Author: Fiona Craig

Glencore plc (LSE:GLEN) reported an improvement in third-quarter 2026 production across several key commodities, including copper, nickel and coal, while maintaining its full-year production guidance and forecasting Marketing Adjusted EBIT of more than $5 billion.

The mining and commodities group produced 201,600 tonnes of copper during the third quarter, an increase of 2% from the preceding quarter, while nickel output rose 1% to 18,800 tonnes.

For the first nine months of 2026, copper production reached 598,600 tonnes, up 3% from the corresponding period last year. Excluding the effects of mine closures and disposals, underlying copper production increased 12%.

Glencore also reported stronger quarterly coal production and continued the restart of its ferrochrome smelting operations.

Copper Production Rises as African Operations Improve

Glencore’s own-sourced copper production totalled 598,600 tonnes during the first nine months of 2026, compared with 583,500 tonnes a year earlier.

The increase of 15,100 tonnes was supported by higher mining rates and improved grades at the company’s African Copper operations, which contributed an additional 56,700 tonnes.

Higher copper grades at Antamina added a further 32,300 tonnes.

These gains more than offset the impact of the planned closure of the Mount Isa copper mine in the third quarter of 2025 and the disposal of the Kidd mine in June 2026.

Together, those two operations accounted for a reduction of 49,700 tonnes.

Production was also lower at Antapaccay and Collahuasi, declining by 16,700 tonnes and 7,200 tonnes respectively.

After adjusting for Mount Isa and Kidd, Glencore reported a 12% increase in copper production compared with the first nine months of 2025.

Third-quarter copper output rose to 201,600 tonnes from 197,400 tonnes in the second quarter.

Zinc Output Falls 23% Following Mine Closure and Lower Grades

Glencore reported own-sourced zinc production of 547,200 tonnes for the first nine months of 2026, down 23% from 709,400 tonnes in the comparable period.

The decline reflected several operational factors, including the closure of the Lady Loretta mine in late 2025, which accounted for a reduction of 73,700 tonnes.

Lower zinc grades at Antamina reduced output by 69,400 tonnes, reflecting planned mine sequencing that prioritised copper production.

The disposal of the Kidd mine also reduced zinc output by 6,500 tonnes.

Excluding Lady Loretta and Kidd, zinc production declined 13%, primarily because of the planned reduction in grades at Antamina.

Third-quarter zinc production reached 181,600 tonnes, compared with 188,700 tonnes in the preceding quarter, representing a 4% decline.

Despite the lower output, Glencore continues to expect full-year zinc production towards the upper end of its existing guidance range.

Nickel Production Increases While Cobalt Output Declines

Nickel production reached 54,600 tonnes during the first nine months of 2026, representing a 4% increase from 52,400 tonnes a year earlier.

Third-quarter nickel output rose 1% to 18,800 tonnes from 18,600 tonnes in the second quarter.

In contrast, cobalt production declined sharply.

Glencore reported 13,700 tonnes of cobalt production during the first nine months, down 52% from 28,500 tonnes in the corresponding period of 2025.

The company attributed the reduction to the Democratic Republic of Congo’s cobalt export quota regime and its continued focus on copper production.

As a result, increasing quantities of cobalt contained in mixed ore are being retained in solution rather than processed into saleable hydroxide.

Glencore expects the value of this material to be realised as export regulations evolve.

Third-quarter cobalt production totalled 3,500 tonnes, down 20% from the previous quarter.

Steelmaking and Energy Coal Production Improve in Third Quarter

Glencore reported stronger quarterly production across both its steelmaking and energy coal operations.

Steelmaking coal output increased 14% to 8.0 million tonnes in the third quarter, compared with 7.0 million tonnes in the preceding period.

However, production for the first nine months declined 13% to 21.5 million tonnes, primarily reflecting lower plant throughput and yields at EVR.

Energy coal production increased 8% quarter on quarter to 26.5 million tonnes.

For the first nine months, energy coal output reached 73.9 million tonnes, compared with 73.5 million tonnes a year earlier, representing a 1% increase.

Glencore expects steelmaking coal production to improve during the fourth quarter, supported by mine sequencing, recent plant upgrades in Australia and the completion of planned maintenance in Canada.

Ferrochrome Operations Restart as Chrome Ore Production Rises

Glencore continued the phased restart of its ferrochrome smelting operations during the third quarter.

The Boshoek smelter resumed operations in September, followed by Wonderkop in October, while the Lion facility had restarted earlier in the year.

The company reported a 29% quarter-on-quarter increase in attributable ferrochrome production as a result of the progressive restarts.

