Close: London Session | Forex, Metals, Oil, Agriculture December 22, 2020



Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit. It’s time to come down from the sufgania sugar high.


Gold prices dropped considerably as a double whammy of rising dollar and rising real yields sounded the end of the 10+ year gold bull from 2000-2011. The US dollar is unlikely to gain strength in the short-term as speculative funds increasingly shift to riskier asset classes by leaving safe haven dollar. The dollar strengthened against the euro and pound, while gold traded with losses. The U.S. dollar strengthened against the euro and pound, while gold traded with losses.
Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. In FX markets, the haven-associated US Dollar and Japanese Yen continued to outperform their major counterparts, while the cyclically-sensitive Australian and New Zealand Dollars lost ground. Global diversification still makes sense, especially if you believe that (a) non-U.S. growth and earnings will outpace the U.S. and (b) the U.S. dollar will continue to slide.
The market sell-off boosted the safe-haven dollar, sending EUR/USD to around 1.2130, but as time passed by, investors returned to their senses. For that reason, silver is his favorite holding to benefit from the decline in the dollar. Iurio isn’t in any way calling for a dollar collapse, but the chances of something along those lines are at least non-zero.


Cryptocurrencies and gold are both seen as hedges against currency debasement, and while cryptocurrencies are (rightly) regarded as riskier than gold, they are also seen as potentially more rewarding. Later on in 2008, he began researching areas of the gold and silver market that, curiously, the majority of the precious metal analyst community have left unexplored. >> Fabrice Drouin Ristori on Twitter is an independent investment analyst and studies the gold and silver market and their future role in the international monetary system.
Gold and silver slid lower as yields on US 10-year Treasuries dipped 2 basis points to 0.92%. Source: Bloomberg The influence of real yields on the price of gold and by extension needs to be elaborated because this is where both risk and opportunity present themselves. Fabrice shares his thoughts on the economy, stock markets, geopolitics, gold and silver. With a possibility of rising princes per ounce for precious metals, Gold will be even in small denominations not ideal for smaller transactions.
He follows regularly since 1970 the gold, silver and foreign exchange markets. He follows and analyzes the gold and silver markets since 2008. Gold will shine in 2021 as more people choose to hold real assets in their portfolio over assets guaranteed to lose their value.


Facing heavy debt burdens and weak oil prices, shale oil producers have been selling at low- to no premiums to market value. Oil (OIL) had seen seven weeks of gains, catalysed by the arrival of the COVID-19 vaccine and the expectation of the recovery in demand. At the peak last year, the top five shale oil fields combined production reached nearly 9.2 million barrels per day. The massive cuts in spending would suggest that oil producers will not be able to meet demand once the world reclaims 100 million barrels of demand per day.
Oil production from the Anadarko declined from 603,000 barrels per day (b/d) at the peak last year to a forecasted 363,000 bd in January. The global crude oil supply and demand clearly is in a big deficit right now, despite the lockdown according to Blass. It seems Russia is seeing strong demand for their oil as Asia demand is strong and global inventories are tightening. That said, as oil prices also begin to roll over amid concerns of a new strain of COVID, this adds to downside pressures for the cross.
Crude oil has all the makings of a semi supercycle as demand is coming back strong even as Europe continues on lockdown.
Oil prices dropped on demand concerns.

United States

It also would put their majority at immediate risk, given that Trump could react by urging his supporters to stay home in the upcoming Georgia runoff elections. The company claims its total addressable market is $7.1 billion in the US made up of $1.7 billion TAM for orthobiologics and $5.4 billion TAM for spinal implants. The Nasdaq is currently up 42% year to date despite the pandemic, following 2019’s 35% lift, and a record-long bull market dating back to March 2009.
Nasdaq Futures are trading up by 42 points (up 0.3%), while Dow Futures are trading down by 54 points (down 0.2%). All while the US government announced that they’re going to print another $900 billion, which apparently only lasts until the end of the first quarter! Facebook (NASDAQ:FB) and Google (GOOG, GOOGL) agreed to “cooperate and assist one another” if they ever faced an antitrust investigation into their pact to work together in online advertising. The average age of the US electric transmission infrastructure is roughly 40 years old with a quarter of the installed base fifty years or older.
The New York Fed’s survey, conducted over the summer, found that people expressed an even higher likelihood to save and pay down debt if there were more stimulus benefits. In the recent Fed announcement, the Fed has purposely left this option open if the long yields begin to steepen meaningfully. These figures fall in line with other central banks including the U.S. Fed, which currently has in assets on its balance sheet.


Strong hand | Joe Biden will take office next month wielding more leverage over Beijing than he would have ever sought.


U.K. crisis The U.K.’s last-ditch effort to get a breakthrough in negotiations with the European Union on a post-Brexit trade deal was rejected this morning by the bloc’s officials. The European Union is gearing up for a vaccination campaign of unprecedented scale following regulatory approval for the shot on Monday. The European Commission has granted Pfizer/BioNTech the authorization and vaccines will now be rolled out to 27 countries in the EU. Another potential positive development comes from another EU-UK topic – Brexit.
The statement was more qualitative, but I assumed that Germany is the principal beneficiary of the EU.