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Gold Down Over Interest Rates Hike Concern, Strengthening Dollar By Investing.com

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Gold Down Over Interest Rates Hike Concern, Strengthening Dollar By Investing.com



© Reuters.

By Gina Lee

Investing.com – Gold was down on Wednesday morning in Asia as investors digested U.S. Treasury Secretary Janet Yellen’s comments about the possibility of interest rate hikes.

were down 0.60% to $1,781.10 by 12:36 AM ET (4:36 AM GMT). The , which usually moves inversely to gold, was up on Wednesday.

on Tuesday said that interest rate hikes might be needed to stop the economy overheating due to U.S. President Joe Biden’s spending plans. She clarified later in the day, however, that she saw no signs of inflation and was not predicting the U.S. Federal Reserve’s move on rates.

Investors now await comments from other senior Fed officials, including Chicago Fed President Charles Evans and Cleveland Fed President Loretta Mester.

Questions also remain pertaining to whether Biden will nominate Fed Chairman Jerome Powell for a second four-year term remains.

On the data front, investors await other upcoming economic data from the U.S., including the and ADP National Employment Report, both due later in the day. April’s employment report, including , is due on Friday.

Across the Atlantic, the Bank of England will hand down its on Thursday.

In other precious metals, silver was steady at $26.52 per ounce and palladium inched up 0.1%, while platinum edged down 0.2%. Top producer Nornickel, a Russian nickel and palladium mining and smelting company, reported two waterlogged mines in Siberia which contributed to a supply shortfall.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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BP’s lobbying for gas shows rifts over path to net-zero emissions By Reuters

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BP’s lobbying for gas shows rifts over path to net-zero emissions By Reuters


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© Reuters. FILE PHOTO: BP-branded gifts are displayed at an event with BP’s new Chief Executive Bernard Looney in central London, Britain February 12, 2020. REUTERS/Toby Melville/File Photo

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By Shadia Nasralla, Simon Jessop and Kate Abnett

LONDON/BRUSSELS (Reuters) – Oil major BP (NYSE:) has lobbied for the EU to support , a move that exposes divergent views among investors and reflects a wider European dispute about the role of the fossil fuel in the transition to a lower-carbon world.

The European Commission – aiming to reach net-zero greenhouse gas emissions by 2050 – had planned to omit gas-fuelled power plants from a new list of investments that can be marketed as sustainable, but delayed the decision last month following complaints from some countries and companies.

Britain’s BP was among those lobbying against the plan. In a December 2020 response to the Commission’s public consultation on the issue, it said the new rules could threaten financing of gas projects, and obstruct a shift away from more polluting coal.

BP called for an increase in the emission limits that gas plants would have to meet to allow them to be labelled green without requiring the immediate installation of carbon capture and storage (CCS) technology, which is still deemed too expensive for wide-scale use.

Natural gas emits roughly half the CO2 emissions of coal when burned in power plants. But gas infrastructure is also associated with emissions of the greenhouse gas methane.

When asked about its lobbying, BP said it strongly supported the EU’s climate goals. It added that natural gas was enabling the transition from coal.

However investors gave mixed responses when asked whether BP’s championing of gas was at odds with its pledge to support the Paris Agreement. As well as committing to bringing carbon emissions from the barrels it produces to net zero by 2050, the company has pledged to align its lobbying activities to support net-zero carbon policies.

Natasha Landell-Mills, head of stewardship at asset manager Sarasin and Partners, said BP’s lobbying raised questions about its commitments.

“If their capex (capital expenditure) was oriented towards full decarbonisation by 2050, then you’d naturally expect to see lobbying align with this goal. The fact it seems to be pushing the other way suggests a problem,” she added.

Others, though, pointed to the question of what aligning with the Paris Agreement means in practice.

“It’s not like a standard setter has said ‘here, exactly, is what Paris-aligned means, industry by industry’,” said John Streur, CEO at U.S. asset manager Calvert Research and Management.

Another institutional investor, speaking on condition of anonymity, said he did not see a problem with BP’s response and that there was no blueprint for what Paris-aligned means, adding however it was not a good time “to stick your head out”.

‘FAIR TRANSITION’

The European Commission had originally said gas plants must emit below 100g of carbon dioxide equivalent per kilowatt hour (CO2e/kWh) to be labelled green – a level even the use of CCS would make it tough to achieve, according to BP.

In its December submission to the Commission, BP urged the EU to set a higher emissions limit to encourage power suppliers to shift more capacity to gas from coal plants.

“Natural gas should have a dedicated threshold, above the current 100g CO2e/kWh, to reflect its role to facilitate an affordable and fair energy transition by enabling a shift away from coal in power generation and heating, providing dispatchable power to complement renewables and offering an alternative fuel in transport,” it said.

BP is far from alone in its support of gas.

At least nine EU countries, including Poland, Hungary and the Czech Republic, lobbied the Commission to label gas plants as sustainable, documents seen by Reuters showed. Other governments including Denmark, Spain and Ireland urged Brussels to exclude the fuel.

European oil and gas producer Eni criticised the 100 g/kWH threshold as too low in December, while a group including Total and Repsol (OTC:) signed an open letter from several energy firms in support of gas as a means to replace coal in the energy mix.

“Any tonne we don’t emit today is much more valuable in terms of avoiding global warming then a tonne that is with the best intention avoided in 2040,” said Mario Mehren, Chief Executive of Wintershall Dea, who signed that letter.

