Today we will hear from FOMC chair Janet Yellen, continue weather observations and get a snapshot of June soybean crush from NOPA. All of this goes on as December corn tests highs from last summer and soybeans chop just below their highs (sorry wheat L).
An improvement in US and European manufacturing activity as well as news that the “official” Chinese PMI number climbed back into expansion territory for the first time in 8 months bodes well for a more sustainable global recovery effort.
The Gold has bounced after the awaited Fed rate hike. It is unusual that Gold would trade up as the Crude Oil continues to slide.
The US Dollar has decreased giving Gold a temporary bounce ahead of the muchly anticipated Fed meeting next week where a hike may be within the monetary policy.
Economic prospects have improved over the last two weeks, as crude oil prices have shown signs of declining further, the Fed have minimally downplayed the prospect of a near-term rate hike, and perhaps most importantly, the ECB did “something” to help facilitate growth in the euro zone.
Finally the oversold Gold bounced in light of the US Dollar weakening! The Gold may takes cues from the US Dollar and the Crude Oil from time to time
A much better than forecast look at October US jobs data has strengthened the chances for a December Federal Reserve interest rate hike.
The Chinese rate cut should have bolstered the Gold somewhat yet the Gold is clearly in a downtrend currently. Investors should be buying Gold in other currencies with the rate cuts in mind.
The governments seem to be devaluating their currencies and foreign entities do not seem keen to allocate to currencies as they would Treasuries or the precious metals.
The uneven pattern of US scheduled economic data continues, with a jump in initial jobless claims seen on the same day as ongoing jobless claims fell to their lowest level since November of 2000.