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Gold Dips Despite Trump Being Covid Positive; Gains on Week By Investing.com

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By Barani Krishnan

Investing.com – Gold’s standing as a safe-haven became more questionable on Friday as its prices dipped despite President Donald Trump testing positive for the coronavirus. The dollar, the yellow metal’s nemesis, gained instead, once again highlighting the bizarre relationship between the two in recent months.

settled at $1,907.60 an ounce on New York’s Comex, down $8.70, or nearly 0.5%, on the day. It fell as much as $21 earlier in the session, hitting a session low of $1,895.20.

For the week though, the benchmark gold futures contract rose 2.2%, accounting for gains made earlier in the week.

, which reflects real-time trades in bullion, was down $4, or 0.2%, at $1,902 by 4:04 PM ET (20:04 GMT), after a session low at $1,889.93.

Trump announced via Twitter on Thursday night that he and First Lady Melania Trump had tested positive for the COVID-19, hours after he tweeted that Hope Hicks, one of his closest aides at the White House, had been infected as well.

Yet, gold, the perceived safe haven for both financial and economic troubles, fell sharply after the news about Trump broke, before its partial recovery later in the day.

The , which pits the greenback against six major currencies, was up 0.2% at 93.918 late on Friday. The dollar has gone from strength-to-strength since early August — despite a gaping U.S. fiscal deficit from coronavirus-related spending, a record recession, historic unemployment and other economic ills brought on by the pandemic.

The logic-smashing rally in the DX, as the index is also known, has been one of the main reasons for gold’s inability to recapture the $2,000 highs it fell from in August.

Another reason for gold’s anemic performance has been the lack of new U.S. economic stimulus for COVID-19, with the first, passed by Congress in March, having run out of its approved $3 trillion.

Republicans aligned with Trump and their Democrat rivals in Congress have been unable to agree on how large the next stimulus should be, with the White House suggesting for a package of just around $1.5 trillion against the $2.2 trillion proposed by Democrats.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Commodities

U.S. shale mergers accelerate, with Pioneer-Parsley deal looming By Reuters

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© Reuters. FILE PHOTO: A horizontal drilling rig on a lease owned by Parsley Energy operates in the Permian Basin near Midland

By Jennifer Hiller and David French

HOUSTON/NEW YORK (Reuters) – Consolidation in the U.S. shale industry is accelerating, ratcheting up pressure on oil and gas producers to gobble up smaller rivals, analysts and executives said.

Among those in play, Pioneer Natural Resources (NYSE:) Co, one of the largest independent shale operators, is considering a low-premium buyout of Parsley Energy (NYSE:) Inc, which could be announced as early as Tuesday, according to sources.

The coronavirus pandemic has slashed oil demand and forced struggling shale producers to cut costs as they cope with a suboptimal $40-per-barrel crude price, an uncertain outlook, and the need to invest to keep production flat due to the swift rate at which shale well output declines. Global majors are not likely to step in, so analysts expect the dwindling universe of notable producers to seek out deal partners.

“The universe of companies with which you can combine is shrinking by the day,” said Matthew Portillo, managing director at investment bank Tudor, Pickering, Holt & Co.

On Monday, Concho Resources (NYSE:) Inc agreed to sell to ConocoPhillips (NYSE:) for $9.7 billion. That followed Chevron Corp (NYSE:)’s $4.2 billion purchase of Noble Energy (NASDAQ:) this month, and Devon Energy Corp (NYSE:)’s $2.6 billion all-stock, low premium buy of rival WPX Energy (NYSE:) Inc in September. European majors are avoiding new oil and gas purchases and Exxon Mobil Corp (NYSE:) is cutting costs, making them unlikely candidates for a deal.

“Those without very strong balance sheets are trying to survive,” Concho Resources Chief Executive Tim Leach said in an interview on Monday, when the Conoco deal was announced. Leach said companies with stronger balance sheets will buy weaker firms.

Investors are increasingly looking for companies with market values of at least $5 billion, preferably those that pay dividends. While most of the larger shale firms pay dividends, a Refinitiv Eikon index of U.S. oil-and-gas producers has lost 55% this year, compared with the S&P 500’s 7.4% rise.

“The outlook for the smaller companies in the sector has diminished,” Portillo said.

Buyers could include Marathon Oil (NYSE:) , Apache Corp (NASDAQ:) and EOG Resources Inc (NYSE:), while Cimarex Energy (NYSE:), PDC Energy (NASDAQ:) and Parsley are top consolidation candidates, Portillo said.

Financial buyers could emerge as buyers, as many companies carry heavy levels of debt.

“It’s going to take the banks to take over on companies and consolidate them into bigger companies,” said one shale executive, who did not think many companies had strong enough balance sheets to acquire rivals.

Bankruptcies are up 21% so far this year among energy producers, according to law firm Haynes and Boone.

Even combined companies would “still have to walk the tightrope” between trying to return capital to shareholders and spending to keep high-decline shale fields pumping, said Andrew Dittmar, M&A analyst at Enverus.

Shale output rebounded during the summer after the initial pandemic-induced lockdowns, but companies are investing less now. Shale production is expected to fall by 123,000 barrels per day in November, the largest drop since May, according to U.S. Energy Department figures.

Deals must add to cash flow, not add too much debt and have small premiums, said Jennifer Rowland, analyst with Edward Jones. “Any deal that requires significant cost savings or a higher oil price to justify the price paid will not be well-received,” she said.





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Looking To Buy Heating Oil – Growing Your Money

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Looking To Buy Heating Oil

Source: Getty Images

Heating Oil Futures—Heating oil futures in the December contract is trading higher by 120 points at 1.1785 breaking a 3-day losing streak as prices are still hovering right near a 6 week high.

I have not talked about this commodity for quite some time, but I do believe that a possible bottom has been formed as I will be recommending a bullish position if prices break the October 8th high of 1.2050 while then placing the stop loss under the October 2nd low of 1.08 as the risk would be around $5,000 per contract plus slippage & commission as this is a large contract.

Heating oil is trading above its 20 day but still slightly below its 100 day moving average as prices have been stuck in the mud over the last several weeks, as we enter the highly volatile winter season when the volatility generally can have tremendous spikes due to extremely cold weather conditions especially out in the Eastern part of the United States so look to play this to the upside as I believe the commodity markets look very strong. 

TREND: MIXED–HIGHER

CHART STRUCTURE: IMPROVING

VOLATILITY: AVERAGE

 

 

 

If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com

TWITTER—@seeryfutures

 Email: mseery@seeryfutures.com
If you’re looking to open a Trading Account click on this link www.admis.com

 

 

 

There is a substantial risk of loss in futures and futures options. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor.



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U.S. to probe aluminum foil imports from five countries By Reuters

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© Reuters. First post-lockdown cabinet meeting in London

WASHINGTON (Reuters) – The U.S. Department of Commerce will investigate aluminum foil imported from Armenia, Brazil, Oman, Russia and Turkey for potential dumping or unfair subsidies, it said in a statement on Tuesday.

The department said it would take up the probe following a petition from an industry trade group as well as three of its member companies.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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