Morning Gold Fix – October 27, 2010

FMX | Connect – www.fmxconnect.com - (Reported 10/27/2010)

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

December Gold settled at $1338.60 per 100 troy ounces on Tuesday, a net loss of $.30 for the day.

December gold was down $9.4 to $1329.2 per 100 troy ounces as of 8:30 AM EST this morning. The December U.S. dollar index was up $0.275 to $78.185. January platinum was down $7.4 to $1696.6 per 50 troy ounces. December silver was down $0.230 cents cents to $23.600.

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Global Research and Investments (Reported 10/27/2010)  

DEC GOLD (134190)

Resist: 134620-134960, 136040*

ST Trend: Sdwys/Down

Supprt: 132990, 1325+/-, 131560

Obj: 130070?

TRP: 1360.40

“Comment: The market remains in the recent downturn and a close under 1325 or drop under 131560 could
each release a retracement selling wave down to 130070* support. A drop under Friday’s low confirms
declines to reach 130070*. We may see trade try to continue Monday’s corrections, but trade contained
within last Thursday’s range will bear flag. A pop over last Thursday’s high signals for retracement to
136040*, challenging for a secondary bull wave against the last swing high.”

DEC SILVER (2382)

Resist: 2394-24075, 24145* ST

Trend: Sdwys/Down

Supprt: 23405, 2314-2311, 2284

Obj: 2235-?

TRP: 2414.5

“Comment: The market still suggests a potential top and a penetration under Friday’s low could release
sharp selloffs this week to 2235-. Mon-Tuesday’s rally still calls for corrective congestion inside last
Thursday’s selloff, but trade contained under 24075 will bear flag and resume selloffs. A pop over 24075 is
needed to drive rallies to challenge 24145* for a reversing turnaround and rallies to attack the last swing
high.”

DEC COPPER (38765)

Resist: 38910, 39425-50

ST Trend: Up

Supprt: 381-380, 37855*, 370-

Obj: 398?

TRP: 378.55

“Comment: The market is in a bull channel drive. A close over the previous 388 high should spark advances
over the next several days with a chance to stretch for 398. Trade is poised for rallies today, but a
reluctance to stay over 388+ could prompt near term corrective dips to sideways consolidation trade along
380+/-. A close under 37855* signals a reversal turn that will send a break under 370-.”

Bloomberg (Reported 10/27/2010)

“Gold declined for the first time in four days in London as a stronger dollar curbed demand for the metal as an alternative investment. Palladium dropped from a nine-year high.

The dollar rose to a one-week high against the euro amid speculation increased debt purchases by the Federal Reserve will help revive economic growth. Gold, which usually moves inversely to the greenback, has fallen 3.9 percent since reaching a record $1,387.35 an ounce on Oct. 14.” Gold Declines as Dollar Strengthens; Palladium Falls From Nine-Year High.

Reuters (Reported 10/27/2010)

“Gold edged lower on Wednesday as the market looked set to consolidate ahead of the U.S. Federal Reserve's decision on further monetary easing next week, while a stronger dollar also weighed.

Silver initially rose strongly after the U.S. futures regulator raised an alarm about the silver market on Wednesday. Delta-hedging -- where option granters buy to cover their exposure -- against the $24 strike, helped push spot silver to jump nearly 40 cents to $24.20 earlier in the day, traders said. Silver later retreated to $23.88.” PRECIOUS-Gold lower, silver steady after CFTC comment.

NS Futures (Reported 10/27/2010)

“While the action in the currency markets this morning isn’t patently negative to gold, ideas that the US Fed might take an incremental or go slow approach to easing has served to boost the fortune of the US currency and in turn the shift in Fed expectations seems to have tamped down inflationary expectations.  While it is unlikely that the US Fed tipped off the press with their November 3rd decision, the fact that a string of US economic numbers have come in positive also seems to give the less aggressive Fed approach some added credence.

While equity markets in Asia and Europe are generally weaker this morning, US stock indices are lower during the early Wednesday trade.  The Dollar is stronger against most of the major currencies during overnight trading.”  Daily Metals Commentary. 

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