Gold and silver are having a decent start to the week. Early Monday, Kitco News reported the yellow metal was trading at $1,853.65 per ounce (0.62% higher than the previous wave), while silver was at $27.66 per ounce. Their success comes during the “demise” of bitcoin, which has been blamed on Elon Musk. The cryptocurrency has fallen 35% since hitting its new all-time high back in April. In other news, experts say the fallout from the Colonial Pipeline fiasco may be a preview of what’s to come if President Biden forges ahead with his frontal assault on the oil and gas industry.
Kitco News/Rajan Dhall
Gold moves higher and bitcoin tanks leading into the European open
Gold has had a decent start to the week and maintained its break above the previous wave high of $1845.44/oz. The yellow metal now trades 0.62% higher at $1853.65/oz. Silver has also had a decent session and trades nearly 1% higher at $27.66/oz. Elsewhere in the commodities complex, copper has moved 0.12% higher and spot WTI 0.25% in the red.
In terms of the risk markets, it was pretty mixed overnight. The Nikkei 225 closed -0.92% lower, while the ASX (0.13%) and Shanghai Composite (0.81%) traded higher.
Over in FX, the antipodeans were the worst performers overnight. AUD/USD fell -0.19% while NZD/USD was the biggest loser down -0.29%.
One of the biggest stories of the weekend was the demise of bitcoin. The cryptocurrency has fallen 35% since hitting its new all-time high on 14th April and this time the drop has been blamed on Elon Musk’s tweets.
In China, the statistics department comments on the April ‘activity data’ saying they are still wary on recovery.
Chinese Industrial Production 9.8% y/y (expected +10%) & Retail Sales 17.7% y/y (expected +25.0%) both readings are for April. Japanese PPI data for April hit +3.6% y/y (vs. expected 3.1%).
Keeping reading, here.
CNN Business/Michelle Toh
Elon Musk’s tweets have once again sent bitcoin on a wild ride
Elon Musk is once again giving crypto markets whiplash.
The Tesla (TSLA) CEO is now saying that his company has not sold any bitcoin (XBT) after earlier appearing to suggest the opposite. His original Twitter exchange had led bitcoin to extend its losses.
The latest cryptocurrency drama began Sunday when a user named CryptoWhale tweeted: “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #bitcoin holdings.”
“With the amount of hate @elonmusk is getting, I wouldn’t blame him,” the user added.
Musk responded simply about an hour later: “Indeed.”
Within hours, bitcoin had fallen below $43,000, having lost more than 8% over the last day, according to cryptocurrency tracker Coinbase. It had already lost some ground earlier on Sunday, but accelerated losses after Musk’s post.
Musk later posted a follow-up tweet, writing: “To clarify speculation, Tesla has not sold any bitcoin.”
Continue reading, here.
Fox Business/Jonathan Garber
Colonial Pipeline fiasco foreshadows impact of Biden energy policy
The fallout from the Colonial Pipeline fiasco may be a preview of what’s to come if President Biden forges ahead with his frontal assault on the oil and gas industry.
Fuel shortages, gas lines and higher prices have popped up across the Eastern seaboard after the 5,500-mile Colonial Pipeline was taken offline by hackers last week. The pipeline transports more than 100 million gallons of fuel per day, or almost half the East Coast’s supply.
“Shortages will be a normal routine all across these United States,” said Texas Railroad Commissioner Wayne Christian, a Republican whose agency oversees the state’s oil and gas industry, when discussing Biden’s energy agenda.
Eighty-eight percent of gas stations in Washington, D.C. were without fuel on Friday, according to GasBuddy. At least half the stations in South Carolina, North Carolina and Virginia were also dry, with Tennessee, Georgia and Florida also experiencing major disruptions.
Read the full story, here.