2025-09-22 06:52

Gold hits record high of $3,728.22/oz Investors await PCE data on Friday Silver at more than 14-year high Sept 22 (Reuters) - Gold surged to a record high on Monday, buoyed by investors' heightened expectations of a dovish rate-cut path, ahead of remarks by multiple Federal Reserve officials and key inflation data later in the week. Spot gold rose 1.2% to $3,726.42 per ounce, as of 1132 GMT, after hitting a new record high of $3,728.22 earlier in the session. U.S. gold futures for December delivery climbed 1.5% to $3,760.90. Sign up here. "I would expect gold to reach new record highs this week with Fed officials likely to indicate further rate cuts, but also being data-dependent on the pace and magnitude of cuts," said UBS analyst Giovanni Staunovo. Several Federal Reserve officials are slated to speak this week, with Chair Jerome Powell set to deliver remarks on Tuesday, as investors closely monitor their commentary for clues about the future direction of monetary policy. The market is also focused on the release of the U.S. core personal consumption expenditure price data, due on Friday, for cues on the pace of further rate cuts. The Fed lowered interest rates by 25 basis points last week, its first cut since December, and signalled openness to further easing. Investors are now expecting two more 25-bps rate cuts this year, one each in October and December, with a 92% and 81% chance, respectively, according to the CME FedWatch tool , opens new tab. "There is a shift in the factors supporting gold. So far it was central banks and Asian demand, now we are also starting to see Western investors looking to add gold, visible in gold ETF holdings, driven by expectations of falling U.S. rates," Staunovo said. Bullion has gained more than 42% this year, driven by broader geopolitical and economic uncertainty, central bank buying and monetary policy easing. Spot gold may test resistance at $3,705 per ounce, and a break above that could lead to a gain into a range of $3,719 to $3,739. "We continue to see further upside, with gold expected to reach $3,900 by mid-2026," Staunovo said. Spot silver rose 1.6% to $43.76 per ounce, a more than 14-year high. Platinum gained 1.1% to $1,419.42 and palladium rose 1.9% to $1,170.75. https://www.reuters.com/world/india/gold-holds-firm-near-record-high-markets-eye-fed-policy-signals-2025-09-22/

2025-09-22 06:20

BANGKOK, Sept 22 (Reuters) - Thailand's new government is setting up a multi-agency team to counter the baht's rise to four-year highs, which is a risk for the key economic drivers of tourism and exports, and said on Monday it also wanted to urgently tackle high debt levels. Finance Minister Ekniti Nitithanprapas said a team including people from the finance ministry, the Anti-Money Laundering Office, the Securities and Exchange Commission and the Bank of Thailand had been set up to address the baht's rise, trace unidentified capital flows and oversee currency moves. Sign up here. Ekniti said the government wanted to revive the economy, aiming for a short-term recovery with long-term impact. "We are emphasising restructuring the economy," he said, after meeting with the Thai Bankers' Association. "Especially household debt, which has been a persistent issue." The baht 's rise to four-year highs against the U.S. dollar is seen as a threat to exports and tourism, as Southeast Asia's second-largest economy grapples with U.S. tariffs and high household debt. Prime Minister Anutin Charnvirakul, after the meeting, said he wanted lenders to back the government's efforts to tackle debt and support business. "The main issue is debt," he said, as it was stopping businesses from operating effectively. "We've asked the association to help inject liquidity into the market." Payong Srivanich, chairman of the Thai Bankers' Association, said there was sufficient liquidity but the challenge was ensuring funds reached the intended groups. Southeast Asia's second-largest economy is projected to expand by 1.8% to 2.3% this year, according to the state planning agency. Last year's growth of 2.5% lagged its regional peers. https://www.reuters.com/en/thai-pm-anutin-asks-more-liquidity-banks-2025-09-22/

