Close: London Session | Forex, Metals, Oil, Agriculture December 31, 2020



That scenario would make a larger stimulus more likely which would have a downward impact on the dollar but probably a positive impact on consumption and the real economy. Meanwhile, US Dollar weakness continues to prevail, catalyzing the demand for Emerging Market (EM) currencies and capping the gains of bulls trading USD/ZAR. The dollar rebounded from session lows, but was still down for the third day in a row, the lowest level for the greenback since April 2018.
What comes next hinges on a handful of unpredictable dynamics, ranging from the strength of the global economic recovery to the health of the U.S. dollar. As an industrial metal, there’s as much to its price in economy as everyone is told to think about dollar currency. Perhaps, as some say, the most likely candidate for the long-feared final end of the US dollar and the inflationary inferno its collapse is purported to bring about. In global markets, gold prices were higher today supported by a weaker US dollar.
It literally says that the U.S. dollar lost 98% of its value against an ounce of gold since the Federal Reserve of the United States was created in 1913. The dollar is at its lowest point in 32 months, just 1% away from a 6-year low. Equity profit-taking, compounded by a slipping dollar boosted gold.


Bitcoin is also seen increasingly as an inflation hedge, an alternative to gold and as a more common mainstream payment method. As such, investors typically allocate 5% or so to a portfolio, in the idea that gold will protect it should inflation be a problem. The key to using gold as a hedge against inflation comes from understanding inflation. Gold prices for the latest contract on MCX are trading up by 0.1% at Rs 50,190 per 10 grams. Gold prices are trading down by 0.2% at Rs 50,052 per 10 grams.
less Share Photo: david gray/Agence France-Presse/Getty Images By Sebastian Pellejero Close Dec. 31, 2020 5:30 am ET Gold is wrapping up its best annual performance in years. He is also the author of the 2015 book, The Coming Renewal of Gold’s Secular Bull Market which is available for free. From this point of view, investors would be better off to consider gold a currency, not a commodity. Gold, therefore, protects against rampant inflation or against currency debasement.
Is it safe to believe that gold will still do its job and protect an investor’s portfolio?


OPEC agreed supply reductions helping oil prices higher, although Brent Crude remains around 22% lower than it started the year. “Any fall or softening in the prices of crude oil will support the rupee as India imports the bulk of its oil requirements. At 493.5 million barrels, U.S. crude oil inventories are about 11% above the five-year average for this time of year. The EIA reported U.S. commercial crude oil inventories fell by 6.1 million barrels from the previous week.
The year that oil prices went sub-zero, something people thought could never happen. Brent crude futures, the global oil benchmark, fell 0.21 per cent to $51.52 per barrel. The OPEC deal may fray at the edges, demand for oil could arrive later than anticipated. The tougher regulatory environment with an incoming Biden Administration will also hamper the US oil production recovery. Oil Daily WTI has been trading along its pennant, a continuation pattern, and is therefore expected to provide an upside breakout.
The January East-West 380 fuel oil differential lost $3.50 to $15.25/mt, while the February contract lost $2.50 to $15.25/mt.

United States

Nasdaq Futures are trading up by 9 points (up 0.1%) while Dow Futures are trading up by 20 points (up 0.1%). Nasdaq Futures are trading up by 3 points, while Dow Futures are trading down by 45 points (down 0.1%). Alongside this, the Fed announced a range of funding and liquidity facilities, which also supported the smooth functioning of financial markets and the flow of credit in the economy. Supporting Market Functioning: On March 15th, the Fed announced it would support market functioning through boosting QE.
US stock futures are trading higher today, indicating a positive opening for Wall Street indices. The January 21 ULSD CIF NWE cargoes differential was flat from the previous close at $2.75/mt, while the February 21 differential was flat at $3.25/mt. The stock market has shaken off the pandemic thanks to actions taken by the Fed and stimulus packages from Congress. The vaccine news has meaningfully raised hopes that the US economy would get back to normal next year.
US futures for the Dow, S&P 500, NASDAQ and Russell 2000 have been wavering this morning, with most currently a trading marginally lower. less The US stock market is making all-time highs.


But Beijing’s tightening control on the financial hub will add new challenges.


The European Union (EU) also struck an investment deal with China, which will give the bloc greater access to its markets going forward. The consensus view at the beginning of the year was that a trade deal with the EU was very likely to get done. Asian stock markets ended on a positive note after the announcement of a trade deal with the European Union. Our Brexit future, then, could look eerily like the 1950s and 60s. Merkel Urges Discipline Amid Record Cases The German chancellor said perseverance would be needed.
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