Gold Prices Hover Near Record Highs Despite Calmer Markets, Fueled by FOMO and Western Investment

Economic

Commodity

Summary:

Gold prices remain close to historic highs, driven by strong Western investor demand and “fear of missing out” (FOMO) despite easing geopolitical tensions and the potential reopening of the U.S. government...

Investor Sentiment Keeps Gold Elevated Amid Improving U.S. Outlook

Gold continues to trade near all-time highs, even as traditional risk factors begin to fade. On October 20, spot gold surged by 3.1% to reach a peak of $4,381.52 per ounce before settling at $4,368.70 by the morning of October 21 (Vietnam time). This persistent strength in pricing comes despite signs of easing tensions between the U.S. and China and a potentially imminent resolution to the U.S. government shutdown.

Typically, such de-escalations would reduce demand for safe-haven assets like gold. However, according to commodity strategist Dan Ghali at TD Securities, the current rally is heavily driven by FOMO among Western investors—fearful of being left behind during one of the most impressive rallies in recent precious metals history.

Technical Warning Signs Point to Possible Short-Term Correction

While the price surge has drawn in more capital, technical indicators suggest caution. The Relative Strength Index (RSI), which measures the magnitude of recent price changes, indicates the gold rally may be overheated. The market has been climbing consistently since August, which raises the probability of a short-term pullback. This is not necessarily a signal of a longer-term reversal, but rather a warning of possible volatility ahead.

Despite this, analysts like Ole Hansen from Saxo Bank emphasize that the underlying buying pressure remains robust. Friday’s temporary dip on October 17 was quickly absorbed by buyers, revealing the strength of latent demand. Hansen notes that the market is currently dominated by buyers, with every pullback viewed as a fresh entry point.

Macroeconomic and Political Context Sustains Bullish Sentiment

Supporting this rally is a convergence of macroeconomic and political drivers. President Donald Trump’s latest remarks downplaying tensions with China, alongside comments from White House economic advisor Kevin Hassett about a likely reopening of the U.S. government this week, have helped calm financial markets. Yet rather than dampen gold's appeal, these developments have failed to derail the broader bullish narrative.

Investor anxiety over public debt, Federal Reserve independence, and ongoing global trade fragility has kept gold attractive as a strategic hedge. Furthermore, demand from central banks and robust capital flows into gold-backed ETFs have added additional upward pressure. According to data from market trackers, gold has now posted gains for nine consecutive weeks and is up over 65% year-to-date in 2025.

Silver Outpaces Gold as Liquidity Crunch Drives Price Dislocation

Among precious metals, silver has delivered an even more aggressive performance, rising over 80% in 2025. While it shares many of the same macro drivers as gold including geopolitical concerns and a weakening dollar—its rally has also been fueled by a unique liquidity squeeze in London. This shortage has led to a rare situation where London spot prices exceed New York futures contracts, triggering a global rush to secure physical silver.

Platinum saw modest gains, while palladium prices remained largely stable. The broader trend, however, suggests a growing investor appetite for metals perceived as real assets in an uncertain financial environment.

Gold’s sustained momentum despite improved political signals illustrates that investor behavior particularly Western FOMO has become a dominant force shaping the precious metals market. While technical indicators suggest a correction may be on the horizon, structural drivers such as central bank accumulation, fiscal uncertainty, and the global demand for safe-haven assets continue to support the bullish thesis. With silver outperforming and ETF inflows surging, the current metals cycle appears far from over, even as traders brace for volatility ahead.

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Economic

Commodity

Historic Bilateral Accord Aims to Redefine Mineral Supply Chains

On October 20, 2025, U.S. President Donald Trump and Australian Prime Minister Anthony Albanese formalized a landmark agreement targeting strategic mineral development. The $8.5 billion pact, unveiled during their summit at the White House, is designed to reinforce supply chain cooperation, boost mineral self-reliance, and dramatically reduce dependence on China—a nation that continues to dominate global rare earth production and exports.

According to the joint statement, both nations will each commit $1 billion over the next six months to co-invest in strategic mineral mining and processing projects. A key feature of the agreement is the implementation of minimum price floors, a long-standing demand from Western mining firms seeking stability in an otherwise volatile market. The establishment of a pricing mechanism reflects a structural shift in policy intent, emphasizing not only capacity expansion but also commercial viability for non-Chinese producers.

