Silver and Gold Market Commentary 9-1-10
Silver Market Review for 9-1-10
The silver market managed a fresh new high for the move early in the Wednesday trade only to see prices reverse course and slide back into negative ground in the wake of an improvement in US economic sentiment. With copper prices soaring and ongoing strength in grain prices, it is possible that silver actually managed to garner some benefit from its physical commodity market standing.
9-1-10 - Gold Market Recap Report
The gold market showed initial strength but was without any doubt disappointed with the flow of US economic news. It seems that the gold trade was pent up for ongoing uncertainty and seeing a series of better than expected, or not as bad as feared readings served to tamp down macro economic uncertainty. However, given the somewhat dramatic improvement in overall market psychology it was somewhat impressive to see gold give up only modest ground in the face of a sharp equity market rebound and weakness in a host of flight to instruments. While news of an IMF gold sale of 16.8 metric tones in July might have contributed to the profit taking reversal in gold prices this morning, IMF gold sales are not unexpected given their recent activities.
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.
This blog is published by Andy Waldock. Andy Waldock is a financial advisor, analyst, broker, asset manager and traderfor Commodity & Derivative Advisors, located in Sandusky, Ohio. As a result, Andy Waldock may have positions for himself, his family, or his clients 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 employ a high degree of leverage and commodity trading may not be suitable for all investors. 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.
The daily commentaries provide a rundown 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 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.