Gold Prices Steady, Trade Concerns Pressure USD + Commodities

Gold Prices Steady, Trade Concerns Pressure USD + Commodities

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

In Asia

Asian stocks followed global indexes higher Thursday, as investors took a less bearish view on the impact of the US-China trade war on markets, a sharp contrast to dim expectations economists had on US growth amid the worsening tensions

Gold prices held steady Thursday, after rising in Wednesday’s session, as the USD softened on easing US-China trade tensions and investors wait on direction from next week’s FOMC policy meeting.

  • Spot gold was little changed at $,203.86 by 0106 GMT, after rising 0.5% Wednesday.
  • US gold futures were up 0.1% at $1,209 an ounce.
  • Investors are awaiting next week’s FOMC policy meeting. The Fed is widely expected to raise benchmark interest rates and shed light on the path for future rate hikes.
  • Higher rates dent demand for non-interest yielding gold and in turn boost the dollar in which it is priced.
  • The US Dollar (.DXY) was hanging near a 7-week low against a basket of major currencies.
  • China said Wednesday it will not stoop to competitive devaluation of its RMB Yuan, hours after it hit back with a softer tariff than the 1 landed by the United States in their trade dispute.
  • Tuesday, Beijing added $60-B of US products to its import tariff list in retaliation for President Donald Trump’s planned levies on $200-B worth of Chinese goods.
  • The tariffs were seen to be at lower levels than some had feared, easing some concerns after the months-long trade battle between the world’s leading economies threatened to dim global growth prospects.
  • Investors have been buying USDss in the belief the United States has less to lose from the dispute. But the weakness in USD indicated that worries over trade tensions have eased.
  • US home-building increased more than expected in August, a positive sign for the housing market which has under-performed the broader economy amid rising interest rates for home loans.
  • India should not tamper with its gold import duty or impose other restrictions to support the rupee, the World Gold Council (WGC) said Wednesday, as the government considers ways to cut “non-necessary” imports to stem an outflow of USDs.
  • Autocatalyst metal Palladium rose 2.5% Wednesday, marking its highest since 19 April at 1,041.70. It was last up 0.1 at 1,035.30.
  • US Crude Oil stockpiles fell for 5th week running according to EIA
  • US sanctions on Iran Crude Oil exports start beginning 4 November
  • OPEC to meet this Sunday in Algeria to discuss how to allocate supply increases within their quota framework to offset the loss of Iranian supply.
  • Agriculture Grains (CORN, WEAT, SOY): US Farmers have been patient with the trade situation as it has unfolded over the last several months. We here at HeffX-LTN are watching to see if that patience continues as the combines harvest and farmers deliver or store a record-large crop at prices pushed lower than they already were by the trade disputes.

Stay tuned…

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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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