Gold hits near three-week low on stronger dollar, Fed symposium in focus
FUNDAMENTALS
Spot gold was down 0.1 per cent at US$3,312.79 per ounce, as of 0035 GMT, after reaching its lowest level since August 1.
US gold futures for December delivery fell 0.1 per cent to US$3,355.20.
The US dollar index climbed to its highest level in more than a week, making gold less affordable for buyers using other currencies.
Fed Chair Jerome Powell's speech at the Jackson Hole symposium through August 21–23 is the main focus, with investors watching for any pushback against market pricing of a rate cut next month.
Minutes of the Fed's July meeting, due later in the day, are anticipated to offer further insights into the central bank's policy stance.
Interest rate futures point to two rate cuts of 25 basis points each this year, with the first one expected in September.
Gold typically performs well in a low-interest-rate environment and amid heightened uncertainties.
US President Donald Trump ruled out deploying ground troops to Ukraine on Tuesday but suggested air support could be part of a deal to end Russia's war in the region.
Ukrainian President Volodymyr Zelenskiy hailed the White House talks as a "major step forward" towards ending Europe's deadliest conflict in 80 years and setting up a trilateral meeting with Russian President Vladimir Putin and Trump.
Elsewhere, spot silver held steady at US$37.35 per ounce, platinum gained 0.3 per cent to US$1,309.35 and palladium was down 0.4 per cent to US$1,110.50.
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New Straits Times
22 minutes ago
- New Straits Times
Trump weighs using US$2bil in Chips Act funding for critical minerals
WASHINGTON: The Trump administration is considering a plan to reallocate at least US$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 US dependence on China for critical minerals used widely in the electronics and defence industries. Boosting Lutnick's role over critical minerals financing would also help centralise 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 last month sparked questions about the US 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 US$52.70 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 US government are not processed inside the country. Kent Masters, CEO of North Carolina-based Albemarle, the world's largest producer of lithium for rechargeable batteries, told Reuters last month that the company's stalled plans to build a US 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 US$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 US 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 and other chipmakers in exchange for cash grants, Reuters reported on Tuesday. Trump moved quickly to expand US 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 and BHP 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 US mining. The Chips Act deliberations come after the Energy Department last week proposed US$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 Defence 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 before he joined Trump's cabinet. Cantor is a large shareholder in Critical Metals Corp, which Reuters reported in June is under consideration for a loan from the US Export-Import Bank.
New Straits Times
22 minutes ago
- New Straits Times
History, triumph and trauma to take centre stage at China's WW2 military parade
BEIJING: Airport scanners at office entrances, road closures for large-scale midnight rehearsals, drones banned, guards stationed 24/7 on all overpasses: Beijing has effectively paralysed its urban core for a 70-minute military parade on Sept 3. The "Victory Day" parade, marking the end of World War Two following Japan's formal surrender, will be a projection of China's growing military might amid deep-seated mistrust in the West, geopolitical uncertainty with the US and territorial rows with neighbouring countries. The highly choreographed parade, one of China's largest in years, will unveil cutting-edge equipment such as fighter jets, missile defence systems and hypersonic weapons – the results of a long-running modernisation drive of the People's Liberation Army, which has lately been beset by corruption scandals and personnel purges. On the day, President Xi Jinping will survey tens of thousands of troops at Tiananmen Square alongside several foreign dignitaries, including guest of honour Russian President Vladimir Putin. Most Western leaders are expected to shun the parade, making it a major show of diplomatic solidarity between China, Russia and the Global South. Ahead of the parade, Beijing has also mounted a campaign to emphasise the "correct view" of World War Two history, which stresses that China and Soviet Russia played a pivotal role in fighting fascist forces in the Asian and European theatres. "Putin and Xi take commemoration of the war so seriously because it shows that … Russia and China can take pride in their history and that Western attempts to tarnish their past … will fail," said Joseph Torigian, associate professor