Gold futures slump to two-month low on stronger dollar, high yields (GLD:NYSEARCA)

Saudi Aramco's CEO Amin Nasser stated that rebuilding global oil inventories could take up to two years due to ongoing disruptions. He noted that three billion barrels have been lost and one billion withdrawn from stockpiles. Kuwait Petroleum's CEO highlighted a six million bpd shortfall in refined products. ConocoPhillips' Ryan Lance predicted WTI crude prices to rise to around $70 per barrel, with U.S. production potentially exceeding 14 million bpd under strong prices.

Brent crude closed at $102.31, up $4.28, and US crude at $92.87, up $2.45, due to supply shocks and geopolitical tensions. USO rose 3.00%, XLE gained 1.93%, and Chevron added 1.45% to $207.18. Iran talks broke down, and a third US aircraft carrier is heading to the Middle East. China halted fuel exports, impacting diesel prices.

Shell PLC and partners agreed to a $30B+ expansion of the LNG Canada facility, doubling output to 28M tonnes/year. The project includes new processing units, storage, and pipeline expansions, with construction expected to employ 4,000 workers. Shell owns 40%, with other partners including Petronas and PetroChina. The expansion aims to meet surging global LNG demand, projected to rise 65% by 2050, despite environmental concerns.

Gold has risen 17% over the past year, but faces pressure from higher interest rates after the Fed's 25 basis point hike. SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) provide exposure to physical gold. Despite higher yields, gold ETF demand remains strong, with August seeing significant inflows. GLD and IAU have similar one-year returns and assets under management. Future volatility depends on Fed policy, inflation, and the US dollar.

MP Materials plans to supply GM with US-made neodymium magnets for EVs from its Texas plant. GM aims to use these magnets in all North American EVs, though timing is unspecified. The facility produces up to 1M magnets daily, all for GM. In 2021, GM agreed to buy rare-earth products from this plant. MP Materials also has a $500M order from Apple for recycled magnets.

The U.S. will enforce a maritime blockade on Iran starting Tuesday, causing oil prices to surge. Brent crude rose 9% to $83/barrel, WTI gained 9% to $77.83. ETFs USO and UCO jumped 9% and 12% respectively. U.S. equities fell, with SPY down 0.72%, DIA off 0.23%, and QQQ down 2%.