Gold Market Review Report for 7/29/2010

In spite of a hefty Dollar sell-off, October gold was only able to benefit later on in the session as the market ended with a moderate gain for the day. Euro zone economic numbers early in the morning were well received by many traders and led many to reduce their overall risk outlook for global markets. Strength from equities in the US and in Europe was seen as an additional factor for keeping gold price gains somewhat limited. The gold holdings for one of the largest Exchange Traded Funds has fallen by over 18 tons and has reached its lowest total since the early part of June. Although the market has risen well away from this week’s lows, October gold prices are currently over $20 below last week’s close.

Silver Market Analysis Report for 7/29/2010

September silver traded higher early in the session but remained inside of yesterday’s range. The bounce lifted the market away from yesterday’s 7-week lows. The continued strength in US equity markets over the past few weeks has been a key supportive factor for silver prices. Holding higher on the day in spite of the sharp break in the stock market into the mid-session was another positive development. While the market has posted a gain today, September silver has lost over $1.00 in value during the month of July.

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.

This blog is published by Andy Waldock.  Andy Waldock is a financial advisor, asset manager, trader, analyst and brokerfor Commodity & Derivative Advisors, located in Sandusky, Ohio.  Therefore, Andy Waldock may have positions for himself, his clients, 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 employ a high degree of leverage and commodity trading  may not be advisable 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, 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 recap 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, silver and gold.   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.