Chrome ore production increased 11% during the third quarter to 906,000 tonnes from 817,000 tonnes in the preceding period.

However, production for the first nine months declined 7% to 2.55 million tonnes, reflecting varying operating conditions.

Gold production for the first nine months fell 42% to 262,000 ounces, while silver output declined 10% to approximately 13.3 million ounces.

Glencore Maintains Full-Year Production Guidance

Glencore reaffirmed its existing production guidance for 2026 across its principal commodities.

Copper production remains forecast at between 810,000 and 870,000 tonnes, with the company expecting an outcome towards the lower end of the range.

Zinc production guidance remains between 700,000 and 740,000 tonnes, with output expected towards the upper end.

Nickel production is forecast at between 70,000 and 80,000 tonnes, with an outcome around the middle of the range.

Steelmaking coal guidance remains between 30 million and 32 million tonnes, with production expected towards the lower end.

Energy coal output is forecast at between 96 million and 101 million tonnes, with an outcome towards the upper end.

The company expects copper production to increase during the fourth quarter, primarily because of anticipated improvements in grades and recoveries at Collahuasi.

Glencore also reaffirmed its expectation that full-year Marketing Adjusted EBIT will exceed $5 billion.

Chief Executive Highlights Operational Performance

Glencore Chief Executive Officer Gary Nagle said the third-quarter results reflected generally stable performance across the company’s major operations.

“We are pleased to report a strong third quarter production performance, where our key assets largely performed in line with expectations and previously communicated guidance. After adjusting for disposals and closures (Mount Isa copper and Kidd), YTD copper production was 12% higher than the comparable 2025 period. Quarter on quarter, own sourced production volumes were higher in copper and nickel and notably higher in steelmaking coal and energy coal.”

Nagle also highlighted the restart of ferrochrome operations and the decision to maintain the company’s existing annual production targets.

Glencore Outlook

Glencore enters the final quarter of 2026 with production guidance unchanged and expectations for improved copper and steelmaking coal output.

Copper production is expected to benefit from higher grades and recoveries at Collahuasi, while coal output should receive support from operational improvements and completed maintenance activities.

The company continues to anticipate zinc and energy coal production towards the upper end of their respective guidance ranges, while copper and steelmaking coal are expected towards the lower end.

Glencore’s forecast for Marketing Adjusted EBIT of more than $5 billion remains unchanged.

H-Power plc (LSE:HPOW) has agreed Heads of Terms with existing customer Protium Green Solutions Limited for the supply of its HY5 decentralised ammonia cracker, marking a further step in the commercial development of its hydrogen production technology.

The proposed agreement covers the supply of a HY5 unit capable of producing up to 500 kilograms of fuel-cell-grade hydrogen per day, allowing Protium to generate hydrogen at or close to the point of demand.

The initial arrangement is expected to run for two years, beginning in the second half of 2027, subject to planning approvals, permitting requirements and the execution of a definitive contract.

The agreement builds on an existing commercial relationship between the companies, including Protium’s previous commitment to purchase 5,000 kilograms of hydrogen produced by H-Power.

HY5 Agreement Establishes New Product Revenue Opportunity

The Heads of Terms establish a framework for H-Power to supply its HY5 ammonia-cracking technology directly to Protium.

Under the proposed arrangement, H-Power will provide the HY5 unit together with installation, commissioning, staff training and ongoing engineering support.

Protium will be responsible for operating the equipment.

The agreement represents a potential additional revenue stream for H-Power, alongside its existing LC30 product sales and hydrogen supply activities.

H-Power said the HY5 arrangement supports its strategy of moving from technology development towards supplying commercial products and services.

The initial deployment is expected to commence during the second half of 2027 and continue for two years.

However, the companies must still complete a definitive agreement and obtain the necessary planning and permitting approvals before deployment can proceed.

Financial terms, including the proposed contract value, have not been disclosed.

Protium Expands Existing Hydrogen Supply Relationship

The proposed HY5 supply arrangement follows an earlier agreement between H-Power and Protium announced in June 2026.

Under that agreement, Protium committed to purchasing 5,000 kilograms of fuel-cell-grade green hydrogen produced from cracked ammonia at H-Power’s Dunsfold facility.

The companies also established a virtual hydrogen depot at Dunsfold, enabling Protium to collect hydrogen produced by H-Power and distribute it through its own network.

The latest agreement would extend the relationship from purchasing and distributing hydrogen to deploying H-Power’s ammonia-cracking equipment directly within Protium’s operations.

