07-15-10 Market Recap for Gold and Silver
Gold Market Analysis Report for 7/15/2010
After showing signs of a possible upside breakout early Thursday morning August gold seemingly fell back toward the middle of the recent consolidation zone on the charts. Gold seemed to be poised to rally in the wake of early weakness in the Dollar and partially positive equity market action but after the US numbers came in soft and equities fell back, the gold market seemed to come under pressure from its physical commodity market standing. In the end the gold market spent a lot of time in positive ground and with the rest of the metals also tracking in positive ground the bull camp can say that the market has continued to respect a pattern of higher lows.
Silver Market Recap Report for 7/15/2010
The silver market managed to extend the pattern of higher lows and higher highs even if the September contract had some difficultly holding the prior session’s closing value. Like gold, the silver market was partially discouraged by slack US economic data and selling in the equity markets. However, the silver market and other physical commodity markets had to cheer the continued slide in the Dollar, which fell to the lowest level since May 3rd. the silver bulls have to be happy that the market managed to stay positive in the face of news that the pace of Chinese growth appears to have slowed.
After reading the gold and silver recap, 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 a recap 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 next day’s schedule. Market commentaries for corn, wheat, soybeans, gold and silver are provided by CME Group. 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.
This blog is reported by Andy Waldock. Andy Waldock is a financial advisor, trader, analyst, broker and asset managerfor Commodity & Derivative Advisors, located in Sandusky, Ohio. As a result, Andy Waldock may have positions for himself, his customers, or his relatives in any commodity future market discussed. The blog is meant for educational purposes and to develop a discussion among those with an interest in the commodity future markets. The commodity markets employ a high degree of leverage and commodity trading may not be advisable for all investors. There is considerable 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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