Gold Edges Higher as Fed Backs September Easing

A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
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Gold Edges Higher as Fed Backs September Easing

A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)

Gold prices ticked up on Monday, extending gains from the last session as Federal Reserve Chair Jerome Powell's dovish remarks solidified expectations of an interest rate cut next month.

Spot gold rose 0.2% to $2,516.09 per ounce by 0027 GMT. US gold futures gained 0.2% to $2,551.30.

The dollar hovered near its lowest level in about eight months, making gold cheaper for other currency holders, while benchmark 10-year yields also slipped, Reuters reported.

On Friday, Powell signalled support for policy easing, saying that "the time has come" for the Fed to cut rates amid rising risks to the job market, even as inflation was in reach of the U.S. central bank's 2% target.

Traders have fully priced in a Fed easing for next month, with a 64% chance of a 25-basis-point cut and about 36% chance of a bigger 50-bp reduction, according to the CME FedWatch tool.

A low interest rate environment tends to boost non-yielding bullion's appeal.



KAUST, NEOM Collaborate to Advance Green Economy with Hydrogen and Sustainable Fuel Technologies

NEOM's OXAGON. Photo: Asharq Al-Awsat
NEOM's OXAGON. Photo: Asharq Al-Awsat
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KAUST, NEOM Collaborate to Advance Green Economy with Hydrogen and Sustainable Fuel Technologies

NEOM's OXAGON. Photo: Asharq Al-Awsat
NEOM's OXAGON. Photo: Asharq Al-Awsat

King Abdullah University of Science and Technology (KAUST) has announced a strategic partnership with NEOM to accelerate the transformation of the Kingdom's green economy.

The collaboration focuses on developing hydrogen and sustainable fuel production technologies through three cutting-edge applied research projects.

Under this partnership, NEOM's Education, Research, and Innovation Foundation, through the Hydrogen and E-Fuels Applied Research Institute (HEFARI), is sponsoring the development of hydrogen as a renewable energy source.

KAUST researchers and scientists are at the forefront of these initiatives, showcasing progress at a recent two-day KAUST Research and Technology Park summit.

The summit brought together senior representatives from KAUST, NEOM, HEFARI, INOWA, Imperial College, Saudi Aramco, HyET, Cruise Saudi, Next7, and Dow. The attendees engaged in discussions on the ongoing projects, the challenges ahead, and the opportunities for advancing a green hydrogen economy in Saudi Arabia.

Key topics of the summit included the economic production of green hydrogen and ammonia, their critical applications in sustainable aviation fuel and marine propulsion, and the development of essential technologies such as electrolyzers, improved catalysts, and membranes.

Participants also addressed these technologies' crucial manufacturing, transportation, and storage needs.

Prominent KAUST faculty members lead the three research projects sponsored by HEFARI. Professor William Roberts, Professor of Mechanical Engineering, is spearheading efforts to develop carbon-neutral fuels for marine engines in response to new regulations to decarbonize shipping.

Professor Mani Sarathy, Professor of Chemical Engineering, is focused on reducing the costs of large-scale electrolysis technologies to produce cleaner hydrogen. Meanwhile, Assistant Professor of Mechanical Engineering Thibaut Guiberti is working on minimizing unwanted emissions from engines and turbines that utilize green ammonia as fuel.

This collaboration aligns with Saudi Arabia's ambitious goals to generate 50% of its electricity from renewable sources by 2030 and to become the world's largest producer and supplier of green hydrogen.

Additionally, it supports the Kingdom's target of achieving carbon neutrality by 2060 through the circular carbon economy approach. This strategy emphasizes replacing and localizing advanced carbon management technologies, enhancing integrated solutions to combat climate change and the Kingdom's commitment to maintaining global leadership in this critical field.