In Asia: Gold Steady, USD Down, Stocks Off + Commodities

In Asia: Gold Steady, USD Down, Stocks Off + Commodities


Notes: The Federal Open Market Committee (FOMC) announce its interest rate stance Wednesday, the market sold off.

In Asia

  • Gold: Gold prices steadied on Thursday, after shedding half a percent in the previous session as the Fed delivered a less-dovish outlook on monetary tightening than many wanted and had expected.
  • Spot gold rose 0.1% to $1,244.56 oz at 0506 GMT, after declining in the prior session. 
  • US gold futures declined 0.7% to $1,247.7 oz Thursday.

Gold prices crossed the 200-Day MA around $1,252 oz before the Fed’s statement Wednesday.

Other precious metals

  • Palladium slipped 0.1% to $1,259.24 oz.
  • Silver fell 0.2% to $14.57 oz
  • Platinum declined 0.2% to $784.50 oz

The Fed was not clear on what is is going to do. Chairman Powell did say it would increase interest rates, but would be more patient in doing so.

General consensus is that they may slow down interest rate hikes. That is why we see gold holding up quite well in here.

Energy: Crude Oil prices fell Thursday to erase most of their gains from the day before, resuming declines seen earlier in the week on worries about oversupply and the outlook for the global economy.

  • The front-month NYMEX WTI Crude Oil contract (CLc1) had dropped more than $1, or 2.24%, to $47.10 bbl by 0423 GMT, off setting gains of 96c marked Wednesday.
  • ICE Brent Crude Oil (LCOc1) futures were down over $1, or 1.82%, at $56.20 bbl, after climbing almost 2% Wednesday.

Wednesday’s recovery was short-covering. Traders quickly moved their attention to the fundamentals in the Crude Oil markets including more signs of slowing economic growth next year, record production and the lack of confidence with OPEC’s pledge to curb production.

Equities: Asian shares retreated on Thursday from their previous session’s declines. Wall Street dipped sharply Wednesday following the Fed’s statement.

Currencies: The USD was steady in Asian trade, recover from the prior session’s low as markets came to terms with the Fed’s policy declaration.

Commodities: Energy, Metals and Agriculture Grains 

NYMEX Crude Oil »47.14 USD-1.03-2.18%Jan 1912:51AM EST
ICE Brent Crude »56.35 USD-0.89-1.58%Dec 187:00PM EST
NYMEX RBOB Gasoline »1.36 USD-0.02-1.66%Dec 1812:47AM EST
Dubai Crude Spot »54.49 USD-0.14-0.26%Dec 021:01AM EST
ICE Gas Oil »532.50 USD-6.25-1.17%Jan 197:00PM EST
NYMEX No2 Heating Oil »1.79 USD-0.02-0.93%Dec 1812:44AM EST
NYMEX Nat Gas »3.71 USD-0.02-0.43%Dec 1812:52AM EST
ICE NBP Nat Gas »67.24 GBP+0.000.00%Dec 187:00PM EST
Gold Spot »1,245.26USD+2.25+0.18%Dec 027:00PM EST
COMEX 100oz Gold »1,243.20USD-8.90-0.72%Dec 187:01PM EST
Silver Spot »14.57USD-0.03-0.19%Dec 027:00PM EST
Platinum Spot »785.50USD-0.60-0.08%Dec 027:00PM EST
Palladium Spot »1,268.00USD+8.00+0.63%Dec 027:00PM EST
COMEX Copper »2.67USD-0.05-1.97%Dec 1811:09PM EST
CBOT Corn »381.25USC-0.50-0.13%Mar 1912:59AM EST
CBOT Wheat »524.00USC+1.50+0.29%Mar 191:00AM EST
KCBT Wheat »511.00USC+2.50+0.49%Mar 191:00AM EST
MGE Spring Wheat »575.00USC+6.50+1.13%Mar 191:00AM EST
Euronext Milling Wheat »205.25EUR+0.000.00%Mar 197:00PM EST
CBOT Soybean »897.75USC-2.25-0.25%Jan 1912:59AM 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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