Gold edges higher with spotlight on US-China trade talk
Shafaq News/ The US dollar index (.DXY), opens new tab shed 0.3%, making greenback-priced bullion cheaper for other currency holders.
Senior US and Chinese officials meet in London to discuss tit-for-tat tariffs imposed on each other's products this year, along with other trade restrictions.
Last month, the two sides had agreed to a temporary pause, providing some relief to investors.
"In the short term, if there is a positive outcome of the meeting, it could be a little negative for gold, but not too much," said Bart Melek, head of commodity strategies at TD Securities.
"I think a weaker economy, likely interest rate cuts and lower momentum on the risk appetite side is getting people to move into gold. And, of course expectations of higher inflation."
Elsewhere, Russia said its forces had taken control of more territory in Ukraine's east-central region of Dnipropetrovsk, where the Kremlin said fighting was partly aimed at creating a "buffer zone."
Safe-haven gold becomes more attractive during periods of geopolitical and economic uncertainty. It also tends to thrive in a low-interest rate environment as it is a non-yielding asset.
Investors also await US Consumer Price Index data due on Friday, to gauge the country's economic health and predict the Federal Reserve's rate cut trajectory.
Data over the weekend showed that China's central bank added gold to its reserves in May for the seventh straight month.
Spot platinum was up 3.7% at $1,212.82, reaching its highest point since May 2021.
Spot silver gained 2.1% to $36.71 per ounce, while palladium rose nearly 3% to $1,077.64.
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Shafaq News
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Shafaq News/ More than two years after the suspension of Kurdish oil exports following an international arbitration ruling, tensions between Baghdad and Erbil have reignited once again. This time, the dispute centers on a $110B oil and gas agreement between the Kurdistan Regional Government (KRG) and two American companies. Signed during a high-profile visit by KRG Prime Minister Masrour Barzani to Washington, the deals target the development of strategic gas fields in the Region's al-Sulaymaniyah province. The first contract involves HKN Energy, a US-based company active in Kurdistan since 2007. HKN holds a 62% majority stake in the Sarsang block in northern Kurdistan, alongside ShaMaran (18%) and the KRG (20%), and has extracted over 63 million barrels of oil from the Swara Tika and East Swara Tika fields and employs between 200 and 500 staff across its offices in Erbil and Texas. The second company, WesternZagros, is a Canadian energy firm founded in 2003 and operating in Kurdistan since 2005. Headquartered in Calgary, it manages operations from Erbil and al-Sulaymaniyah and has invested more than $1B in the Region, with main assets including the Kormir and Karmian fields, estimated to contain 5 trillion cubic feet of natural gas and 900 million barrels of recoverable oil. According to KRG officials, the Miran and Topkhana-Kormir fields covered by the agreements are expected to supply 24-hour electricity to the Region and potentially export surplus power to the rest of Iraq. 'This is not just about energy security—it's about political leverage,' local energy analyst Kovand Sherwani told Shafaq News. 'If implemented, these projects could drastically reduce the Region's reliance on Iranian fuel and grant it more bargaining power with Baghdad.' The United States welcomed the deals as a step toward enhancing Iraq's energy sovereignty. A senior State Department official told Shafaq News, 'The United States believes that Iraq will be more stable and sovereign by achieving energy independence and distancing itself from Iran's harmful influence,' the official stated. 'We encourage Baghdad and Erbil to work together to begin gas production as soon as possible,' he added. American energy expert Dr. Paul Sullivan of Johns Hopkins University also told Shafaq News that 'Erbil's decision to strike massive deals with US companies signals closer ties between Kurdistan and Washington in a vital sector, and may imply implicit American support for the Region.' However, he cautioned that 'unless constitutional disputes are resolved through a federal oil and gas law, this move will only deepen the crisis with Baghdad.' The Iraqi government responded swiftly to the deal. The Oil Ministry issued a statement rejecting the deals as 'null and void,' asserting that they violate Iraq's laws and the authority of the federal government. 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'The legislative vacuum has created a constitutional gray zone,' political analyst Yassin Aziz told Shafaq News. 'There is no operational clarity between the center and the regions—especially regarding who oversees which stage of oil production, from exploration to export.' He added that divergent views on federalism itself exacerbate the conflict. 'While Kurdistan believes the constitution grants it real and broad powers, many in Baghdad remain committed to a centralist mindset, viewing any independent economic initiative as a challenge to state authority.' Observers agree that the only long-term solution lies in passing a comprehensive federal oil and gas law that balances regional rights with federal oversight. Yet after nearly two decades of impasse, that breakthrough remains out of reach. 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Shafaq News
5 hours ago
- Shafaq News
Gold edges higher with spotlight on US-China trade talk
Shafaq News/ The US dollar index (.DXY), opens new tab shed 0.3%, making greenback-priced bullion cheaper for other currency holders. Senior US and Chinese officials meet in London to discuss tit-for-tat tariffs imposed on each other's products this year, along with other trade restrictions. Last month, the two sides had agreed to a temporary pause, providing some relief to investors. "In the short term, if there is a positive outcome of the meeting, it could be a little negative for gold, but not too much," said Bart Melek, head of commodity strategies at TD Securities. "I think a weaker economy, likely interest rate cuts and lower momentum on the risk appetite side is getting people to move into gold. And, of course expectations of higher inflation." Elsewhere, Russia said its forces had taken control of more territory in Ukraine's east-central region of Dnipropetrovsk, where the Kremlin said fighting was partly aimed at creating a "buffer zone." Safe-haven gold becomes more attractive during periods of geopolitical and economic uncertainty. It also tends to thrive in a low-interest rate environment as it is a non-yielding asset. Investors also await US Consumer Price Index data due on Friday, to gauge the country's economic health and predict the Federal Reserve's rate cut trajectory. Data over the weekend showed that China's central bank added gold to its reserves in May for the seventh straight month. Spot platinum was up 3.7% at $1,212.82, reaching its highest point since May 2021. Spot silver gained 2.1% to $36.71 per ounce, while palladium rose nearly 3% to $1,077.64.
