Asia: Gold, USD, Crude Oil, Stocks & Commodities

Asia: Gold, USD, Crude Oil, Stocks & Commodities

$GLD, $XAU, $SLV, $USD, $BTC, $USO, $OIL, $WEAT, $CORN, $SOY

FLASH: Gold Up, USD Down, Crude Oil Off, Stocks Down

“The Stars look to be aligning for the Gold market, Gold could rise as high as $1,500 by the end of the year”– PE

The Big Q: Why?

The Big A: If gold remains above previous highs around $1,360-$1,390, this mark becomes strong technical support, resistance is at the August 2013 high of $1,433 and a Fibonacci retracement mark is around $1,483.

Notes: Investors and Traders await the meeting between Presidents Trump and Xi later this week for signs of a de-escalation in the trade dispute. The 2 world leaders will meet on the sidelines of the G-20 Summit in Japan.

The USD hit a multi-month low against the EUR and the JPY Tuesday on the prospects of monetary easing by the Fed while the safe-haven Swissie (CHF) and Gold rose on Middle East tensions.

President Trump targeted Iranian Supreme Leader Ayatollah Ali Khamenei and other Top Iranian officials with sanctions Monday, taking a dramatic, unprecedented step to increase pressure on Iran, after Tehran’s downing of an unmanned American drone near the Strait of Hormuz.

Fed Chairman Powell and a few other of its policymakers are due to speak later Tuesday.

In Asia

Gold: Gold looks set for further gains after rising bets on lower interest rates, a weaker USD and confrontations between the US and countries including China and Iran catapulted prices to 6 yr highs.

Gold is up 10% in 4 weeks, breaking above technical resistance which has thwarted every rally for 5 yrs to rise above $1,400 oz for the 1st time since Y 2013.

  • Spot gold was up 1.2% at $1,435.45 oz, as of 0438 GMT. Earlier in the session, the precious Yellow metal touched $1,438.63, its highest since 14 May 2013. Gold is headed for a 6th session running of gainers,
  • US gold old futures spiked 1.6% to $1,440.20 oz,
  • Silver rose 0.3% to $15.47 oz, and Platinum gained 0.3% to $812.

Against the world’s central bank’s buying backdrop, speculative investors have piled in.

Their bets on higher gold prices on the COMEX exchange now outnumber wagers on lower prices by 189,681 contracts, the most in more than a year. That is equivalent to almost 19-M oz, worth some $26-B

For a graphic on speculative positioning in gold, click: tmsnrt.rs/2FsOo4c

ETFs have added more than 2-M ounces to their holdings since early May, is helping 

Energy: Crude Oil fell Tuesday on concerns over the outlook for demand, but prices were supported after Washington announced new sanctions on Iran due to mounting tensions in the Middle East.

  • ICE Brent Crude Oil futures were -57c, or 0.9%, at $64.29 bbl by 0342 GMT. They dropped 0.5% Monday,
  • NYMEX WTI Crude Oil futures were -58c, or 1%, at $57.32 bbl. WTI futures rose 0.8% Monday.

Weak US manufacturing data released Monday by the Fed of Dallas added to worries about slipping demand for Crude Oil.

Equities: Asian shares were dampened by trade anxiety Tuesday while the risk of more Dovish talk from the Fed pushed down US Treasury yields and the USD, propelling gold to fresh 6-year highs.

Japan’s Nikkei lost 0.6%, while E-Mini futures for the S&P 500 edged down 0.3%. EUROSTOXX 50 futures were off 0.2% ahead of the European open.

Wall Street had been just as cautious with the DJIA ending Monday up 0.03%, while the S&P 500 lost 0.17% and the NAS Comp 0.32%.

Currencies: EUR hit a 3-month high of $1.14105, having gained 2.0% from a 2-week low of $1.1181 tapped a week ago as USD lost steam. It last stood at $1.1406, up sa bit on the day.

USD slipped 0.35% to 106.93 JPY, its lowest since its flash crash on 3 January.

.DXY Vs basket of 6 peers fell to its lowest mark in 3 months to 95.943 , having lost 1.7% during the last 5 sessions.

GBP is still dogged by BREXIT concerns as Eurosceptic Boris Johnson is seen as likely to win a majority of votes from Conservative party members who will decide the next leader and PM.

GBP fetched $1.2743, capped by resistance around $1.2760-65.

Vs EUR, GBP was on the back foot at 89.455p/per near 5 month lows of 89.74 set a week ago.

USD slipped to 0.9710 CHF, its lowest since late September.

Commodities (quotes): Energy, Metals, and Agriculture Grains

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »57.51USD-0.39-0.68%Jul 191:45AM EDT
ICE Brent Crude »64.57USD-0.29-0.45%Jun 191:45AM EDT
NYMEX RBOB Gasoline »1.85USD-0.01-0.30%Jun 191:40AM EDT
Dubai Crude Spot »62.44USD-0.37-0.59%Dec 021:55AM EDT
ICE Gas Oil »582.00USD+2.25+0.39%Jul 191:42AM EDT
NYMEX No2 Heating Oil »1.89USD-0.02-0.81%Jun 1911:21PM EDT
NYMEX Nat Gas »2.30USD-0.00-0.22%Jun 191:44AM EDT
ICE NBP Nat Gas »26.93GBP+0.000.00%Jun 1911:57AM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,424.10USD+4.95+0.35%Dec 021:48AM EDT
COMEX 100oz Gold »1,424.00USD+9.70+0.68%Jun 1912:00AM EDT
Silver Spot »15.36USD-0.07-0.46%Dec 021:48AM EDT
Platinum Spot »809.78USD-0.22-0.03%Dec 021:48AM EDT
Palladium Spot »1,520.00USD-15.00-0.99%Dec 021:48AM EDT
COMEX Copper »2.71USD+0.000.00%Jun 197:01PM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »449.25USC+2.50+0.56%Jul 191:45AM EDT
CBOT Wheat »537.25USC-0.75-0.14%Jul 191:46AM EDT
KCBT Wheat »465.75USC+0.25+0.05%Jul 1912:43AM EDT
MGE Spring Wheat »564.00USC-1.25-0.22%Dec 021:00AM EDT
Euronext Milling Wheat »183.75EUR+0.000.00%Sep 1912:29PM EDT
CBOT Soybean »913.50USC+4.50+0.49%Jul 191:44AM EDT

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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