Close: London Session | Forex, Metals, Oil, Agriculture August 10, 2020



China’s foreign ministry said it was imposing the measures on US senators Marco Rubio, Ted Cruz, Pat Toomey, Josh Hawley and Tom Cotton as well as congressman Chris Smith. I find them a good complementary to my coffee for my energy levels during the work-from-home days. The Bombay Sugar Merchants Association spot rates (₹/quintal): S-grade 3,300-3,382 and M-grade 3,410-3,590.


The falling dollar and the record level of government and central bank stimulus continue to pour fuel over a bullish fire in the two leading precious metals. Meanwhile, the dollar is slightly firmer against most major and emerging market currencies, mostly within the pre-weekend ranges. The other argument is that the titanic increase in the Fed’s balance sheet will constantly pressure the US dollar against all major currencies in the medium term. The falling dollar and central bank accommodation look set to keep the bullish party going.
A combination of a falling dollar and the tidal wave of central bank liquidity created a perfect bullish storm for the yellow metal. Dollar Weekly The global reserve currency is trading between a falling channel since May and the bottom of a rising channel since 2011. A declining dollar, central bank accommodation, and rising deficits are a potent bullish cocktail for all precious metals, and platinum is no exception.
In the week ahead, further movements in the dollar and in equities stand to impact gold prices. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.17 per cent to 93.59. The dollar index was up as U.S.-China tensions escalated, while spot gold prices dipped.


The company expects to receive 33,000-35,000 toz of gold equivalent (to calculate the gold equivalent, metals prices of $1,900/toz gold and $22/toz silver were used). Barrick Gold (GOLD – Free Report) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.19 per share. The inflation caused “flow” prices like those on consumer goods to rise, but it also caused “stock” prices like the prices of gold and houses to rise.
Source: Own processing, using data of Osisko Gold Royalties The improved realized gold prices helped to reduce the negative impacts of the decline in attributable production. In 2002 when gold was $300 per ounce, MAM recommended to its investors to put 50% of their investment assets into physical gold stored outside the banking system. Ronni has just published the In Gold We Trust Report which has proceeded to become the benchmark publication on gold, money, and inflation. According to the updated H2 2020 production guidance, the attributable gold equivalent production volumes should go back up in Q3 and Q4 (to 16,500-17,500 toz per quarter on average).
On July 1, Victoria Gold (OTCPK:VITFF) declared commercial production at its Eagle Gold mine. The platinum futures market is far less liquid than gold and silver as daily volumes, and open interest is a fraction of the other two leading precious metals. Source: Osisko Gold Royalties In Q2, there were also some events with longer-term positive impacts on Osisko Gold Royalties.


Natural gas prices spiked throughout the week, finishing at their highest point all year, supporting midstream stocks along with positive broad equity markets and higher oil prices. I have worked in the areas of oil refining, natural gas production, synthetic fuels, ethanol production, butanol production, and various biomass to energy projects. When oil prices fell into the negative territory during the second quarter of 2020, it was a never before seen nightmare for many companies in the energy sector.
But the company stuck with plans to pay $75 billion in dividends this year and CEO Amin Nasser said global oil demand was recovering. In April, crude oil storage and pipeline company cut the quarterly dividend rate by 50%, down to $0.18 per share from the previous $0.36 per share. CEO Amin Nasser is positive oil demand will further recover in the second half and said consumption in Asia is almost back to pre-virus levels. Brent crude futures, the global oil benchmark, rose 1.10 per cent to $44.89 per barrel.
The Stoxx Europe 600 Index initially climbed along with energy firms as oil advanced after the CEO of Aramco (SE:2222) yesterday announced demand will rise in Asia.
BEFORE THE BELL Canada’s main stock index futures rose, lifted by higher oil prices and an improvement in Chinese factory data. The West Texas Intermediate Crude Oil market has fallen slightly during the trading session on Friday, as the 200 day EMA continues to attract a lot of attention.

United States

BEFORE THE BELL Major U.S. stock index futures edged higher as investors looked to executive orders from President Donald Trump over the weekend to support the economy. Major U.S. stock index futures edged higher as investors looked to executive orders from President Donald Trump over the weekend to support the economy. U.S. stock futures traded mostly higher in early pre-market trade, after President Donald Trump on Saturday signed orders extending Covid-19 relief program.
President Trump’s executive order banning Chinese messenger app WeChat next month could have a severe impact on Apple worldwide sales. Data from the US Labour Department showed that employment increased by 1.763 million jobs in July after rising by 4.791 million jobs revised downward in June. Emkay Global said strong momentum in the trade Gx business in India and Albuterol ramp-up in the US will keep earnings momentum strong in the medium term. With digital healthcare evolving in the world of medicine, we witnessed the largest digital health deal last week, when Teladoc Health (NYSE:TDOC) and Livongo Health (NASDAQ:LVGO) announced their merger.
Governors pushed back on Trump’s plan to make states cover 25% of the $400-per-week jobless boost included in Saturday’s executive orders. Therefore, Trump signed executive orders at his own country club in Bedminster, New Jersey, to act on measures that Congress had not taken. Dropbox 2Q20 resultsSource: Dropbox Q2 earnings release Dropbox’s revenue in the quarter grew 16% y/y to $467.4 million, slightly edging out over Wall Street’s estimates of $465.4 million.


Traders are monitoring the state of stimulus talks, as well as the latest fraying of relations between Washington and Beijing (see above). If Beijing thinks that delicate balance with Taiwan is at risk in the medium or long-term, it could act. More U.S.-China tension: Health and Human Services chief Alex Azar is in Taiwan and peeved Beijing by praising its democracy and President Tsai Ing-wen’s response to the pandemic. Beijing didn’t specify what form the sanctions would take.


The EU’s entire operating budget for the last seven years – each year – is a modest 165 bn euros. Last month he told Chatham House that a settlement with the EU must require commitments to not do it again but also paying back some element of the subsidy. Women have been shut out of Boris Johnson’s new key decision-making bodies, an analysis shows, sparking accusations that his government is “incredibly blokey”. Boris Johnson has said the country has a moral duty to get children back in the classroom.
The EU has big plans to punch above its weight around the world in how much money it pumps into “developing economies”. Some EU websites, although not mentioning the total new budget for the EU itself, refer to pumping this up by 30%. If you still have a sense of humour after leading EU supporters of the project talk about the beginning of the end, then here’s a howler for you. The massive recovery package was more of a political message that underpinned the EU’s credibility.
So far, Washington has rejected at least three offers from Brussels for a settlement because the EU and U.S. don’t have the same number, he said. In July, the EU agreed to a much smaller package which was a mixed bag of loans and grants.