This would allow Protium to access H-Power’s proprietary reactor technology while taking responsibility for operating the HY5 unit.

The arrangement could also provide a basis for further equipment supply agreements between the companies.

HY5 Designed to Produce Up to 500kg of Hydrogen Daily

H-Power’s HY5 system uses proprietary ammonia-cracking reactor technology to convert ammonia into hydrogen.

The unit is designed to produce up to 500 kilograms of fuel-cell-grade hydrogen per day.

By locating production equipment close to hydrogen demand, the technology aims to reduce the logistical requirements associated with transporting and storing hydrogen over longer distances.

The decentralised approach is intended to provide an alternative to conventional hydrogen supply arrangements that depend on production at centralised facilities.

H-Power said the proposed deployment demonstrates the potential to produce cost-competitive hydrogen without government subsidy.

The company has not disclosed the expected production costs, utilisation levels or financial performance of the proposed Protium installation.

Agreement Provides Framework for Further HY5 Deployments

The Heads of Terms also establish a framework for potential additional HY5 installations at other Protium sites.

Any expansion would depend on customer demand, further commercial negotiations and the relevant approvals.

The companies have not committed to additional units beyond the initial proposed deployment.

H-Power intends to use the agreement to develop its HY5 product supply business alongside existing revenue generated from hydrogen sales and LC30 equipment.

The arrangement could provide an opportunity to demonstrate the HY5 system in a customer-operated environment, although the initial installation remains subject to final contractual and regulatory conditions.

H-Power Management Highlights Commercial Strategy

H-Power Chief Executive Officer John Wilson said the agreement reflects the company’s transition towards a more commercially focused operating model.

“This agreement is another important milestone in the reset of H-Power from a technology-led business into a commercially focused products company.

“We now have LC30 product sales and hydrogen sales underway, and this agreement establishes the HY5 product revenue route we have set out as another core part of our commercial model.

“Protium is already a commercial customer of H-Power, having committed to purchase 5,000kg of hydrogen produced using our ammonia-cracking technology. The next step in that relationship is to supply the HY5, giving Protium access to our proprietary reactor technology so that hydrogen can be produced closer to where its customers need it.

“This is exactly what the reset of H-Power was designed to achieve: turning our technology into defined products, contracted customer demand and repeatable revenue. The Heads of Terms also provide a framework to develop further HY5 contracts with Protium as demand grows.”

Protium Chief Executive Officer Christopher Jackson also welcomed the proposed expansion of the partnership.

“As a company Protium has always been at the forefront of pioneering technology deployments in the UK hydrogen sector, and today’s announcement further underscores that market leading reputation. We are delighted to share this announcement on how Protium is continuing to develop our partnership with H-Power, and to re-affirm our strong interest in the role that distributed ammonia cracking can play as an additional source of cost competitive, unsubsidised, green hydrogen supply for Protium’s customers.”

H-Power Outlook

The Heads of Terms with Protium represent a potential new commercial opportunity for H-Power’s HY5 ammonia-cracking technology.

The proposed two-year agreement would establish a customer-operated installation capable of producing up to 500 kilograms of hydrogen daily, complementing the company’s existing hydrogen supply relationship with Protium.

The immediate priorities are to finalise the contractual arrangements, secure planning and permitting approvals and prepare for the anticipated deployment in the second half of 2027.

Further HY5 installations at Protium sites remain possible but have not been agreed.

The financial contribution of the proposed arrangement cannot yet be determined because contract pricing and other commercial terms have not been disclosed.

Quantum Blockchain Technologies plc (LSE:QBT) has reported further progress in its Bitcoin mining research and development programme, confirming that all three of its proprietary technologies are now performing live mining through mining pools.

The AIM-listed company said Methods A, B and C have reached operational testing stages across different Bitcoin mining platforms, including Bitmain Antminer equipment, Bitaxe Gamma miners and a development platform supplied by an ASIC manufacturer.

The update also highlighted progress towards commercialisation, with Method A adapted for additional mining rigs and a new software layer developed to support the deployment of all three technologies on the ASIC manufacturer’s hardware.

Performance testing remains ongoing, and the company has not yet disclosed the results of sustained comparative testing or announced commercial customer agreements.

Method A Begins Live Mining on Bitmain Antminer S9

Quantum Blockchain Technologies has completed modifications to the Braiins OS operating system used on the Bitmain Antminer S9 mining rig.

Method A is now operating on an S9 connected to a public Bitcoin mining pool.

The company is measuring its performance against a benchmark S9 running the standard, unmodified Braiins OS software on the same mining pool.

