Gold Up, USD Falls, Stocks Rise + Commodities

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

• Gold Prices Up
• USD Falls
• Crude Oil Up
• Asian Stocks Up

Notes: China and the United States agreed during a weekend meeting in Argentina of the G-20 not to impose additional trade tariffs for at least 90 days while the pair hold talks to resolve existing dispute between the world’s 2 biggest economies has weighed heavily on global trade, sparking concerns of an economic slowdown. Crude Oil has not been included in the list of hundreds of products each side has slapped with import tariffs, but traders said the positive sentiment of the truce was also driving Crude Oil markets. “Agreement to keep talking for 90 days during which tariffs are paused is an Northside surprise,” U.S. bank Morgan Stanley (NYSE:MS) said in a note to clients Monday.

In Asia 

Gold: :Gold prices gained early Monday on a weaker USD as a trade truce between the US and China revived investor demand for riskier assets.

Washington and Beijing agreed to halt additional tariffs in a deal that keeps their trade dust up from escalating as the sides try again to bridge their differences with fresh talks aimed at reaching an agreement within 90 days.

• Gold was up 0.3% at $1,225.67 oz at 0407 GMT
• U.S. gold futures were up 0.4% at $1,230.4 oz.

The weaker USD is driving factor for gold in here.

The other precious metals

• Palladium rose nearly 1% to $1,187.90, after having crossed the $1,200 mark for the 1st time Friday.
• Spot silver + 1.1% at $14.32 oz
• Platinum rose 1.8% to $811.90 oz.

Energy:  Crude Oil prices surged Monday after the US and China agreed to a 90-day truce in their trade dispute, and ahead of a meeting this week by OPEC that is expected to result in a supply cut.

• WTI Crude Oil futures (CLc1) were at $53.63 bbl at 0358 GMT, + $2.73 bbl, or 5.4% from Friday’s close.
• ICE Brent Crude Oil futures (LCOc1) were + $2.8 bbl, or 4.8%, at $62.30.

US Crude Oil prices were further North  by an announcement from Canada that Alberta province will force producers to cut output by 8.7%, or 325,000 BPD, to deal with a pipeline bottleneck that has led to a build up in storage. Most of Alberta’s Crude Oil is exported to the US.

USD: The US Dollar (.DXY) measures the Buck against a basket of 6 peer currencies, was down about 0.3%

The USD has been the preferred safe haven this year as the US-China trade dispute unfolded against a backdrop of higher US interest rates, dampening the appeal for gold coins and bars

But, USD came under pressure last week after Fed Chairman Jerome Powell said interest rates are just below Neutral, raising expectations that the FOMC is close to the end of its rate hike cycle

Stocks: Asian shares rallied with MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) + 1.8%.

Commodities

Energy

Metals

Agriculture Grains

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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