at American University and an expert in Sino-Soviet history. "World War Two is a foundational moment in the civilisational agendas that Putin and Xi are pursuing … Both men believe they are driving changes unseen in a century." A People's Daily commentary this week claimed China's contribution to fighting Japan was "selectively ignored and underestimated by some", adding the Communist Party's wartime efforts were "deliberately belittled and vilified". "Ignoring the ironclad facts of history, disregarding the tens of millions of innocent lives lost in the war, and … repeatedly denying or even glorifying the history of aggression constitutes a shameless betrayal," it read. Chinese academics have renewed efforts to rewrite what they believe are mainstream, Western-centric narratives of World War Two and argue that the war actually started in 1931 with Japan's invasion of China. "China and Russia are the biggest victors and suffered the greatest losses during the war," said Wang Wen, dean of the Chongyang Institute for Financial Studies at Renmin University of China. "Chinese resistance played an indispensable role in draining Japanese military resources, which laid the groundwork for the defeat of the Axis powers." PROPAGANDA EFFORTS Chinese casualties during the War of Resistance Against Japanese Aggression, as it is known domestically, are estimated at between 20 million and 35 million. China says over 35 million people died, including 300,000 killed by Japanese troops during the 1937 Nanjing Massacre. A post-war Allied tribunal put the death toll in Nanjing at about half that number. Some historians estimate the toll was over 200,000. Graphic scenes from the massacre are heavily featured in the recent Chinese blockbuster film Dead to Rights, whose domestic box office takings have surpassed 2.6 billion yuan (US $362 million) since late July. The film is loosely adapted from the real-life story of a Chinese photography apprentice in Nanjing who secretly compiled photographic evidence of Japanese war crimes. Another contentious point is the extent of the Communist Party's contribution towards fighting the Japanese. Historians commonly agree that China's republican government engaged in most direct combat with Japan, while Communist guerrilla forces carried out raids on Japanese supply lines. At a museum in Beijing's outskirts dedicated to the war in China, displays state that Communist troops "annihilated substantial Japanese forces" while airbrushing all mention of the republican forces of the "Chinese army". Some governments face a difficult decision between appropriately recognising China's immense war sacrifices and legitimising the presence of Putin, diplomats say, whose invasion of Ukraine continues. Most European Union ambassadors will not attend the parade, and Western countries' requests for working-level diplomatic representation have so far been rejected, two diplomats told Reuters. A state reception and an evening cultural performance are planned for the same day. Many ordinary Beijing residents who have endured weeks of widespread disruption to their daily lives are hoping for a brief respite. The last time the parade was held, in 2015, China implemented a nationwide three-day public holiday and Beijing schools delayed the start of term.
Barnama
38 minutes ago
- Barnama
Bursa Malaysia Opens Higher, CI Adds 4.8 Pts
WORLD KUALA LUMPUR, Aug 22 (Bernama) -- Buying in selected heavyweights lifted Bursa Malaysia at the open on Friday, extending the previous day's gains, while sentiment stayed cautious over the global economic outlook, a dealer said. At 9.10 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.80 points to 1,597.67 from 1,592.87 at Thursday's close. The benchmark index had opened 0.93 of-a-point firmer at 1,593.80. Market breadth was positive, with 194 gainers outpacing 127 decliners, while 272 counters were unchanged, 2,001 untraded and 12 suspended. Turnover stood at 184.96 million shares worth RM94.62 million. Malacca Securities Sdn Bhd said in a note that despite the selldown on Wall Street, the local market could stay supported, led by the Utilities sector. 'Wall Street extended its losing streak as weakness in retail and tech weighed on sentiment. Walmart tumbled on mixed earnings, while artificial intelligence (AI) optimism was dented by a Massachusetts Institute of Technology report highlighting poor returns on investment in AI. 'Meanwhile, jobless claims came in higher than expected, suggesting a slowing labour market. Investors will turn to Jerome Powell's upcoming speech at Jackson Hole for clues on the path of interest rates,' it said. Among the heavyweights, Maybank and Tenaga Nasional rose 6.0 sen each to RM9.84 and RM13.70, respectively. Public Bank added 2.0 sen to RM4.47, CIMB gained 1.0 sen to RM7.46, while IHH Healthcare was flat at RM6.81. In actively traded stocks, Widad eased half-a-sen to 1.5 sen, Ivory Properties slipped 1.5 sen to half-a-sen, while SFP Tech and Reneuco added half-a-sen each to 16 sen and 3.5 sen, respectively.
