8-17-10 Market Recap for Gold and Silver
8-17-10 – Gold Market Recap Report
The gold market started out on a positive footing, recoiled through the second set of US economic numbers but generally seemed to be able to spend a lot of time trading above the $1,225 level on the charts. Apparently the gold bulls weren’t overly discouraged by the better US numbers and the sharply higher US equity market action perhaps because the US Dollar remained weak. In the end October gold did manage to reach the highest level since July 1st in the trade today and the move seemed to be forged without macro economic uncertainty or anxiety. The gold market didn’t seem to react to the news that the CFTC was withdrawing its plans for energy limits partly because the commission promised a new rule later this year that would encompass all commodities.
8-17-10 – Silver Market Recap Report
September silver managed a range up extension today and in the process it managed to reach the highest level since August 4th. Silver seemed to rise in sync with the equity markets but it is also possible that favorable US economic data and a weaker US Dollar provided silver and a host of physical commodity markets with a broad based buying wave. The silver market didn’t seem to react to the news that the CFTC was withdrawing its plans for energy limits partly because the commission promised a new rule later this year that would encompass all commodities.
After reading the gold and silver analysis, 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.
This blog is reported by Andy Waldock. Andy Waldock is a financial advisor, asset manager, trader, analyst and brokerfor Commodity & Derivative Advisors, located in Sandusky, Ohio. For that reason, Andy Waldock may have positions for himself, his family, or his customers in any commodity future market reviewed. 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 employ a high degree of leverage and commodity trading may not be advisable for all investors. Investing in the commodity futures could result in considerable risk. 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.
The daily commentaries provide an analysis of the factors that influenced price activity, a recap of any reports released that day, a recap of each commodity’s traded price activity, and a look ahead at the schedule for the next day. CME Group provides market commentaries for soybeans, corn, wheat, gold and silver. 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.