Core Viewpoint - Gold prices have experienced a significant decline after a prolonged rally, with a notable selloff attributed to profit-taking by investors rather than macroeconomic or geopolitical factors [2][3]. Price Movement - Gold futures fell by $61.30, or 1.49%, to $4,053.10 per ounce, marking a two-day selloff after reaching an intraday record of $4,398 per ounce [1][2]. - The precious metal lost 5.74% on Tuesday, closing at $4,109.10, representing its worst performance since 2013 [2]. Market Analysis - Analysts from UBS indicated that the recent decline in gold prices is largely technical, driven by slowing price momentum and rising option volatility, leading speculative investors to take profits [3]. - Despite the recent pullback, gold prices remain up over 50% year-to-date and nearly 5% for the month, with underlying fundamentals such as inflation and political instability expected to persist [3][4]. Future Outlook - UBS analysts believe it is premature to adopt a negative outlook on gold, suggesting that the factors driving its price increases are likely to continue [4].

Core Insights - Gold miners have experienced significant gains, raising concerns among investors about whether these increases are sustainable [1][2] - The NYSE Arca Gold Miners Index saw a notable decline of 6%, marking the largest drop since May, while major mining companies like Newmont, Agnico Eagle, and Barrick Mining also faced substantial losses [2] - The valuation of gold mining companies has surged to nearly $1 trillion, tripling the average over the past five years, indicating potential overvaluation [5] Market Performance - The NYSE Arca Gold Miners Index decreased by 6% at 4:10 p.m. in New York, with gold bullion falling more than 2% [2] - Newmont's shares dropped by 7.6%, Agnico Eagle Mines fell by 6%, and Barrick Mining Corp. retreated by 6.5% [2] - Despite these recent declines, these companies had previously enjoyed gains exceeding 100% this year, while gold itself gained just over 60% [2] Investor Sentiment - Investors holding long positions in SPDR Gold Trust ETF are contemplating whether to take profits or continue holding [3] - Current market conditions suggest that the rapid price increases for mining stocks may be coming to an end, as indicated by portfolio manager Candice Bangsund [5][6] - Bangsund expressed uncertainty about further price increases, predicting that share prices may remain relatively stable over the next 12 to 18 months [6] Economic Factors - The rally in gold prices has been attributed to its role as a safe haven amid concerns about inflation, a declining dollar, and political instability [4] - Recent stabilization of the dollar and easing trade tensions between China and the US may impact gold's appeal as a safe investment [4]

A faction of Madagascar's army has seized control after President Rajoelina fled the country following weeks of demonstrationsGen Z protesters played a key role in his downfall, as Jennifer Zabasajja explains https://t.co/D9Jl66VGob https://t.co/1tl1cLgaSl ...

Yields on Cameroon’s dollar bonds rose after an opposition leader claimed victory in the country’s presidential election, raising the prospect of political instability in the Central African nation https://t.co/17JOSf9rZq ...

The president of Madagascar fleeing the country following weeks of demonstrations led by Gen Z protesters. An opposition lawmaker says President Andre Rajolina left the African nation after members of the military turned against the government. It's unclear exactly where he is right now, but reports say he left on a French military plane. ...

Political & Economic Instability - France's political instability is a concern [1] - Deadlocked parliament contributes to the instability [1] - Stretched public finances exacerbate the situation [1] European Impact - The situation in France is creating a worrying hole at the centre of Europe [1]

Corporate Developments - Nissan Motor is undergoing significant restructuring, including plans to close its Oppama plant in Japan by the end of 2027, with earlier reports indicating potential talks with Taiwan's Foxconn to repurpose the facility for electric vehicle production [4] - Phillips 66 received a price target upgrade from Morgan Stanley, raising it to $140 from $128 while maintaining an "Equal Weight" rating, reflecting a constructive outlook on the long-term refining sector despite a tactical shift to "In-Line" [6] Economic and Political Context - Japan's Economy Minister Ryosei Akazawa is expected to leave his post, indicating potential shifts in economic policy amidst ongoing trade discussions with the U.S. [7] - The Bank of England's Financial Policy Committee warns that some backward-looking equity valuations are comparable to the peak of the dot-com bubble, and a sudden change in perceptions of Federal Reserve independence could lead to a sharp repricing of U.S. dollar assets [5][7] - France is experiencing political instability, with Socialist Party leader Olivier Faure rejecting the current budget plan and demanding guarantees on pension reform following the resignation of Prime Minister Sébastien Lecornu [3][7] Trade Relations - U.S.-EU trade tensions are escalating, with the EU announcing plans to double steel tariffs to 50%, described as a "stepping stone" towards a better trade deal with the U.S. [6][7]

GUY: EXCEPT IT IS NOT. TODAY IT IS ME. I AM GOUY JOHNSON. LET'S TALK ABOUT FRANCE. 24 HOURS SINCE THE FRENCH PRIME MINISTER AND ESPECIALLY RESIGNED . HE HAS BEEN GIVEN TWO MORE DAYS. I'M NOT SURE HE STILL PRIME MINISTER. HE BASICALLY HAS BEEN GIVEN THE JOB OF TRYING TO REACH OUT OPPOSITION PARTIES TO TRY AND FORM SOME KIND OF A NEW BUDGET. THE MOVE BY PRESIDENT MACRON IS A LITTLE MORE TIME TO TRY TO FIGURE OUT WHAT THE NEXT STEPS COULD BE INCLUDING FRESH PARLIAMENTARY ELECTIONS. LET'S GET A SENSE OF WHAT IS ...

Caroline, Macron has bought himself a bit of thinking time here. What's the latest. Just like a good series on TV.Monday brought many unexpected twists in French politics. First, we had the Republicans being angry at the nomination of Bruno Le Maire as defense minister. During the afternoon, Bruno Le Maire actually came out with a tweet saying he was giving up this job as defense minister.But the problem is that prime minister Lecornu had already resigned because he said that the Republicans were not really ...

Thailand’s problems are a maze. The country’s leader may struggle to find a way out https://t.co/ztpTSxPPps ...