The Golden Prize cooled this week when rate -related uncertainty achieved a resolution.
The yellow metal was put into the headlines at the end of last week when American customs and border protection told a Swiss refinery that 1 kilogram and 100 ounce of gold bars would be Subject to Trump administration rates That came into force on August 7.
Gold is one of the best export from Switzerland to the US, and with the country with a levy of 39 percent, there were questions about what the impact could be. Clarification came on Monday (August 11), when US President Donald Trump said about Truth Social that gold will “not be plagued.”
While the news of market participants calm, Keith Weiner of Monetary Metals believes that the incident could have long -term consequences. He said that the tariff confusion ensured that the spread between spot gold and goldfutures erupted, creating entities for entities that use the market to cover themselves.
Here is how Weiner explained it:
“Once you’ve put the fear in everyone, you can’t just say,” Oh, sorry, joke. ” You can’t really do that.
“There are other markets in the world that would compete for this hedging company – maybe it will move to Singapore, maybe it will move to Dubai, maybe it will move to London, and the US will not only lose a little more trust, but also a little volume about what the largest, or what is currently the largest, futures market.”
This week also the release of the data from the US Consumer Price Index (CPI) and producer Price Index (PPI) data. On a seasonal basis, CPI for July had risen 0.2 percent compared to the previous month and 2.7 percent compared to the period of the year ago. In the meantime, the core CPI, which excludes the categories of food and energy, rose, by 0.3 percent month by month and 3.1 percent compared to the same time last year.
While those figures were largely In line with expectationsSeasonal adapted PPI figures in July came in hotter than expectedrising month to month of 0.9 percent compared to the prediction of Dow Jones of 0.2 percent. Core PPI rose by 0.9 percent compared to June compared to an estimated increase of only 0.3 percent.
Speaking of the implications of the data, Danielle Dimartino Booth from Qi Research said that it shows that companies do not yet pass on rate -related price increases to the consumer.
This is what she said about how these circumstances can develop:
“I think we will see where companies feel that they can penetrate the price increases-I think we will see that. We saw quite a bit of food inflation in the PPI, and if you are talking about things like Essentials, and especially with very, very low margins selling, we can see what we start the substitution effect, where households start.
“We’re going to see if that will come true again.”
Although the PPI data has somewhat tempered expectations that the American Federal Reserve will lower the interest rates when it meets in September, CME Groups (Nasdaq: CME) Fedwatch tool still shows a strong chance of a reduction at that time.
Bullet briefing – Catl closes mine, Mitsubishi invests in copper
Catl temporarily closes the lithium mine
Contemporary Amperex technology (HKEX: 3750, SZSE: 300750)Better known as Catl, said on Sunday (August 10) that it will put production in a lithium mine in China for at least three months.
Sources familiar with the issue Bloomberg told Die Catl, the world’s largest battery battery of electric vehicles, has not expanded an important mining license. The company is said to be in conversation about a renewal, but is prepared for a month -long closure.
The stock prices of lithium mine workers rose on the news, stimulated by expectations that the CATL mining will help to reduce the overbid. Output has led Chinese lithium prices descend 80 percent Since the end of 2022, and investors would like to see a change for the battery metal.
Hudbay, Mitsubishi works together with Koper
Mitsubishi (TSE: 8058) is set to Acquire a 30 percent interest In Hudbay Minerals’ (TSX: HBM, NYSE: HBM), Copper World-daughter company based in Arizona for US $ 600 million.
Hudbay called Mitsubishi his “strategic partner of your choice,” while Mitsubishi said that the investment will help promote its copper growth plans. A feasibility study is in the making for the copper world and a definitive feasibility study is expected in mid -2026.
Hudbay shareholders responded positively to the news, which after the announcement of a strong focus on the copper offering comes on a strong focus 50 percent rate About the American import of semi-finished copper products and intensive copper derivatives products. The company projects that Copper World will result in a direct investment of $ 1.5 billion in the US Critical Minerals Supply Chain.
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