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

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

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

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

Note: Sterling was off Tuesday as investors worried Boris Johnson, the frontrunner to become the UK’s next Prime Minister, would trigger a “hard BREXIT” from the EU, seen as a risk for the British economy.

Further, 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.

It is widely expected the Fed will lower its target range of 2.25%-2.50% by 25 basis points at a meeting ending on 31 July, but expectations for a larger 50-bpts cut been lowered on mixed signals from FOMC policymakers.

In Asia

Gold: Gold prices dipped on Tuesday as the dollar strengthened and some investors locked in profits ahead of the FOMC meeting next week.

  • Spot gold was down 0.7% at $1,415.15 as, as of 0548 GMT,
  • US gold futures slipped 0.8% to $1,415.40 oz.

Expect gold to trade lower, but hold above support at $1,400, as consensus are still towards a Fed rate cut.

Weighing on gold prices, .DXY rose 0.2% to a near 2-wk highs, making gold expensive for holders of other currencies.

Holdings of SPDR Gold Trust, the world’s largest gold-backed ETF +0.57% to 825.18 tonnes Monday from Friday.

Energy: Crude Oil prices are higher Tuesday on concerns about possible supply disruptions in the Middle East, but an overall weaker demand outlook kept a lid on gains, helped by a vow by the International Energy Agency (IEA) to take swift action to keep global oil markets adequately supplied.

  • ICE Brent Crude Oil futures rose 4c to $63.30 bbl by 0335 GMT,
  • NYMEX WTI Crude Oil futures flat to unchanged at $56.22 bbl.

Downward revisions on global Crude Oil demand, along with rising challenges in the macroeconomic environment, have capped Bullish gains for prices.

Equities: MSCI’s broadest index of Asia-Pacific shares sans Japan gained 0.15%.

Japan’s Nikkei rose 0.95%.

The Shanghai Composite Index edged up 0.2%. Australian stocks added 0.4% and SKorea’s KOSPI gained 0.45%.

The S&P 500 edged up towards a record high overnight, supported by expectations that the Fed would cut interest rates at its 30-31 July policy meeting.

European stocks were higher Monday with the European Central Bank seen cutting rates by 10 bpts Thursday.

Currencies: EUR marked the lowest in 5 weeks on growing expectations European Central Bank President Mario Draghi will signal a rate cut in September at a policy meeting later this week to keep inflation expectations on track.

GBP traded at $1.2459 near a 27-month low at $1.2382 seen last week

NZD fell after it was reported that the country’s central bank is refreshing its strategies for unconventional monetary policy, but trading in other Asian currencies was subdued as investors awaited major developments in China-US trade negotiations.

USD higher Vs JPY, but was hemmed in against other major currencies on expectations for a Fed rate cut next week.

.DXY rose 0.2% to a near 2-wk high

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

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »56.27 USD+0.05+0.09%Aug 191:54AM EDT
ICE Brent Crude »63.40 USD+0.14+0.22%Jul 191:53AM EDT
NYMEX RBOB Gasoline »1.83 USD+0.00+0.24%Jul 191:47AM EDT
Dubai Crude Spot »62.06 USD+0.07+0.11%Dec 022:04AM EDT
ICE Gas Oil »584.50 USD-0.25-0.04%Aug 191:46AM EDT
NYMEX No2 Heating Oil »1.90 USD+0.00+0.16%Jul 191:44AM EDT
NYMEX Nat Gas »2.31 USD-0.00-0.17%Jul 191:49AM EDT
ICE NBP Nat Gas »27.48 GBP+0.000.00%Jul 1911:58AM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,415.59USD-9.12-0.64%Dec 021:58AM EDT
COMEX 100oz Gold »1,418.00USD-7.30-0.51%Jul 1910:23PM EDT
Silver Spot »16.24USD-0.10-0.62%Dec 021:58AM EDT
Platinum Spot »844.25USD+0.25+0.03%Dec 021:58AM EDT
Palladium Spot »1,520.51USD-7.99-0.53%Dec 021:58AM EDT
COMEX Copper »2.71USD-0.00-0.11%Jul 1912:00AM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »426.00USC+3.75+0.88%Sep 191:56AM EDT
CBOT Wheat »490.00USC+2.75+0.56%Sep 191:59AM EDT
KCBT Wheat »428.75USC-11.25-2.62%Dec 021:00AM EDT
MGE Spring Wheat »564.00USC-1.25-0.22%Dec 021:00AM EDT
Euronext Milling Wheat »175.00EUR-1.75-1.00%Dec 027:00PM EDT
CBOT Soybean »890.00USC+1.75+0.20%Aug 191:59AM 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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