Safe-Haven Demand Strengthens Gold Prices
The advance marks the third straight day of gains for the precious metal, as investors continue to seek shelter from mounting risks, including trade tensions and uncertain monetary policy trajectories.
Front-month gold futures also saw a strong session, reaching an intraday high of US$3,381.60, up approximately US$43.50 from July 10's close. Trading ranged between US$3,332 and US$3,381 throughout the day.
The rally came as US President Donald Trump's tariff threats rattled financial markets globally, adding to the appeal of gold as a hedge against political and economic shocks.
Looking ahead, market participants will closely watch upcoming economic indicators and central bank commentary. Analysts caution that while gold could continue to benefit from risk-off sentiment, strong economic data or a shift in interest rate expectations could temper its momentum. Related
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The Star
2 hours ago
- The Star
Thaksin, Pichai meet Prime Minister's policy advisory team to refine US tariff proposal
BANGKOK: Thailand and several other countries have until August 1, 2025, to finalise trade proposals under the United States' new 'Reciprocal Tariff' policy, after Washington confirmed a 36 per cent retaliatory tariff rate on Thai exports. The Thai government is pursuing a two-pronged approach. First, it is finalising a comprehensive proposal addressing tariff reductions, non-tariff barriers (NTB) easing and the relaxation of import conditions. The US has set a July 31 deadline for submission of this additional proposal. Second, the government is preparing mitigation measures in response to the so-called "Trump Tariff" and the expected market opening to US products. This includes budget allocations, relief funding and soft loan schemes aimed at supporting affected farmers, SMEs and exporters within the US-bound supply chain. Thailand submitted its second-round proposal to Washington on July 6, 2025. The revised proposal accelerates the timeline for achieving trade balance, targeting a 70 per cent reduction in Thailand's trade surplus with the US by 2030. By 2031–2032, the two nations are expected to reach full trade balance. A Government House source revealed that former Prime Minister Thaksin Shinawatra has called a meeting with the Prime Minister's policy advisory team (known as the Baan Phitsanulok team) on July 10 to finalise Thailand's negotiating position. Thaksin's meeting comes ahead of a high-level 'Team Thailand' session on July 11, led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira. The session will bring together key economic ministers and the advisory team to consolidate Thailand's position before the deadline. Thaksin reportedly stressed the need for a finalised strategy by the end of this week. Pichai said that a high-level meeting on July 11, 2025, will consolidate input from affected businesses to shape appropriate support measures. The goal is to finalise Thailand's negotiating stance and secure a deal with the United States before the July 31 deadline. He stressed the need to prepare for multiple outcomes—ranging from favourable to moderate—while assessing the broader economic implications, particularly for Thai exports. Countries that have already reached trade deals with Washington have faced multiple tariff layers, including import taxes on goods with insufficient domestic content (as measured by RVC – regional value content), and product-specific tariffs. This means individual Thai exporters could face differing tariff rates and uneven impacts depending on their product type and value chain composition. Supavud Saicheua, policy adviser to the Prime Minister and chair of the National Economic and Social Development Council (NESDC), said that Pichai has called for a strategic meeting at Baan Phitsanulok on July 11 to review the US negotiations and explore next steps following US President Donald Trump's formal notification of a 36 per cent tariff rate on Thai goods. The deadline for a final proposal remains August 1, 2025. He noted that recalibrating Thailand-US economic ties is critical, as the US accounts for 18 per cent of Thailand's total exports. With mounting pressure from Washington, Thailand can no longer rely on previous trade arrangements. 'The US wants to recoup as much of its past trade deficit as possible, and if Thailand wants to export, it may have to manufacture in the US instead,' he said. 'Frankly, the 36 per cent tariff is seen by the US as lenient given the past trade gap,' Supavud added. 'Thailand will have to continue trading with the US, but the trade value is expected to shrink. At the same time, we will face growing pressure to import more American goods. We must start thinking seriously about who we'll be trading with over the next six to 12 months.' Thailand's negotiation team has concluded that the trade deal struck between the US and Vietnam is now serving as a benchmark—if not a pressure point—for other countries, including Thailand, in ongoing tariff talks. The US is using Vietnam's agreement as a reference in demanding wide-ranging commitments, from across-the-board tariff reductions to sweeping removal of non-tariff barriers (NTBs). Among key US demands are the elimination of agricultural import quotas, streamlined import licensing timelines, and the lifting of sanitary and phytosanitary (SPS) restrictions—mirroring Vietnam's concessions. Washington is also pressing for the liberalisation of Thailand's financial and telecommunications sectors, though not for immediate implementation, but rather as part of future negotiations. Another sensitive issue is trans-shipment—the rerouting of goods from countries targeted by US trade restrictions through Thai ports. Vietnam was previously hit with a 40 per cent tariff on such goods under a new trade enforcement model, and Thailand may soon face similar scrutiny. Defining what constitutes trans-shipment is expected to become a major sticking point, with potentially significant implications for Thai exporters. According to a Government House