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

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

Notes: Tensions have been high in the Middle East after attacks on tankers and the downing of a US drone by Iran last month, following President Trump’s withdrawal from a multi-party agreement with Tehran to end its nuclear program.

In his 1st day of testimony before Congress Wednesday, Fed Chairman Powell confirmed that the US economy was still under threat from disappointing factory activity, tame inflation and a simmering trade dispute.

In Asia

Gold: Gold rose Thursday, as USD slipped after Dovish remarks from the Fed Chairman Powell boosted the case for an interest rate cut later this month.

• Spot gold was + 0.4% at $1,424.21 oz, as of 0337 GMT,
• US gold futures spiked 1% to $1,424.36 oz.

Wednesday’s move from the Fed is convincing that they are going towards more of a risk management overview policy which is Dovish, and USD trading lower is a huge support for gold not only focused on concerns within the US economy, but also took into consideration the global economy, negative impact from trade disputes hitting all the right buttons for gold Bulls

Energy: Crude Oil futures hit 6-wk highs Thursday as a storm built in the Gulf of Mexico, threatening output, while an incident with a British tanker in the Middle East highlighted ongoing tensions in the region.

• NYMEX WTI Crude Oil futures +34c, or 0.6%, at $60.77 bbl by 0337 GMT,
• ICE Brent Crude Oil futures +30c, or 0.5%, at $67.31 bbl.

Wednesday, 5 boats believed to belong to Iranian Revolutionary Guards approached a British Oil tanker, and asked it to stop in Iranian waters close by, but withdrew after a British warship warned them off over the radio.

Equities: Asian stocks advanced and USD struggled Thursday, after Fed Chairman Powell reinforced prospects for a US interest rate cut later this month.

The pan-region Euro Stoxx 50 futures were up 0.43%, Germany’s DAX futures rose 0.42% and Britain’s FTSE futures gained 0.33% in early European trade.

MSCI’s broadest index of Asia-Pacific shares sans Japan rose 1%, while Japan’s Nikkei added 0.5%.

The Shanghai Composite Index edged up 0.3%, SKorea’s KOSPI climbed 1.2% and Australian stocks advanced 0.6%.

US stocks ended higher Wednesday and the S&P 500 crossed the 3,000-point mark intra-day for the 1st time following Mr. Powell’s remarks.

Currencies: .DXY Vs a basket of 6 peer currencies was down 0.25% at 96.873 and extended losses from Wednesday, when it fell back from a 3-wk high of 97.588

The Buck -0.5% at 107.960 JPY, forced off a 6-wk high of 108.990 marked Wednesday.

EUR + 0.25% to $1.1278, AUD + 0.2% to $0.6974 Vs a broadly weaker USD.

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

Stay tuned…

  Corn, Fed, futures, GLD, Gold, inflation, oil, SLV, SOY, stocks, tankers, trade, USD, USO, WEAT, xau

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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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