In Asia: Gold Up, USD Down, Stocks Cautious + Commodities

In Asia: Gold Up, USD Down, Stocks Cautious + Commodities

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

Notes: We do not believe OPEC cuts will work this time around with Qatar going out and Iran refusing to cut, and there is a Big Q is when Russia will go to its agreed production level. US shale oil production will continue to increase. So, is down to Saudi Arabia, who is under severe pressure from President Trump now not to cut.

The Federal Open Market Committee (FOMC) is set to start it last 2-day meeting of the year Tuesday.

In Asia

Gold: Gold prices up a bit Tuesday ahead of Key Fed meeting, as speculation that signs of economic turbulence may prompt the central bank to put brakes soon on its monetary tightening cycle kept the USD under pressure.

  • Spot gold was up 0.2% at $1,248.14 oz at 0436 GMT
  • US gold futures +0.1% higher to $1,252.2 oz

Other precious metals

  • Silver up 0.1% at $14.67 oz.
  • Platinum fell 0.3%, to $791.10 oz
  • Spot Palladium slipped 0.2% to $1,255.95 oz after marking a record high of $1,269.5 in the prior session

Energy: Crude Oil prices down over 1% Tuesday, falling for a 3rd session running, as reports of inventory builds and forecasts of record shale Oil output in the US, currently the world’s biggest producer, fueling worries about oversupply.

  •  ICE Brent Crude Oil futures were at $58.90 bbl at 0340 GMT, -71c, or 1.2%, from Monday;s close. Brent has fallen more than 4% in the last 3 sessions so far.
  •  NYMEX WTI Crude futures were down 60c, or 1.2%, at $49.27 bbl.

Concerns around future Crude Oil demand on weakening global economic growth and doubts over the impact of planned production cuts led by OPEC are pressuring prices.

Equities: Asian share markets slumped Tuesday as heightened concerns about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year. 

MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.3% in mid-morning trade while Japan’s Nikkei tumbled 1.2% by the midday break.

Chinese shares opened in negative territory with the blue-chip index down 0.3% and Hong Kong’s Hang Seng index flat, while Australian shares fell 0.8%

MSCI’s broadest gauge of the world’s stock markets, ACWI, was down 0.05% Tuesday, after having hit its weakest level since May 2017 the prior day. It has declined 16% from a Top marked on 29 January.

US stock futures rose 0.4% in Asia following the prior session’s sharp sell-off

Currencies: The US Dollar (.DXY) Index inched lower after losing 0.4% Monday, on speculation the Fed will hit the pause button to its monetary tightening cycle in the face of rising risks to global growth.

Commodities: Energy, Metals, and Agriculture Grains

COMMODITYLASTCHANGE% CHANGEEXP DATETIME
NYMEX Crude Oil »49.11 USD-0.77-1.57%Dec 1812:57AM EST
ICE Brent Crude »58.67 USD-0.94-1.60%Dec 187:00PM EST
NYMEX RBOB Gasoline »1.39 USD-0.02-1.53%Dec 1812:56AM EST
Dubai Crude Spot »56.86 USD-0.49-0.86%Dec 021:06AM EST
ICE Gas Oil »542.00 USD-8.25-1.52%Jan 197:00PM EST
NYMEX No2 Heating Oil »1.81 USD-0.02-1.15%Dec 1812:53AM EST
NYMEX Nat Gas »3.62 USD+0.09+2.49%Dec 1812:57AM EST
ICE NBP Nat Gas »68.03 GBP+0.000.00%Dec 187:00PM EST
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
Gold Spot »1,246.86USD+1.04+0.08%Dec 027:00PM EST
COMEX 100oz Gold »1,248.20USD+0.80+0.06%Dec 1810:59PM EST
Silver Spot »14.67USD+0.01+0.07%Dec 027:00PM EST
Platinum Spot »785.00USD-8.50-1.08%Dec 027:00PM EST
Palladium Spot »1,254.60USD-3.64-0.29%Dec 027:00PM EST
COMEX Copper »2.74USD-0.01-0.47%Dec 1810:20PM EST
COMMODITYLASTCHANGE% CHANGEEXP DATETIME
CBOT Corn »383.75USC-0.25-0.07%Mar 1912:56AM EST
CBOT Wheat »532.75USC-2.50-0.47%Mar 191:08AM EST
KCBT Wheat »520.25USC-1.75-0.34%Mar 191:05AM EST
MGE Spring Wheat »583.50USC-1.75-0.30%Mar 1912:41AM EST
Euronext Milling Wheat »207.50EUR+0.000.00%Mar 197:00PM EST
CBOT Soybeans »905.00USC+0.25+0.03%Jan 191:09AM EST

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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