Commodities News

XAU/USD jumped to trade as high as 1,535 on Tuesday, its highest level since April 2013. But, US CPI is pushing prices down, and it is currently trading at 1,521, 0.66% positive on the day.

The USDA released the WASDE report with its recalculations about US and global grain productions. Overall, farmers will be able to have more production than previously expected in the marketing year 2019-2020.

Technical studies suggest that gold is ready for more gains, but a period of consolidation is needed due to overbought conditions. To the upside, resistance is at the mentioned 1,510. Then, check the 1,530, and the 1,560 for selling zones.

The market is inside profit taking and repositioning ahead of the WASDE report that will be released Monday. Experts are anticipating progress in crops, and more bushels per acre than the reported previously by the WASDE.

And even worse, experts are now asking themselves how U.S. President Donald Trump will answer to China Yuan depreciation. Think twice, a sanguine temperament person who always wants to looks like the winner.

Investors are digesting recent news on political, social and economic conditions. The recovery looks to be short-lived and everything will be decided next Monday with the WASDE report.

The data helped stabilize bond yields and, for instance, metal prices such as gold and silver, which are trading in a consolidation pattern.

The trade war between the United States and China has no end in sight after the latest escalation as the U.S. called China as a currency manipulator and Beijing retaliated saying that they won’t purchase any agricultural product from the United States

The ongoing trade war is dominating the headlines, and investors are really concerned about global stability and economic health. It is driving traders away from riskier assets and fueling traditional safe haven assets like gold.

While the situation is somehow in line with the expectations, July and the starting of August has been a period of no advancement in crop conditions.

Market sentiment is currently on a fragile situation as experts are finally accepting that there will be no deal between the U.S. and China in the middle term. In fact, Goldman Sachs’ analysts now believe that an agreement will not be reached anytime soon.

Grains as soybeans, corn, and wheat have opened the week with losses after the USD/CNY broke the 7.000 level for the first time in a decade as China let it do it as a retaliation for the latest president Donald Trump tariffs measures.

The trade war between the United States and China has now entered in a new phase as experts are now considering that China abandoned any hope for a trade deal with the U.S. Real concern about global growth has taken the market. Risk aversion is the theme of the day,

In that framework, political, economic, and hard weather conditions included, grains are posting small gains on Friday. Also influenced by profit booking on the last day of the week.

Risk-Off sentiment is taking the market as the NFP report failed to move the market as the numbers were decent, mostly in line of expectations, but neither too good or too bad.

Grains investors focus now on Friday’s employment report. Not for a direct impact from NFP, but as a way to check what Jerry Powell and colleagues will be doing in the next meetings with a strong or weak employment report.

Jerry Powell sent a clear message yesterday. Not too fast regarding rate cuts and then the dollar soared, sending gold down. Perspectives of a one and done rate cut are now higher. However, yes, more rate cuts are not out of the table.

Currently, prices of soybean are moving at 8.710, posting 0.33% daily losses. The technical picture remains pretty negative, but a brief period of consolidation is expected ahead of the FOMC meeting.

Also, keep in mind that today is the last day of the month, so, experts are waiting for significant movements right after the FOMC decision. Potential profit taking and rebalancing are on the cards for gold, silver, and other metals.

Natural gas futures strengthened on Tuesday as traders lightened up on the short side on the thought that excessive concerns about cooling temperatures had produced oversold trading conditions.