The comparison is intended to establish whether Method A provides a measurable performance improvement under live operating conditions.

Testing will continue over a sustained period, with the company planning to publish results once the assessment has been completed.

QBT has also changed how Method A’s proprietary technology is deployed.

Its learning and trained modules now operate remotely on company-controlled servers, with mining rigs accessing the technology through an application programming interface (API).

This approach means Method A can potentially be deployed at customer mining facilities without installing or disclosing the company’s proprietary software directly on site.

The arrangement is intended to reduce intellectual property exposure while allowing mining operators to access Method A’s functionality.

Method A Adapted for Antminer S19 and S21 Mining Rigs

Beyond the Antminer S9, Quantum Blockchain Technologies has configured Method A to operate on Bitmain’s S19 and S21 mining rigs.

The implementation uses aftermarket control boards and firmware to provide access to the hardware functions required by the technology.

QBT has engaged with three manufacturers of aftermarket control boards and firmware to explore deployment on these mining platforms.

The development could extend Method A’s potential compatibility across a wider range of Bitcoin mining equipment.

However, the company has not confirmed completed commercial installations on S19 or S21 rigs.

Further testing and integration work will be required before the technology can be considered ready for wider commercial deployment.

Method B Undergoes Live Testing on Bitaxe Gamma Miners

Quantum Blockchain Technologies has also advanced Method B, which uses techniques based on chaos mathematics.

The latest version of Method B, originally announced on 9 July 2026, is now performing live Bitcoin mining on Bitaxe Gamma devices at the company’s research and development facility in Milan.

QBT is comparing the technology’s performance against a benchmark Bitaxe Gamma miner running the standard ESP-Miner operating system.

The testing is intended to evaluate Method B’s effectiveness under live mining conditions and provide comparative operational data.

The company has not yet disclosed quantified performance improvements from the latest testing programme.

Method B remains under development as QBT works towards demonstrating its commercial potential.

Method C AI Oracle Begins Mining on ASIC Manufacturer’s Platform

QBT confirmed that Method C, also known as its AI Oracle, is now performing live Bitcoin mining on the Mining Development Kit (MDK) of an ASIC manufacturer.

The manufacturer has not been identified because it is operating under a non-disclosure agreement with Quantum Blockchain Technologies.

The latest development follows work announced on 3 August 2026 to adapt Method C’s learning models to the manufacturer’s operating system and hardware architecture.

Method C’s operation on the development platform represents another stage in testing the technology’s compatibility with ASIC mining systems.

The company has not announced commercial deployment of Method C or provided financial projections associated with the technology.

New Software Layer Supports Integration Across All Three Methods

Quantum Blockchain Technologies has developed a generalised software layer designed to allow Methods A, B and C to implement their respective control strategies on the ASIC manufacturer’s development platform and mining hardware.

The software provides the level of hardware control required by each technology.

QBT said it is finalising the dynamic data collection functionality needed for Method A.

Once that work is completed, Method A is expected to be ready to operate on the manufacturer’s MDK.

The company then intends to configure both Method A and Method B to run on the manufacturer’s mining rig.

These deployments will initially focus on collecting operational data needed to assess the technologies and support further commercial development.

The new software layer is intended to simplify the integration of QBT’s mining technologies with the manufacturer’s hardware architecture.

Quantum Blockchain Technologies Outlook

Quantum Blockchain Technologies’ latest update confirms that all three of its Bitcoin mining methods have progressed to live operational testing.

Method A is mining on an Antminer S9 and has been configured for potential deployment on S19 and S21 equipment, while Method B is undergoing comparative testing on Bitaxe Gamma miners.

Method C is operating on an ASIC manufacturer’s development platform, with further integration work planned for Methods A and B.

The company’s immediate priorities include completing sustained performance testing, gathering comparative mining data and extending compatibility across additional hardware platforms.

Although the developments represent progress towards commercialisation, QBT has not yet announced verified performance results from the current testing programmes, commercial deployment contracts or revenue generated by the technologies.

Further updates are expected as testing and integration activities progress.

Bluebird Mining Ventures Ltd (LSE:BMV) has entered into a strategic agreement with US-based artificial intelligence specialist PrimaLabs.AI to explore investments in AI computing infrastructure, with an initial programme covering up to 240 NVIDIA B300 graphics processing units (GPUs).

The proposed arrangement represents an indicative capital opportunity of up to $24 million and would allow Bluebird to participate in operating profits generated by AI inference services without directly owning or managing the computing infrastructure.

