Gold Market Review Report for 7/6/2010
This morning the gold market forged a quasi downside breakout on the charts but then seemed to lack downside follow through momentum. In fact, the even number $1,200 level basis August gold seemed to keep the gold market somewhat distracted from the downward tilt that was established after the higher US NYSE opening. Apparently the gold trade took the higher equity market action as a sign that flight to quality interest was on the wane after last week’s key events. However, the US Treasury market seemed to hang onto the safe haven tilt even though the Dollar seemed to be suffering the same type of let down as the gold market.
Silver Market Review Report for 7/6/2010
The silver market generally managed to track its physical commodity market fundamentals on the first trading session of the new holiday shortened week. In fact, the silver market had to buck the trend of moderate weakness in the gold market to remain in positive ground. Clearly silver, platinum and copper were tracking the favorable equity market and the decline in the Dollar while the gold market was seemingly under safe haven liquidation pressure. Even soft US and Canadian economic readings failed to take the positive tilt away from silver and the quasi industrial metals markets today.
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 commodity trading system.
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. 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 suitable for all investors due to the high degree of leverage. There is substantial 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.
The daily commentaries provide an analysis of the factors that influenced price activity, a recap of any reports released that day, a rundown 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.
