Close: London Session | Forex, Metals, Oil, Agriculture December 18, 2020



That supply threatens the purchasing power of the US dollar, since more dollars means a weaker dollar. That supply threatens the purchasing power of the US dollar since more dollars means a weaker dollar. Even though the dollar benefits short term from the stimulus and as a safe-haven for international investors, in the long term, it will decline against gold. Does that mean the Massachusetts dollar is undervalued relative to the Texas dollar? Even though the dollar benefits short-term from the stimulus and as a safe-haven for international investors, in the long term, it will decline against gold.
less Anti-fiat gold prices closed at the highest in a month on Thursday as a decline in the US Dollar continued to bolster precious metal and commodity prices. Gold slipped as the dollar ticked up with investors booking profits after a week of declines. Gold slipped as the U.S. dollar ticked up with investors booking profits after a week of declines.
When the US dollar was taken off the gold standard in 1971, it created a fiat currency that led to a new debt economy. The US dollar, as the world’s reserve currency, has seen a large amount of supply in the form of stimulus come into the market.


At depths around 750-1,000 meters, Premier Gold drilled 76.12 g/t gold over 3.5 meters, 4.93 g/t gold over 17 meters, or 26.82 g/t gold over 7.6 meters. Also, see Silver following Bitcoin Hubert is an independent gold and silver analyst who specializes in fractal analysis and the fundamentals of gold and silver . … more Hubert is an independent gold and silver analyst who specializes in fractal analysis and the fundamentals of gold and silver . According to the two-days old updated feasibility study, Hardrock contains reserves of 5.539 million toz gold, at a gold grade of 1.27 g/t.
According to the news release, Premier Gold’s shareholders will receive 0.1967 Equinox shares for each Premier Gold share. Source: Premier Gold At a gold price of $1,400/toz, Hardrock’s after-tax NPV(5%) equals $1.05 billion and the after-tax IRR equals 20.1%. In one of his latest videos, India’s #1 trader, Vijay Bhambwani, talks about whether you should buy gold bullion or gold exchange-traded-funds (ETFs).
GOLD TECHNICAL ANALYSIS Gold prices have closed above the medium-term 50-day Simple Moving Average (SMA). Mercedes and Hardrock, along with Equinox’s current growth projects, should help to elevate its annual gold production over the 1.25 million toz level over the coming years. Gold gained modestly on the day while silver got a bigger boost to close solidly above $25/oz, promptly heading to $26/oz the day following.


SM Energy mentioned in Q2 2020 that it was aiming for double-digit production growth in 2021, with oil production growth being higher than total production growth. I have worked in the areas of oil refining, natural gas production, synthetic fuels, ethanol production, butanol production, and various biomass to energy projects. At $47 to $48 WTI oil, SM Energy would then be able to generate $1.524 billion in oil and gas revenue. Another $5 increase in oil prices could put SM on solid financial footing, while a $5 decrease would put it at a high risk of bankruptcy.
Power plants may opt to burn dirtier but cheaper fuel oil instead, the sources said, but are also facing rising prices in that market. Without hedges though, a situation with low-$50s WTI oil and production levels around 5% higher than 2021 would allow SM’s leverage to be reduced to 2.0x. SM Energy has approximately 71% of its projected 2021 oil production hedged with swaps at an average of $40.53 per barrel.
I have over 20 years of international engineering experience in the chemicals, oil and gas, and renewable energy industries, and hold several patents related to my work.
This may result in SM Energy’s production averaging approximately 138,000 BOEPD (51% oil) in 2021. Crude oil prices are aiming lower during Friday’s Asia Pacific trading session alongside a decline in futures tracking equities on Wall Street.

United States

According to the Fed statement, the current pace of asset purchases will remain in place until “substantial further progress” has been made toward achieving the Fed’s dual mandate objective. It was the least possible guidance the Fed could offer in terms of asset purchases going forward. If unemployment and growth were to rebound much faster than expected but inflation remains low, for example, it’s unclear if or how the Fed would adjust purchases.
Looking ahead to 2021, we believe the Fed will eventually need to provide more detailed guidance on its reaction function for asset purchases. Second, the Fed’s messaging also likely reflects a range in views on the committee about the trade-off between the potential benefits and risks of asset purchases. With interest rates low and financial conditions easy, Fed officials did not see a need to add even more support. The Fed revised its projections significantly in light of the faster-than-expected recovery to date, and the path going forward remains unclear given the unusual nature of this economic crisis.
The Fed doesn t know how it s going to extricate itself from these purchases going forward, said Swonk, Grant Thornton s chief economist, in a Bloomberg TV interview. Per the latest FOMC Policy Statement, the Fed decided to keep its target range for federal fund rates between 0% and 0.25%. Instead, the Fed is looking to fiscal policy to help the U.S. economy bridge the gap from the current public health crisis to an improving outlook for 2021.


Beijing is also planning to provide broad support for so-called third-generation semiconductors in its next five-year plan to boost domestic self-sufficiency. Beijing will respond to what it sees as a foreign attack with greater state-aid and commitment to developing and producing its own third-generation chips. The Shanghai-based company is at the heart of Beijing s plans for a world-class semiconductor industry.


U.K. Prime Minister Boris Johnson said yesterday that talks are in a “serious situation” as a stand-off over fishing rights continues to hold up any agreement. Chief EU Negotiator Michel Barnier said that there are large obstacles and the path to a deal remains narrow. Five Things Follow Us Get the newsletter Not quite there yet on stimulus, still trying for a Brexit deal, and Moderna vaccine gets nod for approval. Hence, in our view, EUR curve and spread trades will be done amid the ECB’s (soft) yield curve and spread control.
Source: Medium Nonetheless, I believe the transaction will ultimately get approved by the DOJ since Google had provided two rounds of concessions to get EU regulators comfortable. Moment of truth If you’re thinking that Congressional talks on stimulus have been going on forever, take a look at Europe where Brexit-related negotiations have been ongoing for years. Meanwhile, China and the EU have reportedly agreed in principle to a bilateral investment treaty that will complement last year’s trade agreement.
As a reaction to a rapid curve steepening the ECB could increase the tempo of asset purchases to restrain the rise of long-dated rates. On Thursday, U.K. Prime Minister Boris Johnson warned that post-Brexit talks with the European Union are in a serious situation. Yet, a “no-deal” Brexit means the country will trade with the EU under WTO (World Trade Organization) terms starting with January 2021.