2025-09-22 06:15

Global LNG capacity to grow by 60% by 2030, US to make up half of additions LNG market expected to enter period of heavy oversupply At the same time, growing demand for domestic US power generation to boost gas costs LONDON, Sept 22 (Reuters) - The breathtaking expansion of U.S. gas exports in the last decade has reshaped global markets, but a looming global oversupply along with rising power prices domestically could leave the industry exposed on both sides of its value chain. The U.S. has become the world's top exporter of liquefied natural gas (LNG), thanks to its abundant gas supplies from onshore shale. Energy Secretary Chris Wright expects LNG to overtake oil as the top U.S. export in the coming years. Sign up here. President Donald Trump's administration has touted LNG purchases as the best way for countries to reduce their trade deficits, and Europe’s purchases of U.S. LNG are playing a key role in efforts to end the region’s reliance on Russian energy. The super-chilled fuel has therefore become a critical political tool as well as an economic juggernaut. But the U.S. LNG industry risks being a victim of its own success. The rapid build-out of American gas liquefaction capacity in recent years is poised to create a huge global supply glut, possibly comparable to last decade’s surge in U.S. shale oil output, which led to one of the biggest downturns in the sector's history. Global LNG capacity is set to increase by a staggering 60% by the end of the decade from 550 bcm in 2024 to 890 bcm in 2030, according to LSEG estimates. U.S. capacity is expected to make up half of that global growth. Demand growth is unlikely to match that pace. While supply and demand is largely in balance this year, the market is expected to tip into an oversupply of nearly 50 bcm in 2026 and as much as 200 bcm in 2030, based on current LSEG projections. Such a gap would have a profound impact on the industry. First, global gas prices will likely decline, particularly in Asia and Europe. This, in turn, could generate new demand from price-sensitive power generators and heavy industry. For producers, low LNG prices would obviously cut into profit margins. Since U.S. feedstock gas costs are higher than those of Qatar, the world's second-largest producer, American producers may have to curtail some production, ceding market share. “There will definitely be an LNG glut, but the depth and length depend on liquefaction project attrition rates and Qatar’s LNG marketing strategy,” said Seb Kennedy, founding editor of analysis platform Energy Flux. DOMESTIC PRESSURE The issue in the domestic U.S. gas market is quite different. While an LNG supply glut should weigh on global prices, domestic U.S. gas prices could actually rise in coming years due to slower deployment of renewable power and a spike in energy demand driven by the artificial intelligence boom. Trump's "Big Beautiful" tax bill, signed into law on July 4, slashed around $500 billion worth of tax credits for low-carbon energy projects that were introduced by former President Joe Biden. The tax credit cuts led research firm Wood Mackenzie , opens new tab to reduce its estimates for solar power deployment by 35% by 2030 compared with forecasts one year ago. Wind capacity additions over the next decade are expected to be almost one-quarter lower than previous estimates. At the same time, U.S. electricity demand could spike in the coming year, due to the growth of data centres powering the AI industry. They are expected to account for nearly half of U.S. electricity demand growth through the end of the decade, according to the IEA. If the entire incremental demand indicated by the IEA’s most aggressive AI growth scenario is met by gas-fired power, it would require an additional 100 bcm of supply by 2035, an amount larger than the planned increase in LNG export capacity during this period. Regardless of which scenario plays out, the growth in electricity demand and lower renewables deployment should increase demand for power, putting data centres in direct competition with LNG plants. The U.S. Energy Information Administration already forecasts benchmark Henry Hub gas prices will rise from $2.94 per million British thermal units (mmbtu) in 2025 to $3.43 per mmbtu in 2030. The figures could be larger if demand for gas grows aggressively. POLITICAL PRESSURE We may already be seeing this upward price pressure play out. U.S. electricity prices rose on average nationally by 4.5% between January and June 2025 from a year earlier, according to EIA data. Some states saw much larger increases: prices in Maine, Utah and Connecticut all rose by at least 15% over the period. Texas and Louisiana, which host the vast majority of the country's LNG plants, reported price increases of 3.0% and 7.5%, respectively. Mounting pressure on gas prices from LNG plants and the power sector might not be a political hot potato yet. But if data centre demand grows, rising domestic gas prices could become an issue ahead of U.S. mid-term elections next year or presidential elections in 2028. To lower prices, the Trump administration could restrict the volume of gas supplies available for export, prioritizing the country's AI push. So even though the U.S. LNG industry is growing rapidly in scale and importance, this dynamic could crash with harsh market realities in the coming years. Want to receive my column in your inbox every Monday and Thursday, along with additional energy insights and links to trending stories? Sign up for my Power Up newsletter here. Enjoying this column? Check out Reuters Open Interest (ROI), , opens new tabyour essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis. Markets are moving faster than ever. ROI , opens new tab can help you keep up. Follow ROI on LinkedIn , opens new tab and X. , opens new tab https://www.reuters.com/markets/commodities/us-lng-industry-risks-becoming-victim-its-own-success-2025-09-22/

