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Gold Wraps With Weekly Loss After Sting From No Stimulus By Investing.com

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By Barani Krishnan

Investing.com – Gold prices ended a tumultuous week lower as the White House’s back-and-forth on a new coronavirus relief deal hurt those with long positions in the yellow metal.

settled at $1,906.40 an ounce on New York’s Comex, down $2.50, or 0.1%.

For the week, December gold lost about 1%, most of it from Tuesday’s 1.8% plunge after skepticism expressed by Treasury Secretary Steven Mnuchin on the chance of reaching a new Covid-19 stimulus deal with House Speaker Nancy Pelosi.

, which reflects real-time trades in bullion, was down $6.63, or 0.4%, at $1,902.06 by 1:49 PM ET (17:49 GMT).

“With the consolidation in gold having likely run its course, the yellow metal is now tracking closely to other momentum-crash precedents, which suggest continued range-bound markets and consolidation until the next catalyst,” TD Securities said in a note. “With that said, stimulus-on/stimulus-off newsflow impacts price action on a day-to-day within the range.”

Mnuchin said Tuesday that he did not expect to reach a deal on a new instalment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act with political rival Pelosi before the Nov. 3 U.S. election.

Congress, led by Pelosi and the Democrats, approved the original CARES package in the second quarter of this year, dispensing roughly $3 trillion as paycheck protection for workers, loans and grants for businesses and other personal aid to qualifying US citizens and residents.

Democrats have been locked in a stalemate since with Republicans, who control the Senate, on a successive package to the CARES, arguing over the size of the next relief, as thousands of Americans, particularly those in the airlines sector, risked losing their jobs without further aid. President Donald Trump, who seeks a second term of office in the Nov. 3 election, has accused Pelosi of playing political football over the issue. The House Speaker retorted that any stimulus should be to the advantage of all Americans, and not for Trump’s political expediency.

Following Mnuchin’s remarks on Tuesday, more confusion has reigned on the matter.

The Treasury Secretary Steve hinted at a modest and “targeted” package, suggesting that Pelosi move some $300 billion of previously allotted money to needy Americans. Trump floated a $1.8 trillion package, while rambling that he might even do more than the $2.2 trillion demanded by Pelosi. Senate Majority Leader Mitch McConnell, meanwhile, said he could only get votes for a $500 billion deal.

Stimulus talks aside, gold has been supported by a spike in European Covid-19 caseloads, as Italy again moved near the danger zone last seen in March while the U.K. and France imposed new movement restrictions. In the United States, new cases are up in 39 of the 50 U.S. states.

“Gold has aligned itself with riskier assets this year so a number of things could be the catalyst for an explosion higher, be it a COVID vaccine, US stimulus deal, perhaps even a smooth uncontested election,” said Craig Erlam, analyst at New York’s OANDA.

“The downside risks remain considerable though which is why we’re increasingly seeing this fence sitting. No stimulus or vaccine announcement – or further setbacks in trials – and a contested election in the coming weeks at a time when COVID cases are rising fast could be very negative for risk appetite and hit gold hard,” said Erlam, adding that a test of $1,800 was still possible.

TD Securities also cautioned that prevailing macro tailwinds could prod hedge funds to liquidate gold. “Indeed, the trigger to catalyze a modest liquidation now stands at $1893/oz. A trigger of this level could potentially mark peak capitulation as even systematic trend followers would be set to liquidate some gold length.”





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Commodities

Have Wheat Prices Topped Out ? – Growing Your Money

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Have Wheat Prices Topped Out ?

Wheat Futures—Wheat futures in the December contract  is currently trading lower by 10 cents at 6.22 a bushel or 1.62% this Monday afternoon in Chicago as many commodity sectors are lower today due to the fact that the Coronavirus is making new headlines once again as the Dow Jones Industrial Average is down nearly 900 points.

Wheat prices are trading far above their 20 and 100 day moving average as the trend remains to the upside, however for the bullish momentum to continue prices have to break the October 20th high of 6.38 which happened in last week’s trade.

I have been recommending a bullish position over the last month or so from around the 5.40 level and if you took that trade continue to place the stop loss under the 2 week low on a hard basis only standing at 5.87 as an exit strategy, however the chart structure will start to improve on a daily basis later this week as the monetary risk will be reduced substantially.

