Gold Prices Up, as USD Eases + Commodities

Gold Prices Up, as USD Eases + Commodities

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

 Gold prices edged up Wednesday, as the USD weakened despite another round of reciprocal tariffs in the US-China trade dispute.

In focus 19 September 2018

  • Spot gold up 0.1 % to 1,199.18 oz by 0044 GMT
  • US gold futures were up 0.1% at 1,203.70 oz
  • The US Dollar (.DXY) Index, which measures USD Vs a basket of 6 major currencies, was down 0.1%.
  • China and the United States dive deeper into a trade war on Tuesday after 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.
  • Asian stocks rose and US Treasury yields hovered near 4-month highs Wednesday, as investors looked past the latest escalation in the US-China trade conflict, seen by some market participants as less severe than expected.
  • Previous developments in the US-China trade conflict had prompted investors to buy USD in the belief that the United States has less to lose from the dispute, making USD-priced gold more expensive for non-US buyers.
  • The US Senate voted overwhelmingly Tuesday to pass a spending package including $675-B for the Defense Department and a measure to keep the entire federal government open until 7 December avoiding a 30 September shutdown.
  • Bond traders are increasing bets the Fed will raise U.S. short-term interest rates into Y 2019 as the jobs market tightens and with inflation seen climbing above its 2% goal.
  • Business and political leaders are increasing the pressure on Canadian Prime Minister Justin Trudeau to agree on a deal to renew NAFTA and drop his insistence that no deal is better than a bad deal.
  • The Bank of Japan is expected to keep monetary policy steady on Wednesday and maintain its optimistic view on the economy, even as escalating global trade frictions threaten to chill growth.
  • Prime Minister Theresa May said Britain and the EU were nearing a divorce deal but called on the bloc to show “goodwill and determination” to avoid a disorderly BREXIT and secure a close future partnership.
  • European Union leaders will discuss how to wind up negotiations with Britain on its withdrawal from the EU when they meet in Austria Thursday.
  • Holdings in SPDR Gold Trust (GLD), the world’s largest gold-backed exchange-traded fund, fell 0.04% to 742.23 tonnes  Tuesday.
  • Precious metals producer Sibanye-Stillwater said Tuesday it remained fully committed to a takeover of Platinum miner Lonmin after South Africa’s competition watchdog imposed conditions on the deal.
  •  Crude Oil prices were steady Wednesday as concerns that OPEC producers will not be able to respond to a shortfall in supply once US sanctions on Iran are enacted outweighed a gain in stockpiles in the United States, the world’s biggest Oil user.
  • Soybean little changed after falling to lowest since Y 2008 on weak demand.
  • Corn at 3-month low on all-time high BPA yields

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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