Gold and Silver Commentary 9-9-10

9-9-10 – Silver Market Recap Report 

December silver was unable to hold onto minor gains from the early part of today’s trading and subsequently fell in line with other metals markets and finished the day with moderate losses. The early rally was able to take prices above the $20.00 level again, but later on in the day silver joined gold, copper and platinum markets in negative territory. The silver market appeared to react positively to relatively strong US economic numbers early in the session, while some in the market have suggested that favorable Indian physical demand indications may provide December silver with additional support over the near term.

Gold Market Review for 9-9-10  

December gold fell further away from the highs of the recent move and showed little inclination to recover those losses by the close. The gold market had some early negative divergence with the silver market today, but eventually both precious and industrial metals found themselves under pressure later on in the session. There was little of the recent carryover support from US equity market price action, as a slightly larger than expected decline in US claims and a narrowing of the trade deficit went some way towards diminishing flight to quality support for the gold market. 

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.

This blog is circulated by Andy Waldock.  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 clients, or his family 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 suitable 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 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 next day’s schedule.  Market commentaries for wheat, soybeans, corn, 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.