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

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

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

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

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 at the G-20 Summit in Japan.

Just in from the White House: Presidents Trump-Xi trade meeting set for Saturday morning in Osaka.

President Trump Thursday asked India to withdraw retaliatory tariffs that New Delhi imposed this month, calling the duties “unacceptable”.

In Asia

Gold: Gold prices lower Thursday following a steep fall in Wednesday’s session, as investors waited on US-China trade developments later this week, while Bulls rolled back expectations of big US interest rate cuts.

  • Spot gold was down 0.2% at $1,406.21 oz as of 0529 GMT,
  • US old futures were 0.4% lower at $1,409.60 oz.

Note: On the technical side, spot gold may stabilize around a support at $1,404 oz, and bounce towards resistance at $1,421.

There appears to be some fatigue around pre-announcements on the trade issues. If we do not see some semblance of agreement, then we can see support for gold coming back, but in the meantime that modulation is expected to weigh on gold prices.

This looks like a corrective action at the moment, a slight uptick in the U.S. dollar is also pressuring gold prices.

Energy: Crude Oil prices rose more than 2% Wednesday and hit their highest in about a month, buoyed by US government data that showed a larger-than-expected draw-down in stocks as exports hit a record high, and drops in refined product stockpiles.

  • ICE Brent Crude Oil futures rose $1.44, or 2.2%, to settle at $66.49 bbl,
  • NYMEX WTI Crude Oil futures rose $1.55, or 2.7%, to settle at $59.38 bbl.

Crude inventories fell 12.8-M bbl last week, the Energy Information Administration (EIA) said, far surpassing analyst expectations for a decrease of 2.5-M bbl. That was the most since September 2016, according to the statistical arm of the Department of Energy.

Net US Crude imports fell last week by 1.2-M BPD. Overall Crude Oil exports rose to 3.8-M BPD, beating its previous record of 3.6-M BPD in February.

Equities: Asian share markets turned higher Thursday following a media report the United States and China have tentatively agreed to a truce in their trade dispute, ahead of a closely-watched meeting between the 2 nations this weekend.

MSCI’s broadest index of Asia-Pacific shares sans Japan up 0.6%.

China led the gains with its blue-chip index up 1.4%. SKorea’s KOSPI index was up 0.6% while Hong Kong’s Hang Seng and Japan’s Nikkei jumped 0.8%

Currencies: USD edged up to 1-wk highs Vs the safe-haven JPY Thursday, as some concerns ahead of the G-20 Summit in Japan eased on hopes for progress there in resolving the US-China trade dispute.

.DXY Vs a basket of 6 peer currencies rose 0.15% to 96.374.

.DXY had retreated to a 3-month low of 95.843 at the start of the week due to the Fed’s easing prospects. But it managed to regain some traction after comments Monday from central bank officials that tapered expectations for aggressive rate cuts.

EUR dipped 0.2% to $1.1351, the Canadian dollar was on a steady footing as Crude Oil’s surge supported commodity-linked currencies.

The Loonie traded at C$1.3131 per USD after advancing overnight to C$1.3108, its strongest since early February 2019.

The New Zealand dollar was near 2-month highs at $0.6693 scaled on Wednesday, when the currency bounced after the Reserve Bank of New Zealand refrained from lowering rates.

The Australian dollar (AUD) inched up to a 2.5 week high of $0.6999.

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

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »59.11 USD-0.27-0.46%Jul 192:30AM EDT
ICE Brent Crude »66.20 USD-0.29-0.44%Jun 192:31AM EDT
NYMEX RBOB Gasoline »1.96 USD-0.01-0.56%Jun 192:23AM EDT
Dubai Crude Spot »63.97 USD+0.06+0.09%Dec 022:42AM EDT
ICE Gas Oil »599.00 USD-0.25-0.04%Jul 192:31AM EDT
NYMEX No2 Heating Oil »1.96 USD-0.01-0.35%Jun 191:31AM EDT
NYMEX Nat Gas »2.27 USD-0.00-0.09%Jul 192:31AM EDT
ICE NBP Nat Gas »25.11 GBP+0.000.00%Jun 1911:59AM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,402.63USD-5.72-0.41%Dec 022:38AM EDT
COMEX 100oz Gold »1,403.00USD-8.50-0.61%Jul 192:36AM EDT
Silver Spot »15.18USD-0.06-0.40%Dec 022:38AM EDT
Platinum Spot »812.01USD-2.00-0.25%Dec 022:38AM EDT
Palladium Spot »1,520.65USD-1.35-0.09%Dec 022:38AM EDT
COMEX Copper »2.71USD-0.00-0.09%Jul 192:35AM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »444.50USC+1.25+0.28%Jul 192:36AM EDT
CBOT Wheat »549.50USC+5.75+1.05%Jul 192:36AM EDT
KCBT Wheat »474.00USC+5.00+1.05%Jul 192:20AM EDT
MGE Spring Wheat »564.00USC-1.25-0.22%Dec 021:00AM EDT
Euronext Milling Wheat »182.75EUR+0.000.00%Sep 1912:29PM EDT
CBOT Soybean »895.00USC+0.75+0.08%Jul 192:26AM 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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