Daily Close | Forex, Metals, Oil, Agriculture July 30, 2020

Agriculture

So many tasty things to be found there, and tons of things that adapt to special diets, love the sugar-free sliced turkey they stock, try to find it elsewhere. Longer-term Treasuries via iShares 10-20 Year (NYSEARCA:TLH), agricultural commodities via Teucrium Corn (NYSEARCA:CORN) and data center REITs like Equinix (NASDAQ:EQIX) fit the bill.

Currencies

DCT produced a 113% net dollar retention rate for the most recent nine month period, a strong result indicating negative net churn and good service market fit. It may spell the end of the dollar as the world reserve currency, which already is gradually happening. I remember he collected gold and silver coins and was in staunch disagreement with Nixon’s move to take the dollar off the gold standard. Moreover, investors should expect a positive effect from foreign currency translations, as dollar value decreased in the three months ending June 2020.
The share of the US dollar as the world’s reserve currency has been in decline for decades. Gold is becoming a currency or an alternative to the dollar. The firm’s net dollar retention rate was 118% and 113% for the nine months ended May 31, 2019 and 2020, respectively. Gold and silver were off a bit today, and the Dollar slumped lower, falling into the 92 bucket. The pandemic is going to test the US dollar as a fiat currency.
The anticipated stimulus that’s a must to stabilize the markets is beginning to put tremendous pressure on the US dollar. The risk of a devaluation or an implosion in the dollar will be favorable for gold. China has come in and has helped some Latin American countries, which are trying to move away from the US dollar. They are becoming rival currencies to the US dollar. The predictions are for a negative effect on the dollar. In parts of Latin America, such as Ecuador, using the US dollar has been a disaster.
A breakout above resistance can be seen with resistance at 124.00 largely due to EUR options traders targeting further Euro strength. Gold is now seen as a potential vehicle to hedge the risks involved in their US-dollar denominated investments. The euro crisis of 2011 was not really resolved, and the recent European agreement on a €750B packet shows that serious problems remain. The Yuan, the Euro and other currencies are beginning to be increasingly used.
The Yuan, the Euro, and other currencies are beginning to be increasingly used.

Metals

Barrick Gold Newmont Gold Kinross Gold Yamana Gold Investors can reckon with rising share prices also for junior miners as the demand for physical gold continues to remain high. At this moment, though, it’s worth waiting for pullbacks to increase one’s allocation to SPDR Gold (NYSEARCA:GLD), iShares Gold (NYSEARCA:IAU) or Aberdeen Physical Swiss Gold (NYSEARCA:SGOL). 30, 2020 2:53 PM ET|| About: Kinross Gold Corporation (KGC)by: SA TranscriptsThe following slide deck was published by Kinross Gold Corporation in conjunction with their 2020 Q2 earnings call.
30, 2020 2:51 PM ET|| About: Alamos Gold Inc. (AGI)by: SA TranscriptsThe following slide deck was published by Alamos Gold Inc. in conjunction with their 2020 Q2 earnings call. 30, 2020 3:53 PM ET|| About: Galiano Gold Inc. (GAU)by: SA TranscriptsThe following slide deck was published by Galiano Gold Inc. in conjunction with their 2020 Q2 earnings call. It’s also important to remember that even though gold is trading in record territory right now, it’s actually been higher when adjusted for inflation.
30, 2020 3:41 PM ETby: Frank HolmesFrank Holmes Growth at reasonable price, contrarian, gold & precious metals, commoditiesU.S.
A lot, obviously, but I believe the greatest factor that’s helped drive gold prices higher now versus 30 and 40 years ago has been Federal Reserve policy. Gold has been in a rising wedge pattern since the start of the year, and the bottom of that wedge is currently around 1830 and rising. In all three cases, the price of gold declined on average, with the three-month period giving up the most at 9.78 percent.
The trigger for such a steep increase is about the gold price momentum, which recently cleared $1,900 per ounce and closed at today. After the doc.com crisis in the year 2000, the gold price started moving up as investor sentiment changed. It shows gold’s average return one month, three months and six months after the metal’s RSI exceeded 85. In all three cases, average gold returns were positive, with the six-month period highest at an average 7.3 percent. In gold and silver, we have seen an incredible rally already in a short time period.
Not only that, but according to the 14-day relative strength index (RSI), gold is extremely overbought at 87.5, the highest reading since September 1999. Taking your profits after gold looked overbought, then, has generally not worked in investors’ favor since 2000. Gold prospecting has taken on new glitter with the rise in price of the yellow metal. Note: I would also look to precious metals like gold. National debt per birth in the United States has been climbing exponentially since going off the gold standard and accelerated rapidly after 2000.

