Open: New York Session | Forex, Metals, Oil, Agriculture January 18, 2021

A member of the National Guard plays a trumpet during a flag rai


A Dec. 31 degree banning the use of genetically modified corn over three years has sparked a frenzy of lobbying urging officials to reconsider.


MARKET NEWS Gold prices firmed, as prospects of a massive U.S. coronavirus relief aid outweighed a stronger dollar and lifted bullion’s appeal as an inflation hedge. The US dollar has also been strengthening over the last couple of weeks with the expectations that the fiscal stimulus would spur economic demand supporting the currency. Doubts surrounding US stimulus plans alongside rising demand for safety may be contributing to the Dollar’s strength. The euro was mostly flat against the dollar, with 1 euro buying $1.21.
The rising US Dollar and uncertainties surrounding US President-elect Biden’s 1.9 trillion stimulus plan appear to be the primary weighing factors. “The US dollar Index is trading flat this morning in Asian trade against major peers. Phillip Futures analysts noted that the impact of the U.S. dollar and Treasury yields on gold prices would only be short-term. less We come into Monday with risk sentiment in deterioration mode and the US Dollar back in demand.
Source: Bloomberg, DailyFX The US Dollar Index advanced to 90.83 – the highest level seen in more than a month. That is, it wasn’t a 737 MAX with the maneuvering software coded in part by $9 dollar per hour Indian contractors.


Stainless steel climbed 1.7 per cent.Dalian coking coal dropped 0.4 per cent, while coke slumped 1.4 per cent. In the previous session, gold prices had declined Rs 500 per 10 grams while silver had slumped Rs 1,700 per kg. Source: Bloomberg, DailyFX Last week, the world’s largest gold ETF – SPDR Gold Trust (GLD) – saw its shares outstanding decease by 1.4 million as redemptions outpaced subscriptions. Today I take a look at Wave 4 developing into a more complicated correction for Gold and Silver, that would bring US spot Gold down to the 1720 area.
Copper prices advanced as traders bet on prospects of improved demand, after top metal consumer China posted stronger-than-expected growth and solid industrial output data. The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions. On MCX, gold futures fell 0.1% to over one month low of Rs 48,636 per 10 grams, extending their decline to the third day.
The world’s biggest coal miner and consumer produced 3.84 billion tonnes of coal in 2020, data from the National Bureau of Statistics showed on Monday. Gold prices are trading up 0.4% at Rs 48,880 per 10 grams. It stabilized the demand for gold since it is often used as a hedge against currency debasement and inflation, which are the likely result of a large fiscal stimulus.


Saudi seaborne crude exports for last week were seen at 42.6 million bbl (6.1 million bpd) compared to the revised 38.6 million bbl (5.5 million bpd) the week prior. Weekly Iraqi crude exports fell marginally by 0.4 million bbl to 23.6 million bbl (3.4 million bpd). Emissions of planet-warming methane fell last year as oil and gas production declined, but they were still equivalent to the European Union s total carbon dioxide emissions. Oil production is responsible for around 40% of the energy industry s methane emissions, with the natural gas value chain accounting for the remaining 60%.
While that could change if natural gas prices rise, as they have done in recent weeks, regulatory action will be essential to tackle emissions, IEA said. US shale producers have been adding further pressure by bringing online more oil and gas rigs as the WTI prices have held strong above the $50/bbl mark. Oil rigs (RIG-OL-USA-BHI) rose by 12 to 287 and gas rigs (RIG-GS-USA-BHI) rose by 1 to 85, the highest since May as per data by Baker Hughes.
Fixing methane leaks would be cost-effective for energy companies because the captured methane can be sold as natural gas.
Prices had been buoyed by the start of COVID-19 vaccine rollouts and a surprise cut of crude output by the world’s biggest oil exporter, Saudi Arabia. After all, the demand for crude oil is a bit suspect at this point in time and we had seen such a rise from the lows.

United States

Nasdaq Futures are trading down by 20 points (down 0.2%) while Dow Futures are trading down by 31 points (down 0.1%). The arbitrage remains workable on paper, although is under pressure by two-consecutive weeks of stock builds in the US as the pandemic continues to pressure demand. Fed Chair Jerome Powell, laid his foot down last week by ending talk of an early tapering of bond buys, which had boosted the greenback beforehand. A lot of the risk-off flow has been chalked up to a sell the fact reaction after the US $1.9 trillion stimulus package was finally unveiled.
US stock futures are trading lower today, indicating a negative opening for Wall Street. Denmark is inching closer to the US in cumulative vaccinations per capita, Italy & Spain are showing good preparedness compared to the rest of the EU. On the one hand, the Fed eased the monetary policy to the extreme. He is an avid market watcher having followed capital markets in the US and India since 1993.
The Nasdaq is running along a support trendline which also closely maps the 20-day MA. The US 10-year benchmark yield has climbed around 60bp since late summer.


Recent market moves support the credibility of the ECB bond purchases in keeping yields and spreads low. “ The focus of Thursday’s ECB meeting will be on Lagarde’s comments on the future of bond purchases and the difference of opinion between hawks and doves. Partly in response to the pressure from the hawks, the ECB will try to scale down the pace of its bond purchases. No changes to monetary policy are expected at Thursday’s meeting, so all focus will be on Lagarde’s comments.
The ECB will see little need to make changes to its monetary policy at its meeting on Thursday. In Britain’s case, uncertainty over the outcome of the country’s complicated divorce from the European Union extended that weakness into early fall. The ECB’s concerns about FX moves are unlikely to have increased materially since December. That followed two quarters during the height of the pandemic and Brexit uncertainty when there were no such standoffs. The ECB is thus unlikely to feel it needs to toughen its rhetoric on the currency.
German Foreign Minister Heiko Maas is visiting Turkey today, as the EU and Ankara work to defuse tensions.