The agreement forms part of the company’s efforts to extend its existing streaming investment strategy beyond traditional mining and precious metals into AI computing capacity.

Bluebird emphasised that the agreement does not commit it to investing the full $24 million, or any other amount, with potential deployments dependent on further commercial assessments, approvals and definitive agreements.

Proposed Investment Covers Up to 240 NVIDIA B300 GPUs

Under the agreement, Bluebird may provide capital to Mainframe & Cybernetic Systems Limited (FRAME), an affiliated company responsible for procuring, hosting and operating the computing infrastructure.

PrimaLabs would supply the AI inference software, model-serving technology and commercial distribution capabilities required to deliver services to customers.

Bluebird’s proposed financial entitlement would comprise 100% of the operating profits attributable to the computing capacity it funds, after agreed costs and subject to final contractual terms.

The initial programme contemplates 240 NVIDIA B300 GPUs, with an indicative total investment opportunity of up to $24 million.

However, the company could participate on a smaller scale, potentially funding a single GPU before considering further investment.

This incremental approach is intended to allow Bluebird to evaluate commercial performance before committing additional capital.

Proposed Capacity Charges Could Reach $4.2 Million Annually

The indicative commercial arrangements between FRAME and PrimaLabs include minimum capacity charges of $2 per GPU-hour.

At full deployment of the proposed 240 GPUs, these charges would be equivalent to approximately $4.2 million annually.

The arrangements also contemplate additional participation in revenue generated from AI inference services.

Bluebird stressed that the $4.2 million figure relates to proposed capacity charges under the FRAME–PrimaLabs agreement and does not represent a revenue forecast for Bluebird itself.

Any returns received by the company would depend on the final profit-sharing agreements, GPU utilisation, customer revenues and associated operating costs.

The underlying commercial terms remain indicative and are subject to definitive documentation.

Bluebird Plans to Extend Streaming Strategy Into AI Infrastructure

The agreement represents a potential expansion of Bluebird’s Harvesting strategy into what the company describes as AI Harvesting.

Its existing investment approach focuses on providing capital in exchange for participation in future cash flows rather than directly operating the underlying assets.

Under the proposed AI model, Bluebird would finance computing capacity used to deliver commercial inference services and receive a share of the operating profits attributable to its investment.

The company intends to assess GPU utilisation, processing throughput, revenue generation, operating expenses and capital recovery through an initial deployment.

Chief Executive Officer Sath Ganesarajah said the proposed arrangement could provide exposure to AI infrastructure without requiring Bluebird to operate the equipment.

“AI inference presents a potential new opportunity for BMV to apply its Harvesting strategy. By funding computing capacity and participating in the operating profits it generates, we aim to gain exposure to this market without taking on direct responsibility for operating the infrastructure.

“Our priority is to establish the commercial viability of the model through an initial deployment before committing further capital. This will allow us to assess the returns it can generate and whether it offers a scalable opportunity for BMV.”

Bitcoin Settlement Forms Part of Proposed Structure

Bluebird intends to receive distributions in Bitcoin or convert proceeds from the proposed investment into the cryptocurrency.

The settlement arrangements would be subject to a separate agreement with FRAME and have not yet been finalised.

The approach would connect the potential AI computing investment with Bluebird’s broader treasury strategy.

However, the company has not announced any Bitcoin distributions arising from the proposed programme or confirmed that an initial investment has been completed.

Future returns would depend on the profitability of the computing capacity funded and the agreed distribution arrangements.

Related-Party Arrangements Require Independent Board Review

The proposed investment builds on Bluebird’s technology partnership with The BE Company (BE), announced on 9 January 2026.

Bluebird said other exploratory activities under that partnership have concluded, with the parties now concentrating on the AI inference opportunity.

BE is an affiliated entity in which Bluebird’s Chief Executive Officer has an interest, while FRAME is a subsidiary of BE.

As a result, any transaction between Bluebird and FRAME will require independent Board consideration, commercial assessment and compliance with applicable related-party requirements.

Bluebird confirmed that it has not advanced funds or made payments to BE in connection with either the original technology partnership or the proposed AI inference initiative.

Individual investments and profit-sharing arrangements will require separate definitive agreements before capital can be deployed.

Bluebird Mining Ventures Outlook

The PrimaLabs agreement establishes a framework for Bluebird to explore participation in AI inference infrastructure through a streaming investment model.

The proposed programme covers up to 240 NVIDIA B300 GPUs and represents an indicative investment opportunity of $24 million, although no capital commitment has been made.

Bluebird’s immediate priority is to establish an initial deployment and evaluate its commercial performance, including utilisation, revenues, costs and potential investment returns.

