Open: New York Session | Forex, Metals, Oil, Agriculture May 21, 2021



But right now, it s companies seemingly in panic mode, scouring the world for copper, corn, chips and cardboard. Meanwhile, heavy rain has primed America s bread basket for a record wheat yield, even as it raises concerns about crop quality.


Strong local equities and currencies, anticipated dollar inflows and the improving India pandemic situation could also lend support to the local unit, the note added. The downturn in gold, however, remained capped by the persistent weakness in the US dollar and the Treasury yields, as markets overlooked the Fed’s tapering jitters amid risk recovery. Image Source: Pixabay The sentiment around gold price remains underpinned by the continued rise in gold exchange-traded funds inflows and a bearish consolidation in the US dollar alongside yields.
US 2y real rates are record low, undermining the dollar Despite depressed US real rates, risk sentiment has struggled over the past week. If Nasdaq faces substantial downside, the dollar may initially weaken Investors generally see rising inflation as the biggest risk for equities, and growth stocks (i.e. At the interbank foreign exchange, the domestic unit opened at 72.98 against the dollar, then inched higher to 72.97, registering a gain of 15 paise over its previous close.
less Gold prices gained on Thursday as the anti-fiat yellow metal capitalized on a weaker US Dollar and falling longer-term Treasury yields. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.06 per cent to 89.75. For instance, the average initial move in the dollar when the Nasdaq index (eventually) dropped by more than 30% is for a plunge of ~5%. The dollar was slighter lower, while gold steadied.


To know more about gold, check out our article on how to invest in gold here: How to Invest in Gold? So far this Friday, the risk sentiment remains tepid amid stabilizing crypto markets and renewed covid concerns, which helps gold price to recover towards $1880. Note that despite the recent fall, gold is near four-month highs amid rising inflation expectations and concerns over the resurgence of coronavirus cases in many countries. Sellers reclaimed ground and pushed gold price lower towards $1870 in the North American session, as the Wall Street stocks recovered from the crypto crash led broader market sell-off.
For David, his lack of faith in central banks and concerns around inflation make gold an excellent investment. Gold prices in India were under pressure in early trade today amid a drop in global rates. Gold price (XAU/USD) extended its choppy trend into the second straight session on Thursday, although remained within a familiar range below the three-month highs of $1890.
Gold prices are trading down by 0.3% at Rs 48,408 per 10 grams. Gold prices are trading down by 0.2% at Rs 48,444 per 10 grams. Gold and silver acted like a store of value, while the cryptocurrency market showed investors how volatile they could be.


Also, fuel oil stocks showed a draw of 51,000 mt to 1.21 million mt, the lowest level in four months. Oil prices rose more than 1% on optimism that vaccination programmes in Europe and the U.S. would allow more people to travel and boost fuel demand. From Oil Town to Solar SanctuarySpeaking of going green, the birthplace of China s oil industry is being reborn. All sectoral indices are trading in green with stocks in the banking sector and oil & gas sector witnessing most of the buying interest.
However, rising Iranian production and a drop in Indian demand due to increasing Covid-19 cases do not bode well for oil prices. Global oil benchmark Brent crude futures rose 0.31 per cent to $65.31 per barrel. Commodities had a mixed week, with oil losing or gaining about 3% in more than two days this week. We visit a quirky hamlet in Sweden and a Chinese oil town to see the changes being wrought as the world goes green. Yumen, on the edge of the Gobi desert, is slowly falling apart as it s rebuilt to the west, with wind turbines and solar panels instead of oil derricks.
Similarly, gasoline stocks dropped by 73,000 mt to 1.23 million mt.

United States

After all, the Fed’s preferred inflation gauges have been below target ~90% of the time since the inflation target was formalised in January 2012. Image Source: Pixabay A reason why the yellow metal may have climbed on Thursday was falling inflation expectations, which drives what investors think the Fed could do. However, the financial market participants typically trade in anticipation of policy turns, and this is the first time the Fed has hinted at one such turn.
Presumably, the Fed isn’t saying inflation will go back to zero…maybe they mean it will go back to 2% on core? The market extended early gains in the first half owing to strong global cues from the US and Asia-Pacific markets. But if inflation expectations keep rising – especially if they were to do so in the absence of actual price rises, the Fed might panic at some point. However, today’s bubbles and the recent real estate bubble are not based on anything but the faith in 12 Fed idiots who supposedly have your back.
The stock market did not like the Fed’s signal, and the main indices reacted accordingly. US stock futures are trading higher today, indicating a positive opening for Wall Street. Today, Wall Street continues to use Zacks research including the Zacks Rank and Zacks Equity Research, which combines the best of quantitative and qualitative analysis.


The people said officials of at least two government agencies in Beijing and Shanghai have been instructed verbally by supervisors not to park their Tesla electric cars at work. Also in China, a Xinjiang-based polysilicon producer has broken an industry code of silence, campaigning to avoid sanctions over allegations of forced labor at rivals. Of course, Beijing’s ability to hit emissions targets will depend on the type of energy used, not just how much.


We believe the EU cannabis market played a key role in the decision to merge and will monitor how this aspect of the story advances from here. The EU taxonomy became the subject of fierce lobbying from industry and member states a fate that the U.S. could avoid. Vaccine, travelThe European Union moved forward with a plan for EU-wide vaccination certificates, after announcing the bloc will reopen for quarantine-free travel from countries deemed safe. The U.S. can now draw lessons from other countries, particularly the European Union, which is several years into developing and deploying a wide-ranging sustainable finance agenda.
David Merkel is an investment professional, and like every investment professional, he makes mistakes. David J. Merkel, CFA — 2010-present, I run my own equity asset management shop, called Aleph Investments. A few years ago, was considered to be a leading cannabis operator in the EU. The price action could pick up or slow down in the wake of European macro stats and Christine Lagarde’s speech.
In March he told the Financial Times that the U.S. was unlikely to adopt this EU system, despite appeals from France. Their experiment has big potential, especially as the EU pushes legislation to back such projects.