Commodities News
- James Hyerczyk
Reuters reported that oil producers led by Saudi Arabia and Russia reached a deal in principle on Thursday to cut output by an extra 500,000 barrels a day in the first quarter of 2020 but stopped short of pledging action beyond March.
- Thomas Hughes
Heliogen, a start-up funded by Bill Gates, has made a major breakthrough in solar technology that promises to disrupt the market.
- Andria Pichidi
During the first quarter of 2019, spot palladium was seen tumbling by more than 17% from record highs at $1,609.85, with the main catalyst of this drift possibly being the closing of positions as the end of the month and the end of the quarter (i.e. end of the contract) came.
- James Hyerczyk
Saudi Arabia has yet to comment on the extent of damage on its oil production but industry sources have said some 5-6 million barrels per day (bpd) or 5-6% of global supply have been affected.
- Mauricio Carrillo
On the week, soybean is ready to close its third negative week in the last four, wheat is fighting to close the period in a positive manner, while corn resumed its free-fall from 3.76 after last week’s recovery.
- Mauricio Carrillo
Gold reacted positively after the weak nonfarm payrolls data in the U.S. and it is recovering almost all its daily losses. Silver just exploded to the upside.
- Mauricio Carrillo
AMIS also highlighted that money managers liquidated long positions in wheat and corn, “establishing modest short holdings for both.” However, in the case of soybeans, “it added to its net short position m/m.”
- Mauricio Carrillo
Metals are mixed on the day, gold and silver are posting losses, but copper is extending its recovery from 2-year lows, while palladium and platinum are consolidating highs.
- Mauricio Carrillo
Technical indicators are signaling a bullish extension is gaining momentum in the daily chart. The positive sentiment is even more prominent in the 1-hour chart with oscillators and moving average pointing to the upside too.
- Mauricio Carrillo
XAU/USD is currently trading at 1,540, 0.53% negative on the day. The hourly chart looks bearish in the short term, but some signals of recovery are appreciated in the technical indicators.
- Mauricio Carrillo
The trend in futures of wheat is clearly bearish with the unit extending declines steadily from the 4.77 area traded on August 29. Earlier in the day, the unit broke below the 4.62 area and after a small pullback, it extended loses to test the 4.56 level.
- Mauricio Carrillo
Gold is currently trading 0.25% positive on the day at 1,535. The unit is consolidating levels above the now critical 1,520 support. Technical conditions in the short term suggest a consolidation phase in the next hours. But the overall picture suggests additional gains.
- Mauricio Carrillo
Despite the conciliatory tone, the market is reluctant to believe in everything China and the United States said, as it seems they want to have a prolonged trade war. Farmers, then, are suffering the consequences.
- Mauricio Carrillo
XAU/USD is trading sideways between 1,520 and 1,530. It seems that investors did the end-month rebalancing and profit-taking on Thursday, as the unit declined from highs at 1,550 and tested the 1,520.
- James HyerczykStrong Cash Prices Offset Bearish Natural Gas Report; Big Inventory Drop Continues to Underpin Crude
There are a record number of shorts in the natural gas market and they have to either rollover into the October futures contract, hoping for a bearish September, or they have to start covering while preparing for the Fall Shoulder Season. It looks like some have decided to lighten up
- Mauricio Carrillo
Soybeans accelerated in the last few hours to break above the 8.68 short term resistance, and it is now trading at 8.70, its highest level since August 26. Improvements in the trade war and new commercial options for US grains lifted the unit.
- Mauricio Carrillo
XAU/USD advanced to break a short term resistance at 1,545 and to trade at highs since August 25 at 1,550. However, Feng remarks sent the metal down. The unit is now trading 0.24% negative in the day at 1,536.
- Mauricio Carrillo
Futures of wheat are now trading on recovery mode, but it is facing the 4.74 short term resistance at this moment. Currently, the unit is still 0.70% negative on the day. However, a potential bullish movement is now on the cards.
- Mauricio Carrillo
Gold is heading to close its fifth straight week with gains. Just in August, XAU/USD advanced over 9% in a month that is heading to become the biggest monthly increase since February, and it seems the rally won’t stop anytime soon.
- Mauricio Carrillo
Early in the day, soybeans, wheat and corn traded sideways or negative but grains recovered ground in an improved sentiment. However, rising USD/CNY is adding more risks to farmers’ sales to China due to an expensive dollar.
![Metals such as gold and silver were trading negative on Friday on a mix of improving market sentiment and a profit booking movement ahead of the weekend. However, both metals reacted to the upside following the weaker than expected nonfarm payrolls data published today. The same story happened with palladium and platinum that are now recovering positions. Copper is extending its already daily gain. U.S. job market extends its weak note The United States created 130K new jobs in August, well below the 158K expected by market and the previous data of 159K. The last month was revised 5K down from 164K. On the other hand, the wages growth rose 3.2% in August, above the 3.1% expected by the market. However, the number is a slowdown from July's revised 3.3% data. The unemployment rate remained at 3.7% another month, while the participation rate of the labor force rose to 63.2% in August from 63.0% in the previous month. Gold recovers almost all losses after NFP [caption id="attachment_598622" align="alignnone" width="1713"] XAUUSD 1-hour chart Gold September 6[/caption] Gold reacted positively after the weak nonfarm payrolls data in the U.S. and it is recovering almost all its daily losses. Early in the day, the metal broke below the 1,520 area and fell to test the 1,500 critical level, but after the employment report, it jumped to be traded at 1,517. Currently, the unit is trading 0.16% negative on the day at 1,516. On the week, the metal is ready to close its second negative week in a row as the unit has not been able to break above the 1,550 area. XAU/USD needs a run above the 1,527 to close positive on the period. Meanwhile, it is posting a 0.30% weekly decline. Silver turns positive after NFP [caption id="attachment_598623" align="alignnone" width="1713"] XAGUSD 1-hour chart Silver September 6[/caption] Silver just exploded after the nonfarm payrolls data on Friday and recovered all its previous daily losses to turn positive on the day at 18.65. Previously in the day, silver was trading down amid improved risk sentiment and profit-taking ahead of the weekend. XAG/USD fell from the 18.60 area to trade at 18.00, its lowest level since August 27. However, the U.S. employment report ignited the pair and sent it back to 18.70, where it is trading right now with a 0.35% daily gain. On the week, silver is ready to close its fifth positive week in a row, thought the unit is trading well below weekly highs at 19.50. Copper negative after testing the 2.6400 are [caption id="attachment_598624" align="alignnone" width="1713"] XCUUSD 1-hour chart Copper September 6[/caption] Copper is trading negative on Friday as investors are closing positions around the 2.6400 area before the weekend. After testing the 2.6420 level, its highest price in over a month, XCU/USD is currently moving 0.25% at 2.6180. XCU/USD is ready to close its second positive week. The base metal is posting a 3.10% weekly gain right now. It would be its best week in over six months.](https://responsive.fxempire.com/v7/_fxempire_/2019/09/Gold-And-Silver.jpg?func=cover&q=70&width=null&height=130)