Any subsequent expansion will depend on the results of that assessment, available capital, regulatory and corporate approvals, and final contractual arrangements.

The company said further announcements would be made when material capital commitments or deployments are agreed.

Gold prices moved lower on Wednesday as investors positioned themselves ahead of the Federal Reserve’s interest rate announcement and a forthcoming US inflation report. A modest rise in the dollar weighed on bullion, although physical buying and demand from Chinese households continued to provide some support following recent market volatility.

Spot gold declined 0.6% to $4,037.98 an ounce at 00:57 ET (04:57 GMT), while US gold futures fell 0.6% to $4,051.32. The US Dollar Index increased 0.1% to 102.42.

The decline followed a 1.1% recovery in the previous session, when buying interest emerged after gold had experienced substantial selling pressure.

Precious Metals Decline Ahead of Federal Reserve Announcement

Gold’s losses were accompanied by weakness across other precious metals.

Silver fell 0.9% to $53.9100 an ounce, while another precious metals quotation declined 0.7% to $1,533.06. The original market report did not identify the metal associated with that price.

A further unidentified precious metals contract dropped 0.6% to $1,030.40, while palladium futures decreased 0.2% to $1,026.75.

The movements coincided with a slight appreciation of the dollar, which can make commodities priced in the US currency more expensive for international buyers.

Despite Wednesday’s decline, gold remained above $4,000 an ounce after recovering from recent lows.

The metal had briefly traded below that level during previous sessions before attracting additional buying interest.

Fed Expected to Leave Interest Rates Unchanged

The Federal Reserve is widely expected to maintain its current interest rate settings at Wednesday’s policy meeting.

For gold investors, the decision is important because bullion does not generate interest income.

Higher rates can increase the relative attractiveness of bonds and other interest-bearing assets, potentially reducing demand for precious metals.

Although an immediate rate increase is not anticipated, traders continue to consider the possibility of additional monetary tightening before the end of the year.

Inflation concerns remain a significant factor in the outlook, particularly because elevated energy costs could continue to influence consumer prices.

The market will therefore focus on the Federal Reserve’s assessment of inflation and the potential direction of interest rates in December.

Kevin Warsh’s Policy Commentary Could Shape Market Expectations

Federal Reserve Chair Kevin Warsh is expected to address investors following the central bank’s announcement.

His comments will be examined for indications of how policymakers intend to balance persistent inflation risks against the decision to maintain borrowing costs.

Warsh faces the challenge of reinforcing the central bank’s commitment to price stability without necessarily providing explicit guidance about future interest rate changes.

Any indication that additional increases remain under consideration could influence Treasury yields, the dollar and gold prices.

Alternatively, comments suggesting that inflation pressures are becoming more manageable could affect expectations for the final policy meeting of the year.

The press conference may therefore have implications for precious metals beyond the immediate interest rate decision.

Technology Sector Selling Has Affected Gold Positions

Recent volatility in technology stocks has also influenced trading in gold.

A decline in artificial intelligence-related shares prompted some investors to liquidate bullion holdings to offset losses elsewhere in their portfolios.

This selling contributed to gold reaching its lowest level since mid-July on Friday.

The episode demonstrated that precious metals can face selling pressure during broader market declines when investors need to raise cash.

Gold subsequently recovered 1.1% in the previous session as lower prices attracted buyers.

Global stock markets also advanced as interest in artificial intelligence investments returned following the previous week’s selloff.

The recovery in equities reflected an improvement in technology sector sentiment, while gold continued to respond to changes in investor positioning.

Chinese Buyers Provide Support Following Recent Declines

Demand from China has helped limit the extent of gold’s recent losses, according to ANZ.

Chinese households have increased purchases of physical bullion over the past two months, taking advantage of lower prices.

Reduced interest in domestic equities among some investors has also contributed to stronger demand for gold.

These purchases have provided an additional source of support during periods of international financial market volatility.

Physical buying can influence price movements independently of investment activity in futures markets and other financial products.

ANZ indicated that demand from Chinese households has helped establish a level of support beneath bullion prices.

However, broader changes in interest rate expectations and currency markets remain important influences on gold’s international valuation.

Oil Price Movements Offer Some Inflation Relief

Energy markets were relatively stable on Wednesday after oil prices declined for two consecutive sessions.

The recent reduction in crude prices has offered some potential relief from concerns about inflation, although energy costs remain an important consideration for policymakers.

Higher oil prices can affect transportation and production expenses, with potential consequences for consumer prices.

