Gold Market Review Report  for 08-03-10 

The gold market started out Tuesday by waffling around both sides of unchanged before a more bullish biased settled into prices. Ongoing weakness in the Dollar and another new low for the move seemed to countervail slack economic readings from the Personal Income/Spending and Factory orders reports. With the Dollar falling to the lowest level since mid April it is possible that gold is seeing a return of flight to quality buying, even with the outlook for the US economy weakening. In retrospect, favorable Chinese official gold talk and news of a consolidation within the gold mining industry seemed to give gold a fresh story line and prices responded favorably.

Silver Market Recap Report  for 08-03-10

September silver managed a fresh new high for the move and in the process it managed to reach the highest level since the beginning of July. Apparently silver was able to discount the bearish tilt being thrown off by the copper and platinum markets as it seemed as if silver was once again hitching its wagon to the gold market. With slack economic readings and initial weakness in equities silver could have been under pressure because of its classic physical market fundamentals.

After reading the gold and silver review, 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 review of any reports released that day, a recap of each commodity’s traded price activity, an analysis of the factors that influenced 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.

This blog is reported by Andy Waldock.  Andy Waldock is a financial advisor, broker, asset manager, trader, and analystfor Commodity & Derivative Advisors, located in Sandusky, Ohio.  For that reason, Andy Waldock may have positions for himself, his relatives, or his customers in any commodity future market reviewed. 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 may not be advisable for all investors due to the high degree of leverage.  Investing in the commodity futures could result in substantial 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.

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