Dollar Rally, Gold and Bonds Getting Clobbered

The thrill and volatility are gone as the dollar is rallying. Gold and bonds are down big with the bonds down over a full point and Gold down $17 trading at $1,274. Gold is once again at a key decision spot as it falls through $1,280; the pressure from the dollar will be blamed. We will call it profit taking in a rallying equity market. Collapsing volatility is the biggest problem at these levels, with money pouring back into the equity market. This is a solid buying opportunity for gold and ...
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Fed says stimulus wind down to begin ‘relatively soon,’ leaves rates unchanged

The Federal Reserve laid the groundwork Wednesday to begin winding down shortly the massive stimulus program it embarked on to rescue the economy from the financial crisis. As expected, the Fed also unanimously declined to raise interest rates this month. After its two-day policy meeting, the Federal Open Market Committee released a statement containing key language that points to starting the move in September. At that time, the central bank will begin rolling off the $4.5 trillion portfolio...
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Oil Surges Above $49 as Supply Draw Shows Market in Better Shape

Oil closed above $49 a barrel for the first time since May on growing optimism OPEC’s supply cuts are trimming a supply glut. Futures climbed 0.6 percent in New York for a fourth day of gains. Kuwait joined the U.A.E. in promising to pump less oil after Saudi Arabia called on OPEC producers to cut more supply. U.S. crude inventories declined by 7.21 million barrels last week to the lowest level since early January, according to the Energy Information Administration. The market is digesting...
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Oil Climbs as U.S. Supplies Shrink to Lowest Since Start of Year

Oil surged to an eight-week high after the government said U.S. stockpiles shrank to levels last seen at the start of the year. Futures rose 1.8 percent in New York. Crude inventories declined by 7.21 million barrels last week to the lowest since Jan. 6, according to data from the Energy Information Administration Wednesday. Gasoline stockpiles fell for a sixth week to the lowest level since December, the data showed. “The primary driver behind the rally is that you’ve got more inventory d...
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COMMODITIES HALFTIME REPORT: SEPARATING THE WHEAT FROM THE CHAFF GOLD

Of the 14 commodities we track closely at U.S. Global Investors, wheat rose to take the top spot for the first half of 2017, returning more than 25 percent. The grain was followed closely by palladium—used primarily in the production of catalytic converters—which gained 24 percent. To view our ever-popular, interactive Periodic Table of Commodity Returns, click here. Between the start of the year and June 30, the Bloomberg Commodity Index contracted 4.03 percent, with energy weighing d...
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OPEC is out of options: How low can oil prices go?

by Ivana Kottasová   @ivanakottasova OPEC is running out of options. The price of crude has plummeted 13% in recent weeks to below $46, suggesting that the cartel's efforts to vanquish cheap oil are falling short. OPEC and other major producers had been enjoying higher prices since agreeing in November to slash production, a strategy designed to rid global markets of excess supply. Now, the magic appears to be wearing off. The cartel has responded to the sharp decline in prices by sug...
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Commodities Rout Shouldn’t Be Taken Lightly

By almost any measure last week was a bad one for commodities, as practically every part of the market lost value. West Texas Intermediate crude oil fell under $44 per barrel, Brent crude broke below $50 per barrel and copper tested $5,500 per metric ton. In China, coal and iron ore tumbled. Gold, the supposed ultimate haven, dropped to almost $1,225 per ounce. Last week’s purge capped a steady decline in prices since mid-April and, more broadly, since February based on the Bloomberg Comm...
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Oil trades near five-month lows despite Saudi assurances on cuts

By Dmitry Zhdannikov | LONDON Oil prices fell to five-month lows on Friday on concerns about a persistent glut despite assurances from Saudi Arabia that Russia is ready to join OPEC in extending supply cuts. U.S. West Texas Intermediate (WTI) crude oil futures fell more than 3 percent in early trading to less than $44 a barrel, the lowest since Nov 14. It fell 4 percent on Thursday. Benchmark Brent also fell 3 percent to below $47, its lowest since Nov. 30, which was the date the Organi...
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Commodities Are Stable Early on March 14

By Val Kensington Crude oil After falling for five consecutive trading days, crude oil prices are stable in the early hours on Tuesday. The market is looking forward to OPEC’s monthly report scheduled to release today. Even though crude oil output cuts improved the market sentiment, concerns about an increase in US shale oil production and an unexpected rise in crude oil inventory levels weighed on oil prices. According to the U.S. Energy Information Administration, crude oil inventor...
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Oil prices could jump $10 a barrel if OPEC extends output cap deal, analyst says

It has been a troubled week for oil prices, which dropped to below the $50 a barrel threshold for the first time this year. But the cost of a barrel of oil could jump to $60 by the end of this year, if OPEC countries decide to extend their output cut agreement, an analyst told CNBC. "We could see WTI go down into the mid-40s but we do still see that rebalancing story intact. Fundamentals haven't changed dramatically this week," Richard Mallinson, geopolitical analyst at Energy Aspects, told CN...
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