Close: London Session | Forex, Metals, Oil, Agriculture April 05, 2021



Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit.


Read More: Macro Traders Couldn’t Care Less About Dollar Debasement FearsStill, opportunities to short the dollar may re-emerge as Europe’s pandemic situation improves, the Goldman team said. The dollar remained firm against rival currencies that made the bullion more expensive for investors using other currencies. When nominal yields retreat while inflation (and inflation expectations) keep rising, real rates decline, and that leads to dollar‘s decline.
Among higher yielding nations, Canada’s favorable sovereign ratings and limited U.S. dollar funding concerns make it an attractive alternative to many emerging-market counterparts.Not everyone is upbeat on the loonie. He favors the Canadian dollar versus most other G-10 currencies except the greenback. Meanwhile, the DXY US Dollar index was a little moved amid a quiet trading session as several key APAC markets are closed for public holidays. After bearishly breaching support at around 31.00 to the dollar, the path is clear for Thailand’s currency to fall toward its July low of 31.858.
Not only has gold performed poorly, the dollar is still dominant.Not only that, inflation has been mild, contra to what all the Goldbug Macro types would have predicted. Technically, the loonie is flirting with key long-term hurdles against the U.S. dollar, euro and yen. Throughout the markets, risk-on has been making a return as long-dated Treasury yields retreated, dollar fell and commodities continue their bullish flag formation.


The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. Gold loans had boomed over the past year as small businesses tried to revive themselves from lockdowns by pledging family jewelry that’s a staple of almost all Indian households. The rapid healing of the labor market from the second pandemic wave may reinforce reflation hopes and dampen prospects for gold prices. We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Perth and soon Dubai.
Non-yielding assets such as precious metals appear lackluster against this backdrop, and exchange-traded gold ETFs have suffered continuous outflows over the past few months. Then we can relate that story back to gold and silver by making the point that 7 months of down leg means nothing. less Gold prices fell modestly during Monday’s APAC morning session, pausing a three-day gain as the 10-year Treasury yield climbed more than 3%.
Gold is softer, holding below $1730 in quiet turnover.OPEC+ decision to boost output is weighing on oil prices today. Gold prices for the latest contract on MCX are trading down 0.2% today at Rs 45,326 per 10 grams. As we saw in the wake of the Great Financial Crisis and over last summer, gold seems to do well during periods of stagnation plus aggressive Fed easing.


Oil prices fell, driven by the decision of OPEC+ to gradually ease some of its production cuts and higher Iranian output. less Natural gas prices have oscillated back and forth over the last few weeks as bearish spring weather has been somewhat offset but stronger LNG exports and lower stocks. Last Thursday, oil prices advanced more than 3% as OPEC+ surprised the market with a total 2.25-million-barrel production hike from May to July (table below). Hot weather in parts of the Midwest and Plains may not only influence grain prices but support natural gas prices after June or July.
Pioneer Natural Resources Co: The U.S. oil producer agreed on Thursday to acquire privately-held rival DoublePoint Energy for about $6.4 billion, speeding up a consolidation of shale oil producers. Oil prices have wobbled around $60 in recent weeks, remaining up more than 20% for the year but about 10% below a March 5 peak. Even though many analysts viewed last week’s OPEC decision as a sign of confidence that demand will surge, some traders are now questioning those wagers.
Although that bodes well for oil demand, significant risks — such as the uptick in Indian cases — attests to a complex, multi-speed global picture.
One can see how While many traders are thinking that natural gas prices are oversold, , as was the case in April 2013. Source: Bloomberg, DailyFX Crude oil prices retreated slightly on Monday amid a quiet trading session.

United States

BEFORE THE BELL Wall Street futures rose, and Japan’s Nikkei ended in green, after robust U.S. jobs data raised hopes for a quicker economic recovery. According to Bullard, the Fed is: “…now more likely to allow inflation to develop to a certain degree and allow that to feed into inflation expectations. The foregoing equity awards were granted as inducements material to the employees entering into employment with Cidara, in accordance with Nasdaq Listing Rule 5635(c)(4).
less Billionaire investor Carl Icahn’s investment firm (IEP) has hired a former (GE) executive as the company’s CEO, the Wall Street Journal reported on Sunday. Kosovo lawmakers elected U.S-educated jurist Vjosa Osmani president, filling a post held by an ex-guerrilla who stepped down last year to face war crimes charges. The question for investors is whether Fed policymakers are too optimistic about their ability to intervene in time to keep a lid on inflation. Let’s wait to see those outcomes.” Fed policymakers are working hard to allay investor fears about this new policy.
“The other uncertainty is the pace of the vaccinations and the virus.”Made in U.S.A. Reflation Trade Is One Export World Doesn’t WantOn the vaccine front, news was more encouraging. Today, Wall Street continues to use Zacks research including the Zacks Rank and Zacks Equity Research, which combines the best of quantitative and qualitative analysis. Dow Jones Industrial Average futures climbed 0.6% and Nasdaq-100 futures added 0.4%.


As a result, EU members may continue to impose lockdown measures or restrict cross-country travel, potentially constricting economic activity and slowing recovery efforts. French President Emmanuel Macron announced a national lockdown last Wednesday, and the pandemic is also worsening in other large economies such as India. U.K. PM Boris Johnson Seeks Tests for All Two Covid-19 tests a week recommended in drive to open economy. But some European Union countries are struggling with the third wave of COVID-19.