Gold Down and USD Up on Fed Rate Hike + Commodities
$GLD, $SLV, $USD, $PLAT, $PALL, $USO, $OIL, $SOY, $CORN, $WEAT
In Asia
Gold
- Gold is down more than 13% from an April high, largely because of the stronger USD
- Concerns about Iran sanctions led to a widening difference between NYMEX WTI Crude and ICE Brent Crude prices
Global mining giants Freeport McMoRan Inc and Rio Tinto have struck a binding accord to sell a majority stake in the world’s 2 nd-biggest copper mine, Grasberg, to Indonesia’s state mining company, Inalum for $3.85-B.
The sale brings Freeport close to ending more than 9 years of often fractious negotiations with Indonesia over ownership rights to Grasberg.
The agreement gives the parties 6 months to close the deal and process several permits including those related to antitrust laws in China.
Gold hit a fresh 6-week low Friday as the dollar firmed after upbeat US economic data supported the Fed’s resolve for steady interest rate hikes, putting the precious Yellow metal on track for its longest monthly losing streak since January 1997.
Gold was down about 1.6% in September, its 6th straight monthly decliner
Heffx-LTN’s outlook for gold prices in the current frame remains dim as such in lieu of rising rates and yields and strong US economic conditions.
Gold is down more than 13% from an April high, largely because of the stronger USD boosted by a strong economy and fears of a global trade war. Investors have bought USDs instead of gold as a safe-haven investment.
Crude Oil
The most-active Brent Crude futures contract, for December was up 15 c, or 0.2%, at 81.53 bbl at 0548 GMT.
The front-month November contract expire Friday and is at 81.73 bbl. The contract rose to 4-year high of 82.55 Tuesday. Brent is set to rise 5.6% in September, on track for the biggest monthly gainer since April.
U.S West Texas Intermediate (WTI) futures were up 19c, or 0.3%, at 72.32 bbl. It is set to gain rose 3.6% this month, the biggest increase since June.
The market has been focusing on trading headlines on the Iran sanctions for a whole week. But views on how much OPEC and Russia can make up for the losses vary.
The sanctions on Iran, the Organization of the Petroleum Exporting Countries (OPEC) 3rd-largest producer, start on 4 November, with Washington, DC asking buyers of Iranian Crude Oil to cut imports to Zero to force Tehran to negotiate a new nuclear agreement and to curb its influence in the Middle East.
Concerns around the sanctions also led to a widening difference between WTI and Brent prices, as it created positive conditions for US Crude Oil exports.
Commodities: Energy
| COMMODITY | LAST | CHANGE | % CHANGE | EXP DATE | TIME | 2-DAY TREND |
|---|---|---|---|---|---|---|
| NYMEX Crude Oil » |
72.35 USD
|
+0.23
|
+0.32% | Oct 18 | 3:46AM EDT | |
| ICE Brent Crude » |
81.92 USD
|
+0.20
|
+0.24% | Sep 18 | 3:45AM EDT | |
| NYMEX RBOB Gasoline » |
2.08 USD
|
+0.00
|
+0.07% | Sep 18 | 1:59AM EDT | |
| Dubai Crude Spot » |
80.04 USD
|
+0.30
|
+0.37% | Dec 02 | 3:54AM EDT | |
| ICE Gas Oil » |
717.50 USD
|
+4.75
|
+0.66% | Oct 18 | 3:44AM EDT | |
| NYMEX No2 Heating Oil » |
2.32 USD
|
+0.00
|
+0.03% | Sep 18 | 1:59AM EDT | |
| NYMEX Nat Gas » |
3.05 USD
|
-0.01
|
-0.33% | Oct 18 | 3:45AM EDT | |
| ICE NBP Nat Gas » |
76.65 GBP
|
+0.27
|
+0.35% | Oct 18 | 3:39AM EDT |
Commodities: Metals
| COMMODITY | LAST | CHANGE | % CHANGE | EXP DATE | TIME | 2-DAY TREND |
|---|---|---|---|---|---|---|
| Gold Spot » |
1,182.65USD
|
+0.23
|
+0.02% | Dec 02 | 3:58AM EDT | |
| COMEX 100oz Gold » |
1,181.30USD
|
-1.00
|
-0.08% | Oct 18 | 3:46AM EDT | |
| Silver Spot » |
14.29USD
|
+0.09
|
+0.62% | Dec 02 | 3:58AM EDT | |
| Platinum Spot » |
806.24USD
|
-2.74
|
-0.34% | Dec 02 | 3:58AM EDT | |
| Palladium Spot » |
1,084.22USD
|
+2.24
|
+0.21% | Dec 02 | 3:58AM EDT | |
| COMEX Copper » |
2.77USD
|
+0.00
|
+0.13% | Oct 18 | 3:48AM EDT |
Commodities: Agriculture
| COMMODITY | LAST | CHANGE | % CHANGE | EXP DATE | TIME | 2-DAY TREND |
|---|---|---|---|---|---|---|
| CBOT Corn » |
364.00USC
|
-0.75
|
-0.21% | Dec 18 | 3:57AM EDT | |
| CBOT Wheat » |
511.50USC
|
-1.50
|
-0.29% | Dec 18 | 3:57AM EDT | |
| KCBT Wheat » |
515.50USC
|
-1.75
|
-0.34% | Dec 18 | 3:55AM EDT | |
| MGE Spring Wheat » |
578.00USC
|
-2.00
|
-0.35% | Dec 18 | 3:37AM EDT | |
| Euronext Milling Wheat » |
200.75EUR
|
+0.00
|
0.00% | Dec 18 | 12:29PM EDT | |
| CBOT Soybeans » |
856.50USC
|
+1.50
|
+0.18% | Nov 18 | 3:58AM EDT |
Have a terrific weekend
Gold Down and USD Up on Fed Rate Hike + Commodities added by Paul Ebeling on
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Paul Ebeling
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