Gold Market Recap for 10-12-10  

For most of the Tuesday trading session December gold seemed to stick within the trading range of the prior trading session. The market didn’t seem to reach initially to the FOMC meeting minutes even in the face of an initial Dollar bounce. The fact that the Fed stood by the “ease if the economy worsens” stance seemed to be old news to most traders but the fact that some Fed members saw slowing out to 2012 might have been discouraging to some physical commodity markets. Ultimately, December gold managed to rally in the wake of the FOMC Meeting minutes release, with gold prices initially forging a low to high post report bounce of roughly $4 an ounce. Apparently gold was able to discount the action of the Dollar in the aftermath of the FOMC meeting minutes release. Nevertheless, those looking for a quick resumption of the upside because of the Fed might not have gotten anything fresh from the headlines today.

Silver Market Recap for 10-12-10 

The silver market trailed downward into the FOMC meeting minutes release, forged a slight recovery bounce in the face of the news but generally seemed content to remain weaker on the day. While the copper and grain markets recovered, strength in the Dollar seemed to keep the outside market forces at least partially negative. With the FOMC meeting minutes suggesting sustained weakness and the prospect of additional easing only if the economy worsened that seemed to leave the silver market flat footed. The bull camp will suggest that silver attempted to rally in the wake of the Fed statements but in the end there wasn’t that much fresh news in the headlines from the Fed today.

After reading the silver and gold 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 futures market education.

The daily commentaries provide an analysis of the factors that influenced price activity, a recap of any reports released that day, a review of each commodity’s traded price activity, 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. 

Andy Waldock publishes this blog.  Andy Waldock is a financial advisor, analyst, broker, asset manager and traderfor Commodity & Derivative Advisors, located in Sandusky, Ohio.  For that reason, 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 dialogue 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 suitable for all investors.  There is substantial risk in investing in commodity futures.  If you are interested in reading other circulated 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.