Connect with us
nairametrics

Commodities

Gold prices up, traders focus on President Trump’s debate

Gold futures were up 0.22% at $1,886.50/ounce

Published

on

Dollar, Gold soars above $1850, rises to 9-year high

Gold futures prices were up at the reopening of London’s trading session. This was boosted by a weaker dollar, though its upside was capped as traders’ focus is now on the U.S. presidential debate scheduled to hold today.

What we know: At the time this report was drafted, Gold futures were up 0.22% at $1,886.50/ounce. Holdings in SPDR Gold Trust (P: GLD), the largest gold-backed exchange-traded fund worldwide, gained 0.16% to settle at 1,268.89 tonnes yesterday.

READ: Nigeria will keep taking infrastructure loans to attract investments – Buhari

President Trump and Democrat’s Presidential candidate, Joe Biden, will take part in the debate, ahead of the Nov. 3 presidential elections.

Joe Biden is hoping to convince people with strong connections to working-class Americans, who had voted for President Barack Obama but switched to President Donald Trump in 2016.

GTBank 728 x 90

READ: President Trump finally bans TikTok, WeChat

In an Economist/YouGov poll, 39% of Americans predict that Trump will win the debates, while 34% predict that Biden will win.

On the COVID-19 front, the number of new COVID-19 cases in the world’s largest economy gained for the second week in a row in 27 out of the 50 states, adding to concerns over the health of the U.S. economy.

GTBank 728 x 90

READ: FEC approves $1.96 billion for Kano-Niger Republic railway

Globally, deaths from the virus topped one million, with over 33.2 million cases as of Sep. 29, according to Johns Hopkins University data.

In a note to Nairametrics, Stephen Innes, Chief Global Market Strategist at AxiCorp, spoke on the prevailing macros happening in the precious metal market. He said:

“Gold appeared to put in a good base around $1850 after a reasonably negative September, with the metal averaging a 1-2% move lower during the month in the past five years.

“It is now down almost 5% on the month, and at slightly more compelling levels to enter into longs given positions are much cleaner than ever after last month sell-off.

Jaiz bank ads

READ: Six largest tech stocks by market value lose more than $1 trillion in 3 days

Fidelity ads

“Gold is up on a weaker US dollar and more gains could be in the offing as focus shifts to US elections, political uncertainty, and geopolitical risks.

“After being mercilessly hammered lower last week, gold found some decent traction, buoyed by the USD’s retreat.”

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading and Financial Market Analysis. Member of the Chartered Financial Analyst Society. You can follow Olumide on Twitter @tokunboadesina or email [email protected]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Commodities

Crude oil prices drop by over 5%

Crude oil prices dropped more than 5% and falling below the key $40 per barrel support, at the American trading session mid-week

Published

on

CRUDE OIL, U.S Shale, Naira under pressure, as crude oil hits $25 per barrel, Oil Price: A dead cat bounce in the making?, Bears tear Crude oil futures into shreds as Brent slumps more than 20%

The slide is attributed to unexpectedly large U.S. crude oil inventories for last week reported by the government, which reinforced concerns about depleting demand for fuel amidst the worsening global outbreak of Covid-19.

At the time of writing, Brent crude traded at $39.44/Barrel down more than 5%.

Why crude oil prices are falling heavily now?

The macros weighing down on oil prices are reports coming from the EIA showing U.S. crude stockpiles gained 4.3 million barrels, against an increase of 1.23 million barrel as anticipated by energy analysts, showing there is soft demand for gasoline in the world’s largest economy.

 

GTBank 728 x 90

Continue Reading

Commodities

What next for Oil amid rising COVID-19 cases?

The market is feeling pressure amid rising COVID-19 cases in the United States and Europe, and also due to Libyan oil production.

Published

on

OPEC+ Alliance, US, Russia, Canada, Mexico reach historic deal to cut 13.4 million bpd, Oil market still uncertain over the OPEC+ deal as prices react positively, 7 oil producing countries most affected by covid-19, see where Nigeria is placed

Crude futures fell 1.9% in New York on Friday and posted their first weekly decline in three, according to Bloomberg. Libya lifted force majeure on its Ras Lanuf and Es Sider ports and oil output will surpass 1 million barrels a day in four weeks, according to the state-run National Oil Corp. A further increment in Libyan oil production will lead to more supply to an oversupplied market that is wrestling with a pandemic-induced sales decline.

This declaration comes in the wake of the ongoing tussles in the North African region, which marked a lasting truce arrangement.