EXIM Bank Commits $2.2 Billion to Priority Projects

Following the summit, the U.S. Export-Import Bank (EXIM) announced preliminary letters of interest worth more than $2.2 billion in financial backing. These will support seven selected projects led by firms such as Arafura Rare Earths, Northern Minerals, Graphinex, Latrobe Magnesium, VHM, RZ Resources, and Sunrise Energy Metals. The portfolio spans a wide range of minerals essential for defense, aerospace, communication systems, and next-generation industrial technologies.

The White House stated that these projects are part of a broader framework potentially encompassing $53 billion in critical mineral developments. Although specific mineral types and mine locations were not disclosed, the scale of the commitment signals an ambitious and deliberate attempt to reindustrialize strategic sectors of the U.S. economy and counterbalance China's influence.

Defense Sector Involvement and Gallium Refining

Adding to the urgency is the U.S. Department of Defense's plan to construct a gallium refining facility in Western Australia. Gallium, which plays a critical role in semiconductors and military radar systems, became a focal point after China suspended exports to the U.S. in December 2024. This retaliatory move amplified fears of mineral weaponization in the ongoing trade standoff.

By integrating mineral production with defense infrastructure, the U.S. signals its intention to establish permanent, allied-based alternatives to Chinese supply chains. The gallium project is part of a larger pattern in which strategic materials are increasingly treated as assets of national security rather than purely commercial commodities.

Geopolitical Undercurrents and Trade Strategy

The deal arrives amid rising tensions between the U.S. and China. Beijing’s continued tightening of international mineral supply routes has forced Washington to accelerate its global resource acquisition efforts. The Trump-Albanese accord precedes an anticipated summit between President Trump and Chinese President Xi Jinping scheduled for next week in South Korea, where critical minerals and trade policy are likely to dominate discussions.

Australia, with its significant rare earth reserves and political alignment with Washington, is positioning itself as a central hub for resource extraction and processing. Negotiations in April already reflected Canberra’s desire to secure privileged access to U.S. strategic stockpiles and fast-track approval processes for mining permits.

Structural Reforms and Policy Integration

Beyond funding, the U.S.-Australia agreement outlines a series of institutional reforms, including streamlined permitting procedures, cooperative geoscientific mapping, and enhanced recycling capabilities. Notably, the two countries agreed to restrict the sale of strategic mineral assets to foreign actors deemed potential security risks—a clause aimed at shielding critical assets from state-influenced acquisitions, particularly from China.

This convergence of industrial policy, defense strategy, and geopolitical alignment marks a decisive moment in the evolution of global mineral markets. It also underscores a causally linked relationship between trade policy, national security imperatives, and the financial architecture supporting industrial reconfiguration.

The $8.5 billion U.S.-Australia strategic minerals alliance is a historic intervention into a market previously dominated by China. By integrating financial, regulatory, and security dimensions, the pact seeks to overhaul how critical minerals are sourced and supplied. For investors, policymakers, and strategic planners alike, this alliance represents not just a diversification of supply, but the formal emergence of an allied mineral bloc designed to underwrite the future of energy, defense, and technology manufacturing in a multipolar world.

Source: Reuters

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Economic

Historic U.S.-Australia Deal Sparks Market Rally in Critical Metals

The announcement of a sweeping $8.5 billion critical minerals agreement between the United States and Australia on October 20, 2025, immediately sent Australian mining stocks soaring. The bilateral deal, endorsed by U.S. President Donald Trump and Australian Prime Minister Anthony Albanese at the White House, seeks to bolster the supply chains for rare earth elements and other strategic metals deemed essential for defense, semiconductors, and clean energy technologies.

The equity markets responded with enthusiasm. Lynas Rare Earths, the largest rare earth miner in Australia, saw its shares rise by 4.7% in early Asia trading. Iluka Resources surged over 9%, and Pilbara Minerals climbed nearly 5%. Smaller-cap firms experienced more extreme gains, with VHM jumping around 30%, Northern Minerals gaining over 16%, and Latrobe Magnesium rocketing nearly 47%. This strong reaction reflects investor expectations of expanded U.S.-linked funding, accelerated project timelines, and long-term export potential.

