2024-11-15 07:15

International rates dropped to 2-month low this week India premiums jump to $16/oz versus $3 last week Physical demand in China remains subdued Nov 15 (Reuters) - Physical gold premiums in India climbed to a near four-month high this week, driven by a rebound in demand as prices dropped, while top consumer China saw limited retail buying interest. Domestic prices in India fell to 73,300 rupees per 10 grams earlier this week after hitting a record high of 79,775 rupees last month. "Buyers were holding off for prices to drop, but once they did, retail buyers jumped in and started buying," said a Hyderabad-based jeweller. Indian dealers this week charged a premium of up to $16 an ounce over official domestic prices – inclusive of 6% import and 3% sales levies, from a premium of $3 last week. Higher premiums indicate an increase in retail demand. Jewellers were replenishing inventories after good sales during Dhanteras and Diwali festivals, said a Mumbai-based jeweller. International spot gold prices were set to post their worst week in more than three years, after prices dropped to 2-month low on Thursday. Despite gold trading significantly below its record high, a shift toward precious metals in China has not been noticed yet, said Hugo Pascal, a precious metals trader at InProved. Dealers in China, the world's top consumer of the metal, offered discounts between $10-$13 compared with last week's $15-$17 discounts . On the retail side, physical demand in China remains subdued amid a strong dollar and limited interest in the physical gold market, said Peter Fung, head of dealing at Wing Fung Precious Metals, Hong Kong. Dealers in Hong Kong charged premiums up to $1.20 on gold, compared to last week's $0.20 discount and $1 premium . In Japan, bullion was sold at par to $0.5 premium, slightly changed from last week, while traders in Singapore sold it between a $1.10 to $2.20 premium. Many clients in Singapore are waiting for prices to bottom before placing pending orders as further declines are anticipated, said Brian Lan, managing director at GoldSilver Central. Sign up here. https://www.reuters.com/markets/commodities/asia-gold-india-premiums-reach-4-month-peak-price-drop-attracts-customers-2024-11-15/

2024-11-15 06:55

Nov 15 (Reuters) - Foreigners sold off most Asia ex-China bond markets in October as they were cautious ahead of the U.S. presidential election. The potential for a Donald Trump victory, which ended up being the actual result, raised concerns of increased inflation from his planned tariffs and tax cuts, which lowered expectations for the accelerated rate cuts that had supported regional bonds this year. They sold local bonds in Malaysia, Thailand and India, totalling a net $3.8 billion, following five monthly net purchases in a row, according to data from regulatory authorities and bond market associations. Trump's decisive victory in last week's election has led analysts to adopt a more pessimistic view of foreign investment flows into Asian bonds. Eugene Leow, senior rates strategist at DBS Bank, said a stronger dollar and rising Treasury yields, fuelled by increased bets on Trump-related trades, have been exerting pressure on Asian government bonds and interest rates. "Optimism that was initially sparked by Fed easing bets around the middle of the year have largely evaporated," he said. "Against this challenging backdrop, scope for Asia central bank easing has become more restrained while investor sentiment on local currency bonds have also become more muted." The U.S. dollar was poised for big weekly gains on Friday, towering near one-year highs as a hawkish turn from the Federal Reserve chief sent short-term Treasury yields higher. On the other hand, foreigners pumped $4.03 billion into South Korean bonds last month on optimism over South Korea's inclusion in the FTSE Russell's World Government Bond Index (WGBI) starting November 2025. Indonesian bonds also received about $1.5 billion, a sixth monthly foreign inflow in a row. Sign up here. https://www.reuters.com/markets/rates-bonds/most-asian-bonds-faced-foreign-outflows-oct-us-election-jitters-2024-11-15/

