Gold Market Commentary Report for 7/13/2010
After coming alive off the early morning lows, the August gold contract was unable to hold all of the morning gains. In the end seeing gold track higher in apparent sync with the equity market would seem to suggest that gold was tracking its physical commodity market fundamentals. Some players suggested that a widening of the US trade deficit to 18 month highs was another issue responsible for the Gold rally today as a spiraling trade deficit problem could undermine the Dollar and in turn raise the flight to quality status of gold and other flight to quality instruments.
Silver Market Analysis Report for 7/13/2010
The silver market also managed a very impressive rally off its early morning lows but it also seemed to lose some upside momentum in the $18.25 and $18.35 trading range. US silver imports in May were up 3.2%, while US silver exports in May were up sharply on a year over year basis but the impact of that information is not a direct in line influence on silver prices in the current environment. In the end, the bull camp in silver had to be embracing the US trade deficit or it was simply benefiting from broad based positive physical commodity market fundamentals.
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 recap is reported by Andy WaldockAndy Waldock circulates this commentary. Andy Waldock is a financial advisor, asset manager, trader, analyst and brokerfor Commodity & Derivative Advisors, located in Sandusky, Ohio. Therefore, Andy Waldock may have positions for himself, his customers, or his relatives in any commodity future market discussed. The blog is meant to develop a discussion and educate 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 circulated 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 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 schedule for the next day. CME Group provides market commentaries for corn, wheat, soybeans, 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.
