Key Takeaways
- Gold prices surged past $4,300 an ounce, driven by record central bank purchases and a 14-day inflow streak into Chinese ETFs totaling over $1.2 billion.
- Radiant World faces a liquidity crisis as major miners Rio Tinto (RIO) and Vale (VALE) cut ties and banks freeze accounts over allegations of falsified trade documents.
- Sen. Lisa Murkowski (R-AK) will vote "No" on Todd Blanche’s Attorney General nomination, leaving his confirmation dependent on a single remaining GOP holdout, Sen. Bill Cassidy.
- Jane Street is in talks to shift $11 billion in debt to private credit investors like Pimco, a move aimed at funding AI infrastructure while reducing public financial disclosure requirements.
- Global markets are treading cautiously ahead of today's U.S. nonfarm payrolls report, with economists expecting a modest rebound to 80,000 jobs added in July.
Gold Hits New Heights on Structural Demand
Gold continued its relentless rally on Friday, with spot prices topping $4,300 per ounce. While geopolitical tensions in the Middle East provided a tailwind, analysts point to a "structural floor" created by central banks, which purchased a record 288.9 tonnes in the second quarter of 2026.
In China, institutional appetite for bullion is accelerating. Chinese gold-backed ETFs recorded their 14th consecutive day of inflows, reversing record outflows seen in June. This surge in Asian demand is helping to offset the impact of higher-for-longer U.S. interest rate expectations.
Iron Ore Market Turmoil Deepens
The global iron ore market is reeling as one of its largest traders, Radiant World, faces intensifying scrutiny. Major steel mills in China have reportedly suspended business with the firm following concerns over disputed trade documents.
The fallout has expanded to the banking sector, with Deutsche Bank (DB) and KBC Group (KBC) freezing some of the trader's Singapore-based accounts. Commodities giant Glencore (GLEN) has already booked a provision related to the controversy and halted new transactions with the firm.
Political Hurdles for AG Nominee
The path to confirmation for Attorney General nominee Todd Blanche narrowed significantly after Sen. Lisa Murkowski announced her opposition. Murkowski cited "no confidence" in Blanche’s ability to check administration impulses and raised concerns over the DOJ's handling of sensitive files and tax audit immunity deals.
With Sen. Susan Collins also expected to vote "No," the nomination now rests on Sen. Bill Cassidy. If confirmed, Blanche would take over a department that has been without a permanent leader for four months following the firing of Pam Bondi.
Jane Street Eyes Private Credit Shift
Proprietary trading powerhouse Jane Street is negotiating a landmark deal to move its $11 billion debt load into a private credit structure. The firm is reportedly in talks with Pimco and other select investors to finalize the refinancing as early as next week.
The shift would allow Jane Street to bypass public quarterly financial reporting, a significant move for the notoriously secretive firm. The capital is expected to be redirected toward massive investments in AI infrastructure and data centers to support its trading operations.
Investors Brace for Jobs Report
Equity markets remained flat on Friday morning as investors awaited the U.S. nonfarm payrolls report. Consensus estimates suggest the economy added 80,000 jobs in July, a slight improvement from June's disappointing 57,000.
A stronger-than-expected print could embolden the Federal Reserve to maintain restrictive policy, potentially pressuring stocks while supporting the U.S. Dollar (DXY). Conversely, a weak report might fuel recession fears, even as it raises the probability of a September rate cut.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.