Morning Gold Fix – May 26, 2010
FMX | Connect – www.fmxconnect.com - (Reported 5/26/2010)
The following is a summary of yesterday’s US gold activity and a recap of Asia & European markets overnight. It includes our proprietary options analytics and news stories from industry professionals.
Summary
June gold was up 13.5 to $1211.5 per 100 troy ounces as of 9:15 AM EDT. The June U.S. dollar index was up .142 to 87.03. July platinum was up 43.7 to $1535.6 per 50 troy ounces.
Gold was firmer overnight as the euro took a beating once again. The fact that US stocks and oil are up while gold is up shows signs of yet another decoupling. Oil may be reacting to the API report and the fresh BP oil problems in Alaska. Stocks are likely just following through on yesterday’s rally. Gold buying may be the result of Europe’s sovereign issues and the inflationary cure being put into play.
-Elizabeth Thawne
For Market Prices Click Here
Monday Options Commentary
A relatively uneventful day past the June expiration. October call spreads were bought in the rally, other than that activity was very muted as most traders focused on squaring up June options expiring position. Most of the open interest was concentrated at the 1200 strike (click for pin risk alert), and the market did gravitate towards that area but failed to pin the strike. On the day, call skew firmed up slightly but real trading failed to materialize.
Complete report available here: Gold – Options Report – May 25, 2010
Straddles: Metals End of Day Straddle Runs – May 25, 2010
FMX Morning Newswire
Bloomberg (Reported 5/26/2010)
“Gold gained for a third day in New York as investors sought a haven amid the European debt crisis and demand for commodities increased.
The Italian government approved 24 billion euros ($30 billion) of budget cuts and a German consumer confidence index for June fell more than expected. Holdings in the world’s largest gold-backed exchange-traded fund surged to a record yesterday, while European equities rebounded from an eight-month low. Commodities including copper and oil rose.” Gold Gains a Third Day on Euro Concern, Rising Commodity Demand
CME (Reported 5/26/2010)
“For a change, a number of outside markets are giving off action that is generally considered to be supportive of gold prices. The Dollar is slightly weaker, equities are initially higher, and a number of physical commodity markets are showing positive action, which is a change of the recent pace for the gold market.
Equity markets in Asia and Europe has been stronger overnight, moving in line with the late recovery yesterday in the US stock market. After a volatile night, the Dollar is slightly weaker against the European currencies but holds a small gain versus the Yen.” Market Commentary
Reuters (Reported 5/26/2010)
“Gold rose more than 1 percent in Europe on Wednesday as volatility in currency markets and fears over the outlook for the euro prompted gold buying as a haven from risk.
Interest in physical gold remained high, with holdings of the world's largest gold-backed exchange-traded fund, New York's SPDR Gold Trust, rising more than 30 tons on Tuesday to a record high 1,267.322 tons.” Gold rises more than 1 percent on euro outlook
FMX Connect Daily Commodity Reports
Metals End of Day Straddle Runs – May 25, 2010
Gold – Options Report – May 25, 2010
Previous Session Market Report (premium)
OTC Volumes and Volatilities (premium)
Energy Overnight Report
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