At the present time I also have bullish recommendations in soybeans and soybean meal which continue to hit contact highs today as the entire sector has entered into a long-term bullish secular trend in my opinion so stay long as the volatility will remain extremely high. 

TREND: HIGHER

CHART STRUCTURE: IMPROVING

VOLATILITY: HIGH

 

 

 

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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Trading Theory—Adding To Winning Trades – Growing Your Money

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Trading Theory—Adding To Winning Trades

When Do You Add To Your Winning Trade? This has always been a very interesting question because it can create a situation of going from rags to riches to riches to rags in a very short amount of time.

Many times I see traders abuse pyramiding or adding to positions with utter lack of any type of money management system in place and letting it ride which usually ends up in a complete wipeout of capital and sometimes even worse.

Commodity prices can move very quickly with large gains or loses like we experienced in 2008 crash of stock and commodity prices, so you always have to use stops and not fall in love or marry a position.

My answer to this question is add only once to the trade if that position has made you at least 1%-2% of your account balance while still having stop losses on all positions that equal 2% loss at a maximum risk.Remember your stop loses will be different on both positions because of the fact that you entered those trades at a different date and price.

 

 

 

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

 

FREE TRIAL FOR THE LIMIT UP COMMODITY NEWSLETTER

Email: mseery@seeryfutures.com

If you’re looking to open a Trading Account click on this link www.admis.com

Disclaimer: This and other personal blog posts are not reviewed, monitored or endorsed by TalkMarkets. The content is solely the view of the author and TalkMarkets is not responsible for the content of this post in any way. Our curated content which is handpicked by our editorial team may be viewed here.



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Crude Oil Tumbles as OPEC Happy Talk Fails to Quell Demand Fears By Investing.com

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© Reuters.

By Geoffrey Smith 

Investing.com — Crude oil prices fell sharply on Monday in line with other risk assets as the rapid spread of the Covid-19 virus across Europe and the U.S. sparked fears of more demand destruction through restrictions on economic and social activity.

By 11:35 AM ET (1635 GMT), futures were down 3.1% at $38.61 a barrel, their lowest level in three weeks. The international benchmark blend was down 2.8% at $40.88 a barrel, having also hit a three-week low.

U.S. gasoline RBOB futures were down 2.5% at $1.0991 a gallon, testing their lowest in over a month. Data from GasBuddy showed that U.S. demand for gasoline fell by 0.5% last week.

Sentiment was summed up by Patrick Pouyanne, the chief executive of French oil and gas major Total, who told a conference that “globally speaking, the demand is still weak.

“I am afraid that with the second wave we are experiencing in many continents today again, it could be longer [for demand] to recover like everybody hoped,” Pouyanne was quoted by Argus Media as telling the CERA Week conference.

The pressure on the corporate sector was again in evidence, with Canada’s Cenovus and Husky Energy (OTC:) announcing plans to merge over the weekend in a bid to rationalize costs and squeeze more value out of reserves that require relatively high investment to be monetized.

However, as usual, there was no shortage of those willing to talk prices up. Saudi Arabia’s Oil Minister Prince Abdulaziz bin Salman was quoted as telling the same conference as Pouyanne that the essentially cyclical nature of the oil business was unchanged, and that low prices and low capital spending now would beget high prices in the future.

In the same vein, Indian Oil Corp. Chairman Shrikant Madhav Vaidya told S&P Global Platts in an interview that Indian product demand is now rebounding strongly after a wretched couple of months due to the virus. India has one of the world’s highest death tolls from Covid-19, after the U.S.

Likewise, OPEC Secretary General Mohammed Barkindo hinted CERA Week that the OPEC+ bloc of producers that a deferral of a scheduled increase in output at the end of the year is still possible, stressing that that the group will “adapt to the changing realities.”

“We are determined to assist the market to restore stability by ensuring that the stock drawdowns continue.”

There was little visible effect however from signs of yet another disruption to production in the Gulf of Mexico, where BHP, Chevron (NYSE:), Royal Dutch Shell (LON:) and BP (NYSE:) had all started to remove non-essential personnel from their platforms ahead of the likely arrival of Tropical Storm Zeta. The National Hurricane Center said it expected dangerous storm surges across the Yucatan peninsula in Mexico later Monday.

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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