Gold Down and USD Up on Fed Rate Hike + Commodities

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 CLc1
ICE Brent Crude »
81.92 USD
+0.20
+0.24% Sep 18 3:45AM EDT LCOc1
NYMEX RBOB Gasoline »
2.08 USD
+0.00
+0.07% Sep 18 1:59AM EDT RBc1
Dubai Crude Spot »
80.04 USD
+0.30
+0.37% Dec 02 3:54AM EDT DUB-1M
ICE Gas Oil »
717.50 USD
+4.75
+0.66% Oct 18 3:44AM EDT LGOc1
NYMEX No2 Heating Oil »
2.32 USD
+0.00
+0.03% Sep 18 1:59AM EDT HOc1
NYMEX Nat Gas »
3.05 USD
-0.01
-0.33% Oct 18 3:45AM EDT NGc1
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 XAU=X
COMEX 100oz Gold »
1,181.30USD
-1.00
-0.08% Oct 18 3:46AM EDT GCc1
Silver Spot »
14.29USD
+0.09
+0.62% Dec 02 3:58AM EDT XAG=X
Platinum Spot »
806.24USD
-2.74
-0.34% Dec 02 3:58AM EDT XPT=X
Palladium Spot »
1,084.22USD
+2.24
+0.21% Dec 02 3:58AM EDT XPD=X
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 Cc1
CBOT Wheat »
511.50USC
-1.50
-0.29% Dec 18 3:57AM EDT Wc1
KCBT Wheat »
515.50USC
-1.75
-0.34% Dec 18 3:55AM EDT KWc1
MGE Spring Wheat »
578.00USC
-2.00
-0.35% Dec 18 3:37AM EDT 1MWEc1
Euronext Milling Wheat »
200.75EUR
+0.00
0.00% Dec 18 12:29PM EDT BL2c1
CBOT Soybeans »
856.50USC
+1.50
+0.18% Nov 18 3:58AM EDT

Have a terrific weekend

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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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