source, Thailand's latest proposal, submitted to Washington on 6 July 2025, is now under formal review by the US tariff task force, thanks to coordination by Thailand's trade office in Washington. The Thai government is hoping its concessions will prompt a reduction in the proposed 36 per cent tariff rate. Meanwhile, domestic preparations to cushion the impact of the so-called 'Trump Tariff' are underway. A relief package is being coordinated across ministries, with the Fiscal Policy Office and the National Economic and Social Development Council (NESDC) tasked with presenting support options to Deputy Prime Minister and Finance Minister Pichai Chunhavajira. These will focus on safeguarding employment and supporting exporters, SMEs, and farmers. On July 9, the Finance Ministry convened a meeting with the Joint Standing Committee on Commerce, Industry and Banking. A broader consultation with the private sector is scheduled for next week, led by the NESDC, to fine-tune the design of targeted support measures. Three key relief channels were identified: Budget allocations – For FY2025: THB47 billion (US$1.4 billion) in the central stimulus fund already earmarked for Trump tariff response, with an additional THB11.1 billion reserved for export relief. – For FY2026: THB25 billion set aside in the central budget, with plans to reallocate a further THB40 billion from other budget items. Relief fund – A dedicated fund will be used to support sectors most impacted by the new tariff regime. Soft loan programme – The Government Savings Bank (GSB) has prepared a THB100 billion soft loan facility to assist three groups: exporters to the US, export-related supply chains and manufacturers hit by cheap Chinese imports. Commerce Minister Jatuporn Buruspat said that the July 11, 2025, meeting at Baan Phitsanulok will partly focus on designing relief measures for sectors affected by the US-imposed 'Trump Tariff'. A proposal for a dedicated compensation fund worth THB10 billion is under discussion, though the final amount will depend on the scale of economic damage identified. Two implementation options are being considered: Establishing a new relief fund specifically for tariff-related impacts Channelling assistance through the existing Agricultural Restructuring Fund (FTA Fund), which aims to enhance national competitiveness in the sector 'We need comprehensive data—who is affected, which products, and the extent of the damage,' said Jatuporn. 'Only then can we determine the appropriate funding level. The Commerce Ministry will coordinate closely with all relevant ministries to ensure an effective and targeted response.' There are reports that former Prime Minister Thaksin Shinawatra also took part in the meeting at Baan Phitsanulok on Friday (July 11), underscoring his active role in shaping Thailand's negotiating strategy and economic response to the impending US tariff measures. His presence signals the political weight being placed on securing a resolution before the 1 August deadline. - The Nation/ANN
The Star
2 hours ago
- The Star
Some Walmart garment orders from Bangladesh on hold due to US tariff threat
FILE PHOTO: A Walmart store is shown in Oceanside, California, U.S., May 15, 2025. Dhaka-based garment factory owner said an importer with whom he was negotiating a spring 2026 order of trousers for Walmart asked him to wait a week before the order would be confirmed due to the tariff risk. - Reuters LONDON/NEW YORK: Suppliers to Walmart have delayed or put on hold some orders from garment manufacturers in Bangladesh, according to three factory owners and correspondence from a supplier seen by Reuters, as US President Donald Trump's threat of a 35 per cent tariff on the textile hub disrupts business. Bangladesh is the third-largest exporter of apparel to the United States, and it relies on the garment sector for 80 per cent of its export earnings and ten per cent of its GDP. The factory owners all said they expected orders to fall if the August 1 tariffs go into effect, as they are unable to absorb that 35 per cent rate. Iqbal Hossain, managing director of garment manufacturer Patriot Eco Apparel Ltd, told Reuters an order for nearly one million swim shorts for Walmart was put on hold on Thursday (July 10) due to the tariff threat. "As we discussed please hold all below Spring season orders we are discussing here due to heavy Tariff per cent imposed for USA imports," Faruk Saikat, assistant merchandising manager at Classic Fashion, wrote in an email to Hossain and others seen by Reuters. Classic Fashion is a supplier and buying agent that places orders for retailers. "As per our management instruction we are holding Bangladesh production for time being and IN case Tariff issues settled then we will continue as we planned here." The hold was not decided by Walmart, Saikat told Reuters, but by Classic Fashion itself. Walmart did not respond to a request for comment. Bangladesh is currently in talks with the United States in Washington to try to negotiate a lower tariff. Trump in recent days has revived threats of higher levies on numerous nations. "If the 35 per cent tariff remains for Bangladesh, that will be very tough to sustain, honestly speaking, and there will not be as many orders as we have now," said Mohiuddin Rubel, managing director at jeans manufacturer Denim Expert Ltd in Dhaka. Rubel, whose company produces jeans for H&M and other retailers, said he expects clients will ask him to absorb part of the tariff, but added this would not be possible financially. Manufacturers have already absorbed part of the blanket ten per cent tariff imposed by the US on April 2. "Only probably the big, big companies can a little bit sustain (tariffs) but not the small and medium companies," he said. Retailers have front-loaded orders since Trump returned to the White House, anticipating higher tariffs. Jeans maker Levi's, which imports from Bangladesh, said on Thursday it has 60 per cent of the inventory it needs for the rest of 2025. US clothing imports from Bangladesh totaled US$3.38 billion in the first five months of 2025, up 21 per cent from the year-earlier period, according to US International Trade Commission data. Another Dhaka-based garment factory owner said an importer with whom he was negotiating a spring 2026 order of trousers for Walmart asked him on Thursday to wait a week before the order would be confirmed due to the tariff risk. Hossain said he may look for more orders from European clients to make up for lost orders if the US 35 per cent tariff gets implemented, even if he has to cut prices to stimulate demand. - Reuters
