Morning Gold Fix – October 4, 2011
FMX | Connect – www.fmxconnect.com - (Reported 10/4/2011)
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 $1,657.70 per troy ounce on Monday, a gain of $35.40 for the day.
December gold was down $6.1 to $1651.6 per 100 troy ounces as of 8:30 am EST this morning. The Dec U.S. dollar index was up 0.450 to $79.525. October platinum was down 12.3 to $1500 per 50 troy ounces. Dec silver was down 48.0 cents to 30.315.
Market Recap
Greek debt disquiet ratcheted up a notch on news that the deficit exceeded the 6.5% of GDP benchmark the country was aiming for. While the Greek Parliament passed new austerity in response (to the tune of 6.6 billion euros), an increasing number of investors are seeing default as inevitable. Conflicts over how to proceed are churning markets lower and volatility higher. Current reports lead us to believe that a beefed-up EFSF is likely, but the torrent of uncertainties is still overwhelming. On the day investors sold equities and industrial commodities, diverting capital into the dollar, treasury notes and gold.
Gold rallied just over $35 on the day, and compared to the scope of recent sell-offs, this wasn’t a lot. Volatility remained firm, held aloof by tumult in Europe and concerns of another violent move. Puts were bid in November and December, and while calls continued to trend slightly lower, without a lot of speculative activity to drive it, many market participants are content to watch their positions unfold. Puts below the 1600 strike were the primary interest of the day, all though the market is becoming increasingly optimistic that futures may have established a bottom.
Market Prices
In the News
Bloomberg (Reported 10/4/2011)
Asian stocks fell, driving a regional benchmark gauge toward its lowest close in more than two years, as disagreement among policy makers over how to resolve Europe’s debt crisis dimmed the outlook for exporters and banks. Esprit Holdings Ltd. (330), a clothier that counts Europe as its biggest market, dropped 4.8 percent in Hong Kong. Samsung Electronics Co., which gets a fifth of its sales in Europe, lost 1.4 percent in Seoul. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s No. 1 listed lender by market value, sank 3.8 percent in Tokyo. Mitsubishi Corp., Japan’s biggest commodities trader, slumped 5.7 percent as oil and metal prices tumbled. Asia Stocks Fall as Concern Over Europe’s Debt Crisis Deepens
Reuters (Reported 10/4/2011)
Gold gained 1 percent on Tuesday, rising for a fourth day, as investors dumped equities and turned to bullion on growing fears that a Greek default could trigger another global recession. As safe-haven buying lifted gold prices, European stock index futures slipped on doubts over Greece's ability to avoid default, copper fell for a fifth day and Brent crude fell more than a dollar to below $101 a barrel. Gold rises 1 percent on fears of Greek default
Kitco (Reported 10/4/2011)
U.S., European and Asian stock markets were under pressure again Tuesday, due to the European Union sovereign debt crisis and the growing reality of a credit default by Greece. This situation has taken a turn for the worse as Greece will apparently not meet its deficit targets this year. This has prompted more scrambling by EU and IMF officials, including rescheduling of meetings that are raising investor anxiety even more. Comex Gold Moves Lower Amid Stronger U.S. Dollar, Lower Crude Oil
Technical Overview
DEC GOLD
Overall the market is bearish, but near term trade is still in a correction off the 1560 target and may yet consolidate the sharp downturn. Stable action over 159010* favors modest rallies. However, residual bear forces should blunt retracements against 169180* and use congestion to setup for another selloff. Closes over 169180* and 171590* are needed for a bull turn. Sustained action under 159010* will send selloffs to test 1560/154850 support for a larger downturn.
DEC SILVER
The market is bearish, but holding over 28085* monthly support. The rebound from under 28085* still alerts for an extreme spike low and recovery action. A close over 3308 will boost retracements to test 3519*. Bear trend forces may try to pressure direct secondary dips. Closes under 2899* and 28085* are needed to release bear trending trade.
DEC COPPER
The market is bearish with trade alerting for a preliminary breakout under last week’s low. Be ready for pressured trade under 310-. A close under 296 is bearish and could trigger another washout leg to 280. We may see a swing back to corrective congestion at 315-32965*. However, closes over 32965* and 34635* are needed to start a bottoming turn and sustained corrections.
For More
Energy News
Precious Metals
Softs & Ags
To view our metals reports and articles on your PDA or mobile device, click here.
For comments and questions contact us at 203-504-2786, support@fmxconnect.com or AIM: fmxconnect.
-----
About FMX: FMX Connect is an information, data, and analytics portal for Commodities. The portal provides an all-in-one package including essential market data, independent third party research, industry news, and commodity trading tools. FMX Connect provides efficient, effective, and thorough data that bridges all aspects of commodities onto one screen. The Result; A user friendly application for hedge fund traders, OTC brokers, individual investors, and industry participants
-----
Note: The information presented, while from sources generally believed to be reliable, is not guaranteed and may not be complete. FMX | Connect makes no representations or warranties regarding the correctness of any opinions or information. Past results are not necessarily indicative of future results. Nothing in this report should be construed as a representation to buy or sell shares, futures or options, which contain considerable risks. For internal client distribution only. Any reproduction, re-transmission, or distribution of this report without permission is prohibited. Media correspondents or reporters may not quote any one page or section in its entirety and must attribute all quotes, ideas or concepts herein. Copyright FMX | Connect, ©2009-2010. All rights reserved.