07-30-10 Market Recap for Silver and Gold
Silver Market Recap Report for 7/30/2010
September silver moved sharply higher today and traded back above the $18.00 level for the first time in three days. Higher gold prices, a weaker dollar and a recovery in the US equity markets was felt by many to have provided the silver market with strong support, as did ideas that today’s series of US economic numbers avoided any negative surprises. Silver production in Mexico during May was up over 3% from last year’s levels.
Gold Market Commentary Report for 7/30/2010
Although trading continued to be volatile during the course of the session, October gold was able to hold onto and even surpass early gains to finish strong. Today’s US economic data ended up having a limited impact on the market, as a 2nd Quarter GDP number that failed to reach expectations was offset by a stronger than forecast private survey of Purchasing Managers in the Chicago area. Another area of concern for traders was thought to be the Euro zone, which saw economic data today that was generally viewed as weak as well as a large redemption in Spanish debt. A survey by a private research firm concluded that Asian investors were more likely to buy gold over the next six months.
After reading the silver and gold commentary, traders might want to take a peek at the commercial traders momentum. The Commercial Trader momentum can be tracked by using the Commodity Futures Trading Commission Commitment of Traders reports. Our idea is that, in a value driven commodity futures market no one knows fair value like the people who produce it or, have to use it. In fact, it is precisely their sense of value that provides the commodity market’s rhythmic meanderings that swing traders love so much. Let’s face it, producers know when their product is overvalue and it should be sold just as well as end line users know when they should be stocking up at low prices. Therefore, trader should be able to incorporate this valuable information into their future market education.
Andy Waldock circulates this blog. Andy Waldock is a financial advisor, broker, asset manager, trader, and analystfor Commodity & Derivative Advisors, located in Sandusky, Ohio. Therefore, Andy Waldock may have positions for himself, his clients, or his relatives in any commodity future market reviewed. The blog is meant to develop a dialogue and educate those with an interest in the commodity future markets. The commodity markets may not be suitable for all investors due to the high degree of leverage. There is considerable risk in investing in commodity futures. If you are interested in reading other circulated articles, commenting on his writings or subscribing to Andy’s blog, please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777.
The daily commentaries provide a review of any reports released that day, a recap of each commodity’s traded price activity, an analysis of the factors that influenced price activity, and a look ahead at the next day’s schedule. CME Group provides market commentaries for soybeans, corn, wheat, silver and gold. The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
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