Close: London Session | Forex, Metals, Oil, Agriculture May 07, 2021

Corn, copper, lumber, food, and house prices are all moving in the same direction – upwards. Similar to corn, US bean exports are extremely close to the USDA’s yearly forecast with 4 full months left in the crop year. American corn farmers are planting at the fastest pace since 2015, a move that could finally bring some relief to a market battling tight supplies. This spring’s less-than-expected US soybean planting intentions have also added uncertainty to this protein’s prices with dry soils surfacing in the N & W parts of the Midwest.
Perfect pairing | The twin pillars of Mexican gastronomy, corn and agave, have largely kept to their respective lanes over the centuries. Given the limited rainfall in the W Midwest, 2021’s US soybean plantings are off to a strong start at 24% this week. Last fall’s S American soybean plantings were delayed by dry-ness.

With the U.S. Dollar being a major influence on the price of gold, recent Dollar weakness has bolstered gold prices with the psychological $1800.00 level being broken above. On better data, it should rise, but better data also fuels expectations of an overheating economy, which means higher inflation, thus a weaker dollar. This was due to rising US real interest rates, another 3.6% due to the rising US dollar, and 2.5% was due to the rise in bitcoin. It was a typical NFP week so far, with ranges dominating the currency market, even though the US dollar traded with an offered tone during the last two days.
The negative correlation between gold and the US dollar and real interest rates is widely discussed among analysts. Investment sentiment in exchange traded products faded on a rising US dollar, interest rates, and bitcoin. Fears of inflation in the United States have led to investors selling the dollar and preferring alternative investments.
Wall Street futures were up and the U.S. dollar fell, ahead of U.S. non-farm payrolls data. The dollar fell, while gold strengthened. Stocks are well bid just off record highs and the US dollar is under pressure.

Taking a closer look at investment demand – physical gold demand (Total bar and coin demand) increased to 339.5 tonnes, while ETF sector had selling of 178 tonnes. Before focusing in on investment demand below a few notes on overall gold demand in the first quarter. However, because gold production and gold demand (jewellery, bar and coin etc.) Gold jewellery demand increased 52%, technology demand (electronics, dental, other industrial) increased by 11%.
87990cbe856818d5eddac44c7b1cdeb8 Advertisement Show Conversation Hide Conversation Sponsored Offers HISTORY OF GOLD IN INDIA Traditionally, gold is deeply rooted in Indian culture and held in high regard throughout the country. less Gold prices pushed sharply higher, posting the largest one-day rise in two months and reclaiming a foothold above the $1800/oz figure. Gold jumped 1.6% yesterday, matching its best gain in nearly two months and overcoming the $1800 level for the first time since late February.
RISING CORONAVIRUS CASES In light of the current COVID-19 pandemic and the rampant rise in new cases within India, gold demand has significantly declined. These texts depict Gods and Goddesses with gold which lead to the prestige associated with gold in modern Indian society. 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.

Enbridge Inc: The company said quarterly profit rose 44% sequentially as the pipeline operator benefited from a steady recovery in oil prices and energy demand. EOG’s average crude oil prices jumped nearly 39% to $58.02 per barrel in the quarter, from the last three months of 2020. Cenovus Energy Inc: The company swung to a first-quarter profit from the previous three-month period, as global crude recovered on the back of easing COVID-19 restrictions and vaccine rollouts.
Oil dipped on a report that Opec Plus saw its cumulative over-production jump to 3.316 million bpd from 3.027 million bpd in February.
Yesterday, oil prices dipped on ongoing India demand concerns and the fact that some members of the OPEC Plus group are cheaters! Oil prices were slightly higher, while surging coronavirus cases in India fueled demand concerns. Oil is slipping lower for the third consecutive session, which pares the strong gains seen at the start of the week. Iraq said they would as well and has bigger problems with violence at the Kirkuk oil fields. less Photo by American Public Power Association on Unsplash The oil comeback trade is pausing as the market awaits the jobs numbers this morning.
Most of the windfall expected to be realized in 2021 came from trading and selling natural gas in Energy Transfer’s energy storage system.

US futures have edged up after the Dow set new record highs yesterday as the Fed’s financial stability report warned over the vulnerability of investors to stretched valuations. In an alert to clients on Monday, Nasdaq said it would finish an upgrade of its data feeds on May 17 to allow stock prices greater than $429,496.7295. History shows that investment crazes are often associated with financial innovation, new instruments created by Wall Street middlemen, surrounded by mystery and fueled by expectations of big future profits.
Markets mixedThe Fed’s warning of stretched valuations has not stopped investors stretching them a little more this morning after U.S. stocks ended yesterday at record highs. As a result, we remain bullish and are lifting our targets.” Yes, it is true the Fed remains highly accommodative, which has undoubtedly pushed asset prices higher. US stock futures are trading higher today, indicating a positive opening for Wall Street.
The Nasdaq 100 already breached its rising trend line from the low of March last year, with the underside of that trend line resisting rally attempts. He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post. The US Core CPI typically follows the small businesses’ change in prices, and so the Fed may be forced to deal with higher inflation sooner than expected. In November, Mr. Trump signed an executive order barring Americans from investing in Chinese companies that the U.S. said aided China’s military, intelligence and security services.

Despite the wider trade surplus, PBOC reserved rose by about $28 bln to nearly $3.2 trillion last month. WSJ explains how Beijing is pouring money into high-tech chips as it wants to become self-sufficient.

Vaccines Shares of vaccine makers got some relief after German Chancellor Angela Merkel did not support a U.S. proposal to waive patent protection for Covid shots. 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. Among European emitters (N=28) we see that two-thirds say that the EU ETS makes them reduce emissions, or plan to do so. In the Netherlands, it will be illegal from 2023 to lease buildings that score below an energy grade C on the EU scale.
Since March, the EU’s Sustainable Finance Disclosure Regulation has forced money managers to disclose the climate impact of investments. The U.S., the European Union and the U.K. all have plans to at least halve their carbon output by the end of the decade. His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc.
Prime Minister Boris Johnson’s Conservatives have won a by-election for the Northern seat, defeating the opposition Labour Party in its heartland.
Main focus: Europe, Eurozone, Germany and ECB.