Silver Market Analysis Report for 7/28/2010
September silver could not recover from early weakness and was unable to lift itself well away from the recent lows by the close of trading. Today’s US economic numbers were the trigger for early pressure on the silver market, but equity markets holding their ground in the face of negative news was a critical factor in preventing the selloff turning into a washout. In spite of this, September silver reached its lowest closing price in over a month.
Gold Market Commentary Report for 7/28/2010
October gold was able to recover from the lowest price levels since late April and ended up posting a small gain for the day. A weak US Durable Goods number early in the session caused a few market players to reassess the current risk outlook for the global markets, and caused a great deal of turbulence for gold prices after the number was released. Strong gold demand out of India was thought to be a key factor in restoring a positive tone for the market. In addition, a sell-off in the Dollar has given the gold market an additional measure of support. Although the gold market is in positive territory, prices remain over $25 lower for the week.
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.
The daily commentaries provide a analysis of each commodity’s traded price activity, an analysis of the factors that influenced price activity, a rundown 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. 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, asset manager, trader, analyst and brokerfor Commodity & Derivative Advisors, located in Sandusky, Ohio. As a result, Andy Waldock may have positions for himself, his customers, or his family 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. Investing in the commodity futures could result in considerable risk. 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.
