Gold Eyes Best Quarter in over Eight Years

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
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Gold Eyes Best Quarter in over Eight Years

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)

Gold halted its record run on Friday but remained on track for its best quarter since 2016 after a rally catalysed by an outsized US Federal Reserve interest rate cut, while markets braced themselves for a crucial inflation report due later in the day.

Spot gold was down 0.1% at $2,666.50 per ounce as of 1115 GMT, below the all-time peak of $2,685.42 hit in the previous session. It is heading for its best quarter since the first three months of 2016.

US gold futures fell 0.2% to $2,688.90, Reuters reported.

"The market at this point in time has priced in all the good news and there's also some hesitancy from fresh buyers to get involved at these record high levels," said Ole Hansen, head of commodity strategy at Saxo Bank.

Bullion has risen 29% so far this year, hitting successive record peaks after last week's half-percentage-point cut by the Federal Reserve and the stimulus measures announced by China earlier this week.

Silver prices surged, tracking bullion's strong performance, though some analysts warn that the rally may fade.

"Overall, industrial demand is still supportive for silver. But we need to have a stronger economic performance in China as well as in other developed countries," said ANZ commodity strategist Soni Kumari.

The surge in silver prices is more a spillover impact from gold, Kumari said.

Spot silver eased 0.1% to $31.98 per ounce, after hitting its highest since December 2012 at $32.71 on Thursday. It is set for a third straight week of gains.

"I do believe silver will continue to outperform gold. But as we all know, wherever gold goes, silver tends to go, but faster," Hansen added.

Both gold and silver serve as safe-haven investments, but the latter has more industrial applications, so tends to underperform during recessions and outperform when economies expand.

Inflows into gold exchange-traded funds, particularly from Western investors, are set to rise in coming months, adding yet more positive stimulus for already record high bullion prices. Some banks expect gold to rise towards $3,000.

In other metals, platinum was up 0.5% at $1,012.40 but palladium fell nearly 1.5% to $1,031.75.



Lockheed Martin: Saudi Arabia Is Strategic Choice for Global Defense Hub

Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
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Lockheed Martin: Saudi Arabia Is Strategic Choice for Global Defense Hub

Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)

Saudi Arabia’s push to localize half of its defense spending under Vision 2030 is drawing deeper commitments from US defense giant Lockheed Martin, which says it will expand local manufacturing, transfer advanced technologies, and further integrate the Kingdom into its global aerospace and defense supply chains.

Building Saudi partnerships

Steve Sheehy, vice president for international business development at Lockheed Martin’s aeronautics division, said the company is stepping up efforts to partner with both established and emerging Saudi aerospace firms.

Lockheed Martin is looking to build partnerships across maintenance, repair and overhaul, as well as component manufacturing and repair, particularly in advanced avionics, Sheehy told Asharq Al-Awsat.

Speaking after the company’s participation in the World Defense Show in Riyadh, he said Lockheed Martin is also targeting emerging fields such as additive manufacturing, from plastics to metals, and advanced composite materials.

The goal, he said, is twofold: plug gaps in the company’s global supply chain while transferring know-how and strengthening local capabilities in a mutually beneficial model.

Sheehy described the Saudi aerospace sector as established and growing. He also noted that it has a solid base in maintenance and manufacturing, as well as a clear shift toward advanced technologies, creating room for deeper collaboration between national firms and global industry leaders.

Alignment with Vision 2030

Retired Brigadier General Joseph Rank, chief executive of Lockheed Martin in Saudi Arabia and Africa, said the company’s strategy in the Kingdom is rooted in a long-term partnership aligned with Vision 2030, especially the target of localizing 50 percent of defense spending.

Lockheed Martin, he said, is focused on transferring knowledge and advanced technologies, developing local industrial capabilities and building an integrated defense ecosystem that positions Saudi Arabia firmly within global supply chains.

Rank said the company is working closely with government entities and national companies to strengthen local manufacturing, empower Saudi talent and establish a sustainable industrial base that supports innovation and creates high-quality jobs.

Lockheed Martin is advancing manufacturing and repair work on defense equipment, including components of the THAAD air defense system, missile launch platforms, and interceptor missile canisters, in cooperation with Saudi partners, Rank said.

The company has also opened a maintenance center in Riyadh for the Sniper Advanced Targeting Pod system, the first of its kind in the Middle East, to enhance maintenance and technical support capabilities.

Beyond hardware, Lockheed Martin is investing in transferring and localizing advanced technologies in air defense, command and control, and digital manufacturing. It is also supporting science, technology, engineering and mathematics programs and hands-on training in cooperation with national universities.

Broad local network

Rank said the company relies on a wide network of partners in the Kingdom. At the forefront are the General Authority for Military Industries, the main government partner in localization agreements, and Saudi Arabian Military Industries, a key manufacturing and technology transfer partner.

Other collaborators include the Advanced Electronics Company for advanced systems maintenance, the Middle East Propulsion Company and AIC Steel for producing THAAD components and platforms, and the National Company for Mechanical Systems for advanced manufacturing technologies.