Alcoa’s Gallium Project Receives Strategic Designation

One of the key features of the agreement is the designation of Alcoa’s gallium recovery and refining project in Western Australia as a top-priority investment. Gallium is critical for defense and semiconductor applications, and its recovery outside of China is a strategic objective for Washington.

Alcoa, listed on both the NYSE and the Australian Securities Exchange (via depositary receipts), saw its stock rise nearly 10% following the news. The U.S. government confirmed plans to take an equity stake in this initiative, signaling not just diplomatic support but a direct financial commitment to securing mineral independence.

Strategic Implications for U.S. and Australian Mineral Policy

The timing and scale of the deal underscore escalating geopolitical urgency to secure alternative sources of critical minerals. China, the world’s leading producer and processor of rare earths, has tightened export controls in the face of an ongoing trade war with the U.S. This export restraint has accelerated the West’s push to reorient mineral supply chains and reduce vulnerability to Chinese market dominance.

The U.S.-Australia framework includes multiple layers of investment. Initially, both governments pledged $1 billion each for immediately available projects over the next six months. However, a later statement from the White House revised the estimate upward, suggesting a broader $3 billion joint investment framework. In addition, the Export-Import Bank of the United States will issue seven letters of interest totaling $2.2 billion in financing, which could unlock up to $5 billion in total investment capacity. This multi-tiered funding approach indicates both near-term project support and longer-term infrastructure planning.

Resource Nationalism and Clean Energy Imperatives

Rare earth elements and critical metals like lithium, gallium, and magnesium are indispensable to high-tech manufacturing from electric vehicle batteries and wind turbines to defense electronics and advanced computing systems. As clean energy transitions accelerate globally, demand for these inputs is expected to rise sharply, placing additional strain on already concentrated supply chains.

This agreement between Washington and Canberra reflects an attempt to preempt future shortages by expanding upstream extraction and downstream refining capacity in politically stable, allied nations. The correlation between policy signaling and equity market behavior in this instance is strong, suggesting that investors are recalibrating long-term valuations based on government-backed industrial realignment.

The $8.5 billion U.S.-Australia minerals deal is more than a bilateral trade gesture it is a strategic maneuver to reshape global supply chains for rare earths and critical metals. As investor confidence rises in tandem with government commitments, Australian mining firms find themselves at the center of a new geopolitical and economic opportunity. With funding pipelines opening and supply diversification now a national security priority, the critical minerals sector stands poised for sustained growth, and Australian producers are likely to play a central role in the global energy and defense future.

Source: CNBC

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Economic

Stocks

South Korea’s Kospi Sustains Rally Amid Trade Deal Momentum

The Kospi index climbed more than 2% on Tuesday, continuing its record-breaking streak for the sixth straight session and bringing its year-to-date gains to approximately 61%. This momentum was sparked by comments from U.S. Treasury Secretary Scott Bessent, who revealed in an exclusive CNBC interview that Washington is nearing the conclusion of trade negotiations with South Korea. Although details are still being finalized, Bessent’s confirmation provided a strong signal of improving bilateral economic cooperation, which investors interpreted as a tailwind for South Korean equities.

Auto stocks led the gains, with Hyundai Motor jumping 6.45% and Kia Corp rising 4.28%, while Samsung Electronics, a key heavyweight in the index, gained 1.73%. The upward movement underscores the relationship between geopolitical trade clarity and investor confidence, as resolution prospects boosted export-oriented stocks sensitive to U.S. policy developments.

Japan Equities Reach New Highs as Leadership Shift Looms

Japan’s Nikkei 225 climbed 1.5% to a fresh all-time high, while the broader Topix index rose 0.73%, continuing a robust rally seen since Monday. Investor sentiment has been buoyed by the likelihood that Sanae Takaichi will soon be confirmed as Japan’s new prime minister. With backing from the Japan Innovation Party, Takaichi’s expected ascent introduces a fresh political chapter that investors view as stable and policy-continuity driven.

Market gains also mirrored positive moves on Wall Street, particularly a strong rally in Apple shares that lifted global tech sentiment. The correlation between U.S. tech optimism and Asian equity market performance remains strong, particularly for Japan’s tech-heavy indices.

Australia’s Rare Earth Sector Soars After U.S. Deal

The S&P/ASX 200 index gained 0.5%, supported in part by a surge in rare earth companies following a critical minerals agreement signed between Australian Prime Minister Anthony Albanese and U.S. President Donald Trump. This deal, aimed at diversifying supply chains and reducing reliance on China, significantly lifted investor expectations for Australia's mining sector.