2025-09-22 06:05

Sept 22 (Reuters) - At least a third of surveyed companies have paused or delayed stainless steel orders because of U.S. import tariffs of up to 50%, while more than half are reassessing their sourcing strategy, Finnish steelmaker Outokumpu said on Monday. Outokumpu President and CEO Kati ter Horst told Reuters the slowing global demand means current European Union import quotas are too high, and that she expects the European Commission to announce in October measures to curb imports of steel from rivals to protect domestic producers. Sign up here. The measures will replace current safeguards due to end next summer and might come into effect even a quarter earlier, she added. WHY IT MATTERS A third of businesses switched steel suppliers as of May, while the addition in August of hundreds of derivative products to the U.S. list of goods subject to the levies created uncertainty for equipment and machinery buyers, ter Horst said. Outokumpu operates the only mine in Europe and North America that extracts chromium, a critical mineral used in stainless steel and exempted from U.S. tariffs. It has developed a low-emissions alloy containing 99% chromium, compared with 53% previously, and plans to scale up production to one ton a day in an upcoming pilot plant, from one kilo currently, ter Horst said. CONTEXT EU lawmakers expect import quotas and the CBAM mechanism, imposing costs at the EU border on the CO2 emissions embedded in imported steel to help decarbonisation, after green steel projects around Europe have been delayed or canceled due to worsening demand and high energy costs. Ter Horst said that long term stainless steel trends remain positive as buyers, hoping to reduce a combined $2.5 trillion a year in corrosion costs and meet climate targets, see the material as more sustainable and stronger than normal steel. Growing defence spending also supports the trend, she said. https://www.reuters.com/sustainability/climate-energy/one-third-firms-paused-or-delayed-stainless-steel-orders-due-tariffs-outokumpu-2025-09-22/

