Morning Gold Fix – October 18, 2011
FMX | Connect – www.fmxconnect.com - (Reported 10/18/2011)
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 $1,676.60 per troy ounce, a loss of $6.40 for the day.
December gold was down $32.70 to $1643.90 per 100 troy ounces as of 8:40 am EST this morning. The December U.S. dollar index was up 0.157 to $77.585. January platinum was down 25.10 to $1526.70 per 50 troy ounces. December silver was down 99.60 cents to 30.825.
Market Recap
Gold traded to a new weekly high over the weekend but finished the day marginally lower. Last week markets were enthused by a fresh wave of Euro optimism but sentiment took a more dour turn over the weekend, leading German Chancellor Angel Merkel to state that there will be no quick resolution. G20 ministers still have a lot of ground to cover before the November 3rd meeting, and this was reflected in the dollar index’s surge higher.
Volatility opened the day firmly, nudged higher by continuing European anxieties and some disquieting U.S. economic data. After selling off from its overnight highs, gold tested the supporting trend line, prompting fears of a wash-out. Front month calls were offered and puts were bid, particular in December. November options have less than two weeks until expiration and market participants have started to clean up open interest. There was also interest farther back in the term structure, with calls, puts and straddles trading through December 2012. One of the more sizeable trades was the purchase of the August 2700/3300 1x2 Call spread by a dealer.
Market Prices
In the News
Reuters (Reported 10/18/2011)
Gold fell on Tuesday after evidence of slowing Chinese growth and mounting worries over the euro zone following a warning from a ratings agency over France's triple-A credit rating weighed on the commodities complex and boosted the dollar.Gold slides as macro worries lift dollar
Bullion Vault (Reported 10/18/2011)
Gold Bullion prices fell 1.4% in less than half an hour to $1638 per ounce Tuesday lunchtime in London – while stock markets also fell sharply – after investment bank Goldman Sachs announced a third quarter net loss of $393 million. The loss – Goldman's second ever as a listed company – represents 84 cents per share, compared to a Bloomberg analysts' consensus forecast of 11 cents. Gold Bullion Plunges, CFTC Votes on "Speculative Curb", Asia "Could Be New Pool of Liquidity" for Gold Market
Kitco (Reported 10/18/2011)
Comex December gold futures are trading sharply lower in early U.S. dealings Tuesday. It’s a “risk off” trading day so far in the market place Tuesday, as U.S. and European stock markets are mostly lower while the U.S. dollar index is higher.Comex Gold Sharply Lower As It's A "Risk Off" Day In The Market Place
Technical Overview
DEC GOLD
The upside target zone for this pattern is from 1720.60 to 1733.50 with a close under 1670.54 needed to negate a bull trading stance. Market is within proximity f this week's projected support range of 1594.51-1676.60, which may provide a likely zone for bottoming action or rebounds.
DEC SILVER
The downside objectives for this formation range from 3078.50 to 2974.50 with a close over 3247.93 needed to negate a bear trading stance. Market is within proximity of this week's projected support range of 2767.47- 3182.10, which may provide a likely zone for bottoming action or rebounds.
DEC COPPER
The upside target zone for this pattern is from 346.70 to 353.70 with a close under 335.38 needed to negate a bull trading stance. 2* Market is within proximity of this week's projected resistance range of 356.05-346.15, which may provide a likely zone for topping action or setbacks.
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.