Silver and Gold Market Recap Report 07-07-10
Gold Market Commentary Report for 7/7/2010
The August gold contract managed a fresh new low for the move today but managed to initially reject the downside probe. Perhaps mostly favorable equity market action prompted some flight to quality longs to exit but eventually the favorable equity market action seemed to be helpful to the bull camp in gold. Some traders suggested the gold market was lifted by value hunting buying off the charts, while others pointed to a broad wave of buying in physical commodities as the source of the recovery effort Wednesday. The Dollar at times was weaker but not definitively so and therefore the influence of the currency market action on gold prices was difficult to assess.
Silver Market Commentary Report for 7/7/2010
The September silver market initially managed a fresh new low for the move Wednesday before mounting a noted reversal. Obviously silver was in some way lifted in the wake of the strong US equity market action but seeing very strong gains in grain and energy prices might have fostered some renewed hope for inflation. Nevertheless, before inflation is fully embraced in the silver market, the outlook for the overall economy probably has to improve. The silver market did manage the gains in the face of news that a Canadian silver miner managed to raise its 2nd quarter production rather significantly over last year’s tally.
After reading the silver and gold 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 commodity trading system.
Andy Waldock circulates this blog. Andy Waldock is a financial advisor, asset manager, trader, analyst and brokerfor Commodity & Derivative Advisors, located in Sandusky, Ohio. As a result, Andy Waldock may have positions for himself, his relatives, or his customers 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 employ a high degree of leverage and commodity trading may not be suitable for all investors. 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 a summary 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. Market commentaries for wheat, soybeans, corn, silver and gold are provided by CME Group.
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