Gold Prices Retreat as U.S.-China Tensions Ease and Dollar Strengthens

Japan’s Nippon Steel Corp. $5401.T has finalized its $14.1 billion acquisition of U.S. Steel Corp. $X after securing approval from the administration of former U.S. President Donald Trump. The companies concluded a conditional agreement that resolved regulatory concerns, allowing the deal, first announced in December 2023, to move forward. The transaction, structured at $55 per share in cash, keeps U.S. Steel’s headquarters in Pittsburgh, maintaining its domestic identity while introducing Japanese capital and management. The agreement closes 18 months after initial terms were established.

The Metals Company $TMC, a leading advocate for deep-sea mining, experienced a sharp stock rally following a strategic equity investment from Korea Zinc $010130.KS. The South Korean smelting giant has agreed to inject $85.2 million into TMC in exchange for 19.6 million common shares priced at $4.34 each. The announcement, which came amid intensifying U.S. efforts to decouple from foreign critical mineral supply chains, underscores growing institutional confidence in unconventional resource extraction.

A U.S. Senate panel has proposed a significant amendment to the federal 45Q carbon capture tax credit, aiming to equalize incentives for carbon dioxide used in enhanced oil recovery (EOR) and permanent carbon sequestration. If enacted, the measure would raise the tax credit for EOR to $85 per metric ton, matching the credit already granted for geologic storage, and potentially shifting investment dynamics in the oil, gas, and carbon capture sectors.

Meta Platforms Inc. $META, the parent company of Facebook, has reportedly offered bonuses of up to $100 million to OpenAI employees, aiming to lure top engineering talent as part of an aggressive expansion of its artificial intelligence division. The revelation came directly from OpenAI CEO Sam Altman, highlighting the escalating competition among major tech firms to secure top minds in artificial intelligence and machine learning development.

Amid escalating trade-related headwinds, Hasbro Inc. $HAS —one of the world’s largest toy manufacturers—has announced a 3% reduction in its global workforce, equivalent to approximately 150 jobs. This move is part of a broader effort to counterbalance mounting operational costs and manage tariff impacts stemming from higher U.S. duties on toy imports from China.

Deutsche Pfandbriefbank AG $PBBGF, a key player in European real estate finance, announced on Wednesday that it is withdrawing its full-year 2025 guidance. The decision follows extraordinary expenses tied to exiting the U.S. commercial real estate market, marking a pivotal moment in the bank’s long-term strategic overhaul.

Several Chinese cities, including Zhengzhou, Luoyang, Shenyang, and Chongqing, have suspended government-backed car trade-in subsidies in June 2025, citing either funding exhaustion or budgetary reassessments. The decision comes as Beijing’s stimulus efforts in the automotive sector—central to reviving domestic consumption and manufacturing activity—face structural and fiscal limitations.

Honda Motor Co. $7267.T has initiated a significant recall campaign in the United States, affecting more than 259,000 vehicles due to a defect in the brake pedal assembly. According to the U.S. National Highway Traffic Safety Administration (NHTSA), the faulty component may shift out of position, potentially compromising braking performance and increasing the risk of collisions or injury. The issue impacts a wide range of models across the Acura and Honda brands, covering production years from 2021 to 2025.

Global financial markets displayed a marked shift to risk-off sentiment on Wednesday amid two major headwinds: heightened tensions in the Middle East, particularly ongoing Israeli airstrikes on Iran, and growing uncertainty surrounding the Federal Reserve’s monetary policy decision. These overlapping risk factors curtailed investor appetite, with both equity markets and currency trading reflecting a cautious, defensive tone.

Elon Musk’s artificial intelligence startup, xAI, is reportedly set to finalize a $5 billion debt financing package, spearheaded by investment bank Morgan Stanley $MS. Despite lukewarm investor interest, the deal—comprising a mix of floating-rate term loans, fixed-rate debt, and secured USD bonds—marks a critical moment in the funding trajectory of one of the most closely watched private tech ventures of 2024.

Eli Lilly and Company $LLY, a global pharmaceutical leader, announced a definitive agreement to acquire Verve Therapeutics, Inc. $VERV, a Boston-based biotechnology firm specializing in gene editing therapies for cardiovascular disease. This strategic acquisition reflects growing momentum behind the application of CRISPR-based genome editing in chronic disease treatment, particularly in cardiometabolic indications. The deal further strengthens Lilly’s pipeline in precision medicine and underscores the intensifying competition in the RNA and gene-editing landscape.

In a landmark move for the digital asset economy, the U.S. Senate has passed the long-awaited GENIUS Act—the first bipartisan cryptocurrency bill to target the regulatory framework for stablecoins pegged to the U.S. dollar (USD). The bill, approved by a 68-30 vote, reflects growing political consensus that regulatory clarity is essential for protecting market integrity and fostering innovation in the blockchain sector.