In response, shares of Lynas Rare Earths rose 3.8%, Iluka Resources jumped nearly 6%, Pilbara Minerals gained 4.7%, while VHM skyrocketed over 30% and Northern Minerals soared close to 15%. This rally highlights the strategic alignment between U.S. industrial policy and Australia’s resource sector, signaling strong demand for minerals key to EVs and clean energy technologies.

Hong Kong and Mainland China Post Gains on Earnings Optimism

Hong Kong’s Hang Seng Index added 1.17%, while the tech-heavy Hang Seng Tech index rose 1.84%, supported by a 4.73% jump in CATL shares. The Chinese battery manufacturer, a supplier to Tesla, reported a 41% surge in third-quarter net profit to 18.5 billion yuan ($2.6 billion), reflecting strong demand for energy storage and EV components amid global clean energy expansion.

The CSI 300 index on the mainland also rose 0.3%, adding to regional gains that reflect solid corporate earnings and improving risk sentiment in Greater China markets.

U.S. Markets Support Global Risk Sentiment

Asian markets opened higher on the back of strong U.S. equity gains overnight. Apple shares led a rally that pushed the Dow Jones Industrial Average up 1.12% (515.97 points) to close at 46,706.58. The S&P 500 rose 1.07% to 6,735.13, and the Nasdaq Composite climbed 1.37% to 22,990.54. U.S. futures traded flat during early Asian hours as investors awaited corporate earnings and key inflation data.

The cross-market correlation between U.S. tech movements and Asian indices suggests a reinforcing feedback loop, where investor appetite for risk assets in one region propagates optimism across global markets.

The Kospi’s sustained rally reflects the pivotal role of trade policy clarity in driving investor confidence. As broader Asia-Pacific indices advance on positive corporate earnings, political transitions, and resource agreements, regional markets appear increasingly synchronized with both geopolitical developments and global equity trends. The confluence of trade optimism, critical mineral cooperation, and clean tech earnings strength continues to underpin a bullish tone across Asian equities.

Source: CNBC

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Economic

Chinese Battery Makers Turn to Global Markets After Domestic Overcapacity

After years of aggressive expansion, China’s battery industry faced severe overcapacity, with average utilization rates plummeting to just one-third of total capacity in 2024. This inefficiency forced many smaller players out of the market and pushed surviving firms to intensify export efforts. As a result, Chinese battery storage companies secured nearly 200 foreign orders totaling 186 GWh in the first half of 2025, marking a 220% surge compared to the same period in the previous year.

However, geopolitical trade tensions have shaped the export landscape. The United States, enforcing aggressive tariffs since the Trump administration, accounted for less than 3% of China's total battery storage exports. In contrast, almost 60% of shipments went to more receptive markets such as the Middle East, Europe, and Australia. This pattern reflects a significant correlation between trade policy barriers and regional export distribution, limiting China’s reach in the U.S. while boosting market share elsewhere.

Tariffs Drive Localized Production and Strategic Shifts

Chinese solar and battery giants like JinkoSolar and Trina Solar are increasingly responding to U.S. trade policy by localizing production abroad. Following tariffs as high as 3,521% on solar components imported via Southeast Asian countries, major firms have shifted close to 80% of their manufacturing capacity for solar wafers, cells, and modules to this region. The strategy underscores a tactical response to tariff risks, suggesting a defensive realignment rather than a purely expansionist motive.

This shift illustrates a more complex relationship between export-led growth and geopolitical constraint: while export volume is rising, long-term competitiveness requires both geographic diversification and localized operations. As Trina Solar’s chairman Gao Jifan noted, exporting alone is no longer sufficient foreign market penetration now necessitates domestic-like production hubs overseas.

Domestic Support Revives Chinese Battery Market

Concurrently, China's battery industry is also benefiting from a renewed wave of domestic policy support. The National Energy Administration’s recent plan to inject approximately $32 billion into building 180 GW of energy storage capacity by 2027 has revived internal demand. This dual-market approach targeting both domestic revitalization and international diversification has helped stabilize revenue streams and reinforce market resilience.

