The gold price fell below US$2,600 per ounce this week for the first time since mid-November.
The decline came after the US Federal Reserve cut interest rates by 25 basis points at its final meeting of the year, bringing it to the 4.25 to 4.5 percent range. The central bank has now made 100 basis points worth of cuts in 2024.
“In support of its goals, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/4 to 4-1/2 percent” — US Federal Reserve
The Fed also shared its latest dot plot chart, which shows where officials think the federal funds rate is headed. Officials now see only two 25 basis point cuts in 2025, lower than the previous projection of four 25 basis point cuts.
Speaking at a press conference, Chair Jerome Powell said the Fed will exercise caution in 2025, looking for progress on inflation and strength in the labor market. He also said the decision to cut this week was a “closer call.”
Powell also rained on the Bitcoin parade, saying the Fed isn’t allowed to own it and won’t be looking to change that.
“We’re not allowed to own Bitcoin. The Federal Reserve Act says what we can own, and we’re not looking for a law change. That’s the kind of thing of thing for Congress to consider, but we are not looking for a law change at the Fed” — Jerome Powell, US Federal Reserve
The popular cryptocurrency has been on a tear since Donald Trump won the US presidential election in November, buoyed by the president-elect’s pro-crypto attitude and talk of a Strategic Bitcoin Reserve.
Powell’s comments had a dampening effect, pushing Bitcoin below US$100,000.
Bullet briefing — Paladin/Fission deal approved, graphite companies seek tariffs
Canada approves Paladin’s takeover of Fission
Australian uranium miner Paladin Energy (ASX:PDN,OTCQX:PALAF) has received approval from Canadian authorities for its acquisition of Fission Uranium (TSX:FCU,OTCQX:FCUUF).
The C$1.14 billion deal was first announced in June, but in October the Canadian government said it needed to review the transaction on national security grounds. Paladin has now cleared all regulatory hurdles.
Fission’s main asset is its Patterson Lake South (PLS) project in Saskatchewan’s prolific Athasbasca Basin.
Paladin sees the asset as a “natural fit” for its portfolio, which also includes the Namibia-based Langer Heinrich mine. It said when the agreement was announced that it had the resources to advance PLS to production.
Graphite companies call for China tariffs
A group of US graphite companies is calling for the American government to impose tariffs of as much as 920 percent on Chinese suppliers of the commodity, saying that the Asian nation is engaging in “malicious trade practices.”
“There is overwhelming evidence that China dumps artificially cheap graphite into global markets, which is made possible by state-sponsored policies and massive subsidies,” said Erik Olson of the American Active Anode Material Producers.
The coalition is petitioning the US Department of Commerce and International Trade Commission to initiate a trade investigation and put tariffs on both natural and synthetic graphite from China.
While the US has a 25 percent tariff on most Chinese graphite, the group argues it’s “far too low.”
“Experts at Buchanan Ingersoll & Rooney PC, the law firm handling the case, estimate dumping margins as high as 920%, allowing China to absorb the additional 25% cost easily” — American Active Anode Material Producers
So far there hasn’t been a response from the government.
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