A sustained decline could ease some of these pressures, depending on how changes in energy costs are transmitted through the economy.

Investors were also monitoring the outcome of a closely contested Israeli election amid continuing uncertainty about the Middle East.

Developments in the region remain relevant to energy markets and the broader inflation outlook.

Dollar Strength Adds to Pressure on Bullion

The US Dollar Index rose 0.1% to 102.42 during early Wednesday trading.

Because gold is quoted internationally in dollars, movements in the US currency can affect its cost for buyers using other currencies.

An appreciating dollar can make bullion more expensive in local-currency terms, potentially limiting demand.

The relationship between gold and the dollar is influenced by several other factors, including inflation expectations, interest rates and investment flows.

Nevertheless, the modest increase in the dollar contributed to the weaker trading conditions for gold.

Investors will assess whether the Federal Reserve’s announcement changes expectations for the currency’s direction.

September PCE Inflation Data Due Thursday

The next important US economic release will be the September personal consumption expenditures price index, scheduled for Thursday.

The PCE index is the Federal Reserve’s preferred inflation measure and will provide updated information about underlying price pressures.

Investors will use the figures to reassess the likelihood of another interest rate increase at the December policy meeting.

A reading showing persistent inflation could reinforce expectations of further tightening.

A softer result could suggest that inflationary pressures are moderating, potentially influencing forecasts for future borrowing costs.

The report will follow Wednesday’s Federal Reserve decision, making it another important event for the dollar, Treasury yields and gold prices.

Gold Market Outlook

Gold traded lower on Wednesday, with spot prices down 0.6% at $4,037.98 an ounce and US futures falling to $4,051.32.

A modest rise in the dollar weighed on the metal, while investors awaited the Federal Reserve’s interest rate decision.

Physical demand from China and purchases following recent price declines have provided some support, although gold remains sensitive to broader financial market movements.

The central bank is expected to hold rates steady, but uncertainty continues over whether another increase could occur before year-end.

Thursday’s US PCE inflation report will offer additional information about price pressures and could influence expectations for the December meeting.

Gold’s near-term direction will remain linked to monetary policy signals, dollar movements, physical buying and changes in investor sentiment.

Crude oil prices increased more than 1% on Wednesday as traders assessed a reported missile attack on Saudi Arabia’s largest refinery and fresh indications of tightening US inventories. The developments added to existing concerns about Middle Eastern supply security, while investors also awaited an OPEC+ production meeting and further information about Russian oil exports.

Brent crude futures climbed $1.36, or 1.2%, to $115.24 a barrel at 08:58 GMT. US West Texas Intermediate crude advanced $1.62, equivalent to 1.6%, to $101.52 a barrel.

The latest gains reflected uncertainty surrounding regional military activity and the possibility of disruptions to energy infrastructure in one of the world’s most important oil-producing areas.

Houthi Missile Claim Draws Attention to Saudi Refining Capacity

Yemen’s Iran-aligned Houthi movement announced on Tuesday that it had struck Saudi Arabia’s largest oil refinery with a missile.

The refinery has a processing capacity of approximately 550,000 barrels per day, making it a significant facility within Saudi Arabia’s petroleum industry.

Saudi officials had not immediately confirmed the reported strike, and its potential effect on refinery operations remained unclear.

Saudi Arabia is the world’s largest crude exporter and second-largest producer, giving developments affecting its oil infrastructure international significance.

The Houthi announcement followed continuing tensions across the Middle East, where military activity has raised concerns about the reliability of energy production and transportation networks.

The absence of immediate official confirmation meant that the reported attack’s direct consequences for oil supplies could not yet be established.

Nevertheless, the possibility of damage to a major refining facility contributed to a reassessment of regional supply risks.

ING Says Oil Market Is Pricing Greater Escalation Risk

Analysts at ING said Wednesday’s oil market reflected increased expectations of renewed military escalation.

Uncertainty surrounding the next steps by the United States towards Iran remains an important factor influencing prices.

“Oil prices remain elevated as the market waits for greater clarity on President (Donald) Trump’s next move toward Iran,” ING commodity strategists said.

The analysts pointed to the US midterm elections on November 3 as a possible milestone for market expectations.

“If we get past the elections without renewed strikes on Iran, that might be enough for the market’s risk premium to start eroding,” they added.

Their assessment suggests that the market is incorporating the possibility of further disruptions even before any additional supply losses are confirmed.

If regional tensions diminish, some of that additional price premium could decline.

Conversely, renewed attacks or further threats to oil infrastructure could sustain concerns about supply availability.

