0932 GMT - Gold futures slip, but remain up on week. Futures are down 0.5% at $2,736.10 a troy ounce. Despite the downward correction early in Friday's session, the precious metal is set to end the week up 0.8%. This reflects a combination of safe-haven demand ahead of Trump's inauguration as U.S. president and U.S. economic data sparking some renewed optimism for monetary policy easing, market watchers say. That said, gold's potential gains have been capped by continued dollar strength over the past week, BMI analysts say in a note. In the near term, BMI is bearish toward bullion, and expects spot gold to average $2,500 an ounce in 2025 amid a stronger dollar and a more hawkish Federal Reserve. (joseph.hoppe@wsj.com)

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Oil Headed for Weekly Gains on Supply Disruption Fears -- Market Talk

0907 GMT - Oil prices are on track for weekly gains of more than 2%, boosted by supply disruption concerns following the latest round of U.S. sanctions against Russia. Brent crude is up 0.3% at $81.59 a barrel, while WTI trades 0.5% higher at $78.24 a barrel. "From a technicals point of view, the market is in overbought territory and so overdue a correction," ING analysts say. "However, mounting supply risks continue to provide broad support to oil prices." The market now awaits the return of President-elect Donald Trump to the White House for more clarity on trade tariffs and potential sanctions on Iran and Venezuela. Trump's Treasury Secretary pick Scott Bessent said he would support tightening sanctions against Russia, especially on oil majors, in an effort to end the war in Ukraine. (giulia.petroni@wsj.com)

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Rio Tinto, Glencore Merger Unlikely due to Diversified Strategies, Portfolios -- Market Talk

0856 GMT - A merger between Rio Tinto and Glencore is unlikely and conversations between the two miners were probably in the normal course of business, Berenberg analysts write. Combined, Rio Tinto Glencore would have a market capitalisation of around $150 billion, but diversified strategies, cultures and portfolios make any deal challenging, the analysts write. A deal would likely be an all-stock transaction but the analysts expect Rio Tinto to be reticent to pay a meaningful premium for Glencore's assets, they write. Rio Tinto's London shares are up 1.5% at 5,004 pence while Glencore's are also up 2.7% at 380.15 pence.(adam.whittaker@wsj.com)

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Orsted Investors Need Clarity on U.S. Policy and Disposal Progress -- Market Talk

0745 GMT - Orsted's share price has significant upside, but more clarity is needed on the future of U.S. offshore wind and its disposal plan, RBC Capital Markets analyst Alexander Wheeler writes. There has been a significant decline in the Orsted share price since the U.S. election given the negative messaging from the incoming Trump administration around offshore wind, he says. Orsted's 70 billion-80 billion Danish kroner 2024-2026 disposal plan has progressed well, and the U.K. Hornsea 3 offshore wind farm will likely get material attention this year as a disposal could go a long way to meeting its divestment target, Wheeler says. The bank lowers its price target to 400 kroner from 450 kroner and keeps its sector perform rating. Shares closed at 300.60 kroner. (dominic.chopping@wsj.com)

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Glencore Merger Would Be Hard to Sell to Rio Tinto Investors -- Market Talk

0743 GMT - A merger between Glencore and Rio Tinto seems like a strange strategic move given their limited cross-over and differing strategies, analysts at MKP Advisors write after a Bloomberg report saying the companies have discussed combining their businesses. It would be especially hard for Rio Tinto to sell the deal to its shareholders given it would contradict all of their previous messaging to investors, they write. Rio Tinto has exited from it its coal assets while Glencore has doubled down, and it is a struggle to see how the two companies are compatible, the analysts write. Rio Tinto fell 0.7% in Sydney to A$118.74 while in London Glencore closed Thursday at 370.05 pence. (adam.whittaker@wsj.com)

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Gold, Silver Remain a Playground for Mining Dealmakers -- Market Talk

0113 GMT - The gold and silver industries have been a relative hotspot for dealmaking in recent times--and will likely continue to be, despite some challenges, Panmure Liberum analyst Yuen Low says in a note. "Northern Star's offer for De Grey and Coeur Mining's for SilverCrest Metals [are] just the latest in a global trend that should continue for the foreseeable future," says Low. There are some headwinds to dealmaking, including a resurgence in resource nationalism and a diminishing target pool, Low says. But there's also an abundance of potentially bullish drivers for precious metal prices, he says. "We expect most commodity prices to trend lower in 2025, but not that of gold and silver." (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

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Australian Gold Miners Haven't Lost Their Luster -- Market Talk

0049 GMT - Australian gold miners aren't as cheap as they once were, but many still appeal due to strong cash generation and the likelihood of an increased focus on investor returns, UBS analysts say. "We remain largely Buy rated across our coverage despite some of the upside being captured," the analysts say in a note. They expect gold to keep rallying because of ongoing geopolitical risks and resilient consumer demand. They reiterate UBS's forecast for US$2,900/oz gold by mid year, "which equates to circa A$4,500/oz or even higher if the weak A$ prevails." (rhiannon.hoyle@wsj.com; @RhiannonHoyle)


Write to Barcelona Editors at barcelonaeditors@dowjones.com


(END) Dow Jones Newswires

01-17-25 1031ET