Gold Breaks $3,200; Shanghai Exchange Expands to Hong Kong
Key Takeaways
- Gold breaks out, with $3,200 established as the new floor: Stewart Thomson.
- Shanghai Gold Exchange plans to expand its warehouse network to Hong Kong.
- China plastics makers face potential supply disruptions from Iran due to US crackdown.
- Zambia approves $270M Congo power line to boost regional power trade.
- Crescent Energy to focus on core acreage in Eagle Ford and Uinta basins.
Top Stories
Gold breaks out; $3,200 new floor.
On 2025-05-06, Stewart Thomson's analysis indicated that gold has broken out, establishing $3,200 as the new floor in a super bull market.
Shanghai Gold Exchange expands to Hong Kong.
On 2025-05-06, a report stated that the Shanghai Gold Exchange plans to expand its warehouse network to Hong Kong. This move aims to increase the visibility of its yuan-denominated products, including gold, beyond mainland China.
China plastics face Iran supply disruptions.
On 2025-05-06, it was reported that Chinese plastics makers face potential supply disruptions from Iran due to a possible US crackdown. Approximately 40% of China's methanol imports originate from Iran, raising concerns for MTO plants.
Zambia approves $270M Congo power line.
On 2025-05-06, Zambia's energy regulator approved the construction of the $270-million Kalumbila-Kolwezi Interconnector Project. This high-voltage transmission line will connect Zambia's copper-rich North-Western province to the Democratic Republic of Congo, spanning 200 kilometers and strengthening regional power trade.
Crescent Energy to focus on core acreage.
On 2025-05-06, it was reported that Crescent Energy Co., a US oil-and-gas explorer backed by KKR & Co., is looking to slim down its drilling portfolio. The company aims to focus on its core acreage in the Eagle Ford and Uinta basins.
Commodity Corner
Kazakhstan considers OPEC+ options after Saudi pressure.
On 2025-05-06, it was reported that Kazakhstan is considering its options for complying with OPEC+ production cut obligations. This follows Saudi Arabia's increased efforts to ensure quota compliance, and Kazakhstan reaffirms its commitment to the OPEC+ agreement.
Global copper market shows signs of tightness.
On 2025-05-06, Bloomberg News reported that the global copper market is showing signs of tightness. Strong Chinese buying is squeezing scant supplies, despite worries about a looming industrial downturn.
Oil rebounds, banks lower forecasts, shale peaks.
On 2025-05-05, oil prices rebounded after hitting a four-year low, leading banks to lower their annual oil price forecasts. However, Scotiabank suggested on 2025-05-06 that the bounce may be short-lived due to an anticipated surge in supply from OPEC+. Diamondback Energy Inc. warned on 2025-05-05 that US shale oil production has likely reached its peak, coinciding with the price drop.
Global Economy
Thailand's inflation turns negative; rate cut possible.
On 2025-05-06, it was reported that Thailand's inflation turned negative due to lower fuel prices and increased fresh food availability. This situation provides the central bank with room to further reduce interest rates.
Gold Insights
Gold prices react to trade talks, await Fed decision.
On 2025-05-06, gold prices increased due to investor reactions to US Treasury Secretary's trade negotiation comments and anticipation of the Federal Reserve's interest-rate decision. However, increased bearish pressure is anticipated before the Fed's policy decision, while trade deal uncertainty limits downside risk, potentially leading to new highs.
Mining Industry
Gold Fields, AngloGold suspend Ghana mine talks.
On 2025-05-06, Gold Fields Ltd. and AngloGold Ashanti Ltd. announced the suspension of talks regarding the combination of two mines in Ghana. This decision allows each company to focus on improving their respective standalone operations, more than two years after the initial joint venture proposal.