Gold Market Analysis for 8-30-10
The gold market didn’t give off a definitive direction in the wake of the data because the date was contradictory. Some components of the Dallas Fed report were better than the previous month but still noted fairly soft activity. According to some traders gold was already establishing tunnel vision toward the US non farm payroll report at the end of the week and therefore the lack of direction from the scheduled reports wasn’t that surprising. Perhaps a weaker US Dollar provided the gold market with some lift but with divergent action within the metals complex it didn’t appear as any quadrant of the metals market was in agreement.
Silver Market Analysis for 8-30-10
The silver market forged an inside day, with most of the trade action centered on either side of the Friday closing price. The bulls will suggest that the silver market outperformed the rest of the precious metals complex, but silver didn’t outperform the copper market which seemed to be marching to its own bullish drummer. Even more surprising is the fact that silver managed to remain mostly positive throughout the session despite weakness in the energy complex and weakness in equities.
After reading the silver and gold commentary, 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.
Andy Waldock circulates this blog. Andy Waldock is a financial advisor, analyst, broker, asset manager and traderfor 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 reviewed. The blog is meant to develop a discussion and educate those with an interest in the commodity future markets. The commodity markets may not be suitable 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 circulated articles, commenting on his publications or subscribing to Andy’s blog, please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777.
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 schedule for the next day. 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.

