Close: London Session | Forex, Metals, Oil, Agriculture July 26, 2021

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Agriculture

The contract hit the upper circuit four times during this period, SOPA said.“The soybean futures contract on NCDEX has been completely taken over by the speculators. Coffee prices are at a six-year high as demand is strong and the coffee crop has been damaged by frost and drought. This may severely impact coffee plants’ yield for this and next year. This happened after extremely cold weather hit Brazil’s major coffee fields. Brazil: US$5 billion (15.9% of total coffee exports) 2.
THE WORLD’S TOP 10 COFFEE EXPORTERS DURING 2020 1.

Currencies

When sentiment began to recover last week, this dynamic reversed: rates edged higher and the yield curve steepened while the US Dollar backtracked. A bout of risk aversion triggered mid-month pulled down bond yields – offering relative support to non-interest-bearing bullion – but also drove haven demand for the US Dollar. This is the level at which the amount of silver in a silver dollar (not Silver Eagles) is worth exactly $1.00. Dollar activity with Japan had dropped considerably – one of the first clues for brewing difficulties – beginning last December.
Still, it has only led to selective US dollar safe-haven demand; instead, traders are moving into classical risk-off hedges like JPY, CHF, and Gold. The dollar is mostly softer against the major currencies, having seen its earlier gains pared or even reversed. The combination of slowing growth in China and a strengthening US dollar are headwinds for emerging markets stocks, say analysts.
EURUSD had negative momentum into the end of last week with lower lows and lower highs. It is because gold prices have been dependent on the movements of the dollar and the Treasury yields. But the yellow metal’s gains were capped by a stronger dollar.

Metals

We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Perth and soon Dubai. less Gold prices increased slightly on Monday as U.S. Treasury yields eased and concerns over the surge in Delta variant infections intensified. Gold prices turned lower as expected after carving out a bearish Evening Star candlestick pattern, but a break of near-term support in the 1797.63-1808.40 zone remains elusive for now.
Image Source: Unsplash However, it remains to be seen if gold price can sustain the upside, as markets bet on a hawkish hint from the FOMC meeting this week. less Gold price is consolidating at higher levels on Monday, kicking off a big week on the right footing. This was not especially helpful for getting a steer on gold prices, producing another set of conflicting capital flows (albeit in the opposite direction). In physical trading, price volatility dampened the demand for gold in India last week.
Radomski is the author of Sunshine Profits’ Gold & Silver Trading Alerts and many of company’s investment tools. Gold prices are idling near the US$1800/oz figure, with traders seemingly caught between conflicting influences. Stephen Innes, a managing partner at SPI Asset Management, said the rise in Delta variant infections supports gold prices.

Oil

Oil prices appear to be being dragged lower by demand concerns and are snapping a four-day advance (OIL). Photo by Timothy Newman on Unsplash Reports from private sources expect another drawdown in oil supply. The same could be said for oil in its action overnight. However, September WTI has trimmed its earlier losses, and near $71.70 is off about 0.5%.

United States

Fed officials are likely to receive formal staff briefings at their meeting next week on potential strategies for tapering the bond purchases. However, that could cut either way, since Trump appointed Powell, but he also broke with the tradition of reappointing the Fed chair across party lines. But rather, because of the fear that inflation is running so hot that the fed must have the ability to end its bond purchases sooner. Willis Towers Watson (Nasdaq: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth.
His market analysis can also be read in most major financial publications, including the Wall Street Journal.
less The stock market begins the new week with the Dow Industrials, S&P 500, and Nasdaq 100 at all-time highs. He conveyed in a recent Bloomberg interview that the time to taper the fed’s asset purchases is now. The Fed began buying large quantities of the securities in March 2020 when the COVID-19 pandemic triggered a near-meltdown in financial markets. The Fed is widely anticipated to signal at a likely taper starting off from the quarter of this year.
It seems like 2021 could be another year that the Fed is going to take charge here.

China

Last week’s weakness in the MSCI Asia Pacific Index seemed to be partly driven by Beijing’s crackdown on some tech companies and private sector education companies. A sharp drop in Chinese shares seems to be the culprit after Beijing banned education technology firms going public, making profits or raising capital. Investors who were hoping Beijing would limit itself to pushing around tech companies have been disappointed, to say the least. He said Beijing’s move on tutoring was a new blow to investor confidence.

Europe

Last week’s speech by ECB Head Christine Lagarde where an indication that a program of bond buying was to continue also shored up other indexes across the globe.

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