participants of the conference organised by media firm Petromindo. He declined to elaborate on how the planned review could impact production quotas. In October, Bahlil Lahadalia, the mining minister, said the government planned to manage nickel ore supply and demand to support prices. Indonesia's imports of nickel ore surged to 9.3 million metric tons in the first 10 months of 2024, more than 50 times the imports in the same period last year, the statistics bureau said earlier this month. Sign up here. https://www.reuters.com/markets/commodities/indonesia-review-compliance-move-that-could-affect-mine-output-official-says-2024-11-29/
2024-11-29 05:41
U.S. crude stockpiles fell more than expected this week Analysts cite outlook for looser 2025 supply and demand balance OPEC+ shifts meeting to Dec. 5, could further delay output hike NEW YORK, Nov 29 (Reuters) - Oil prices edged lower on Friday and posted a weekly decline of more than 3%, pressured by easing concern over supply risks from the Israel-Hezbollah conflict and the prospect of increased supply in 2025 even as OPEC+ is expected to extend output cuts. Brent crude fell 34 cents, or 0.46%, to settle at $72.94 a barrel. U.S. West Texas Intermediate crude futures fell 72 cents, or 1.05%, to settle at $68, from the last close before Thursday's Thanksgiving holiday. Trading activity was muted because of the U.S. public holiday. For the week, Brent declined 3.1% while WTI lost 4.8%. Four Israeli tanks entered a Lebanese border village, Lebanon's official news agency said on Friday. The ceasefire that took effect on Wednesday has reduced oil's risk premium, sending prices lower, despite accusations of violations by both sides. However, the Middle East conflict has not disrupted supply, which is expected to be more ample in 2025. The International Energy Agency sees the prospect of more than 1 million barrels per day (bpd) of excess supply, equal to more than 1% of global output. "The updated snapshot insinuates that next year promises to be looser than the current one and oil prices are to average below the 2024 level," said Tamas Varga of oil broker PVM. The OPEC+ group comprising the Organization of the Petroleum Exporting Countries and allies including Russia delayed its next policy meeting to Dec. 5 from Dec. 1. OPEC+ is expected to decide on a further extension to production cuts at the meeting. "Following two postponements, the group has to consider the risk of further price weakness amid the release of currently unwanted barrels, not least because expectations for robust production from non-OPEC+ producers next year could lead to a crude surplus," said Saxo Bank analyst Ole Hansen. Brent could average $74.53 a barrel in 2025, a Reuters poll of 41 analysts suggests. That marked the seventh consecutive monthly downward revision in the Reuters poll. Sign up here. https://www.reuters.com/business/energy/oil-prices-mixed-amid-accusations-breaches-israel-hezbollah-ceasefire-2024-11-29/
2024-11-29 05:31
A look at the day ahead in European and global markets from Stella Qiu It was supposed to be a quiet post-Thanksgiving session in Asia but hotter-than-expected CPI readings for Tokyo emboldened investors to chase after the yen, which is on track for its best week in four months. The yen surged as much as 1.1% to its strongest in six weeks, breaking below the 150-per-dollar threshold as traders ramped up bets on a rate hike by the Bank of Japan next month. Swaps now imply a 60% chance for a quarter-point hike to 0.5%, which would be the highest rate since 2008. With angst over deflation largely replaced by concerns over the depreciating yen, there is a window for the BOJ to take another step towards normalising rates. Although the central bank triggered a mini market meltdown the last time it raised rates, investors are better prepared this time around. Nasdaq futures gained 0.5% in Asia, while 10-year Treasury yields hit a one-year low of 4.238% as the cash market reopened in Tokyo. Chinese stocks outperformed in Asia, with blue chips jumping 2% ahead of the release of official surveys on the manufacturing and services sectors on Saturday. The expectation is that the vast factory sector likely continued to expand in November, albeit at a tepid pace. Europe is looking ahead to a subdued open, with EUROSTOXX 50 futures up 0.1%. The major risk event is euro zone