Academic partnerships extend to King Abdullah University of Science and Technology, King Saud University, King Fahd University of Petroleum and Minerals, and Princess Nourah bint Abdulrahman University, supporting research and developing national talent.

Localizing aerospace manufacturing

Rank said localizing aerospace manufacturing is a strategic priority. Lockheed Martin has launched projects to produce interceptor missile launch platforms and canisters inside the Kingdom and awarded contracts for key components to Saudi companies, qualifying them to join its global supply network beyond the US.

The company is evaluating and qualifying hundreds of Saudi firms to produce defense equipment to international standards, focusing on technology transfer and building local expertise as a step toward manufacturing more integrated systems in the future.

Company officials said the approach goes beyond supplying systems. It centers on technology transfer, digital manufacturing, and command-and-control systems, laying the groundwork for the production of integrated systems in the Kingdom and strengthening Saudi Arabia’s position as a regional hub for aerospace and defense.


Türkiye TPAO, Shell Sign Deal to Carry out Exploration Work offshore Bulgaria

A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
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Türkiye TPAO, Shell Sign Deal to Carry out Exploration Work offshore Bulgaria

A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)

Türkiye Petrolleri (TPAO) has signed a partnership agreement with Shell to carry out exploration work in Bulgaria's maritime zone, the Turkish energy ministry and British oil major said on Wednesday.

European Union member Bulgaria, which had been totally dependent on Russian gas until 2022, has been seeking to diversify its gas supplies and find cheaper sources, Reuters reported.

TPAO and Shell will jointly explore the Khan Tervel block, located near Türkiye's Sakarya gas field, and will hold a five-year licence in Bulgaria's exclusive economic zone, Minister Alparslan Bayraktar said.

Shell will continue as operator of the block, while TPAO will take a 33% interest in the licence, a Shell spokesperson said.

Since the start of this year, TPAO has signed energy cooperation agreements with ExxonMobil, Chevron and BP for possible exploration work in the Black Sea and the Mediterranean.

In April, Shell signed a contract with Bulgaria's government to allow the oil major to explore 4,000 square metres in the block.


Saudia Signs Strategic Partnership Agreement with Six Flags and Aquarabia Qiddiya City

udia will develop special travel packages designed to enable visitors to experience world-class attractions - SPA
udia will develop special travel packages designed to enable visitors to experience world-class attractions - SPA
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Saudia Signs Strategic Partnership Agreement with Six Flags and Aquarabia Qiddiya City

udia will develop special travel packages designed to enable visitors to experience world-class attractions - SPA
udia will develop special travel packages designed to enable visitors to experience world-class attractions - SPA

Saudia Airlines has signed a five-year strategic partnership with Six Flags and Aquarabia Qiddiya City, becoming the official premier partner exclusively in the airline category.

As part of the partnership, Saudia will develop special travel packages designed to enable visitors to experience world-class attractions. The collaboration also brings the spirit of Six Flags and Aquarabia Qiddiya City to the skies through special aircraft branding across Saudia’s fleet, SPA reported. 

Chief Marketing Officer of Saudia Group Khaled Tash said in a press release: "Saudia is committed to supporting national development projects as part of its contribution to Vision 2030, aligned with our strategy to bring the world to the Kingdom. Partnerships of this scale with national partners play a key role in positioning Saudi Arabia as a leading global destination for entertainment and tourism."

Park President of Six Flags and Aquarabia Qiddiya City Brian Machamer added: "Our partnership with Saudia not only reflects a shared ambition to connect the Kingdom to the world through world-class entertainment experiences, but strengthens our ability to attract visitors from around the world and realize our vision of setting a new global benchmark for immersive, world-class theme park entertainment and reinforcing Saudi Arabia’s growing presence on the global tourism stage."

Six Flags Qiddiya City sets a new benchmark for exceptional entertainment regionally and globally. Spanning six iconic themed lands, the theme park takes visitors on an immersive journey across 28 rides and attractions designed to world-class standards. Beyond the scale and diversity of its offerings, Six Flags Qiddiya City stands out for pushing the boundaries of engineering and entertainment, featuring five exclusive, record-breaking rides that have redefined global benchmarks. Leading these innovations is Falcons Flight, the roller coaster that has captured global attention as the fastest, tallest, and longest in the world.

Aquarabia Qiddiya City delivers a distinctive aquatic entertainment experience, offering 22 rides and water attractions, along with a man-made river designed for both relaxation and family-friendly water fun. For guests seeking privacy and elevated comfort, Aquarabia features 91 luxury cabanas, positioning the destination as a fully integrated leisure offering that redefines water-based entertainment to the highest international standards.

Located in the Tuwaiq Mountains near Riyadh, Qiddiya City is an emerging destination bringing together entertainment, sports, and culture. Six Flags and Aquarabia Qiddiya City form part of its entertainment offering.