2025-09-22 05:37

Wall St marks record closes with a few tech stocks taking charge Indian stocks slip after Trump's H-1B visa move Oil prices settle slightly lower on oversupply concerns Gold hits fresh records, Treasury yields rise Dollar falls as traders look for monetary policy cues NEW YORK/LONDON, Sept 22 (Reuters) - MSCI's global stock index rose to record levels on Monday for a third consecutive session with a few U.S. technology stocks leading on Wall Street while gold prices rallied to fresh records and the dollar pulled back. Investors were digesting mixed messages about future interest rate cuts from Federal Reserve officials, as well as the latest U.S. immigration news after U.S. President Donald Trump said on Friday that U.S. companies would need to pay $100,000 for new H-1B worker visas, a potential blow to the U.S. tech sector. Sign up here. Wall Street indexes built on last week's string of records, marking their third record closing highs in a row. The bulk of the gains were from megacaps Nvidia (NVDA.O) , opens new tab and Apple Inc (AAPL.O) , opens new tab after Nvidia announced a $100 billion investment and analysts said demand for Apple's latest iPhone appeared strong. "Right now we're depending on very narrow leadership. Also the market's been going straight up all month, all quarter and since April started. You can have some consolidation and it's perfectly appropriate," said Michael O'Rourke, chief market strategist at JonesTrading in Stamford, Connecticut. Fed Governor Stephen Miran said on Monday that the Fed is misreading how tight it has set monetary policy and will put the job market at risk without aggressive rate cuts, a view countered by three of his colleagues who said that the central bank needs to remain cautious about inflation. St. Louis Fed President Alberto Musalem said that after last week's rate cut there may be limited room for further reductions, given that inflation is still above the Fed's 2% target. And Atlanta Fed President Raphael Bostic said he does not currently see the need for further interest rate cuts this year due to inflation concerns, according to an interview published by the Wall Street Journal on Monday. Cleveland Fed President Beth Hammack said she felt policy at this point was not that restrictive and that the Fed needs to be careful about easing due to inflation. "Most of the Fed speakers except for Miran are on the hawkish side, but the market is up so it's not affecting the market," O'Rourke said. However, with more Fed officials including Chair Jerome Powell due to speak and key inflation data due out later in the week, Carol Schleif, chief market strategist at BMO Private Wealth Management, said that the trading week could be volatile. On Wall Street all three major indexes had opened lower. But by the end of the session, the Dow Jones Industrial Average (.DJI) , opens new tab had risen 66.27 points, or 0.14%, to 46,381.54, while the S&P 500 (.SPX) , opens new tab closed up 29.39 points, or 0.44%, at 6,693.75. The technology-heavy Nasdaq Composite (.IXIC) , opens new tab climbed 157.50 points, or 0.70%, to 22,788.98. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 3.69 points, or 0.38%, to 985.44. Earlier, the pan-European STOXX 600 (.STOXX) , opens new tab index closed down 0.13%. Meanwhile, Argentine financial assets rallied on Monday, with stocks rising the most in six months and closing up 7.5%, according to provisional closing data. Its international dollar bonds rose more than 6 cents and the peso strengthened after Washington pledged full support for Argentina's right-wing government ahead of key midterm elections next month. India's benchmark indexes lost ground after Trump's H-1B announcements, as India's $283 billion information technology sector, which gets more than half its revenue from the U.S., is expected to feel the pain in the near term. The move follows Trump's doubling of tariffs on imports from India last month to as much as 50%, partly due to New Delhi's purchases of Russian oil. In currencies, the U.S. dollar was poised to snap a three-day winning streak against the euro and the Swiss franc as investors monitored the Fed comments. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.4% to 97.33. The euro was up 0.47% at $1.1799 while against the Swiss franc , the dollar weakened 0.4% to 0.792. Against the Japanese yen , the dollar weakened 0.12% to 147.76. In U.S. Treasuries, yields were little changed as the market appeared to have settled down following the Fed interest rate cut last week for the first time in 2025. The yield on benchmark U.S. 10-year notes rose 1.3 basis points to 4.152%, from 4.139% late on Friday, while the 30-year bond yield rose 1.4 basis points to 4.7704%. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 2.5 basis points to 3.607%. In energy markets, oil prices were close to flat as worries of oversupply were countered by geopolitical tensions in Russia and the Middle East. U.S. crude settled down 0.06%, or 4 cents, at $62.64 a barrel and Brent ended the session at $66.57 per barrel, down 0.16% or 11 cents on the day. In precious metals, gold prices hit fresh record highs, buoyed by investors' heightened expectations of a dovish rate-cut path, ahead of remarks by Fed officials and key inflation data later in the week. Spot gold rose 1.71% to $3,746.83 an ounce. U.S. gold futures rose 2.09% to $3,748.20 an ounce. "There's a continued flow of safe-haven demand amid geopolitical matters that are still kind of wobbly, including the Russia-Ukraine war. Last week's Fed interest rate cut and probably more Fed rate cuts coming by the end of the year" are also supporting prices, said Jim Wyckoff, senior analyst at Kitco Metals. In cryptocurrencies, bitcoin fell 2.77% to $112,229.90. https://www.reuters.com/sustainability/sustainable-finance-reporting/global-markets-wrapup-1-2025-09-22/

