08-04-10 Market Recap for Gold and Silver

Gold Market Commentary Report  for 08-04-10  

The gold market appeared to out perform the silver market today as gold managed to hold in positive ground longer than the silver market. Some traders suggested that gold was perhaps short term overbought given the big range up attempt that was forged in the Wednesday morning action. Other traders think that weakness in the Euro and the Yen prompted gold to back and fill from its latest pulse up attempt. Nonetheless October gold got some press coverage by initially climbing back above the even number $1,200 level.

 Silver Market Analysis Report  for 08-04-10 

While silver managed to follow gold higher in the early Wednesday trade by mid session September silver had fallen back into negative ground and to some traders the action on the charts was classically bearish. Bulls could suggest that the silver market had become temporarily overbought at the initial highs Wednesday because the market had managed a 5 day rally in excess of $1.375 an ounce. The bears in silver suggested that September silver simply ran into significant overhead resistance on the charts.

After reading the gold and silver 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 future market education.

Andy Waldock publishes this blog.  Andy Waldock is a financial advisor, asset manager, trader, analyst and brokerfor Commodity & Derivative Advisors, located in Sandusky, Ohio.  Therefore, Andy Waldock may have positions for himself, his customers, or his family in any commodity future market reviewed. The blog is meant for educational purposes and to develop a discussion 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 considerable risk.  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, 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 rundown of each commodity’s traded price activity, and a look ahead at the schedule for the next day.  CME Group provides market commentaries for wheat, soybeans, corn, silver and gold.   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.