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

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

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

Notes: Again, President Trump has increased pressure on China to reach a trade deal, saying he will hike US tariffs on $200-B worth of Chinese goods tat 12:01a this Friday, and targets $325-B more..

China wants the tariffs to be lifted, while President Trump wants to keep some, if not all, of them as part of any final deal to ensure China lives up to its commitments, the White House said.

China Vice Premier Liu He will travel to the US Thursday for trade talks, the pressure is on China to align with President Trump’s demands, or suffer more economic pain.

Gold did not deliver a substantial gain following The Trump Tariff ramp up and markets may see Bearish momentum accelerate if we do see a positive outcome with the talks in Washington this week. 

In Asia

Gold: Gold prices firmed Wednesday as renewed concerns on US-China trade dispute upset risk appetite, boosting demand for safe-haven assets.

  • Spot gold was up 0.1% at $1,285.76 oz, as of 0109 GMT,
  • US gold futures edged 0.1% higher to $1,287.40 oz.

Growing fears about the impact on global growth kept gold near its highest since late March.

Indians could buy at least 10% more gold during the annual Hindu and Jain holy festival of Akshaya Tritiya than a year ago, industry officials said, as a recent dip in prices prompted consumers to increase purchases.

Energy: Crude Oil prices rose Wednesday as US sanctions Vs exporters Iran and Venezuela, as well as ongoing supply cuts by producers have left markets relatively tight just as imports to China rose to a record for April.

  • NYMEX WTI Crude Oil futures were at $61.90 bbl at 0451 GMT on Wednesday, +80c, or 0.8%, above Tuesday’s settlement,
  • ICE Brent Crude Oil futures were at $70.29 bbl, +41c, or 0.6%, above Tuesday’s close.

With US sanctions on Iran and Venezuela in place, analysts said global Crude Oil markets remained tight.

Wednesday’s firmer prices partly reversed the price declines earlier this week, which were triggered by announcements from Washington that the United States would further hike import tariffs on Chinese goods this Friday.

Equities: Asian stocks tracked Wall Street’s decline Wednesday, as investors switched to safe-haven government bonds, driven by fears that global growth will suffer should the potential trade deal between the United States and China unravel.

MSCI’s broadest index of Asia-Pacific shares sans Japan fell 0.75% to its lowest mark since late March.

The Shanghai Composite Index fell 1.6%.

Australian stocks declined 0.6%, SKorea’s KOSPI fell 0.5% and Japan’s Nikkei off 1.6%.

Wall Street stocks fell Tuesday, with the S&P 500 losing 1.65% and the DJIA shedding 1.8%.

Currencies: USD declined for a 4th day running, and touched a 6-week low Vs 110.09 JPY.

JPY, a perceived safe-haven, often gains against its peers in times of market turmoil and political strife.

EUR little changed at $1.1199 after ending Tuesday nearly flat, and held in a tight range for the last few sessions.

NZD was down 0.5% at $0.6560 after the country’s central bank cut interest rates to 1.5 from 1.75% Wednesday. The Kiwi had earlier dropped to $0.6525, its lowest since November 2018.

AUD edged up 0.2% to $0.7022, as the Reserve Bank of Australia kept its policy interest rate unchanged at 1.5% Tuesday.

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

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »61.89 USD+0.49+0.79%May 192:35AM EDT
ICE Brent Crude »70.22 USD+0.34+0.48%May 192:36AM EDT
NYMEX RBOB Gasoline »1.95 USD+0.00+0.25%May 192:35AM EDT
Dubai Crude Spot »69.71 USD+0.15+0.22%Dec 022:45AM EDT
ICE Gas Oil »634.25 USD+0.000.00%May 192:34AM EDT
NYMEX No2 Heating Oil »2.04 USD+0.01+0.32%May 192:35AM EDT
NYMEX Nat Gas »2.54 USD+0.00+0.08%May 192:35AM EDT
ICE NBP Nat Gas »32.39 GBP+0.000.00%May 1911:59AM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,287.15USD+2.85+0.22%Dec 022:49AM EDT
COMEX 100oz Gold »1,283.50USD+0.000.00%May 197:01PM EDT
Silver Spot »14.94USD+0.03+0.23%Dec 022:49AM EDT
Platinum Spot »872.97USD+4.97+0.57%Dec 022:49AM EDT
Palladium Spot »1,328.77USD+1.27+0.10%Dec 022:49AM EDT
COMEX Copper »2.82USD+0.02+0.75%May 1910:01PM EDT
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »358.00USC+0.000.00%May 195:17PM EDT
CBOT Wheat »430.50USC+0.000.00%May 195:12PM EDT
KCBT Wheat »394.75USC+0.000.00%May 191:00AM EDT
MGE Spring Wheat »508.50USC+0.000.00%May 192:17AM EDT
Euronext Milling Wheat »185.00EUR+0.000.00%May 1912:29PM EDT
CBOT Soybean »817.75USC+0.000.00%May 195:11PM 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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