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Gold Market Commentary for 9-3-10  

The gold market came under liquidation pressure in the wake of the first US scheduled data flows. Apparently some flight to quality longs were forced out of position by yet another better than expected US economic report. Some might suggest that the US payrolls were simply not as bad as expected, while others will suggest that macro economic uncertainty was reduced. With the Fed also promising to add more easing if the economy slowed, the gold market saw a number of developments that seemed to discourage the bull camp.

Silver Market Commentary for 9-3-10 

The silver market did see some initial selling pressure in the aftermath of the scheduled US data flow, but the market was quickly able to spin the news into a positive. With the big range up extension in prices today the silver market easily outperformed the gold market and in turn reached the highest level since March of 2008. While some flight to quality views might have been behind the rally in silver today, it is also possible that hopes for recovery and eventual inflation prompted some buyers into the silver 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 reported 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 customers, or his family in any commodity future market discussed. 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 employ a high degree of leverage and commodity trading  may not be suitable for all investors.  There is substantial 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, or if you have any questions, please call 1-866-990-0777. 

The daily commentaries provide a rundown 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.  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.