9-16-10 Market Recap for Gold and Silver
9-16-10 - Silver Market Recap Report
The silver market managed a fresh new high for the move rally and generally seemed to be capable of holding most of those gains. Some players suggested that strength in gold spilled over into silver, while others suggested that potential tensions between US and China inspired safe haven buying of silver. Apparently news of a fresh silver find was almost completely discounted by silver as the focus of the trade seemed to be hinged to the prospect of an ongoing flow of investment demand.
9-16-10 - Gold Market Recap Report
The gold market wasn't initially able to hold the latest move to new high ground as the press coverage of the historic run up in gold seems to have prompted an increase in long profit taking and some negative spin from the mining sector. After a major gold miner earlier this week suggested they were raising capital to liquidate hedges, one analyst suggested that a measure of investors want the exposure to further appreciation in gold prices and might look unfavorably upon those companies who lock in gold prices with hedges. Therefore, it would appear that the gold market is poised to see more developments from the hedge front ahead. The Dollar was generally weaker today and that in conjunction with increased tensions between the US and China on the currency manipulation front probably served to keep uncertainty up in the face of slightly better than expected US data flows.
After reading the silver and gold review, 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.
The daily commentaries provide a review of each commodity's traded price activity, an analysis of the factors that influenced price activity, a summary of any reports released that day, and a look ahead at the schedule for the next day. CME Group provides market commentaries for corn, wheat, soybeans, 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.
This blog is reported by Andy Waldock. Andy Waldock is a financial advisor, analyst, broker, asset manager and traderfor Commodity & Derivative Advisors, located in Sandusky, Ohio. Therefore, Andy Waldock may have positions for himself, his relatives, or his clients in any commodity future market reviewed. The blog is meant for educational purposes and to develop a discussion 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 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.