Close: London Session | Forex, Metals, Oil, Agriculture August 28, 2020



It also covers the commodities market daily focusing on in-depth technical developments in GOLD, CRUDE OIL, SILVER, CORN & WHEAT. The Bombay Sugar Merchants Association spot rates (₹/quintal): S-grade 3,306 – Rs 3,362 and M-grade 3,400 – 3,512.


The US dollar is falling against the Canadian dollar for the fourth consecutive session and will extend its slump for a sixth successive week. That s important a year ahead of elections when he may want to temporarily support the kwacha to keep inflation in check through dollar sales. Fundamentally, the biggest drivers behind gold prices have been the weakness in the US dollar and falling bond yields, amid all the central bank largess. (UUP) Gold initially spiked and then sold off, and continues to get closer to a break lower, which should come if yields and the dollar rises.
Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. It is falling against nearly all the currencies and has slumped to new lows for the year against sterling and the Australian dollar. Watch whether a U.S. phase four fiscal stimulus package is passed, as otherwise the discontinuity of fiscal support will lead to a significant risk-off and dollar bullish event.
By propping up the dollar, they inflate dollar-based assets, such as stocks, which continue to rise in paper value. The Australian dollar extended yesterday’s gains and is at new highs for the year above $0.7300. It is the fifth week the yuan has risen against the dollar and the fourth week it has risen against its CFETS basket.


Gold should equal the price of the stock market, but the suppression of the price of gold and inflation in stocks skewed that relationship. “For such investors, the issue price of gold bond will be ₹5,067 per gram of gold,” the central bank said. Now that we have worldwide demand for gold unlike any we have ever seen, gold is rising fast. This means that the market believes that the most undervalued asset to the gold market is silver. If it was a 5-point move since we have seen interest rates fall from 4% or 5% on the 30-year bond, that puts gold at around $15,000.
Given the price of stocks today, gold should be at about $7,000 an ounce spread ratio. Central banks and institutional investors used so many naked shorts to force the price of gold down. Fawad Razaqzada Follow This post was written exclusively for Gold has been in consolidation mode for the last three weeks or so, following its recent big gains. This post was written exclusively for Gold has been in consolidation mode for the last three weeks or so, following its recent big gains.
The gold market is searching for its “real” price.


The company has reduced its exposure towards the volatile Oil and Gas industry through sales of its Air and Gas, and Fluid Handling businesses. Southern Iraqi exports up to August 25 have dropped to 2.63 million barrels per day (bpd), according to the average figures from Petro-Logistics, which tracks tanker shipments data. Management realized this issue and decided to reduce its exposure toward Oil and Gas end market and enter in healthcare space. Oil prices have drifted lower, and the October WTI contract is within yesterday’s range and slipping below the 200-day moving average (~$43.15).
84% of crude production in the Gulf of Mexico has been shuttered as oil companies evacuate their drilling platforms. Finally, Marathon Petroleum has announced plans to shutter crude oil processing at its Gallup and Martinez refineries. Currently, 1.56M bpd of GOM production is offline, and we anticipate that by the end of Sunday, 9M barrels of crude production will be lost.
The price of oil and products weakened and probably more so as if there was not a hurricane in the first place. Just as the Standard Oil energy cartel birthed U.S. antitrust law, Mukesh Ambani will amass power until told to stop.
Then, it became a fiat currency, backed by oil, and has fluctuated ever since, declining in value by more than 90% since 1971.

United States

Wall Street futures were higher after the Federal Reserve’s policy shift on inflation suggested an extended period of low interest rates. It is reviewing its policy framework, but it is difficult to see it duplicating the “average” inflation targeting approach of the Fed’s. The Fed announced it is changing the policy in relation to inflation, which they would like to see at 2%. President Donald Trump promised to “crush” the coronavirus pandemic with a vaccine by the end of the year during his speech accepting the Republican nomination last night.
The US reports a slew of data today, preliminary July trade figures, inventory data, the University of Michigan consumer confidence, and inflation expectations. With inflation remaining stubbornly low, few seem to believe the Fed can engineer an overshoot of their 2% target any time soon. Powell’s two key points from Jackson Hole (Week Ahead: No Jackson Hole in One) The Fed aims at 2% inflation on average.
The US housing market has been booming despite the high level of unemployment and economic contraction on the back of the coronavirus. Nothing is likely to compare to yesterday’s speech from Fed Chair Jerome Powell, which will have a transformative effect on U.S. monetary policy for the foreseeable future. When the Fed Chair spoke about inflation, the market rallied from $1945 to $1987 in about 45 minutes, apparently discounting his words.


Foreign Minister Wang Yi underscored the limitations of Beijing’s new diplomatic charm offensive targeted at Europe during a visit to Oslo. Relations between Oslo and Beijing have been turbulent following a 2010 decision to award the prize to then-jailed and now deceased Chinese democracy advocate Liu Xiaobo.


The British government has begun researching a new post-Brexit customs IT system, with four months to go before it s set to go live. However, we believe the ECB will be even less likely to accept premature steepening and it has the tools to prevent it. Merkel, who has said she won’t seek re-election after her current term of office, also stayed mum when asked about her plans for retirement. The U.K. has rebuffed EU demands to make the rules that take effect after this year public, an approach one EU official described as reckless.
“I hope such troops aren’t deployed,” Merkel said, adding that Lukashenko is still refusing to take her calls. The virus crisis will get worse before it gets better, Merkel says. Several issues have damaged the Berlin-Moscow relationship, but it’s important to keep the channels for dialog open, Merkel said. Opinion Boris Johnson set out to separate Britain from the union it couldn’t tolerate with Europe and reinforce the one it thought was indestructible, writes Bloomberg Opinion’s Therese Raphael.
Curves could steepen under the right circumstances, but the ECB has the PEPP to prevent premature moves. EU foreign ministers are due to discuss Turkey s dispute with Greece and the bloc s relations with Russia on the second day of their meeting in Berlin today.