International News
US economic downturn and rate cuts support gold rally at record highs- AUGMONT BULLION REPORT
Gold posted its longest rally since February on recession fears and rate-cut bets, up nearly 30% this year but still below April’s $3,500 peak.
- Gold held its longest streak of gains since February, driven by fears of a US economic downturn that have fuelled haven demand, along with traders’ bets on lower interest rates.
- With a 90% chance of a cut, traders have placed bets on the Federal Reserve easing monetary policy at its next meeting in September in response to signs of weakness in the largest economy in the world. Bullion that does not pay interest is usually supported by lower interest rates.
- Gold has climbed nearly 30% this year as investors have sought safety amid heightened trade conflicts, geopolitical tensions and eroding trust in dollar-denominated assets. Still, the precious metal has been range-bound over the previous few months, lacking new catalysts to rocket over its record high of about $3500 an ounce hit in April.
Technical Triggers
- Gold has touched its resistance zone of $3440-50 (~Rs 101,350-500), so we might see some profit-booking up to $3390-3400 (~100,000). But if prices sustain above this resistance zone, we might see follow-through buying towards the next psychological level of $3500 (~Rs 103,000).
- Silver is holding up gains after taking support around $36.5 (~Rs 109,000). Upside momentum could continue towards $38.4(~Rs 114,000), taking clues from gold, while profit booking can drag prices to the support zone.
Support and Resistance
| Commodity | Support Level | Resistance Level |
|---|---|---|
| International Gold | $3390/oz | $3500/oz |
| Indian Gold | ₹100,000/10 gm | ₹103,000/10 gm |
| International Silver | $36.5/oz | $38.4/oz |
| Indian Silver | ₹109,000/kg | ₹114,000/kg |
International News
Consortium Led By Former De Beers CEO Gareth Penny Selected As The Preferred Bidder To Acquire De Beers
Botswana is expected to play a pivotal role in the transaction. The country, together with Namibia, Angola and other shareholders, already owns a 15% stake in De Beers
A consortium headed by former De Beers CEO Gareth Penny has been selected as the preferred bidder to acquire De Beers, according to Botswana’s Minister for State President, Defence and Security, Moeti Mohwasa.
Speaking on the development, Mohwasa said Anglo American conducted a competitive sale process involving three shortlisted bidders before identifying the Global Diamond Consortium as its preferred choice.
Anglo American announced plans to divest De Beers in May 2024 as part of a broader restructuring strategy, driven by prolonged weakness in the diamond market and other business priorities.
The sale process has attracted significant interest from industry leaders and investors. Among those previously linked to the bidding were former De Beers CEO Bruce Cleaver, Australian mining executive Michael O’Keeffe, Indian billionaire Anil Agarwal, and Indian diamond companies KGK Group and Kapu Gems.
Botswana is expected to play a pivotal role in the transaction. The country, together with Namibia, Angola and other shareholders, already owns a 15% stake in De Beers and retains important rights under the shareholder agreement. Mohwasa emphasized that Botswana has the flexibility to either join the preferred bidder as a strategic partner or exercise its pre-emptive rights independently or with another investor.
Industry observers believe the eventual owner will seek to preserve De Beers’ vertically integrated business model, spanning diamond mining, trading and global natural diamond marketing, while positioning the company to benefit from a potential recovery in natural diamond demand and prices.
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