9-30-10 Market Recap for Gold and Silver
9-30-10 – Gold Market Recap Report
While December gold did manage to claw out a new for the move and a fresh all time high early in the Thursday morning trade the market appeared to run out of bullish momentum. A recovery in the US Dollar from fresh new lows for the move might have prompted end of month/end of quarter long profit taking, but it’s also possible that slightly better than expected US economic readings added to the profit taking mentality in gold today. While the gold market hasn’t paid that much attention to physical supply side developments lately, news of the IMF gold sales tally for the month of August might have served up another excuse to pressure gold prices today.
9-30-10 – Silver Market Recap Report
After carving out another new high for the move and reaching up to decade type highs, silver saw a general fall back that eventually resulted in a rather wide Thursday trading range of roughly 56 cents an ounce. Like gold, silver seemed to be undermined a bounce in the Dollar, month ending book squaring or concerns that the US might not be on the cusp of QE2. In retrospect, the bull camp doesn’t think their case was altered but perhaps sentiment temporarily ran ahead of reality.
After reading the gold and silver 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 futures market education.
The daily commentaries provide an analysis of the factors that influenced price activity, a recap of any reports released that day, a review of each commodity’s traded price activity, and a look ahead at the schedule for the next day. Market commentaries for wheat, soybeans, corn, silver and gold are provided by CME Group. 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.
Andy Waldock circulates this blog. Andy Waldock is a financial advisor, trader, analyst, broker and asset managerfor Commodity & Derivative Advisors, located in Sandusky, Ohio. Therefore, Andy Waldock may have positions for himself, his family, or his clients in any commodity future market discussed. The blog is meant for educational purposes and to develop a dialogue among those with an interest in the commodity future markets. The commodity markets may not be advisable 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 published articles, commenting on his publications or subscribing to Andy’s blog, please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777.
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