Daily Close | Forex, Metals, Oil, Agriculture May 14, 2021



In the overnight electronic session, the July corn is currently trading at 681 ¾ which is 7 cents higher. Estimates that 80% of barge traffic in the bottleneck are transporting corn.


The dollar is trading lower in the overnight.


Yet despite gold and gold stocks correcting, the major gold miners were faring great fundamentally. As these miners’ earnings leverage gold price trends, their stocks got sucked into gold’s vexing momentum selloff. The gold miners actually proved quite resilient last quarter, as the majors in GDX generally amplify gold’s material moves by 2x to 3x. For such investors, the issue price of Gold Bond will be ₹4,727 per gram of gold, RBI said in a statement. The gold stocks were increasingly out of favor as gold itself also lost 10.0%.
less The gold miners’ stocks have powered higher in recent months, solidifying a strong young upleg. The gold stocks just haven’t rallied long enough and high enough to overpower all the festering residual pessimism left in their last correction’s wake. These major gold miners’ stock symbols aren’t all US listings and are preceded by their rankings changes within GDX over the past year. For 20 quarters in a row now, I’ve painstakingly analyzed the latest operating and financial results reported by the top 25 GDX gold miners.
The gold miners’ just-reported Q1’21 operating and financial results reveal whether their fundamentals support further big gains. While all the bearishness has left most traders convinced the gold miners are struggling, their strong just-reported Q1’21 results dispel that. Traders are skeptical about gold stocks’ upside potential, wary of another serious selloff. Still, you couldn’t give away gold stocks in early March as their last extended correction finally bottomed at GDX $30.90.
By late in the first quarter of 2021, the gold stocks were pretty much despised. We filled the trading books in our newsletters with fundamentally superior gold stocks before that, straddling the sector lows. Next comes these gold miners’ Q1’21 production in ounces, along with their year-over-year changes from the comparable Q1’20. The first quarter of 2021 was rough for the gold stocks.
Their leading and dominant benchmark and trading vehicle remains the GDX VanEck Vectors Gold Miners ETF. With GDX mean-reverting 21.8% higher in a span where gold climbed 6.6%, making for outstanding 3.3x upside leverage, you’d think traders’ sentiment would be improving. These are the only times gold miners’ fundamentals are clear.


The trends suggest that the sector and oil may have peaked for the short term and is likely to see much lower prices in the weeks ahead. If life essentially returns to normal in the months ahead, it is likely to lead to increased needs for energy and oil products. Despite many of the headlines of inflationary pressure taking place across the economy, oil prices have been stuck. Additionally, the RSI on oil has been showing the same bearish trends as the XLE and would indicate that a drop back to $57 is likely.
Oil prices were higher on Friday after Colonial Pipeline reopened its 5,500-mile pipeline, which supplies 45% of the gas the U.S. East Coast needs. Suddenly, oil appears to be weakening as higher coronavirus cases rise in different parts of the world. WTI/USD DailyClearly, the sector’s strong performance calls for a pause or, at the very least, a modest pullback. In response, June-dated crude rose $1.55, or 2.4%, to settle at $65.37 per barrel for the day.

United States

Reclaiming the 50-day simple moving average could see some follow-through higher by the Nasdaq to test support-turned-resistance around the 13,715-price level before all-time highs are reconsidered. Nearside technical support around the 12,930-price level is also highlighted by the 61.8% Fibonacci retracement level of the Nasdaq’s year-to-date trading range. The S&P 500 and Nasdaq registered strong gains as well, though the latter stands out as this week’s underperformer, logging its biggest one-week drop in over two months.
Meanwhile, the Cboe Volatility Index (VIX) — Wall Street’s fear gauge — fell for the day, but still managed to score is best week since late February.
Mohamed El-Erian suggests everybody needs to be more humble and flexible, starting with the Fed, which at some point must recalibrate policy to account for a supply shock. Inflation fears worsened after red-hot CPI data was released last Wednesday, and this intensified the Fed taper debate. There was something noteworthy in almost every sector of the markets and we had the ups and downs to prove it.
The ascending trendline connecting the 02 November and 05 March swing lows will likely be crucial for Nasdaq bulls to maintain. The Trump administration and Arab allies basically abandoned the Palestinians, giving Iran an opening it s now trying to exploit. He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post. It s transitory, insists the Fed, which keeps the stimulus pumping. This has weighed negatively on tech-heavy stock indices like the S&P 500 and Nasdaq, but less so on the Dow Jones.
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.