Close: London Session | Forex, Metals, Oil, Agriculture August 25, 2021

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Currencies

While the US dollar is trading at its resistance levels, it indicates that price swings in the forex and commodity markets prevail in the short term. The U.S. dollar strengthened amid fears of Delta coronavirus variant derailing a global economic recovery, while gold slipped. Long term, we remain bearish on the US dollar and bullish on gold and silver, but short-term corrections could destroy investor’s expectations. In global markets, gold prices fell today as the US dollar inched higher.
less Gold prices edged lower on Wednesday as the U.S. dollar and risk appetite improved. less The DXY Dollar Index price has been into a corrective phase in the short term. The dollar has gone on the defensive again but looks for it to recover some ground as metals and cryptos are gently hinting at today. We’ll have to wait and see what Powell announces, or doesn’t, this weekend.The dollar faces the same test. Nevertheless, the U.S. dollar remains offered, further supporting the risk-on environment.
The divergence between federal debt and the ability to pay for it accelerated during the subprime crisis and is accelerating again due to pandemic-related multi-trillion-dollar deficits.

Metals

The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. We have labeled the previous week as the “wait and watch” week in order to better understand the next move in gold and silver prices. less There are many factors affecting gold prices on a daily basis, but… how can GameStop stock be one of them? The broad ranges of 1700-1900 in gold and 22-30 in silver remain active, and it is pointless to look deeper into the details until these broad ranges are broken.
While miners and gold were almost flat yesterday, silver’s daily upswing was notable. Radomski is the author of Sunshine Profits’ Gold & Silver Trading Alerts and many of company’s investment tools. The more obvious one was that silver outperformed gold on a short-term basis. Silver broke above new highs while gold didn’t, so it outperformed on a very short-term basis. Gold prices fell sharply in Indian markets today after a run-up over the past few sessions.
less More optimistic follow-through yesterday brought additional gains to commodities while stocks and gold treaded water.

Oil

The index contract will be cash settled on expiry.The energy index captures the price movement of crude oil and natural gas. But if the members want to follow the science and show credible ambition, they have to stop insuring new oil and gas projects. Oil and gas stocks remained in focus during the day. Premiums from insuring new oil and gas projects amounted to about $1.7 billion in 2018, which equals just 0.1% of all property and casualty premiums. These companies must buy crude oil and produce gasoline and other fuels to sell.
BEFORE THE BELL Futures tracking Canada’s main stock index rose to hover near record highs, helped by firmer oil prices and upbeat earnings from Canadian lenders. You might have noticed that as crude oil fell, the price of gasoline has not. State Oil Companies Take Their First Ungainly Steps Toward Climate Neutrality Nationalized fossil fuel businesses are arms of the state and can t bend as far. The crude oil market regained most of its losses after the big 7-day swoon.
Yet governments still plan to expand oil production by 20% over the next two decades.

United States

Even when tapering begins it will only slow the Fed’s balance sheet growth, since they’ll still be buying bonds albeit at a slower rate. The market will be monitoring Fed Chair Jerome Powell’s speech at the annual economic symposium in Wyoming to see if he will give a tapering timeline. For discussion, please see There is a Negative Demand for Deposits to the Tune of 1.1 Trillion Dollars The Fed is discussing tapering, reducing its balance sheet. Wall Street futures traded with slighter gains, with investors focus set on Fed chair Powell’s speech at the Jackson Hole symposium scheduled later this week.
COVID concerns and indecision over what the Fed could say at this week’s Jackson Hole Symposium is boosting safe haven flows into the greenback. Since May of 2005, bank loans and leases have been in a steady decline despite a rip-roaring surge in the Fed’s balance sheet (red line). A weaker than forecast reading could further cool Fed tapering expectations ahead of the Jackson Hole Symposium on Thursday and Friday.
less FX markets are very much in wait-and-see mode ahead of Fed Chair Powell’s speech at the Jackson Hole Symposium. Not in the least as the conditions haven‘t and won‘t change with the Fed taper plays that have rocked the boat last week quite well. Also, on Friday, the Core PCE Price Index and the Fed Chair Powell Speaks could shake the markets as well.

China

The videogaming and social-media giant previously had earmarked a similar sum to fund research in areas such as science and carbon neutrality that are strategically important to Beijing. Their performance took some of the focus away from Beijing’s widening regulatory crackdown, which has turned many investors off the once-hot internet sector. The fear of missing out may be greater than the fear of Beijing’s moves. The SEC has modified the disclosures needed for Chinese IPOs in part because of Beijing’s recent actions.
It set a record high in mid-February, a few months after Beijing stopped the Ant IPO.

Europe

less Covid results in its increased use in EU, US China’s loss is India’s gain at least in terms of tufted mats shipments exports during 2020-21. By now, I have built up excellent skills and experience in analyzing macroeconomic and political developments in Europe, the Eurozone and Germany, including ECB watching. Most recently, Chancellor Merkel commented on Monday that the “aim was to avoid another round of lockdowns”. His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc.
Main focus: Europe, Eurozone, Germany and ECB.

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