Agriculture
This has been obvious for a long time, but some well-known analysts are just starting to cotton-on. Over two decades ago Jay got his start at the Kansas City Board of Trade in the Wheat Futures pit.
Currencies
The dollar reacted promptly, and it resumed its trend lower, with the 90 level a key one for the Dollar index. For the dollar, while ten-year Treasury yields hold below 1.50%, the dollar’s gains will likely be limited. The weaker dollar made the bullion less expensive for investors using rival currencies, while the lower bond yields reduced the opportunity cost of holding non-yielding assets like gold. The dollar index is essentially back to where it was 3 years ago, while gold has made substantial gains over the last several years.
FOREX: The dollar remained at multi-year lows against the Antipodean currencies and held near a one-month low versus the euro as reflation trades gripped the currency markets. Do you look at the dollar index, key bond yields, inflation, Fed policy? Thus, we see both the dollar and gold decline in tandem over the last several months. It only lasted until early December as the exchange value nearly touched 5.0 to the dollar for the first time since briefly in June.
The dollar was little changed, while gold prices gained. The dollar index is lower than where it was in August when gold peaked.
FOREX: The dollar remained at multi-year lows against the Antipodean currencies and held near a one-month low versus the euro as reflation trades gripped the currency markets. Do you look at the dollar index, key bond yields, inflation, Fed policy? Thus, we see both the dollar and gold decline in tandem over the last several months. It only lasted until early December as the exchange value nearly touched 5.0 to the dollar for the first time since briefly in June.
The dollar was little changed, while gold prices gained. The dollar index is lower than where it was in August when gold peaked.
Metals
The firm still sees upside for gold and its new target — $2,000 per troy ounce down from $2,300 — is about 11% above where gold futures currently trade. Gold prices for the latest contract on MCX are trading flat at Rs 46,782 per 10 grams. Gold prices are trading up by 0.1% at Rs 46,742 per 10 grams. Image Source: Unsplash Spot gold is currently trading at $1,804.97 per ounce as of 0801 GMT. On MCX, gold futures were 0.06% higher at Rs 46,830 per 10 grams.
The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. In addition, the RSI shot up to approximately 90 for the first time in a number of years, illustrating extremely overbought technical conditions for gold at the time. less Bitcoin is not hurting Gold because Gold has performed as expected. However, we see that while the 10-year is essentially back to where it was 1 year ago, gold is up by roughly 15% over the same time frame.
It’s widely accepted that gold was used as money by Lydian merchants around 550 BC, roughly 2,500 years ago.
The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. In addition, the RSI shot up to approximately 90 for the first time in a number of years, illustrating extremely overbought technical conditions for gold at the time. less Bitcoin is not hurting Gold because Gold has performed as expected. However, we see that while the 10-year is essentially back to where it was 1 year ago, gold is up by roughly 15% over the same time frame.
It’s widely accepted that gold was used as money by Lydian merchants around 550 BC, roughly 2,500 years ago.
Oil
The Calgary-based company said its total average production in the quarter fell 1.9% to 111,217 barrels of oil equivalent per day, compared with the third quarter. Crescent Point Energy Corp: The Canadian oil and gas producer posted a higher fourth-quarter profit compared to the third, as commodity prices rebounded from pandemic lows. Crude oil inventories do matter for the CAD traders as well as for those watching how crude oil struggles to hold above the $60 level.
Crescent Point posts higher quarterly profit as crude prices rise Crescent Point Energy posted a higher fourth-quarter profit compared to the third, as commodity prices rebounded from pandemic lows. Oil trader Trafigura says that they believe that 5 to 10% of our oil production that was shut down due to the crisis may not come back online ever. Pioneer Natural Resources Co: The U.S. shale producer reported a better-than-expected gain of $177 million for the fourth quarter as crude oil prices recovered from pandemic-driven lows.
Crescent Point’s total average selling price in the quarter ended Dec. 31 rose to C$43.76 per barrel of oil equivalent from C$41.89 in the previous quarter.
For the oil market this means forecasts of $100 a barrel crude are emerging, less than a year after the commodity traded in negative territory. Daily Market Update identifies accurate price targets and turning points for indices, forex, cryptocurrencies, commodities, oil, gas, and stocks. less What has happened in the crude oil market since last November is just unbelievable!
Crescent Point posts higher quarterly profit as crude prices rise Crescent Point Energy posted a higher fourth-quarter profit compared to the third, as commodity prices rebounded from pandemic lows. Oil trader Trafigura says that they believe that 5 to 10% of our oil production that was shut down due to the crisis may not come back online ever. Pioneer Natural Resources Co: The U.S. shale producer reported a better-than-expected gain of $177 million for the fourth quarter as crude oil prices recovered from pandemic-driven lows.
Crescent Point’s total average selling price in the quarter ended Dec. 31 rose to C$43.76 per barrel of oil equivalent from C$41.89 in the previous quarter.
For the oil market this means forecasts of $100 a barrel crude are emerging, less than a year after the commodity traded in negative territory. Daily Market Update identifies accurate price targets and turning points for indices, forex, cryptocurrencies, commodities, oil, gas, and stocks. less What has happened in the crude oil market since last November is just unbelievable!
United States
If the Fed were to stop buying real bonds, the yield would probably drift towards zero which would get the 10 year yield above 2%. US stock futures are trading higher today indicating a positive opening for Wall Street indices with Dow Futures trading up by 28 points (up 0.1%). Nasdaq Futures are trading down 104 points (down 0.8%) while Dow Futures are trading down by 103 points (down 0.3%) The rupee is trading at 72.29 against the US$. One argument for tariffs put forward by Trump was that they would force American companies to buy less from China and make more products in the U.S.
At least this was the case outside of negative rate shocks, when bond yields increased too fast, e.g., the US ‘taper tantrum’ in May 2013. less As we mentioned in a previous post, it seems the Fed needs to keep buying TIPS to keep the nominal rate from spiking. The Fed’s decision to stop the sale of Treasury bills also put short-dated bond yields at risk of turning negative.
BEFORE THE BELL Futures tracking the tech-heavy Nasdaq edged down as investors sold growth-oriented technology shares for stocks that stand to gain from an economic rebound. US stock futures are trading lower today, indicating a negative opening for Wall Street. US futures contracts on the Dow, S&P, NASDAQ and Russell 2000 and European stocks found their footing on Wednesday as yields rebounded, bucking the selloff in Asia.
At least this was the case outside of negative rate shocks, when bond yields increased too fast, e.g., the US ‘taper tantrum’ in May 2013. less As we mentioned in a previous post, it seems the Fed needs to keep buying TIPS to keep the nominal rate from spiking. The Fed’s decision to stop the sale of Treasury bills also put short-dated bond yields at risk of turning negative.
BEFORE THE BELL Futures tracking the tech-heavy Nasdaq edged down as investors sold growth-oriented technology shares for stocks that stand to gain from an economic rebound. US stock futures are trading lower today, indicating a negative opening for Wall Street. US futures contracts on the Dow, S&P, NASDAQ and Russell 2000 and European stocks found their footing on Wednesday as yields rebounded, bucking the selloff in Asia.
Europe
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. PM Boris Johnson on Monday laid out a road map to phase out the current lockdown in the UK. EU Speeds Up Its Vaccine Drive After Early Flubs EU catches up in vaccine supply. Lagarde has expanded the ECB balance sheet by more than Draghi. Main focus: Europe, Eurozone, Germany and ECB.
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