Gold prices were little changed after marking a 7-week low on Tuesday, as equities and the dollar were buoyed in Asian trade by upbeat economic data and strong US treasury yields.
Spot gold was down 0.1 percent at $1,269.71 an ounce by 0713 GMT, after earlier touching its lowest since mid-August at $1,267.76. US gold futures for December delivery shed 0.3 percent to $1,272.60 an ounce.
“Gold no doubt is struggling for the moment as at least three variables are arrayed against it, namely, a stronger dollar, a higher rate environment and possibly a reduction in tensions with North Korea if tentative contacts revealed over the weekend amount to something,” INTL FCStone analyst Edward Meir said in a note. “We see gold possibly getting to a low of $1,245 before running into some credible support.”
The dollar on Tuesday rose versus the yen and climbed to its highest since mid-August against a basket of major currencies , extending gains from the previous session when it rose on higher US Treasury yields and strong manufacturing data. Proposed US tax reforms and growing odds of a December interest rate hike by the Federal Reserve have also helped support the greenback.
Dallas Fed President Robert Kaplan on Monday said the central bank would need to “look hard” at whether it should raise rates in December, while Minneapolis Fed President Neel Kashkari earlier that day said he would want to wait on rate hikes. Higher interest rates tend to boost the dollar and push bond yields up, adding pressure on greenback-denominated, non-yielding gold.
Meanwhile, the White House on Monday ruled out talks with North Korea except to discuss the fate of Americans held there, again appearing to rebuke Secretary of State Rex Tillerson who said Washington was directly communicating with Pyongyang on its nuclear and missile programs.
Spot gold may find support in a zone of $1,260-$1,263 per ounce, and then start a decent bounce, Reuters technicals analyst Wang Tao said. In other precious metals, silver had edged down 0.1 percent to $16.53 an ounce after earlier matching its lowest since Aug.9, which it originally hit yesterday.
Platinum and palladium were both 0.2-percent higher at $912.40 and $911.50 an ounce respectively, having hit price parity for the first time in 16 years last week.
Gold falls to 7-week low as dollar firms
Gold falls to 7-week low as dollar firms
Acwa signs key terms to develop 5GW of renewable energy capacity in Turkiye
JEDDAH: Saudi utility giant Acwa has signed key investment agreements with Turkiye’s Ministry of Energy and Natural Resources to develop up to 5 gigawatts of renewable energy capacity, starting with 2GW of solar power across two plants in Sivas and Taseli.
Under the investment agreement, Acwa will develop, finance, and construct, as well as commission and operate both facilities, according to a press release.
The program builds on the company’s first investment in Turkiye, the 927-megawatt Kirikkale Independent Power Plant, valued at $930 million, which offsets approximately 1.8 million tonnes of carbon dioxide annually, the statement added.
A separate power purchase agreement has been concluded with Elektrik Uretim Anonim Sirketi for the sale of electricity generated by each facility.
Turkiye aims to boost solar and wind capacity to 120GW by 2035, supported by around $80 billion in investment, while recent projects have already helped prevent 12.5 million tonnes of CO2 emissions and reduced reliance on imported natural gas.
Turkiye’s energy sector has undergone a rapid transformation in recent years, with renewable power emerging as a central pillar of its strategy.
Raad Al-Saady, vice chairman and managing director of ACWA, said: “The signing of the IA (implementation agreement) and PPA key terms marks a pivotal moment in Acwa’s partnership with Turkiye, reflecting the country’s strong potential as a clean energy leader and manufacturing powerhouse.”
He added: “Building on our long-standing presence, including the 927MW Kirikkale Power Plant commissioned in 2017, this step elevates our partnership to a new level,” Al-Saady said.
In its statement, Acwa said the 5GW renewable energy program will deliver electricity at fixed prices, enhancing predictability for grid planning and supporting long-term industrial investment.
By replacing imported fossil fuels with domestically generated clean energy, the initiative is expected to reduce Turkiye’s exposure to global energy market volatility, strengthening energy security and lowering long-term power costs.
The company added that the economic impact will extend beyond the anticipated investment of up to $5 billion in foreign direct investment, with thousands of jobs expected during the construction phase and hundreds of high-skilled roles created during operations.
The energy firm concluded that its existing progress in Turkiye reflects a strong appreciation for Turkish engineering, construction, and manufacturing capacity, adding that localization has been a strategic priority, and it has already achieved 100 percent local employment at its developments in the country.
