9-28-10 Market Review for Gold and Silver

Gold Market Recap for 9-28-10  

The gold market forged a rather wild trading range today. After some initial pressure from profit taking and a bounce in the Dollar, gold reversed course and charged back into new high ground. Most traders suggest that gold was primarily driven by the weak action in the Dollar, while others maintain that financial uncertainty was on the rise again because of statements from the BOE and the strong ongoing influx of capital into US Treasuries. The gold market faded into the Case-Shiller report but rebounded once the readings were released. The gold market also faded into the second round of economic data and then rebounded sharply despite the numbers coming in softer than expected. Therefore the gold market wasn’t taking a consistent track off the US data. Even the Yen was generally higher today and that suggests most of the flight to quality markets were catching some bids.

Silver Market Recap for 9-28-10 

Like gold, silver faded early Tuesday morning trade. Nevertheless, silver regained its footing shortly after 7:35 and seemed to charging higher into the private home price report. The market seemed to pull back a little in the wake of the home price news but then ultimately settled into a definitive upward track on the charts. In looking back, the only true tightly correlated outside market force for silver prices today appeared to the persistent slumping of the US Dollar.

  

After reading the gold and silver 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 an analysis of the factors that influenced price activity, a recap of any reports released that day, a summary of each commodity’s traded price activity, and a look ahead at the next day’s schedule.  CME Group provides market commentaries for wheat, soybeans, corn, 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. 

Andy Waldock circulates this blog.  Andy Waldock is a financial advisor, trader, analyst, broker and asset managerfor Commodity & Derivative Advisors, located in Sandusky, Ohio.  For that reason, Andy Waldock may have positions for himself, his family, or his clients in any commodity future market discussed. The blog is meant to develop a dialogue and educate those with an interest in the commodity future markets. The commodity markets may not be appropriate 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 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.

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