2024-11-15 06:45

China now largest trading partner of some Latam countries China and Peru strengthen existing free trade agreement Port to generate $4.5 billion annually, create 8,000 jobs Concerns in U.S. over potential military use of Chancay port LIMA, Nov 14 (Reuters) - Chinese President Xi Jinping launched a week-long diplomatic blitz of South America on Thursday by inaugurating a massive deep-water port in Peru, a $1.3 billion investment by Beijing as it seeks to expand trade and influence on the continent. With China's demand for agricultural goods and metals from Latin America growing, Xi will participate in the Asia-Pacific Economic Cooperation summit in Lima then head to the Group of 20 summit in Rio de Janeiro next week, where he will also make a state visit to Brazil. Xi and Peruvian President Dina Boluarte participated on Thursday by video link in the opening of the Chancay port, about 80 kilometres (48 miles) north of Lima on the Pacific Ocean, and signed a deal to widen an existing free trade agreement. Xi said that Chancay, a 15-berth, deep-water port, was the successful start of a "21st century maritime Silk Road" and part of China's Belt and Road Initiative, its modern revival of the ancient Silk Road trading route. "China is willing to work with the Peruvian side to take the Chancay project as a starting point to forge a new maritime-land corridor between China and Latin America and connect the Great Inca Trail," Xi said, referring to a 15th century mountain network that joined the Inca empire. In an opinion article in the El Peruano state newspaper, Xi said the Chancay project would generate $4.5 billion in annual revenues, create more than 8,000 direct jobs and reduce the logistics costs of the Peru-China route by 20%. The China-controlled megaport was built by Cosco Shipping Ports (1199.HK) , opens new tab and received $1.3 billion in Chinese investment for its first phase. China is expected to spend billions more as Beijing and Lima work to position it as a major shipping hub between Asia and South America. The first ship was due to set sail from Chancay next week, transporting Peruvian fruit to China, Mario Ocharan, Peruvian director of the Chancay Chamber of Commerce, said. China's main motivation for developing the megaport, according to Ocharan, was access to neighboring Brazil, where a new railway line is planned to carry Brazilian exports such as soybeans and iron ore to the port. The rail project is estimated to cost $3.5 billion, according to Mario de las Casas, corporate affairs manager at Cosco Shipping Chancay Peru. Building that link is "crucial" to improve transportation of soybeans as Brazil is the top seller of the commodity to China, he said. GEOPOLITICAL AND ECONOMIC HEADWINDS The inauguration of the port comes as Beijing is looking to further tap into resource-rich Latin America, amid trade tensions with Europe and concerns about future U.S. tariffs on Chinese exports from the incoming Trump administration. Hundreds of Chinese business executives have accompanied Xi on this trip including heads of companies heavily invested in Peru such as Chinalco, which owns the Toromocho copper mine. Robert Evan Ellis, Latin America research professor at the U.S. Army War College, said that Chancay will make shipping between Latin America and China more efficient. Because the port can handle the biggest ships, it will reduce the need for shippers to consolidate cargo containers at intermediary points, reducing costs and handling times. "Chancay illustrates how China seeks secure access to resources and markets and its ever more successful fight to corner global value added,” Ellis said. China's major investment in Chancay has raised alarm bells in Washington. General Laura Richardson, former U.S. Southern Command chief, warned earlier this month that Chancay could be used by the Chinese navy and for intelligence-gathering. U.S. anxieties about Chancay reflect a broader, decades-long shift in a region Washington long saw as its backyard. China has overtaken the United States to become the largest trading partner of countries like Peru. China's state-backed Global Times wrote in an editorial on Monday that the port was "by no means a tool for geopolitical competition", calling U.S. accusations of the port's potential military use "smears". Sign up here. https://www.reuters.com/world/chinas-xi-arrives-lima-apec-open-pacific-megaport-2024-11-14/

2024-11-15 06:34

Nov 15 (Reuters) - French metallurgical company Vallourec (VLLP.PA) , opens new tab reported a drop in its third-quarter operating profit on Friday, hurt by an expected weakness in demand from the U.S. oil and gas industry. Group EBITDA came in at 168 million euros ($177 million) in the third quarter, compared with 222 million euros a year earlier. Vallourec confirmed its guidance for 2024. ($1 = 0.9489 euros) Sign up here. https://www.reuters.com/markets/commodities/vallourec-reports-drop-operating-profit-q3-2024-11-15/

2024-11-15 06:31

PARIS, Nov 15 (Reuters) - Leading energy companies TotalEnergies (TTEF.PA) , opens new tab, BP (BP.L) , opens new tab, Shell (SHEL.L) , opens new tab and Equinor (EQNR.OL) , opens new tab announced a $500-million joint investment commitment, aimed at increasing people's access to sustainable modern energy sources. The investment plan was made at the United Nations COP29 climate summit in Azerbaijan, which has been overshadowed by political tension, with Argentina having withdrawn its delegation. The companies said their joint investment would primarily target sub-Saharan Africa and Asia, to help more people gain access to electricity, thus leading to better conditions to cook food. "It is early days, but we hope that by jointly investing, we will be able to contribute to wider efforts to tackle the very real challenge of access to energy," said BP Chief Executive Murray Auchincloss. Sign up here. https://www.reuters.com/business/energy/totalenergies-bp-equinor-shell-commit-500-mln-boost-energy-access-2024-11-15/

2024-11-15 06:16

Bullion down over 4% for the week so far Silver, platinum and palladium also down for the week Dollar heads for biggest weekly gain in more than a month US retail sales slightly above expectations in October Nov 15 (Reuters) - Gold prices on Friday were on track for their biggest weekly decline in over three years as expectations of less aggressive interest rate cuts by the U.S. Federal Reserve lifted the dollar, denting allure for bullion among investors. Spot gold lost 0.1% to $2,565.49 per ounce as of 01:44 p.m. ET (1842 GMT). Prices have fallen more than 4% so far this week, touching their lowest since Sept. 12 on Thursday. U.S. gold futures settled 0.1% lower at $2,570.10. The dollar (.DXY) , opens new tab was set for its biggest weekly gain in more than a month, making gold more expensive for other currency holders. U.S. Treasury yields, meanwhile, extended gains after data showed retail sales in the world's largest economy rose more than expected last month. "All the uncertainties, specifically the short-term uncertainties have been removed from the mix. Now gold is just going back to basic fundamentals," said Alex Ebkarian, chief operating officer at Allegiance Gold. Economists believe President-elect Donald Trump's tariff plans would stoke inflation, potentially slowing the Fed's rate easing cycle. Higher interest rates make holding gold less attractive as it is a non-yielding asset. Speaking on Thursday, Fed chair Jerome Powell said the U.S. central bank did not need to rush to lower interest rates. Markets now see a 62% chance of a 25-basis-point rate cut in December, down from 83% a day before, according to the CME Fedwatch tool , opens new tab. "So far gold has been negatively impacted by the election of Trump but this can change if there is some more uncertainty which could come back in the medium term," said Kinesis Money market analyst Carlo Alberto De Casa. Traders will now be on the lookout for remarks from several Fed officials scheduled to speak later in the day. Spot silver fell 0.4% to $30.32 per ounce, platinum was down 0.1% at $939.22 and palladium added 0.7% to $947.77. All three metals were on track for weekly declines. Sign up here. https://www.reuters.com/markets/commodities/gold-faces-worst-week-more-than-3-years-bets-slower-fed-easing-2024-11-15/