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On May 4th, German Chancellor Merz stated on May 3rd that the recent US decision to reduce its troop presence in Germany was "unrelated" to his criticisms of the war with Iran. Speaking on German television channel ARD, Merz said he was not surprised by the US governments decision to reduce troop levels, adding, "What weve heard these past few days isnt all new. The situation may have indeed escalated somewhat, but this is not a new development." Merz stated that he would not abandon cooperation with US President Trump, saying, "For us, the United States remains the most important partner in NATO." He emphasized that the USs nuclear sharing arrangements have not been reduced in any way, and there are no restrictions on the US commitment to providing nuclear deterrence to the NATO region. Merz also stated that the Tomahawk cruise missiles promised by the US in 2024 will not be deployed in Germany for the time being, because "the Americans dont even have enough for themselves right now."According to the Financial Times, several banks, including JPMorgan Chase and Morgan Stanley, are looking to shift risk to avoid being “overwhelmed” by data center debt.On May 4th, an Al Jazeera reporter pointed out that regardless of what is currently being discussed at the negotiating table, Iranians and Americans are speaking two different languages. What we are seeing may simply be negotiations to maintain dialogue, but this does not guarantee that unexpected events will not occur, triggering a new round of intense conflict. He believes that the differences between the two sides are difficult to bridge. When the US sets "surrender" as its bottom line, while Iran rejects any proposals that approach this situation, he sees no substance in the negotiations. However, the current situation presents a two-way pressure scenario: the US is pressuring the Iranian economy, while Iran is pressuring the global economy. It remains to be seen who will back down first. The risk now is that this situation, perceived as pressure from both sides, could escalate into a stalemate. In this scenario, war would once again loom, especially if Israel were to intervene to break the deadlock.According to Israeli media outlet Ynet, Israel is preparing for an escalation of the situation and has expressed skepticism about the US strategy of containing Iran.On May 4th, local time, Ukrainian President Volodymyr Zelenskyy held separate meetings with the Prime Ministers of Norway, Finland, the United Kingdom, and the Czech Republic in Yerevan, the capital of Armenia, on May 3rd. During his meeting with British Prime Minister Keir Starmer, Zelenskyy stated that Ukraine is willing to launch the next round of trilateral negotiations, with achieving a just and dignified peace being its core demand. Zelenskyy and Starmer also discussed support for Ukraines energy sector. Zelenskyy briefed Starmer on the situation on the front lines and the Russian attacks on Ukraine, emphasizing the need for a unified European air defense system.

China's problems slow copper's comeback while gold prices rise

Filip Fraser

Sep 27, 2022 14:35

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Gold prices recovered from two-year lows on Tuesday as the dollar's rally stalled, while Chinese industrial activity news halted copper's comeback.


Spot gold rose 0.5% to $1,629.96 per ounce, while futures were unchanged at $1,635.25 per ounce (01:57 GMT). Both instruments rebounded from their lows since early 2020 as dollar pressure eased.


The dollar index fell after reaching a 20-year high Monday. This year, a slump in major asset classes and rising interest rates boosted the dollar's safe-haven demand, allowing it to surpass gold.


Since Russia invaded Ukraine, rising interest rates have reduced gold's appeal.


After falling below $1,700 and $1,650, the market anticipates gold to drop below $1,600 in the next few days. Gold's near-term upside seems limited. Gold is down 10% this year.


This year, other precious metals fell. Platinum and silver both fell 12.5%.


Jerome Powell will speak on U.S. monetary policy on Wednesday. Last week's Fed meeting was marked by Powell's hawkishness.


Copper prices retreated Tuesday as Chinese industrial profits fell for a second month in August.


Copper futures recovered 0.3% to $3.3015 a pound after plunging 2% to a two-month low. The red metal is down 24% this year and nearing its 2022 low of $3.1355.


Rising interest rates and a drop in industrial production have hurt copper prices this year.


Investors planned anticipating a supply constraint due to China's economic slowdown, the world's top copper importer.