Silver Market Commentary Report for 7/7/2010

The September silver market initially managed a fresh new low for the move Wednesday before mounting a noted reversal. Obviously silver was in some way lifted in the wake of the strong US equity market action but seeing very strong gains in grain and energy prices might have fostered some renewed hope for inflation. Nevertheless, before inflation is fully embraced in the silver market, the outlook for the overall economy probably has to improve. The silver market did manage the gains in the face of news that a Canadian silver miner managed to raise its 2nd quarter production rather significantly over last year’s tally.

 

Gold Market Recap Report for 7/7/2010

The August gold contract managed a fresh new low for the move today but managed to initially reject the downside probe. Perhaps mostly favorable equity market action prompted some flight to quality longs to exit but eventually the favorable equity market action seemed to be helpful to the bull camp in gold. Some traders suggested the gold market was lifted by value hunting buying off the charts, while others pointed to a broad wave of buying in physical commodities as the source of the recovery effort Wednesday. The Dollar at times was weaker but not definitively so and therefore the influence of the currency market action on gold prices was difficult to assess.

 

After reading the silver and gold 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 commodity trading system.

This blog is published by Andy Waldock.  Andy Waldock is a financial advisor, trader, analyst, broker and asset managerfor Commodity & Derivative Advisors, located in Sandusky, Ohio.  Therefore, Andy Waldock may have positions for himself, his family, or his clients 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 may not be suitable for all investors due to the high degree of leverage.   There is considerable risk in investing in commodity futures.  If you are interested in reading other published articles, commenting  on his writings or subscribing to Andy’s blog, please visit http://blog.commodityandderivativeadv.com.

The daily commentaries provide a review of each commodity’s traded price activity, an analysis of the factors that influenced price activity, a rundown of any reports released that day, and a look ahead at the next day’s schedule.  Market commentaries for corn, wheat, soybeans, gold and silver are provided by CME Group.

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