Daily Close | Forex, Metals, Oil, Agriculture April 09, 2021



The twin tailwinds of a declining dollar and declining yields have started to rekindle investors’ interest in the precious metal.


less The action in recent days has confirmed a short-term bottom in Gold and gold stocks. Acting as leveraged plays, gold miners tend to experience more gains than the gold bullion. The gold stocks underperformed Gold badly in 2017-2018. The key is making sure local governments capture the economic benefits.Further Reading Bitcoin is replacing gold as a hedge against currency devaluation, for now. A recent Bloomberg article by John Authers questions whether increased bitcoin adoption is hurting gold’s status as an anti-inflation hedge.
After becoming very oversold, Gold, GDX, and GDXJ have traced out double bottoms around areas of strong support. Gold held up well but failed to break out multiple times as it underperformed the stock market. Gold bulls are getting excited as this recovery takes shape but let me be a party pooper. He is also the author of the 2015 book, The Coming Renewal of Gold’s Secular Bull Market which is available for free.


Maybe that s helped it move well past the first step of oil-addiction recovery admission of its problem and on to solutions for living in a post-petroleum world. YoY producer prices are up 6.0% (blue in the graphs below): Much of the increase has been due to gasoline. The April East-West 380 fuel oil differential gained $0.75 to $13.75/mt, while the May contract flat $0.00 to $13.00/mt. Leonid Bershidsky Canada Vs. CarbonLike Saudi Arabia, Russia and Nigeria, petro-states we profiled earlier this week, Canada is rich in oil.
Unlike them, oil isn t, like, its whole deal, man.

United States

The April 21 ULSD CIF NWE cargoes differential was down $0.25 from the previous close at $3.50/mt, while the May 21 differential was flat at $3.50/mt. The April 21 ULSD CIF Med cargoes differential was down $0.75 from the previous close at $3.50/mt, while the May 21 differential was down $0.25 at $4.50/mt. Those gains that high growth stocks saw after Trump cut corporate taxes in 2017 could very well go away. Additionally, the Fed Chair Powell stated that the rise in inflation this year is temporary and warned that an uptick in COVID-19 cases could slow the recovery.
It seems as if Wall Street does not like the deal with KKR as investors flee from the stock today. Research from our team of in-house analysts has been quoted by The Wall Street Journal, Bloomberg, MarketWatch, USA Today, Kitco, Reuters, US News & World Report, CNBC, and more.