Downside Momentum likely to Accelerate Gold Below $2600

Downside Momentum likely to Accelerate Gold Below $2600

Gold Outlook: “The momentum break experienced on election day typically marks the end of such moves. But if that is the case, what can we expect from here? The melt-up has created a notable margin of safety for macro fund positions, which now hold significant paper profits on their extremely bloated length. Large scale selling activity from CTAs will only kick off below $2600/oz.”

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China’s crude oil reserves fell significantly in July 2024

The International Energy Agency (IEA) has revised its forecast for crude oil demand slightly downwards this year. This was due to a significant slowdown in demand in the second quarter, particularly in the emerging economies, where the annual increase was the lowest since 2020, which was impacted by the COVID-19 pandemic, Commerzbank’s Commodity Analyst Carsten Fritsch notes.

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Beijing Pays the Price for the Slow Pace of Economic Reform

As the world’s largest nations send out helicopter money amounting to well more than 10% of their gross domestic product to fight the economic effects of the coronavirus pandemic, China, which just suffered its first economic contraction in two decades, is conspicuous for its stinginess.

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European Central Bank (ECB) said it would Delay its First Post-Crisis interest Rate Hike until at Least the Middle of Next Year.

Gold Silver Reports (GSR) – The euro climbed higher against the U.S. dollar on Thursday, after the European Central Bank (ECB) said it would delay its first post-crisis interest rate hike until at least the middle of next year. In a move that was well-flagged, ECB President Mario Draghi also offered to pay banks if they borrow cash from the central bank and pass it on to households and firms.

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Banks Extend Gains After Government Cuts Borrowing Plan

Banks Extend Gains After Government Cuts Borrowing Plan

Shares of government and private sector lenders were trading higher after the government cut its first half borrowing plan to 48 percent of its budgeted borrowings.

Gauge of state-run lenders — Nifty PSU Bank index rose 1.4 percent and the gauge for banks — Nifty Bank index gained 0.87 percent.

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Government-Owned Banks Surge in Trade

Government-Owned Banks Surge in Trade — Shares of the state-run lenders were witnessing good buying index. Gauge of the government-owned banks — Nifty PSU Bank index rose 2 percent led by gains IDBI Bank, Allahabad Bank and Bank of India.