Saudi Industrial Production Index Sees Upward Growth

The Saudi industrial production index (IPI) continued its upward growth as it recovers from the coronavirus pandemic. (Asharq Al-Awsat)
The Saudi industrial production index (IPI) continued its upward growth as it recovers from the coronavirus pandemic. (Asharq Al-Awsat)
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Saudi Industrial Production Index Sees Upward Growth

The Saudi industrial production index (IPI) continued its upward growth as it recovers from the coronavirus pandemic. (Asharq Al-Awsat)
The Saudi industrial production index (IPI) continued its upward growth as it recovers from the coronavirus pandemic. (Asharq Al-Awsat)

The Saudi industrial production index (IPI) has continued its upward growth since May 2021, after negative growth rates in 2019 and 2020 that were caused by the coronavirus pandemic.

The Saudi General Authority for Statistics (GASTAT) revealed that IPI increased 16.8 percent compared to August of 2021, as it continued to achieve positive growth trends due to high production in mining, quarrying, manufacturing, electricity, and gas supply.

The relative rates of the mining and quarrying, manufacturing, and electricity and gas supply sectors in the IPI are 74.5 percent, 22.6 percent, and 2.9 percent, respectively.

In August 2022, mining and quarrying increased by 15.5 percent compared to the same month in 2021.

Saudi Arabia increased its oil production to reach the highest level of more than 11 million barrels per day in 2022.

The manufacturing continued to rise as the activity performance increased 22 percent in August, compared to the same month last year, and electricity and gas supplies showed an increase of 11.3 percent.

The Authority said the impact of growth in the electricity and gas supplies index on the IPI was limited due to its small impact in the index.

It stated that the IPI continued to show favorable growth due to the high production. Looking at the long-term, the IPI growth became positive in May 2021 and continued its upward trend during the following months, accelerating at the end of the year.

Meanwhile, the Ministry of Industry and Mineral Resources announced the qualification of eight local companies to compete for an exploration license for gypsum ore in the al-Qasab mining site.

The site, with an area of 600,00 sqm, is located south of the Nabat Center in the al-Madinah region, according to the Ministry.

The Ministry revealed the qualified companies are Saudi National Gypsum, el-Khayyat Gypsum, the United Cement Industrial Co., Global Gypsum Co., United Mining Industries Co., Mada Gypsum Co., and ASK Gypsum Factory.



Gold Eases on Firmer Dollar, Solid US Data

A person passes by a gold shop in Ankara, Turkey May 29, 2023. REUTERS/Yves Herman/File Photo
A person passes by a gold shop in Ankara, Turkey May 29, 2023. REUTERS/Yves Herman/File Photo
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Gold Eases on Firmer Dollar, Solid US Data

A person passes by a gold shop in Ankara, Turkey May 29, 2023. REUTERS/Yves Herman/File Photo
A person passes by a gold shop in Ankara, Turkey May 29, 2023. REUTERS/Yves Herman/File Photo

Gold prices edged lower on Thursday, weighed down by a stronger dollar and robust US economic data, while caution persisted as markets awaited clarity on tariff developments.

Spot gold fell 0.3% to $3,337.43 per ounce by 0155 p.m. EDT (1755 GMT) after hitting a session low of $3,309.59.

US gold futures settled 0.4% lower at $3,345.3.

Following the latest US data, "there was a bit of rise in the dollar and US Treasury yields are higher. So, it's put a little weakness in the gold market," said Bob Haberkorn, senior market strategist at RJO Futures, Reuters reported.

The dollar gained 0.3%, making the greenback-priced gold more expensive for foreign currency holders.

US jobless claims fell last week, pointing to steady job growth in July, while retail sales data beat expectations, adding 0.6% last month, though some of the gain likely reflected tariff-driven price increases.

Fed Governor Adriana Kugler said the Fed should not cut interest rates "for some time" as the impact of Trump administration tariffs begins to pass through to prices.

Gold is often regarded as a hedge against uncertainty and inflation, but higher interest rates diminish its appeal, as it yields no interest.

On the trade front, Japan's top trade negotiator held talks with the US Commerce Secretary on US tariffs, as Tokyo races to avert a 25% levy that will be imposed unless a deal is clinched by an August 1 deadline.

"If Trump follows through on his threats and trade tensions escalate, it’s not a stretch to imagine gold challenging — and potentially breaking- its record highs again," said Fawad Razaq, market analyst at City Index and FOREX.com.

Meanwhile, gold exports from Switzerland jumped 44% month-on-month in June as bullion flew back to the vaults in the United Kingdom from the US via Swiss refineries, Swiss customs data showed on Thursday.

Palladium was up 3.8% at $1,277.78, reaching its highest level since September 2023.

Fears of an escalating war in Russia, a major palladium exporter, are fuelling supply concerns and driving prices higher, Haberkorn said.

Elsewhere, spot silver added 0.3% to $38.07 per ounce and platinum gained 3.1% to $1,460.13.