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

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

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

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

Note: Geopolitical fears were dominated by confrontation in the Crude Oil trade’s most important waterway escalating, with footage showing the Iranian military defying a British warship when it seized a tanker in the Strait of Hormuz Friday.

Priced-in forecasts for a 50-bpt cut fell from as high as 71% last week to 18.5% Monday.

US and Chinese officials spoke by telephone again Friday, as the world’s 2 largest economies seek to end a year-long trade dispute, with US Treasury Secretary Steven Mnuchin is talking in-person talks could follow.

A report over the weekend by China’s Xinhua news agency suggested some local firms were seeking to buy US farm products, a possible sign of progress.

The currency-market focus will be on global central bank decisions scheduled for the next 2 weeks, traders are also watching for developments in US-China trade negotiations and Wall Street earnings.

In Asia

Gold: Gold prices gained Monday following a fall Friday session as tensions in the Middle East and weaker financial markets supported the precious Yellow metal, while a stronger USD capped gains.

  • Spot gold +0.2% at $1,427.26 oz as of 0322 GMT. The metal hit $1,452.60 in the previous session, its highest since May 2013, before closing off 1.5% lower on profit taking,
  • US gold futures were +0.1% at $1,428.50 oz.

At the weekend, what happened between Iran and the United Kingdom is supporting gold prices Monday

Energy: Crude Oil prices up Monday on tensions in the Middle East after a British tanker was seized by the Iranian military last week.

  • ICE Brent Crude Oil futures were +51c, or 0.8%, at$62.98 bbl by 0042 GMT.
  • NYMEX WTI Crude Oil futures were +15c, or 0.3%, at $55.78.
  • NYMEX WTI Crude fell over 7% and ICE Brent Crude fell more than 6% last week.

Falling global demand and rising US stockpiles have helped turn Crude Oil charts Very Bearish, but that may not last as tensions remain high in the Persian Gulf, we will see, a there are Iranian tankers off the coast of China with 10’s of millions of bbls, they cannot get stem connections because of US sanctions.

Equities: Asia stocks off Monday as investors scaled back expectations of an aggressive interest rate cut by the Fed, while heightened Middle East tensions following Iran’s seizure of a British tanker lifted Crude Oil prices.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.4%.

Japan’s Nikkei .N225 fell 0.3% on the more tempered Fed easing views and caution ahead of the domestic earnings season which starts this week.

The Shanghai Composite Index .SSEC was down 1.1%, as all eyes were on the debt of China’s new NASDAQ-style STAR tech board. It had a wild opening day with most firms surging and circuit breakers popping in early trade.

Hong Kong’s Hang Seng .HSI dropped 0.9%. SKorea’s KOSPI .KS11 shed 0.1%.

Currencies: USD drifted higher Monday as investors tempered their expectations for a 50 bpts interest rate cuts late this month and heightened Middle East tensions supported safe-haven assets.

EUR held near critical chart support around $1.12, a break of which could lead to further losses.

USD broke above 108 JPY to hit its highest since Wednesday, though that was still in the middle of the 107-109 range where it has traded for a month. ,DXY flat at 97.179 after gaining 0.35% last week.

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

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »56.12 USD+0.49+0.87%Jul 1911:57PM EDT
ICE Brent Crude »63.30 USD+0.83+1.31%Jul 1912:00AM EDT
NYMEX RBOB Gasoline »1.85 USD+0.01+0.43%Jul 199:30PM EDT
Dubai Crude Spot »61.83 USD+0.54+0.87%Dec 0212:09AM EDT
ICE Gas Oil »584.00 USD+8.00+1.37%Aug 1911:52PM EDT
NYMEX No2 Heating Oil »1.90 USD+0.01+0.77%Jul 1911:30PM EDT
NYMEX Nat Gas »2.28 USD+0.03+1.36%Jul 1911:56PM EDT
ICE NBP Nat Gas »29.09 GBP+0.000.00%Jul 197:00PM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,426.71USD+1.80+0.13%Dec 0212:09AM EDT
COMEX 100oz Gold »1,425.10USD+0.000.00%Jul 197:01PM EDT
Silver Spot »16.34USD+0.13+0.81%Dec 0212:09AM EDT
Platinum Spot »850.13USD+6.63+0.78%Dec 0212:09AM EDT
Palladium Spot »1,513.88USD+8.38+0.55%Dec 0212:09AM EDT
COMEX Copper »2.74USD-0.00-0.11%Jul 1911:00PM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »424.25USC-6.50-1.53%Sep 1911:59PM EDT
CBOT Wheat »497.50USC-5.00-1.01%Sep 1912:01AM EDT
KCBT Wheat »436.75USC-3.25-0.74%Sep 1911:47PM EDT
MGE Spring Wheat »564.00USC-1.25-0.22%Dec 021:00AM EDT
Euronext Milling Wheat »177.00EUR+0.000.00%Sep 1912:29PM EDT
CBOT Soybean »895.50USC-6.00-0.67%Aug 1912:02AM EDT

Have a terrific week

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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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