2025-09-22 05:23

Jerome Powell among Fed speakers this week Dollar weakens against yen and Swiss franc Dollar index poised to snap a 3-day rising streak BoJ caution on rate hikes due to political uncertainty Euro set to gain against dollar after three straight sessions of losses NEW YORK, Sept 22 (Reuters) - The U.S. dollar was poised to snap a three-day winning streak against the euro and Swiss franc on Monday, as investors digested a barrage of comments from Federal Reserve officials about its latest monetary policy stance. The dollar hovered near levels seen before last week’s decision by the Fed to begin cutting interest rates. The current pricing is consistent with the central bank’s messaging, which highlighted rising concerns over the U.S. labour market as the key driver of policy, analysts said. Sign up here. “The lack of significant data until Friday’s core Personal Consumption Expenditures (PCE) inflation release leaves investors open to rethinking Fed rate cuts and the plan ahead,” said Bob Savage, head of markets macro strategy at BNY. The dollar was last down 0.38% to 0.792 against the Swiss franc , on track to snap three straight sessions of gains. St. Louis Federal Reserve President Alberto Musalem said he supported the rate cut at last week's Fed meeting as a precautionary move to protect the job market, but said there may be "limited room" for further reductions given inflation above the Fed's 2% target. Changes in immigration, tax and regulatory policies are set to drive down underlying interest rates in the U.S., and make current monetary policy far too restrictive for what the economy needs to keep inflation at the Fed's 2% target, Federal Reserve Governor Stephen Miran said on Monday. Miran last week dissented when the Fed cut the benchmark rate by a quarter of a percentage point, saying that a half-point cut was warranted. Fed chair Jerome Powell speaks in Rhode Island on Tuesday. "This whole week seeing a relative dearth of data and with the US Q2 earnings season having largely ended, traders may struggle to find direction for the better part of this week outside of worries about new "emergencies" and in the forthcoming Fed speeches, starting today," Macquarie FX analyst Thierry Wizman said in an investor note. U.S. President Donald Trump criticised the Fed, urging the central bank to cut interest rates more aggressively. "Today is more of a consolidating day," said Marc Chandler, chief market strategist at Bannockburn Forex in New York. "We had a strong dollar bounce after the FOMC meeting that has sort of stalled. I kind of thought we'd get a bit more of dollar gains ahead of the next batch of jobs data. It's a light economic week but what's of interest is that in the FOMC there's such a wide dispersion of views and this week over half the Fed are speaking and the highlight might be (Jerome) Powell tomorrow." The euro was up 0.44% at $1.1796, poised to snap three consecutive sessions of losses against the dollar. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.39% to 97.34. It is on track to snap three straight sessions of gains. The Swedish crown rose 0.75% to 9.356 versus the dollar before the central bank policy meeting on Tuesday. The dollar dropped 0.17% to 147.69 against the Japanese yen , poised for the second straight session of losses. The Bank of Japan's hawkish shift in rhetoric last week fuelled speculation of a near-term rate hike but failed to support the currency. Analysts said that political uncertainty ahead of the Liberal Democratic Party leadership election scheduled for October 4 was a factor in the Bank of Japan's caution over further rate hikes. Sterling rose against the dollar on Monday as investors paused following Friday's selloff driven by fiscal concerns. The pound was up 0.37% at $1.3516. The Australian dollar rose 0.12% to $0.6599, reversing losses in early trade. (This story has been refiled to change 'market' to 'markets' in the headline) https://www.reuters.com/world/middle-east/dollar-firms-ahead-deluge-fed-speakers-2025-09-22/