Daily Close | Forex, Metals, Oil, Agriculture November 25, 2020



After the piece is published, they launch an internal revolt and take to social media to denounce their own newspaper for having dared to publish Cotton’s words. Then New York Times employees pen a letter to Times management demanding the newspaper publish a refutation of Cotton’s position. Reports indicate that some Cotton could have been damaged in Georgia and the Carolinas and into eastern Virginia due to the excessive rains caused by the hurricanes.
less image source General Comments: Cotton closed lower and gave back some of the gains made on Monday. In the fallout, Bennet admits that he didn’t read the Cotton op-ed before it was published and left that job up to his number two. As demanded by the mob of staff, the Times adds an editor’s note to Cotton’s column.


Overall, from 1913 into today’s value, one US dollar got devaluated down to four cents only thanks to governments constantly inflating the money supply. Source: ETFdb Long-term, we remain bullish on GLD because we do not expect sluggishness in the U.S. dollar to end any time soon. With just a few days (of illiquid markets) to go, Source: Bloomberg As the dollar dumps to its weakest against its fiat peers since April 2018… A definitive close below $92 could re-test the $87 level–where the dollar topped in 2009– and bring further gas for the risk rally.
Treasury yields today are betting on a dollar bounce. Now, the dollar is entirely dependent on the trust in government.


Ultimately, this behavior suggests that we could see direct investment consequences that will negatively impact total inflow levels associated with the SPDR Gold Trust. * * * On another note… We think gold could DOUBLE and silver could increase by up to 5 TIMES in the next few years. Therefore, we think that investors should switch some of their bond allocation for gold in order to protect themselves against a sudden regime change in the medium term. Today’s clue is that since the USD Index might be breaking lower here, gold should have reacted with a visible rally – if it was past a bottom.
So, why not hold gold now, which has ‘unlimited’ upside, rather than bonds, which have very limited upside? The invalidation of the intraday breakdown below this level was what triggered the biggest part of gold’s decline on Monday (Nov 23). In 1971, Nixon abolished the gold standard and with it, trust got challenged to the next level. Well, I can tell you about some of the clues that yesterday’s decline provided and about one from today’s pre-market USD and gold trading.
Specifically, we can see that central banks have altered course and become net sellers of gold assets. Radomski is the author of Sunshine Profits’ Gold & Silver Trading Alerts and many of company’s investment tools. In just the last month alone, the SPDR Gold Trust has encountered outflows of -2.79 billion. That’s why we published a new, 50-page long Ultimate Guide on Gold & Silver that you can download here.
This subtle clue tells us that gold hasn’t formed a bottom yet. There simply is no clear catalyst for gold to rally and it can only go further down from here before bottoming. Conversely, gold reacted with a small decline. As a reminder, gold was up 7.6% in Q4 2018 and 3.6% in Q1 2020 when equities plummeted by 14% and 20%, respectively. Source: Bloomberg Its been an ugly month for PMs as copper and crude exploded higher… hope!


The last few days continue this trend, though oddly this time, the stock is rallying along with the electric vehicle space which competes with renewable natural gas vehicles. These ratings are far better than gasoline and diesel around 100 and above, but the market just isn’t moving towards renewable fuels very fast. These companies have all the momentum and will reduce the shift to natural gas fuels. Looking below, we will start with Oil & Gas.

United States

The Fed is likely to act in December with an increase in the duration of the asset purchases as was also hinted by FOMC member Evans last Friday. Meeting minutes showed that Fed is debating how to change the asset purchases in December, which makes an Operation Twist highly likely. We also think that the Fed intends to launch a set of guiding principles on how long the asset purchases will run for. As such, the Fed will do everything in its power to not only short circuit the business cycle in perpetuity, but also avoid any market drops… ever again.
The Fed is annoyed with Mnuchin’s decision anyway, why it makes a dovish decision in December even more likely than it already was.
President Trump may be a populist, but the first major legislation he signed included a cut in the corporate income tax rate. Even being conservative and taking France’s 5% penetration would imply 5x market growth in the US. The Fed has slashed short-term interest rates back to roughly zero and taken other measures to stabilize the financial markets. If you want a reason for stocks exploding to new all-time highs over and over again, it’s this TSUNAMI of liquidity the Fed has provided.
Also, as the New York Times reported (to the chagrin of progressive Matt Stoller) Joe Biden would appoint former Fed Chairwoman Janet Yellen as Treasury Secretary. The Fed’s balance sheet exploded by over $60 billion this week, pushing it to new all-time highs of $7.2 trillion. WAM of the Fed SOMA portfolio We still find that the USD curve is likely to steepen (markedly) during 2021. Company overview from Aqua Metals, Inc.’s (NASDAQ:AQMS) annual report: “Aqua Metals is seeking to reinvent lead recycling with its patented and patent pending AquaRefining™ technology.
The hope here is that in the next 2-3 years, just as Humira’s patent network collapses in the US, otilimab can hit the market. There are significant differences between Biden and Trump on other areas, such as immigration and foreign policy, but Corporate America would thrive under either. Put another way, This time around, the Fed spent it in EIGHT MONTHS.
The company estimates a massive potential TAM as only 1% and 2% of all pets in the US and Canada have some form of insurance. Forget Joe Biden or Donald Trump, globally central banks and governments have spent $14 TRILLION this year. The Wall Street firm is forecasting a record holiday for e-commerce, with sales growth of 33%, an 18% jump since last year. President Biden, it is said, will find a way to rejoin the Iran nuclear deal from which Trump rudely exited.


In August/September 2017, EUR/USD tested 1.20 a couple of times before the ECB’s Benoit “Gandalf” Couré intervened rhetorically over several days. EUR/USD traded lower over the following months in conjunction with dovish ECB signals. The European Central Bank’s (ECB) balance sheet ALSO hit a new all-time high this week.