Gold Up and USD Up on FOMC Rate Hike + Commodities

Gold Up and USD Up on FOMC Rate Hike + Commodities

Gold Up and USD Up on FOMC Rate Hike + Commodities

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

In Asia

Thursday, Gold prices rose, as investors looked for bargains after the metal fell a 2-week lows in the prior session following a US interest rate hike and as limited gains in USD after the decision supported demand for the precious Yellow metal.

  • Spot gold had risen 0.4% to 1,198.22 oz, as of 0404 GMT. Wednesday, the precious Yellow metal touched its lowest since 11 September at 1,190.13 oz.
  • Spot gold prices have traded in a range between 1,210 and 1,190 oz since 28 August.
  • US gold futures were up 0.3% at 1,202.10 oz.

As expected the Fed raised interest rates for the 3rd time this year Wednesday, and left intact its plans to steadily tighten monetary policy, as it forecast that the US economy would enjoy at least 3 more years of growth.

The fact that the Fed did not come out as overly hawkish meant there was some positivity felt through emerging market currencies. This may be playing in gold being bought in here.

MSCI’s index for emerging market currencies edged up 0.2% Thursday.

The USD steadied against its peers, as the small boost it received from the Fed interest rate hike faded, with a decline in US Treasury yields reducing support for USD.

Gold is sensitive to higher interest rates because they boost USD, making gold more expensive for buyers using other currencies.

Gold has fallen more than 12% since hitting a peak in April against a backdrop of trade disputes and as the rising US interest rates have cut demand for non-interest bearing bright Yellow metal.

Wednesday, China unveiled plans to cut tariffs for products including machinery, electrical equipment and textile products beginning on 1 November, as the country braces for an escalating trade dispute with the United States tries to attract much needed FDI

Among other precious metals

  • Spot palladium rose 0.4 to 1,071.22 oz hanging near an 8-month high at 1,075 hit in the prior session
  • Silver rose 1.1% to 14.44 oz and
  • Platinum gained 0.7% to 826.70 oz.

Commodities: Energy

OMMODITY LAST CHANGE % CHANGE EXP DATE TIME 2-DAY TREND
NYMEX Crude Oil »
72.46 USD
+0.89
+1.23% Oct 18 2:49AM EDT CLc1
ICE Brent Crude »
82.23 USD
+0.89
+1.08% Sep 18 2:49AM EDT LCOc1
NYMEX RBOB Gasoline »
2.08 USD
+0.02
+0.97% Sep 18 2:39AM EDT RBc1
Dubai Crude Spot »
80.04 USD
+0.35
+0.44% Dec 02 2:59AM EDT DUB-1M
ICE Gas Oil »
716.00 USD
+5.25
+0.73% Oct 18 2:47AM EDT LGOc1
NYMEX No2 Heating Oil »
2.32 USD
+0.02
+0.87% Sep 18 2:14AM EDT HOc1
NYMEX Nat Gas »
2.97 USD
-0.01
-0.37% Oct 18 2:48AM EDT NGc1
ICE NBP Nat Gas »
73.75 GBP
-1.38
-1.87% Sep 18 2:33AM EDT

Commodities: Metals

COMMODITY LAST CHANGE % CHANGE EXP DATE TIME 2-DAY TREND
Gold Spot »
1,194.98USD
+0.92
+0.08% Dec 02 2:59AM EDT XAU=X
COMEX 100oz Gold »
1,194.10USD
-0.30
-0.03% Oct 18 2:48AM EDT GCc1
Silver Spot »
14.39USD
+0.10
+0.69% Dec 02 2:59AM EDT XAG=X
Platinum Spot »
825.30USD
+4.32
+0.52% Dec 02 2:59AM EDT XPT=X
Palladium Spot »
1,072.70USD
+6.20
+0.58% Dec 02 2:59AM EDT XPD=X
COMEX Copper »
2.79USD
-0.02
-0.68% Oct 18 1:15AM EDT

Commodities: Agriculture Grains

COMMODITY LAST CHANGE % CHANGE EXP DATE TIME 2-DAY TREND
CBOT Corn »
361.75USC
-1.25
-0.35% Dec 18 2:55AM EDT Cc1
CBOT Wheat »
516.00USC
-1.50
-0.29% Dec 18 2:53AM EDT Wc1
KCBT Wheat »
518.50USC
-2.50
-0.48% Dec 18 2:51AM EDT KWc1
MGE Spring Wheat »
577.25USC
-0.25
-0.04% Dec 18 2:30AM EDT 1MWEc1
Euronext Milling Wheat »
201.25EUR
+0.00
0.00% Dec 18 12:29PM EDT BL2c1
CBOT Soybeans »
849.25USC
-0.75
-0.09% Nov 18 2:55AM EDT

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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