Oil

Given the storage overhang and the fact that oil prices did front-run fundamentals, the market will need to take its time to eliminate the storage overhang. US crude storage registered the largest draw this year in yesterday’s EIA oil storage report. Source: EIA, HFI Research US crude storage draws will continue thanks to persistently lower crude imports and higher crude exports. Directionally, the forces that pushed US crude storage lower will continue with lower imports as the key drivers, while US crude exports and refinery throughput pick up.
Still, the proposed legislation highlights the growing divide between environmental justice campaigners and the oil and gas industry, and the ever-growing opposition to pipelines in North America. The Supreme Court, however, allowed other pipeline projects to return to use that permit aimed at fast-tracking construction of vital oil and gas infrastructure. precipitated by the abrupt decline in oil prices and the crisis in the automotive industry; ROK includes these two end-markets into the and industry segments, respectively.
Based on our preliminary estimate, US crude storage is set to drop to ~490 million bbls by the end of August, thanks to persistently low levels of imports. In other words, if ROK was focused only on the oil & gas and automotive industries, its FQ3 revenues would easily crater and fall by ~25%-30%. Weaker demand and significantly lower oil prices are holding down consumer price inflation.
in the House committee, the House, and the Senate, Dakota Access and – to the delight of environmentalists and to the frustration of the oil and gas industry.
However, the oil sector is still weak, and demand is not about to jump anytime soon until a vaccine can be made and distributed widely. Courtesy: OGC Energy Photo: Christopher Gregory The US-based independent oil and gas producer Hess Corp. (NYSE:HES) released its second-quarter results on July 29, 2020. We suspect oil goes lower given the dismal demand in the real economy. de C.V. (VIST)by: SA TranscriptsThe following slide deck was published by Vista Oil & Gas, S.A.B.
There was no net production for Libya in the second quarter of 2020 due to the declaration of by the Libyan National Oil Corporation. Source: EIA, HFI Research Implied oil product demand is now only ~10% below last year’s level. Lastly, US oil demand recovery is happening faster than we expected given rising COVID-19 cases. The oil demand collapsed as the world economy retreated to survival mode to stop the rapid spread of COVID-19. Crude oil output was in the second-quarter 2020.

United States

Here’s the entire time series of the data:The US labor market has never seen an initial jobless claims data spike like this one. Three months later:The fury this tweet inspired led Trump s campaign to say the president was simply raising a question about delaying the election. When Apple (NASDAQ:AAPL) reports its fiscal 2020, Q3 earnings later today, investors will be looking to justify the 70% rally in the company’s shares since the March dip. Obviously, the most important news this week was the Fed’s policy announcement, which said the Fed would keep rates at 25 basis points.
The approval rating of governors’ handling of the coronavirus pandemic has fallen all across the US since April, as states are still struggling to tackle the outbreak. New York was the epicentre of the pandemic in the US earlier in the year and recorded its highest daily death total of 799 people on 9 April. These latest CBO projections clearly illustrate that the destructive effects of the pandemic and the shutting down parts of the US economy is not limited to a single year.
As the COVID-19 pandemic continues to grow in the US, work from home measures appear as though they may be staying around for a while yet. According to Johns Hopkins University some 4.4 million people have now tested positive for coronavirus in the US and the death toll has reached 150,765. His comment came after Mr Trump for months declined to wear a mask in public even during two waves of coronavirus.
Mr Trump’s top aides continue to claim he was never briefed on the intelligence because it was not 100 per cent verified. The co-founder of Republican anti-Trump group The Lincoln Project has called congressman Louie Gohmert ”America’s craziest and dumbest congressman”, following confirmation he tested positive for coronavirus. The country is imploding from within – all the Trump administration cares about is optics ahead of the election and the stock market. The index tracks the 100 largest non-financial stocks listed on the NASDAQ exchange.The index includes tech giants likeGoogle parent companyand, among others.
This was my conclusion: The US economy has quickly changed from modest expansion to depression level data in a mere 2-3 months.
Mr Trump once said he preferred to skip a face covering because he did not like how he looked in one. Investing.com Follow During the bull run of the past decade, technology stocks have led Wall Street higher. The Fed will continue to engage in yield curve control to keep rates low. The paper concluded: However, yield curve control does have positive effects that the Fed should keep in mind.
During the bull run of the past decade, technology stocks have led Wall Street higher.

China

The letter renews pressure on Zoom, which had seemingly overcome speculation that it was vulnerable to infiltration by Beijing, after the company repeatedly kowtowed to CCP officials.

Europe

MPs approved the Immigration and Social Security Co-ordination (EU Withdrawal) Bill at third reading by 342 votes to 248, a majority of 94.

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