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Fitch Upgrades Saudi’s PIF Outlook to ‘Positive’

The Public Investment Fund is one of the drivers of the Saudi national economy (Asharq Al-Awsat)
The Public Investment Fund is one of the drivers of the Saudi national economy (Asharq Al-Awsat)
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Fitch Upgrades Saudi’s PIF Outlook to ‘Positive’

The Public Investment Fund is one of the drivers of the Saudi national economy (Asharq Al-Awsat)
The Public Investment Fund is one of the drivers of the Saudi national economy (Asharq Al-Awsat)

Ratings agency Fitch on Friday revised the outlook on Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), to "positive" from "stable" following a similar action on the country.

It also affirmed the PIF's rating at "A".

Fitch had cited improvements in Saudi Arabia's balance sheet due to higher oil revenues as reasons for its outlook revision on the country earlier this month.

Moreover, 4 percent of Saudi Aramco’s shares were transferred to the Kingdom’s sovereign wealth fund last February.

Saudi Crown Prince Mohammed bin Salman said the transferred shares will help strengthen the sovereign wealth fund’s solid financial position and strong credit rating in the medium term.

PIF is a sovereign wealth fund and the leading strategic investment arm of Saudi Arabia, promoting the diversification and development of Saudi Arabia's non -oil sector under the government's "Vision 2030" strategic agenda.

PIF's strategic objectives are closely aligned with national economic objectives. The fund's total assets at end-2020 were 47.1 percent of national GDP.

Fitch classifies PIF as a government-related entity under its Government-Related Entities Rating Criteria (GRE).

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Gold Rebounds to End 6-Session Losing Streak as Dollar Rally Pauses

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
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Gold Rebounds to End 6-Session Losing Streak as Dollar Rally Pauses

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk

Gold prices rebounded on Monday, having posted losses in the previous six sessions, with gains driven by a pause in the dollar's rally, while investors await comments from the Federal Reserve officials for clarity on the interest rate trajectory.
Spot gold rose 1% to $2,587.83 per ounce by 0917 GMT, moving away from a two-month low hit on Thursday. US gold futures were up 0.9% at $2,592.20.
Gold prices last week saw their biggest weekly decline in over three years as expectations of less-aggressive interest rate cuts by the Fed boosted the dollar.
However, the dollar was holding flat below Thursday's one-year high after rising 1.6% last week. A softer dollar makes bullion less expensive for buyers holding other currencies, Reuters said.
"We can look to the dollar for a significant part of the current gold price corrections ... I'm not saying you've found a solid physical floor yet, but clearly, some opportunistic buying is coming in to support the market as well," independent analyst Ross Norman said.
"As the year ends, we will see volatility in gold prices and there'll be some books clearing and profit-taking, regardless of what the Fed does in December."
Recent US economic data has reduced expectations for a December rate cut by the Fed. At least seven US central bank officials are due to speak this week.
Higher interest rates make holding gold, which doesn't pay any interest, less attractive.
"President Trump's inauguration is likely to see an ongoing strengthening of the USD (US dollar), which is negative for gold in the short to medium term. However, as his stated policies are likely to be significantly inflationary in the long term, this will benefit gold," said Michael Langford, chief investment officer at Scorpion Minerals.
Spot silver rose 1.4% to $30.63 per ounce, platinum added 1.4% at $951.59 and palladium climbed 1.8% to $967.62.