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

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

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

Note: We have now turned from sentiment where this stock rally was 1 where professionals did not take part in, to a fast paced entry where hedge funds and investors are chasing markets they have been betting against.

While the strong US GDP data helped to ease fears of a recession, investors noted that it was driven by a smaller trade deficit and a large accumulation of unsold merchandise, as consumer and business spending slowed sharply.

The March reading for PCE, the Fed’s favored inflation measure, is due later Monday. Federal Open Market Committee (FOMC) will announce its policy decision Wednesday, with Chairman Powell expected to balance the strong domestic growth data against persistent concerns over the global outlook.

Markets will also be looking to global factory activity surveys this week, particularly official and private readings on Chinese manufacturing which will both be released Tuesday.

In Asia

Gold: Gold steadied Monday, trading near a high touched Friday, on increased bets that the Fed might cut interest rate this year after a recent data showed inflationary weakness.

Lower interest rates in the US put pressure on the Buck and bond yields, making USD-denominated gold less expensive for holders of other currencies. It also increases the appeal of non-yielding assets such as bullion.

  • Spot gold was steady at $1,285.65 oz at 0426 GMT,
  • US gold futures off 0.1% to $1,287.70 oz.

The precious Yellow metal posted its biggest daily percentage gainer in 7 weeks Friday after USD fell Vs a basket of peer currencies, as investors overlooked the strong economic growth in the United States to focus on the pain points.

A recent uplift in equities had kept gold under the wraps of-late with holdings of SPDR Gold Trust (GLD), the world’s largest gold-backed ETF, falling 0.16% to its lowest since 19 October at 746.69 tonnes Friday. Holdings have fallen by over 3% since the beginning of this month.

Energy: Crude Oil prices fell Monday, extending Friday’s fall that ended weeks of rallying, after President Trump demanded that OPEC raise output to lessen the impact of US sanctions against Iran.

  • ICE Brent Crude Oil futures were at $71.80 bbl at 0215 GMT, -35c, or 0.5%, from Friday’s close,
  • NYMEX WTI Crude Oil futures were at $62.91 bbl, -39c, or 0.6%, from Friday’s settlement.

Traders said the market is shifting its focus on the voluntary supply cuts led by the Middle East dominated producer OPEC since the start of the year.

Equities: Asian shares up Monday after strong US Q-1 GDP drove the S&P 500 index to a record high, the recovery was also supported by data showing profits at Chinese industrial firms grew for the 1st time in 4 months.

MSCI’s broadest index of Asia-Pacific shares sans Japan gained 0.38%, rebounding from its biggest weekly decliner in more than a month last week.

Chinese blue-chips +1% after losing 5.6% last week.

Australian shares were down 0.43% after hitting an 11-year closing high Friday, while Seoul’s KOSPI was + 0.74%.

Japan’s financial markets are closed for a long national Holiday this week, but Nikkei 225 futures in Singapore were 0.85% higher.

Currencies: With Japan on an extended break, currency markets were calm ahead of the FOMC meeting and US jobs numbers. 

USD was flat Vs JPY at 111.60, and EUR was + 0.05% to $1.1154.

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

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »62.97 USD-0.33-0.52%May 191:01AM EDT
ICE Brent Crude »71.75 USD-0.40-0.56%Apr 1912:55AM EDT
NYMEX RBOB Gasoline »2.09 USD-0.01-0.33%Apr 1911:35PM EDT
Dubai Crude Spot »71.20 USD-0.25-0.35%Dec 021:11AM EDT
ICE Gas Oil »625.00 USD+1.75+0.28%May 1912:31AM EDT
NYMEX No2 Heating Oil »2.04 USD-0.01-0.41%Apr 1910:10PM EDT
NYMEX Nat Gas »2.58 USD+0.00+0.15%May 191:00AM EDT
ICE NBP Nat Gas »33.90 GBP+0.000.00%Apr 197:00PM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,284.85USD-1.00-0.08%Dec 021:10AM EDT
COMEX 100oz Gold »1,284.20USD-1.30-0.10%May 1911:16PM EDT
Silver Spot »15.04USD-0.02-0.11%Dec 021:08AM EDT
Platinum Spot »895.61USD+1.11+0.12%Dec 021:08AM EDT
Palladium Spot »1,450.55USD-13.95-0.96%Dec 021:08AM EDT
COMEX Copper »2.97USD+0.000.00%Apr 1912:00AM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »354.50USC+3.25+0.92%May 1912:59AM EDT
CBOT Wheat »438.00USC+3.00+0.68%May 191:01AM EDT
KCBT Wheat »403.00USC+3.25+0.81%May 1911:21PM EDT
MGE Spring Wheat »503.25USC+5.25+1.04%May 1912:49AM EDT
Euronext Milling Wheat »183.50EUR+0.000.00%May 1912:29PM EDT
CBOT Soybean »857.75USC+4.00+0.47%May 191:02AM 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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