‘UNABATED GAS’

The Paris Agreement set a target to limit global warming to 2 degrees Celsius above pre-industrial levels, and aim for 1.5 degrees.

The EU aims to cut its net greenhouse gas emissions by 55% by 2030, from 1990 levels, and eliminate them by 2050.

The role of gas depends on factors such as what volume of emissions can be captured and stored in the future, and fixing methane leaks from gas infrastructure, said Joeri Rogelj, a lead author on Intergovernmental Panel on Climate Change (IPCC) reports and Director of Research at the Grantham Institute at Imperial College London.

“In that context, unabated gas, without carbon capture and storage, is not part of the key sustainable investments,” he added.

Sandrine Dixson-Declève, co-president of the Club of Rome think-tank and one of the EU’s expert advisers on the sustainable finance taxonomy, said the rules needed to reflect climate science.

“No one is denying that gas can help the transition, but that does not mean it is Paris Agreement compliant.”





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Gold Up, Hits Three-Month High as Chinese and U.S. Data Disappoint By Investing.com

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Gold Up, Hits Three-Month High as Chinese and U.S. Data Disappoint By Investing.com




By Gina Lee

Investing.com – Gold was up on Monday morning in Asia, climbing to a three-month high as inventors digested disappointing economic data from China and the U.S.

were up 0.75% to $1,851.95 by 12:02 PM ET (4:02 AM GMT), hitting their highest level since Feb. 10 in early Asian trade.

The , which usually moves inversely to gold, inched up on Monday and the benchmark came down further from a more than one-month high hit during the previous week.

Chinese data released earlier in the day said that growth slowed down to 9.8% year-on-year in April.

In the U.S., data released on Friday said that did not grow month-on-month in April as the bounce from stimulus checks distributed earlier in the year faded. However, an acceleration could be forthcoming in the coming months as savings surge to record levels and the economy continues to re-open.

The weak U.S. data did help to calm rising worries about runaway inflation and bets that the U.S. Federal Reserve would hike interest rates sooner than expected.

Dallas Fed President on Friday warned of a worrisome rise in U.S. inflation expectations, as imbalances between supply and demand for labor and goods put upward pressure on prices. However, Cleveland Fed President Loretta Mester said that the Fed’s policy is currently in a good place.

Other officials from the central bank, including Fed Vice Chair Richard Clarida and Atlanta Fed President Raphael Bostic, will also speak later in the week.

Investors now await the minutes from the U.S. Federal Reserve’s latest meeting, due on Wednesday, with the Reserve Bank of Australia publishing its own minutes the day before.

In other precious metals, palladium edged up 0.2% to $2,898.24, while silver inched down 0.1% and platinum edged down 0.2%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Blinken discusses Gaza in calls with Qatari, Egyptian, Saudi foreign ministers By Reuters

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Blinken discusses Gaza in calls with Qatari, Egyptian, Saudi foreign ministers By Reuters



© Reuters. FILE PHOTO: U.S. Secretary of State Antony Blinken holds a joint news conference with his British counterpart at Downing Street following their bilateral meeting in London, Britain May 3, 2021 during the G7 foreign ministers meeting. Chris J Ratcliffe/Poo

CAIRO (Reuters) -U.S. Secretary of State Antony Blinken discussed the violence in Israel, the West Bank and Gaza in phone calls with the Qatari, Egyptian and Saudi foreign ministers, the State Department said on Sunday.

Blinken and Qatar’s Sheikh Mohammed bin Abdulrahman Al-Thani discussed “efforts to restore calm in Israel and the West Bank and Gaza in light of the tragic loss of civilian life”, the State Department said.

The Qatari Foreign Ministry said in a statement that the two officials discussed “the recent Israeli attacks on worshippers at the Al Aqsa Compound and the attack on the besieged Gaza Strip.”

Al-Thani stressed the “need for urgent action by the international community to stop the repeated brutal Israeli attacks against civilians in Gaza and the blessed Al-Aqsa Mosque,” it added.

Meanwhile, a growing group of U.S. senators on Sunday called for a ceasefire. Democratic Senator Chris Murphy and Republican Todd Young, the senior members of a Foreign Relations panel, said in a statement: “As a result of Hamas’ rocket attacks and Israel’s response, both sides must recognize that too many lives have been lost and must not escalate the conflict further.”

Twenty-five other Democratic U.S. senators and two independents issued a separate, similar statement urging an immediate ceasefire.

In his call with Egypt’s Sameh Shoukry, Blinken “reiterated his call on all parties to de-escalate tensions and bring a halt to the violence, which has claimed the lives of Israeli and Palestinian civilians, including children”, the State Department said in another statement.

Saudi state news agency SPA reported on Sunday that Blinken also had a phone call with Saudi Foreign Minister Prince Faisal bin Farhan Al Saud to discuss the latest developments “in Palestine and in the region.”

The State Department said the two discussed “the ongoing efforts to calm tensions in Israel and the West Bank and Gaza and bring the current violence to an end.”

Qatar’s Al-Thani also held a phone call on Sunday with Shoukry, in which they reviewed “bilateral cooperation relations and developments in Palestine,” the Qatari Foreign Ministry said in a separate statement.

The Egyptian Foreign Ministry said in a statement that the two ministers agreed on “the importance of working to reach an immediate ceasefire between the two sides, and they also agreed to continue coordination in the bilateral framework, as well as in regional and international ones, regarding what is in the interest of the Palestinian people and reaching a ceasefire,”

The truce efforts by Egypt, Qatar and the United Nations have so far offered no sign of progress.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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