READ: OPEC+ to reduce production cuts in August to 7.7 million barrels a day

Finance Minister, Faraj Boumtari, told Al-Jazeera that in recent years, the regular oil barricades in Libya have cost the nation a sum of US$130 billion in lost incomes.

The truce in Libya is just going to empower more production there and keep it consistent for some time, as the COVID-19 circumstance is not generally improving. Libya’s oil industry has been tormented by battles, as opponent groups have been battling for authority over zones in Libya and its oil terminals and ports since the overturning of Muammar Gaddafi in 2011.

GTBank 728 x 90

READ: Libya’s output could destabilise OPEC’s cuts and affect crude prices

In other news, Russia downplayed the likelihood that OPEC+ could expand its present 7.7 million barrels everyday production cuts in one year from now, as per Russian President Vladimir Putin. The remarks could be only jawboning to a market that is urgently looking for consolations that oil production will not increase excessively. However, Russia has in the past been hesitant to keep up its part of the oil production cuts; So, any notice that it is contemplating a slower tightening of the cuts is critical.

Russia had neglected to cut its own oil production to the level it consented to in 2019 and mid-2020. Given how oil production in the United States bounced back two weeks ago, however, it was still down from its March 13 high of 13.1 million bpd. U.S. oil production presently sits at 10.5 million bpd – 2.6 million bpd under those March highs, as indicated by the Energy Information Administration –

GTBank 728 x 90

READ: 4 key reasons why Brent crude might slip back to $35 per barrel

China has assumed a critical function in supporting global oil demand as of late, by bringing in its most volumes since May. In contrast, there is a slow recovery in the remainder of Asia and poor refining margins. But how long would China be able to help the fragile global oil market, when demand outside China is weak, with the second wave of COVID-19 contaminations wrecking world economies.

In recent months, China’s unrefined petroleum imports have not fallen under 11 million barrels per day (bpd), with June orders of 12.9 million bpd crushing the past record from May by more than 1.5 million bpd. The market is feeling pressure amid rising COVID-19 cases in the United States and Europe, and also due to Libyan oil production.

READ: Oil supply feared to drop by 3%, as new cases of COVID-19 infections increase

A few U.S. states detailed daily record increments in COVID-19 infections on Thursday, raising worries about future gasoline interest, while France extended curfews as the second wave of the pandemic compasses across Europe.  Oil prices rose last week when the House Speaker, Nancy Pelosi, spoke about the possibility of a stimulus package.

Jaiz bank ads

Fidelity ads
Continue Reading

Commodities

Oil supply feared to drop by 3%, as new cases of COVID-19 infections increase

Growing concern that oil supply could fall by 3% continues as a result of increasing cases of COVID-19 in the US and Europe.

Published

on

Crude oil prices slump, as partial lockdowns resume

There is a growing concern that oil supply will fall by 3%, escalating last week’s losses as a result of growing cases of COVID-19 in the United States and Europe.

This has raised worries about the market conditions – the demand and supply of crude oil. The United States reported its highest number of new coronavirus infections in two days – Saturday inclusive, while in France, new cases hit a record of more than 50,000 on Sunday, underlining the severity of the outbreak.

On the supply side, Libya’s National Oil Corp on Friday ended its force majeure on exports from two key ports and said production would reach 1 million barrels per day (bpd) in four weeks, a quicker ramp-up than many analysts had predicted.

OPEC+, a grouping of producers including the Organization of the Petroleum Exporting Countries (OPEC) and Russia, is also set to increase output by 2 million bpd in January 2021, after cutting production by a record amount earlier this year.

What you should know

Recently, Nairametrics reported that the oil prices had continued to decline as a result of worsening COVID-19 pandemic cases which are threatening to bring more restrictions on movement and consumption and ultimately hit demand for crude products.

GTBank 728 x 90

What they are saying

According to Avtar Sandu, Senior Manager of Commodities at Phillip Futures in Singapore, “New barrels of Libyan oil come at a time when the crude oil market had just faced the disappointment from the recently concluded OPEC+ ministerial panel, when the organization made no new policy proposals.”

Last week, Russian President, Vladimir Putin, indicated he may have to agree to extend OPEC+ oil production reductions if that could be beneficial in stabilizing the market.

GTBank 728 x 90
Continue Reading
Advertisement
Advertisement
Advertisement
ikeja electric
Advertisement
Advertisement
Patricia
act markets
Advertisement
FCMB ads
Advertisement
IZIKJON
Advertisement
Fidelity ads
act markets
Advertisement
first bank
Advertisement
bitad
Advertisement
Stallion ads
Advertisement
financial calculator
Advertisement
deals book
Advertisement
app
Advertisement