The Star
5 hours ago
- The Star
Indonesian oil tycoon Riza Chalid named suspect in Pertamina corruption case
Attorney General's Office spokesperson Harli Siregar (left) and the Office of the Assistant Attorney General for Extraordinary Crimes investigation director Abdul Qohar (right) address journalists during a press briefing about the suspect naming in the fuel import corruption case at the AGO headquarters in Jakarta on July 10, 2025. - Antara via The Jakarta Post/ANN JAKARTA: The Attorney General's Office (AGO) has named oil tycoon Muhammad Riza Chalid a suspect in a corruption case pertaining to fuel imports at subsidiaries of state-owned oil and gas giant Pertamina that incurred trillions in state losses. Investigators at the Office of the Assistant Attorney General for Extraordinary Crimes (Jampidsus) found enough evidence to name the businessman a suspect amid their investigation into the case in which seven suspects were arrested in February. Among the suspects previously arrested by the AGO was Riza's son Kerry Adrianto, a beneficial owner of a private oil and gas shipping company. Riza, identified as the beneficial owner of PT Tangki Merak and PT Orbit Terminal Merak (OTM), allegedly agreed on a deal with Pertamina to lease the Merak fuel terminal in Banten at a time when the state oil and gas company did not require additional storage. He allegedly did so by intervening in Pertamina's governance policy, scrapped the Merak fuel terminal's asset ownership scheme in the contract and inflated its value, AGO spokesperson Harli Siregar said during a press briefing on Thursday (July 10). Investigators suspect that Riza conspired with then Pertamina supply and distribution vice president Alfian Nasution and marketing and trading director Hanung Budya and OTM president director Gading Ramadhan Joedo; the latter has been in AGO custody since February. Riza, Alfian and Hanung were among nine suspects named by the AGO on Thursday for allegedly causing state losses of up to Rp 285 trillion (US$17 billion) through irregularities in fuel trade planning and procurement, product compensation schemes and the below-market sale of non-subsidised diesel to private and state-owned enterprises. The estimated state losses were raised from a previous Rp 196 trillion when the AGO made the first wave of arrests in February. All suspects were arrested on Thursday, except for Riza who remains at large. AGO investigators believe that he is currently residing in Singapore. 'Riza failed to respond to three summonses for interrogation, but we have been coordinating with our representatives in Singapore to locate and bring him in,' Jampidsus investigation director Abdul Qohar said in Thursday's televised press briefing. Should Riza be found to reside in Singapore, the AGO may utilise a treaty between the city state and Indonesia that grants extradition for various offences, including corruption, money laundering and bribery, according to the laws of both countries and safeguards provided in the agreement. Indonesian authorities have used the treaty in an attempt to secure the return of Paulus Tannos, a businessman who was named a suspect in another high-profile graft case involving e-ID procurement. But the effort has yet to bear fruit, as Tannos has challenged Indonesia's extradition request in a Singaporean court. The AGO said that it had been looking into Riza's potential involvement in the Pertamina graft case since it arrested his son Kerry in February. The initial investigation revealed that the illicit scheme allegedly involved the procurement of lower-octane subsidised gasoline to be sold fraudulently at a higher price. The Pertamina case was not the first scandal to hit Riza, a longtime player in the country's oil trade who was known as the 'gasoline godfather' for his domination of the oil import business. He was previously linked to a case in 2008 involving the import of 600,000 barrels of mixed crude oil sold by his company Global Energy Resource to Petral, a trading firm owned by Pertamina. The case allegedly caused the state energy firm to lose some Rp 65 billion, but the investigation was later dropped by the police after they claimed no state losses had been incurred. The businessman later found himself at the center of another scandal in 2015. At that time, he and then-House of Representatives speaker Setya Novanto of the Golkar Party sought shares and projects from gold miner PT Freeport Indonesia in exchange for using his supposed influence over then-president Joko 'Jokowi' Widodo to secure a contract extension for the company. There was no formal criminal investigation into Riza or Setya in that scandal, which became known by the public as "papa minta saham" (daddy wants shares). Energy watchdog Centre of Energy and Resources Indonesia (CERI) lauded the AGO for naming Riza a suspect in the Pertamina corruption case and expressed the hope that investigators can successfully arrest him. 'Wherever he is now, we believe authorities will bring him in to hold him accountable,' CERI executive director Yusri Usman said in a statement on Friday, while conveying the hope that the AGO could expand the investigation to other suspects. The fuel import case has been seen as a test for President Prabowo Subianto, who has vowed that his government will not tolerate corruption and has threatened hefty prison sentences for offenders. When the AGO named nine suspects in the case in February, analysts urged the President to take direct action to dismantle the deeply entrenched corruption in the country's oil and gas business. - The Jakarta Post/ANN