Preliminary US Data Shows Unexpected Crude Drawdown

Domestic inventory figures provided another source of support for crude prices.

Market sources citing the American Petroleum Institute reported that US crude oil stocks declined by 2.03 million barrels during the week ended October 23.

Analysts surveyed by Reuters had expected inventories to increase by approximately 15,000 barrels.

The reported decline therefore represented a substantial difference from market forecasts.

Inventory movements are closely monitored because they offer information about short-term changes in the balance between crude supply and demand.

A larger-than-expected reduction may indicate that available stocks are being drawn down more quickly than anticipated.

However, inventory changes can reflect several factors, including refinery processing rates, imports, exports and domestic consumption.

The API figures will be assessed alongside official government statistics before a clearer picture of US supply conditions emerges.

EIA Report Could Clarify US Supply Conditions

The US Energy Information Administration is due to release its weekly petroleum inventory report later on Wednesday.

The publication will provide official data on crude stocks and related market indicators.

Traders will examine whether the figures confirm the inventory decline reported by the API.

A similar reduction in government data could reinforce expectations that US crude supplies tightened during the latest reporting week.

A smaller drawdown or an unexpected increase would provide a different indication of inventory conditions.

The EIA figures are expected to be particularly relevant given the substantial difference between the preliminary API data and analysts’ forecasts.

OPEC+ Producers Expected to Hold December Output Plans

Oil traders are also preparing for Sunday’s OPEC+ meeting.

According to people familiar with the matter, the group is expected to maintain its existing production targets for December.

The anticipated decision would leave the current framework unchanged as producers assess global demand and the effects of regional supply uncertainty.

Actual production among most of seven major OPEC+ participants remains below their assigned targets.

The countries identified are Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.

This distinction matters because production targets do not always correspond to actual barrels supplied to the market.

Even if the group maintains its quotas, the volume of crude available internationally will continue to depend on operational conditions and the ability of producers to meet their allocations.

The meeting will therefore provide another opportunity to assess the outlook for supply during the final months of the year.

Russian Refinery Activity May Limit Crude Exports

Potential changes in Russian oil shipments are also part of the market’s supply assessment.

Traders said crude exports from Russia’s Baltic and Black Sea ports could decline next month as domestic refiners increase diesel production.

The expected increase in refining activity follows an agreement reached with Washington during October.

Processing more crude domestically could leave smaller volumes available for shipment to overseas buyers.

Any reduction in Russian exports would affect the distribution of crude supplies across international markets.

However, the amount of any potential decline has not been established.

Actual export volumes will depend on refinery operations, domestic processing requirements and shipping schedules during November.

Middle East Uncertainty Remains a Significant Market Factor

The reported Saudi refinery incident has added to existing concerns about regional energy security.

Oil markets have been monitoring the possibility of renewed military action involving Iran, alongside continuing threats to production facilities and transport infrastructure.

The prospect of further escalation can influence prices even when the immediate effect on physical supplies is uncertain.

Traders may assign an additional risk premium to crude when they believe future disruptions have become more likely.

The comments from ING indicate that such concerns are currently influencing market expectations.

Developments surrounding US policy towards Iran and the regional security situation will therefore remain relevant to crude pricing.

Oil Prices Reflect Multiple Supply Considerations

Wednesday’s increase in crude prices was not driven by geopolitical developments alone.

The preliminary decline in US inventories provided an additional indication of tighter near-term supply conditions.

Meanwhile, the forthcoming OPEC+ meeting could clarify whether major producers intend to adjust their production plans for December.

Possible reductions in Russian crude exports would represent another factor affecting international supply flows.

The combined effect of these developments has increased uncertainty about the availability of oil in coming weeks.

Market participants will continue comparing actual supply data with expectations of future disruptions.

Outlook for Crude Oil Markets

Brent crude futures rose 1.2% to $115.24 a barrel, while WTI increased 1.6% to $101.52 as supply concerns returned to the forefront.

The Houthi movement’s claim of an attack on Saudi Arabia’s largest refinery has raised questions about the security of the country’s energy infrastructure, although Saudi authorities had not immediately confirmed the incident.

ING analysts indicated that uncertainty about possible renewed US military action against Iran remains an important component of the market’s risk premium.

US crude inventories reportedly fell by 2.03 million barrels, compared with expectations of a small increase, with official EIA data still pending.

The OPEC+ meeting on Sunday and potential changes in Russian exports during November will provide further information about the supply outlook.

Oil prices will remain sensitive to confirmed developments affecting production, inventory levels and regional security as traders assess the balance between supply risks and actual market conditions.