Gold Down, USD Up, Stocks Off + Commodities

Gold Down, USD Up, Stocks Off + Commodities

  • $GLD,$SLV,$USD,$USO,$OIL,$SOY,$CORN,$WEAT

In Asia

Gold prices steadied Monday after touching a 1-month low in Friday’s session, but the precious Yellow metal remains under pressure from a firmer USD and expectations the Fed is on track to tighten borrowing costs.

  • Spot gold was little changed at $1,209.71 oz at 0431 GMT, and is expected to test a support at $1,201,

There was little to no safe haven appeal and robust US leading indicators showed the US services-based economy is firing on all 12 cylinders, suggesting the Fed will hold the course on expected rate rises.

Looks like the Bears are back in control

It is disappointing that every time gold starts to rally it runs out of steam so fast. The precious Yellow metal has fallen about 11% from its April highs after investors preferred USDs as the US-China trade dispute unfolded against a background of higher US interest rates.

Higher US interest rates tend to boost USD, and push up bond yields, reducing the appeal of non-yielding gold coins and bars.

Hedge funds and money managers cut their net short position in gold by 8,136 contracts to 37,486 contracts, data showed.

In other precious metals:

  1. Silver was little changed at $14.15 oz.
  2. Palladium was flat at $1,116.50 oz.
  3. Platinum was up 0.2% at $851 oz.

The USD: .DXY. which measures USD Vs a basket of 6 peer currencies, is +0.1%. The Buck built on last week’s gains and rose towards a 16-month high.

Stocks: Asian shares drifted lower Monday as signs of softening demand in China rekindled anxiety about the outlook for world growth, as Saudi Arabia’s plans to cut production helped to halt a slide in Crude Oil prices.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.07%, trimming earlier losses on a bounce in Chinese shares, but struggling to break into positive territory.

Australian shares added 0.13%, while Japan’s Nikkei stock index gained 0.11%.

Energy: Crude Oil prices rose by more than 1% Monday after top exporter Saudi Arabia announced a December supply cut, a measure likely aimed at halting a market slump that has seen crude decline by 20% since early October.

Front-month ICE Brent Crude Oil futures (LCOc1), a benchmark for global Crude Oil prices, were at $71.37 bbl at 0531 GMT, + $1.19, or 1.7%, from Friday’s close.

NYMEX WTI Crude Oil futures were at $60.87 bbl + 68c, or 1.1%

Saudi Arabia plans to reduce Crude Oil supply to world markets by 500,000 BPD in December, its energy minister said Sunday, as the OPEC power faces uncertain prospects in getting other producers to agree to a coordinated output cut.

Khalid al-Falih said that Saudi Aramco’s customer nominations would fall by 500,000 BPD in December Vs November due to seasonal lower demand. The cut represents a reduction in global Crude Oil supply of about 0.5%.

Saudi Arabia is the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC)

Commodities

Commodities: Energy

COMMODITY LAST CHANGE % CHANGE EXP DATE TIME 2-DAY TREND
NYMEX Crude Oil »
60.97 USD
+0.78
+1.28% Nov 18 1:06AM EST CLc1
ICE Brent Crude »
71.47 USD
+1.29
+1.80% Nov 18 7:00PM EST LCOc1
NYMEX RBOB Gasoline »
1.64 USD
+0.02
+1.37% Nov 18 1:05AM EST RBc1
Dubai Crude Spot »
69.53 USD
+0.86
+1.24% Dec 02 1:15AM EST DUB-1M
ICE Gas Oil »
693.25 USD
+23.75
+3.43% Nov 18 7:00PM EST LGOc1
NYMEX No2 Heating Oil »
2.19 USD
+0.02
+0.92% Nov 18 1:00AM EST HOc1
NYMEX Nat Gas »
3.79 USD
+0.07
+1.77% Nov 18 1:05AM EST NGc1
ICE NBP Nat Gas »
67.10 GBP
+0.00
0.00% Nov 18 7:00PM EST

Commodities: Metals

COMMODITY LAST CHANGE % CHANGE EXP DATE TIME 2-DAY TREND
Gold Spot »
1,207.84USD
-1.37
-0.11% Dec 02 7:00PM EST XAU=X
COMEX 100oz Gold »
1,206.40USD
+0.00
0.00% Nov 18 7:01PM EST GCc1
Silver Spot »
14.16USD
+0.01
+0.04% Dec 02 7:00PM EST XAG=X
Platinum Spot »
854.50USD
+5.50
+0.64% Dec 02 7:00PM EST XPT=X
Palladium Spot »
1,119.20USD
+2.90
+0.26% Dec 02 7:00PM EST XPD=X
COMEX Copper »
2.69USD
+0.00
0.00% Nov 18 4:40PM EST

Commodities: Agriculture Grains

COMMODITY LAST CHANGE % CHANGE EXP DATE TIME 2-DAY TREND
CBOT Corn »
369.50USC
-0.25
-0.07% Dec 18 1:08AM EST Cc1
CBOT Wheat »
505.00USC
+3.00
+0.59% Dec 18 1:07AM EST Wc1
KCBT Wheat »
489.75USC
+2.25
+0.46% Dec 18 1:02AM EST KWc1
MGE Spring Wheat »
573.00USC
-0.25
-0.04% Dec 18 12:50AM EST 1MWEc1
Euronext Milling Wheat »
199.50EUR
+0.00
0.00% Dec 18 7:00PM EST BL2c1
CBOT Soybeans »
873.75USC
-1.50
-0.17% Nov 18 10:13PM EST

Have a terrific week.

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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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