Gold Dips Below 1200, Investors Buy USDs + Commodities

Gold Dips Below 1200, Investors Buy USDs + Commodities

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

In Asia

Gold on track for its biggest daily pct loss since mid-Aug

  • China eases policy on concerns trade dispute with US could hurt growth
  • Speculators cut net short position in COMEX gold in 1st week of October

Gold fell to its lowest level in a week on Monday as investors sought safety in the USD on concerns about a selloff in global stocks worsened by worries over economic growth in China.

  • Spot gold dipped 1.4% to $1,185.81 oz by 1355 p.m. EDT (1755 GMT), on track for its biggest 1-day percentage loss since 15 August. The precious Yellow metal earlier touched its lowest since 28 September at $1,183.19.
  • US gold futures for December settled down $17, or 1.41%, at $1,188.6 oz.

We are seeing some strength in .DXY, and some weakness in the equity market and it does not appear that investors are going for safety in the gold markets at all, they are looking at US Treasuries or other interest bearing products.

Investor concern over higher US interest rates, growth concerns in China due to the trade dispute with the United States, emerging market weakness and an Italian budget dust-up all combined to send stocks into the Red.

The nervous mood was aggravated by China’s PBoC  Sunday cutting the level of cash that banks must hold as reserves, aimed at lowering financing costs.

.DXY continued its recent march higher on upbeat domestic economic data and safe-haven demand due to geopolitical concerns.

The strong USD, and expectations of more Fed interest rate hikes are pushing gold down and scaring gold investors.

Gold has held in a $34 range for the last 1.5 months, which some analysts say suggests resilience. Worries over the damage to emerging market economies from higher US interest rates has spurred some safe-haven bidding.

Weakness in emerging markets might bring in small bids for gold overriding factor is higher US interest rates and T-Bond yields.

Speculators cut their net Short position in COMEX gold by 4,186 contracts to 73,128 in the week to 2 October

Spot silver fell 2% to $14.30 oz

Platinum slipped 1.1% to $812 oz.

Palladium was up 0.4% at $1,073.35 oz.

 

Energy

Crude Oil prices rose Tuesday as more evidence emerged that petroleum exports from Iran, OPEC’s 3rd-largest producer, are declining in the run-up to the re-imposition of US sanctions and as a hurricane moved across the Gulf of Mexico.

ICE Brent Crude was up 26c, 0.3%, at $84.17 bbl by 0244 GMT.

NYMEX WTI Crude Oil futures were down by 24c, or 0.3%, at $74.53 bbl

Commodities: Energy

COMMODITY LAST CHANGE % CHANGE EXP DATE TIME 2-DAY TREND
NYMEX Crude Oil »
74.62 USD
+0.33
+0.44% Oct 18 1:24AM EDT CLc1
ICE Brent Crude »
84.31 USD
+0.40
+0.47% Oct 18 1:24AM EDT LCOc1
NYMEX RBOB Gasoline »
2.09 USD
-0.00
-0.12% Oct 18 1:19AM EDT RBc1
Dubai Crude Spot »
82.30 USD
+0.38
+0.46% Dec 02 1:33AM EDT DUB-1M
ICE Gas Oil »
741.75 USD
+6.00
+0.81% Oct 18 12:44AM EDT LGOc1
NYMEX No2 Heating Oil »
2.40 USD
+0.01
+0.39% Oct 18 1:23AM EDT HOc1
NYMEX Nat Gas »
3.28 USD
+0.01
+0.40% Oct 18 1:24AM EDT NGc1
ICE NBP Nat Gas »
73.07 GBP
+0.00
0.00% Oct 18 7:00PM EDT

Commodities: Metals

COMMODITY LAST CHANGE % CHANGE EXP DATE TIME 2-DAY TREND
Gold Spot »
1,190.95USD
+3.33
+0.28% Dec 02 1:48AM EDT XAU=X
COMEX 100oz Gold »
1,184.40USD
+0.00
0.00% Oct 18 7:01PM EDT GCc1
Silver Spot »
14.41USD
+0.07
+0.47% Dec 02 1:48AM EDT XAG=X
Platinum Spot »
820.24USD
+2.74
+0.33% Dec 02 1:48AM EDT XPT=X
Palladium Spot »
1,077.72USD
+2.72
+0.25% Dec 02 1:48AM EDT XPD=X
COMEX Copper »
2.77USD
+0.02
+0.60% Oct 18 1:00AM EDT

Commodities: Agriculture

COMMODITY LAST CHANGE % CHANGE EXP DATE TIME 2-DAY TREND
CBOT Corn »
366.00USC
-0.50
-0.14% Dec 18 1:33AM EDT Cc1
CBOT Wheat »
512.25USC
-1.75
-0.34% Dec 18 1:38AM EDT Wc1
KCBT Wheat »
516.50USC
-1.00
-0.19% Dec 18 1:34AM EDT KWc1
MGE Spring Wheat »
588.75USC
-0.25
-0.04% Dec 18 1:27AM EDT 1MWEc1
Euronext Milling Wheat »
203.00EUR
+0.00
0.00% Dec 18 12:29PM EDT BL2c1
CBOT Soybeans »
870.00USC
+0.25
+0.03% Nov 18 1:40AM 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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