Financial results reflect this turnaround. In the first half of 2025, 47 out of 55 publicly listed Chinese energy storage companies reported profitability. Leading the sector, CATL posted RMB178.9 billion ($25.15 billion) in operating revenue, up 7.3% year-on-year, while net profit jumped by over 33%. The firm attributed this growth to sustained global demand for storage solutions amid accelerating clean energy adoption.

Global Battery Investment Enters Trillion-Dollar Era

Energy consultancy Wood Mackenzie projects that global battery investment will total $1.2 trillion by 2034. This capital will be necessary to integrate over 5,900 GW of new wind and solar capacity expected during the same period. These figures highlight an emerging dependency: grid stability will increasingly rely on advanced, grid-forming battery storage, transforming energy storage from a supportive technology into a critical infrastructure element.

This investment boom aligns with rising urgency for clean energy transition infrastructure. The correlation between renewable buildout and battery deployment is intensifying, with battery systems increasingly deployed not just for backup, but also for primary balancing and frequency regulation.

U.S. Battery Boom Driven by Cost Declines and Grid Transformation

Although historically underutilized in U.S. power networks, battery storage has recently entered a phase of exponential growth. Cleanview data reveals that current battery capacity in the U.S. has risen fifteenfold since 2020, now nearing 30,000 MW. This growth narrows the gap between renewables and storage: wind and solar capacity now outpace battery installations by only a factor of five down from 74 and 30 times, respectively, just five years ago.

The primary catalyst is economic: a 40% drop in battery prices since 2022 has redefined feasibility thresholds. According to Lazard’s 2025 LCOE+ report, utility-scale solar paired with storage now competes directly with new natural gas and coal plants on an unsubsidized cost basis, with LCOE ranging from $50 to $131/MWh.

These favorable economics have translated into widespread adoption. Nineteen U.S. states have installed over 100 MW of utility-scale battery capacity, with California leading at 13,000 MW equivalent to 42% of the national total. With 21,000 MW of solar and 12,400 MW of battery capacity now online, the California grid is increasingly powered by flexible energy storage during peak hours.

The global energy storage landscape is undergoing a major realignment, shaped by China’s overcapacity and export push, protectionist U.S. policies, and a worldwide surge in renewable infrastructure. While geopolitical tensions have redefined trade routes, cost declines and regulatory incentives are reshaping investment priorities. As both China and the U.S. ramp up storage capacity driven by different strategic imperatives they converge on a shared outcome: battery storage is no longer a fringe component but a centerpiece of 21st-century energy systems.

Source: OilPrice

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Stocks

Economic

Short-Term Uncertainty Suppresses Defense Sector Performance

The ongoing U.S. federal government shutdown has introduced significant near-term uncertainty for defense contractors heavily reliant on government contracts. This instability has curbed investor enthusiasm in the sector despite broader market gains. Both the iShares U.S. Aerospace & Defense ETF (ITA) and Invesco Aerospace & Defense ETF (PPA) have stagnated in recent weeks, remaining flat while the S&P 500 climbed nearly 2% over the same period.

This price divergence illustrates a temporary decoupling between sector-specific risks and broader market optimism. The shutdown has disrupted expectations surrounding future defense spending, creating a pause in forward-looking sentiment for key players in the aerospace and defense industries.

Muted Outlooks May Precede Upward Revisions

Wall Street analysts, particularly from Morgan Stanley, argue that the current environment could be favorable for contrarian investors. They anticipate that companies like Northrop Grumman (NOC), Lockheed Martin (LMT), and RTX Corp. (RTX) may release conservative earnings outlooks due to the funding uncertainty. However, these outlooks are likely to be revised upward once budget clarity returns.

This argument hinges on a correlation between funding visibility and forward earnings guidance. The relationship here is not necessarily causal but shows a conditional dependency companies temper forecasts during periods of political disruption, which may not reflect actual demand or long-term government procurement trends. Thus, a recovery in investor sentiment could occur rapidly upon signs of political resolution.

Northrop Grumman Emerges as a Bellwether

Northrop Grumman is seen as a key player to watch. With earnings due Tuesday, the company's performance and commentary are expected to set the tone for the sector. Morgan Stanley has issued a bullish price target of $720, approximately 20% above its recent close at $602, and significantly above the Visible Alpha consensus of $635. Despite a slight dip of around 1% since early October, Northrop Grumman shares have delivered a 28% gain in 2025 almost doubling the S&P 500’s performance over the same period.

