11-03-10 Market Recap for Gold and Silver
11-03-10 – Silver Market Recap Report
The silver market forged a very wide trading range of roughly $1.11 an ounce today and given the magnitude of the rise off the lows, it wouldn’t seem like the FOMC outcome was heavily damaging to the bull camp. However, some silver players were hopeful of a more aggressive easing action from the Fed and therefore a period of increased volatility might be expected directly ahead. With the passing of the election and the FOMC meeting, the silver trade will probably begin to look ahead to the monthly payroll report on Friday morning.
Gold Market Analysis for 11-03-10
The gold market seemed to be disappointed in the Fed announcement well ahead of the actual statement. In fact, gold traders seemed to speculate on the prospect of a weak easing move in the aftermath of the US scheduled data flow which was better than most expectations. While the Dollar fell sharply in the lead up to the Fed release, the currency markets didn’t seem to be in any hurry to hammer the Dollar in the hour following the meeting. While the QE2 move might not have been as aggressive as some might have expected the US economy is still poised to get a program of easing moves and that could ultimately provide support to physical commodities like gold.
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 futures market education.
The daily commentaries provide a recap 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 schedule for the next day. CME Group provides market commentaries for soybeans, corn, wheat, 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.
Andy Waldock publishes this blog. Andy Waldock is a financial advisor, asset manager, trader, analyst and brokerfor Commodity & Derivative Advisors, located in Sandusky, Ohio. For that reason, Andy Waldock may have positions for himself, his family, or his clients in any commodity future market reviewed. 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 appropriate for all investors. Investing in the commodity futures could result in substantial risk. 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.