Treasured Metals & Vitality – Weekly Advance Evaluation and Calendar from Investing.com
By Barani Krishnan
Investing.com – It could really be over in the coming week – we hope both sides will stop talking about it and let the markets get on with their business – while we wait to see who makes the new administration.
We’re talking, of course, about the Covid-19 business talks, which were whipped to death for nearly a month by both White House and Senate Republicans and House Speaker Nancy Pelosi and the Democrats in Congress in a tax battle leading up to the elections .
Pelosi is directly charging President Donald Trump, who insists he is ready to strike a deal “even bigger” than the $ 2.2 trillion package she is aiming for, while determined to not democratic states to finance those who need federal aid to finance the pandemic.
“We could do that before the election if the president wants,” she said in an interview on MSNBC on Friday.
Treasury Secretary Steve Mnuchin, Pelosi’s main negotiating partner, blames the spokeswoman and her Congress. “We have offered compromises,” Mnuchin told reporters on Friday. “The speaker is still entrenched on a number of issues. If she wants to compromise, there will be a deal.”
In the end, there will almost certainly be an aid package that Trump announced if he stays, or Biden – if the Democrat wins instead.
And the next package – free of electoral politics – could be huge, with the focus again on the growing financial cost of the pandemic and what it might take to re-send checks to unemployed Americans, fund small and medium-sized businesses, and Thousands of airlines and other workers on the payroll. Nobody has any idea what the number will be like. But it wouldn’t be wrong to think that it will be as much or more than the original $ 3 trillion that was disbursed in March in the form of a combined relief.
“History shows that almost every government struggling with instability does the same thing: spend money,” said Adam Button, chief currency analyst at Forex Live, in a post Friday.
While stocks are likely to rise across the board once the stimulus is revealed, the case for gold is “overwhelming” on the commodities front, Button said.
“We’re still in a seasonal vulnerability, but if there is any weakness in November it will be time to buy,” added Button, referring to the yellow metal’s failure to hold the key of $ 1,950 an ounce last month exceed. “If not, buy at any cost in December. I mean, does this look like a top to someone? It looks like it’s going to explode. “
Precious Metals Weekly Review
Gold rose in trading on Friday but calmed down for a second straight week as the yellow metal tried to bottom out after the White House and Congress hit the pause button on the COVID-19 stimulus drama, which suggests that greater relief will only be achieved after the deadline for the November 3rd US election.
Last traded at $ 1,904 an ounce on Comex Friday in New York. The official session of the day stood at $ 1,905.20, up 60 cents, or 0.03%, over New York’s Comex. For the week, however, gold fell 0.1% in December, followed by the 1% decline the previous week.
This reflects the real-time trades in gold bars and dropped the session on Friday at $ 1,901.56, down $ 2.54, or 0.13%. Bullion was also up 0.3% weekly, compared to a 1.6% decrease from the previous week.
White House officials, including Chief of Staff Mark Meadows and Press Secretary Kayleigh McEnany, said negotiations on a COVID-19 incentive with Nancy Pelosi, spokeswoman for opposition-led Congress, have virtually ended after two weeks of inconclusive talks.
US Treasury Secretary Steven Mnuchin, who was directly involved in the negotiations with Pelosi, said significant differences persist between the two sides.
Congress, led by Pelosi and the Democrats, approved a Coronavirus Aid, Aid, and Economic Security (CARES) incentive in March, drawing around $ 3 trillion in paycheck protection for workers, corporate loans and grants, and other personal help for the skilled Citizens and residents were issued.
Since then, Democrats have been in a stalemate with President Donald Trump’s Republican Party, which provides for a successive package for CARES. The argument was basically bigger than the next relief as thousands of Americans, especially those in the aviation sector, risked losing their jobs without further help.
Buyers plowed gold earlier this week, speculating that the Trump administration could close the gap between its $ 1.9 trillion offer and Pelosi and the Democrats’ $ 2.2 trillion bid. But as the week wore on, both sides dug in, ruining the likelihood of a deal ahead of the November 3rd presidential election, which will see Trump face Democratic candidate Joe Biden.
Reaffirming his administration’s and Republican stance, Trump tweeted Friday that he would never fund democratic-run states under the incentive.
Despite the stalemate, gold prices did not rebound as investors assessed the possibility of a huge Biden election victory based on polls and the likelihood of a major stimulus issued afterwards, analysts said.
Comex Gold hit record highs of nearly $ 2,090 an ounce in early August when speculation for a second round of CARES peaked. However, the yellow metal fell nearly $ 250, or 12%, from those highs in recent weeks as speculation about another COVID-19 deal faltered and the dollar rose instead.
The one pitting the greenback against six major currencies fell 0.2% to 92.8 on Friday after hitting 94.8 in September.
Weekly review of energy
The US crude oil numbers are not adding to the price of oil as investors instead focus on the rising number of oil rigs and the prospect of a stronger return in Libyan supplies.
Both West Texas Intermediate, the key indicator of US crude oil prices, and Brent, the global benchmark for oil, fell about 3% over the week.
The trade traded in New York was last traded at $ 39.75 on Friday. The official settlement for the session was $ 39.85 a barrel, down 79 cents, or 1.9%. For the week, WTI fell 2.5%.
The trade traded in London was last traded at $ 41.64 on Friday. The official session closed at $ 41.77, down 69 cents, or 1.6%. For the week, Brent fell 2.7%.
The value rose to 211 from 205 last week. Oil rigs, an indicator of future production, have risen steadily by 180 since the week ending September 4th.
The weight in the market was added by estimates that Libyan oil production, which has been largely offline since January, had risen to 500,000 barrels a day and is expected to continue growing by the end of October.
“Low sales and poor margins tell me that US crude oil purchases could go away by Q1,” said Scott Shelton, energy futures broker at ICAP (LON 🙂 in Durham, North Carolina.
fell 1 million barrels in the week ending October 18 and was largely within the expected draw of 1.02 million barrels, US Energy Information said on Wednesday.
Crude oil stored at the Oklahoma delivery location for contracted WTI barrels also rose as expected, increasing 975,000 barrels from the forecast 1.1 million barrels.
But up 1.9 million barrels – a 180-degree increase over analyst estimates.
The MSRP returned a positive number which decreased 3.8 million barrels or doubled expectations. This was supposedly due to the heavy delivery and trucking activity as many people stayed in their homes at the monastery and ordered everything from clothes to groceries.
However, the agency also surprised traders with an estimate that US crude oil production fell 9.9 million barrels a day last week, a 600,000 bpd decrease from the previous week.
The decline in production was shaken by the surge in oil rigs since mid-September, leading some to believe that the impact of the Hurricane Delta on production that month had been overestimated. Delta, which hit Louisiana as a Category 2 storm, shut down nearly 92% of all oil production in the U.S. Gulf of Mexico.
Energy calendar ahead
Monday October 26th
Private Cushing Inventory Estimates
Tuesday October 27th
Weekly report on oil stocks.
Wednesday October 28th
EIA weekly report over
EIA weekly report over
EIA weekly report over
Thursday October 29th
EIA weekly report over
Friday October 30th
Baker Hughes Weekly Poll on