European Commission Says Bloc Can Cope with Halt of Russian Gas Flow

FILE PHOTO: Valves and pipes are seen at a gas compressor station in the village of Boyarka, outside Kyiv, April 22, 2015. REUTERS/Gleb Garanich/File Photo/File Photo
FILE PHOTO: Valves and pipes are seen at a gas compressor station in the village of Boyarka, outside Kyiv, April 22, 2015. REUTERS/Gleb Garanich/File Photo/File Photo
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European Commission Says Bloc Can Cope with Halt of Russian Gas Flow

FILE PHOTO: Valves and pipes are seen at a gas compressor station in the village of Boyarka, outside Kyiv, April 22, 2015. REUTERS/Gleb Garanich/File Photo/File Photo
FILE PHOTO: Valves and pipes are seen at a gas compressor station in the village of Boyarka, outside Kyiv, April 22, 2015. REUTERS/Gleb Garanich/File Photo/File Photo

The European Commission played down the impact of a halt of Russian gas exports to Europe via Ukraine on Wednesday, saying the stop on Jan. 1 had been expected and that the bloc was prepared for it.
"The European gas infrastructure is flexible enough to provide gas of non-Russian origin to CEE (central and eastern Europe) via alternative routes," a spokesperson for the European Commission said.
"It has been reinforced with significant new LNG import capacities since 2022."

Russian natural gas exports via Soviet-era pipelines running through Ukraine to Europe were halted in the early hours of New Year's Day as a transit deal expired and warring Moscow and Kyiv have failed to reach an agreement to continue the flows.
The shutdown of Russia's oldest gas route to Europe ends a decade of fraught relations sparked by Russia's seizure of Crimea in 2014. Ukraine stopped buying Russian gas the following year.
"We stopped the transit of Russian gas. This is a historic event. Russia is losing its markets, it will suffer financial losses. Europe has already made the decision to abandon Russian gas," Ukraine's Energy Minister German Galushchenko said in a statement.
The stoppage of gas flows was expected amid the war, which started in February 2022. Ukraine has been adamant it would not extend the deal amid the military conflict.



Gold Hits Three-week Peak on Softer Dollar and Safe Haven Inflows

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)
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Gold Hits Three-week Peak on Softer Dollar and Safe Haven Inflows

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)

Gold prices touched their highest level in three weeks on Friday supported by a softer dollar and safe-haven buying, while markets braced for potential economic and interest rate changes from US President-elect Donald Trump's proposed policies.

Spot gold was little changed at $2,658.11 per ounce, as of 1115 GMT, hitting its highest level since Dec. 13. Bullion is up about 1.5% for the week so far.

US gold futures were steady at $2,672.20.

The dollar index fell 0.3% from over a two-year high hit in the previous session, making dollar-priced bullion more affordable for holders of other currencies, Reuters reported.

"Gold bulls are setting the tone early doors this year, enjoying the lift from safe haven bids while riskier equities struggle to hold on to nascent gains," said Exinity Group Chief Market Analyst Han Tan.

On the geopolitical front, in Gaza Israeli airstrikes killed at least 68 Palestinians, Gaza authorities said. While, Russia launched a drone strike on the Ukrainian capital Kyiv on Wednesday, city officials said.

Trump's inauguration on Jan. 20 has heightened uncertainty, with his proposed tariffs and protectionist policies expected by many economists to be inflationary and potentially spark trade wars.

"Markets are aware that Trump's policies risk reawakening US inflationary impulses, which should be a boon for gold so long as markets adhere to the precious metal’s role as an inflation hedge," Tan added.

Bullion, which is considered a hedge against economic and geopolitical uncertainties, tends to thrive in lower interest rate environment.

After delivering three consecutive interest rate cuts in 2024, the US central bank now projects only two reductions in 2025 due to due to stubbornly high inflation.

Spot silver rose 0.6% to $29.75 per ounce.

"Lower real US yields and stronger global industrial production should favor the metal in 2025," UBS said in a note, adding that they see silver to trade between $36-38/oz in 2025.

Platinum added 0.8% to $930.09, and palladium gained 1.2% to $922.58. Both metals were on track for weekly gains.