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OUTSIDE MARKET DEVELOPMENTS: With equity markets in Asia and Europe generally weaker, U.S. stock indices are trading lower during the early Friday trade. The Dollar is stronger against most of the major currencies during overnight trading. A member of the European Central Bank council stated that assistance to Euro zone banks should continue through the end of 2010. The Finance Minister of Japan stated that they are communicating with other G7 nations about the strength of the Yen. The Chinese government will officially encourage more foreign institutions to issue Yuan-denominated securities. A private survey of Japanese retail investor sentiment fell to an 8-month low, mainly due to the strength of the Yen. There are no major US economic numbers to be released this morning.
GOLD MARKET FUNDAMENTALS: With the slowing mentality in place this morning, the gold market still seems to be underpinned by the fear of further slowing but there doesn’t appear to be much in the way of fresh economic news from the overnight headlines. Some traders have suggested that gold is supported by statements from the ECB, that they would leave easing in place through the 1st quarter of 2011. With some rather significant gains already posted this week, the gold market might be showing some technical balancing action this morning with the initial setback in prices. With a mostly empty US economic report slate today, the gold market might have to take its cues on the economy from the action in the US equity markets. It is also possible that part of the early profit taking in gold this morning is the result of a recovery in the US Dollar against the Euro and a host of other currencies. At least in the near term, the gold market looks to embrace the fear of slowing and the flight to quality angle as the primary market focus. Comex Gold Stocks were unchanged at 10.964 million ounces. Stocks have declined 11 of the last 20 days.
SILVER MARKET FUNDAMENTALS: The failure to see September silver contract forge new highs for the move this week, in the wake of the range up action in the gold market, has apparently disappointed some traders as silver this morning is flirting with new lows for the week in the early Friday trade action. Apparently silver is feeling its physical commodity market roots this week, in the face of the recent economic letdown. With the US Dollar also showing signs of strength this morning, it is possible that silver and other physical commodity markets are feeling some currency related pressure as well. Comex Silver Stocks were 110.992 million ounces down 37,482 ounces. Stocks have declined 12 of the last 20 days.
PLATINUM: October platinum comes into the trading session in a technical chart failure and at the lowest price level since the August 12th spike low. Like silver, the platinum market is concerned about unchecked economic slowing. Therefore, we see little reason for October platinum to avoid a slide back to even numbers at $1,500. In fact, in the face of a downside extension in equities, October platinum might fall all the way down to consolidation support at $1,489.
Metals Market Commentary – 2010.08.20
by Dave Hightower on August 20, 2010
Below is a sample of our Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
OUTSIDE MARKET DEVELOPMENTS: With equity markets in Asia and Europe generally weaker, U.S. stock indices are trading lower during the early Friday trade. The Dollar is stronger against most of the major currencies during overnight trading. A member of the European Central Bank council stated that assistance to Euro zone banks should continue through the end of 2010. The Finance Minister of Japan stated that they are communicating with other G7 nations about the strength of the Yen. The Chinese government will officially encourage more foreign institutions to issue Yuan-denominated securities. A private survey of Japanese retail investor sentiment fell to an 8-month low, mainly due to the strength of the Yen. There are no major US economic numbers to be released this morning.
GOLD MARKET FUNDAMENTALS: With the slowing mentality in place this morning, the gold market still seems to be underpinned by the fear of further slowing but there doesn’t appear to be much in the way of fresh economic news from the overnight headlines. Some traders have suggested that gold is supported by statements from the ECB, that they would leave easing in place through the 1st quarter of 2011. With some rather significant gains already posted this week, the gold market might be showing some technical balancing action this morning with the initial setback in prices. With a mostly empty US economic report slate today, the gold market might have to take its cues on the economy from the action in the US equity markets. It is also possible that part of the early profit taking in gold this morning is the result of a recovery in the US Dollar against the Euro and a host of other currencies. At least in the near term, the gold market looks to embrace the fear of slowing and the flight to quality angle as the primary market focus. Comex Gold Stocks were unchanged at 10.964 million ounces. Stocks have declined 11 of the last 20 days.
SILVER MARKET FUNDAMENTALS: The failure to see September silver contract forge new highs for the move this week, in the wake of the range up action in the gold market, has apparently disappointed some traders as silver this morning is flirting with new lows for the week in the early Friday trade action. Apparently silver is feeling its physical commodity market roots this week, in the face of the recent economic letdown. With the US Dollar also showing signs of strength this morning, it is possible that silver and other physical commodity markets are feeling some currency related pressure as well. Comex Silver Stocks were 110.992 million ounces down 37,482 ounces. Stocks have declined 12 of the last 20 days.
PLATINUM: October platinum comes into the trading session in a technical chart failure and at the lowest price level since the August 12th spike low. Like silver, the platinum market is concerned about unchecked economic slowing. Therefore, we see little reason for October platinum to avoid a slide back to even numbers at $1,500. In fact, in the face of a downside extension in equities, October platinum might fall all the way down to consolidation support at $1,489.
Tags: Gold, Metals, Platinum, Silver
About Dave Hightower