inflation data due later in the day. Economists are expecting a 2.3% reading for headline inflation, picking up from 2.0% in October. The risk seems to be on the downside after German inflation proved surprisingly subdued. Traders have fully priced in a 25-bps rate cut by the European Central Bank in December, and a benign reading on inflation could shift the dial to an outsized 50 bp move, which is currently priced at just a 19% probability. Investors in French bonds have bigger worries, given doubts about the current government's prospects for survival. Although French PM Michel Barnier dropped plans to raise electricity taxes, the far-right National Rally warned this concession was insufficient to avoid a no-confidence vote as early as next week that could bring down the government. French bond spreads widened nearly to parity with Greece, a sign of investor alarm over France's seemingly intractable debt problems. All of that marks the end of a wildly busy November, when Donald Trump's victory in the U.S. presidential election sent the dollar, bond yields and bitcoin soaring. December is shaping up to be another action-packed month, with the Fed, ECB and BOJ set to debate their next moves in policy, and President-elect Trump posting to social media. Key developments that could influence markets on Friday: -- France CPI, euro zone CPI for November -- Germany unemployment rate Sign up here. https://www.reuters.com/markets/europe/global-markets-view-europe-2024-11-29/
2024-11-29 05:11
JAKARTA, Nov 29 (Reuters) - Indonesia remains committed to start implementing a 40% mandatory biodiesel mix with palm oil-based fuel, or B40, on Jan. 1 next year, its chief economic minister said on Friday. Indonesia, the world's largest palm oil producer, currently uses B35, a 35% blend of palm oil-based biodiesel. Minister Airlangga Hartarto said the B40 implementation was Indonesia's "concrete contribution to the world" as it could reduce carbon dioxide emissions by about 40 million metric tons. He also said Indonesia's palm oil fund agency would be able to finance the gap between the cost of palm-oil based fuel and fossil fuel. B40 will boost Indonesia's palm oil use for biodiesel to 13.9 million metric tons, from the estimated 11 million tons needed this year with B35, Indonesia's biofuel producers association APROBI has previously estimated. Sign up here. https://www.reuters.com/business/energy/indonesia-committed-introduce-b40-biodiesel-jan-1-says-minister-2024-11-29/
2024-11-29 04:42
KUALA LUMPUR, Nov 29 (Reuters) - Three people have died and more than 80,000 have been evacuated from floods across several Malaysian states, the government said on Friday as officials warned the monsoon season could bring the country's worst flooding in a decade. Floods are common on the east coast of peninsular Malaysia during the monsoon period between October and March, but this week's torrential rain has led to the mass evacuations, mostly in the northeastern state of Kelantan that borders Thailand. The National Disaster Command Centre's website said as of Friday morning three people had died and 80,589 people had been evacuated to 467 temporary shelters in seven states, with Kelantan and neighbouring Terengganu the worst hit. It did not provide further details on the deaths. Deputy Prime Minister and National Disaster Management Committee chairman Ahmad Zahid Hamidi said on Thursday that the floods were expected to be more severe than in 2014, when nearly a quarter of a million people were forced from their homes. "Given the severity of the situation, all parties have been mobilised to ensure the safety and welfare of flood victims," he was quoted as saying by state news agency Bernama. The government has deployed over 82,000 security personnel as well as rescue boats, four-wheel drive vehicles and helicopters, Ahmad Zahid said. The national railway operator KTM Berhad said in a Facebook post it had suspended nine train routes on the east coast due to floods. On Wednesday, the Meteorological Department warned that heavy rain across several states was expected to last until Friday. Last week, it said a monsoon surge was expected to bring heavy and prolonged rain on the peninsula's east until Dec. 1. Sign up here. https://www.reuters.com/world/asia-pacific/three-dead-thousands-displaced-malaysia-warns-worst-floods-decade-2024-11-29/