This outperformance underscores the structural strength of defense spending amid broader economic fluctuations. Even as shutdown-linked delays affect short-term reporting, long-term demand especially given geopolitical tensions remains robust.

Upcoming Earnings Reports and Market Sentiment

Beyond Northrop Grumman, Lockheed Martin and RTX are also set to report this week, with GE Aerospace and CACI International following. Boeing and L3Harris are scheduled for next week. This lineup offers multiple data points for investors seeking to understand how defense firms are navigating the shutdown. Rising share prices on Monday across several defense names coincided with positive broader market sentiment and White House economic advisor Kevin Hassett’s prediction that the shutdown could end within the week.

Betting markets like Polymarket also reflect optimism, assigning slightly higher probabilities to the shutdown concluding between Thursday and Sunday than extending into next week. This improvement in sentiment could act as a trigger for stock price corrections in currently lagging defense firms.

While the government shutdown has temporarily weakened investor confidence in defense stocks, it has simultaneously created valuation gaps that may prove attractive. Conservative earnings outlooks caused by political delays may be revised upward once funding is restored. Companies such as Northrop Grumman and Lockheed Martin are poised for upside as clarity returns, and their underperformance relative to the S&P 500 may offer a window of opportunity for strategic investors seeking exposure to long-term defense sector resilience.

Source: Investopidia

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Samantha Luan

Economic

Forex

Political

Key points:

● Academic freedom cited in rejecting White House proposal

● Six universities already declined 'compact' that includes preferential federal funding

● Two other institutions yet to announce position by Monday deadline

The University of Arizona on Monday cited academic freedom as it became the seventh elite institution to decline a Trump administration proposal offering nine schools preferential consideration for federal funding in exchange for agreeing to a set of policies.Vanderbilt University and the University of Texas at Austin have yet to announce whether they will sign the proposal, for which the administration gave a Monday deadline.Brown University, the Massachusetts Institute of Technology, the University of Southern California, the University of Pennsylvania, the University of Virginia, and Dartmouth College previously rejected the proposal.

Asked for comment about the University of Arizona's statement declining to sign the agreement, and whether UT Austin or Vanderbilt had responded, a White House official told Reuters that none of the three had "signed the compact yet."The official added: "The administration is still listening to the feedback from the universities, so there is not a version ready for signature just yet."

FOUNDATIONAL PRINCIPLES 'MUST BE PRESERVED'

Since President Donald Trump took office in January, the White House has targeted what it deems liberal-leaning institutions and tried to withhold funding from colleges and universities over issues such as pro-Palestinian protests against U.S. ally Israel's war in Gaza, transgender policies, climate initiatives and diversity, equity and inclusion programs.The administration has canceled federal contracts worth millions of dollars with numerous schools to pressure them to drastically change their admissions and hiring policies, among other issues. Courts have ordered many of the federal cuts be restored. The compact, sent to the nine universities early in the month, marked a new approach.

"A number of the proposed federal recommendations deserve thoughtful consideration as our national higher education system could benefit from reforms that have been much too slow to develop," University of Arizona President Suresh Garimella wrote in a statement addressed to the campus community."In fact, many of the proposed ideas are already in place at the U of A. At the same time, principles like academic freedom, merit-based research funding, and institutional independence are foundational and must be preserved.

"As a result, the university has not agreed to the terms outlined in the draft proposal," but instead has submitted to the U.S. Department of Education its existing Statement of Principles enumerating such university policies as merit-based hiring and prioritizing admission of qualified Arizona students and applicants from U.S. tribal nations, Garimella wrote.In the White House's 10-point memo titled "A Compact for Academic Excellence in Higher Education," the administration asked the nine elite colleges to cap international undergraduate enrollment at 15%, ban the use of race or sex in hiring and admissions and define genders based on biology.

The memo called for "transforming or abolishing institutional units that purposefully punish, belittle, and even spark violence against conservative ideas," but did not include similar measures to protect liberal ideas.It also proposed that the Classic Learning Test, embraced by some conservatives and already authorized for use by Florida's public university system, be among the college entrance exams considered alongside the SAT and ACT.Universities that pursue "models and values" beyond those outlined in the memo could "forgo federal benefits," the memo reads, while institutions that comply could be rewarded.A White House official has said schools other than the nine initially approached could sign on to the proposal.