Gold Down on From USD, as China Halts Trade Talks + Commodities

Gold Down on From USD, as China Halts Trade Talks + Commodities

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

In Asia

Gold edged lower Monday, as USD held firm on news that China has cancelled trade talks with the United States, with the market also eyeing this week’s FOMC policy meeting for guidance on future rate hikes.

  • Spot gold inched down 0.2% to 1,196.51 by 0039 GMT, after falling as much as 1.3% Friday on a stronger USD
  • Gold futures are flat to Unchanged at 1,201.1 oz.
  • Liquidity is expected to be thin during Asian hours as markets in Japan, China and South Korea are closed for a Holiday.
  • Investors were squarely focused on the US-China trade war as China added $60-B of US products to its import tariff list, retaliating against duties on $200-B of Chinese imports that come into effect Monday.
  • China also cancelled mid-level trade talks with the US, as well as a proposed visit to Washington by vice premier Liu He originally scheduled for this week.
  • Investors are also awaiting this week’s FOMC meeting. The policy makers are expected to raise benchmark interest rates and shed light on the path for future rate hikes. The Fed will end its 2-day policy meeting Wednesday, 26 September at 2:00p EDT.
  • Financial markets need to gird for a lengthy spell of turbulence as more of the world’s top central banks begin shutting down stimulus programs and raising interest rates, the Bank for International Settlements (BIS) said in its latest report.
  • The US Dollar (.DXY) Index is steady against a basket of currencies at 94.221.
  • British PM Theresa May said Friday that BREXIT talks with the EU had hit an impasse, defiantly challenging the bloc to come up with its own plans a day after EU leaders savaged her proposals.
  • Discounts for gold against official domestic prices in India widened to 3-month highs last week, even as an escalation in the trade dispute between China and the United States triggered safe-haven buying in China, the world’s biggest consumer.
  • Long-time gold Bull John Paulson followed through Friday on a pledge made last year to team up with other gold investors in an effort to work with management of companies in the gold sector to improve returns, according to the group, called the Shareholders Gold Council.
  • Barrick Gold (NYSE:ABX) and Randgold (NYSE:GoLD) in advanced talks for a merger

Agriculture Commodities

China accused the United States of engaging in “trade bullyism” and intimidating other countries to submit to its will through measures such as tariffs, the official Xinhua news agency said Monday, hours after the two sides imposed fresh duties on each other’s goods.

Data as of 05:30 GMT Monday, 24 September 2018 (Source: Reuters)

Commodity Exch Currency Expire Last Trade
Date/Time
Net Chg Open High Low
COFFEE C CON1
Dec18
IUS USC 12/18 99.9 09/21 17:29 0.0 0.0 0.0 0.0
COCOA CON1
Dec18
IUS USD 12/13 2,167.00 09/21 17:29 +0.00 0.00 0.00 0.00
SUGAR 11 CON1
Sep18
IUS USC 09/28 10.84 09/21 16:59 +0.00 0.00 0.00 0.00
WHEAT CON1
Dec18
CBT USC 12/14 524.00 09/24 04:38 -1.25 525.25 526.50 523.75
SOYBEANS CON1
Nov18
CBT USC 11/14 841.50 09/24 05:16 -5.75 844.00 844.75 839.00
Have a terrific week

The following two tabs change content below.

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.

You must be logged in to post comments :  
CONNECT WITH