Morning Gold Fix – October 20, 2011
FMX | Connect – www.fmxconnect.com - (Reported 10/20/2011)
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 $1,647.00 per troy ounce, a loss of $5.80 for the day.
December gold was down $23.90 to $1623.1 per 100 troy ounces as of 7:45 am EST this morning. The December U.S. dollar index was down 0.211 to $77.205. January platinum was down 28.30 to $1494.80 per 50 troy ounces. December silver was down 52.2 cents to 30.76.
Market Recap
Gold ambled lower on Tuesday, finding little support in new developments of Europe and reports that the ESFS’s assets may be levered to 2 trillion euros. Similarly, U.S. housing starts, the CPI and Federal Reserve Beige Book failed to convince investors to take on additional risk. Gold traded on its daily high overnight and trended solidly lower during the day. Consequently, volatility remained firm and put trading was dynamic, with the possibility of a technical breakdown bringing speculators into the market. Puts and put spreads were purchased from December through June, including both the December 1550/February 1400 Calendar Put Spread and the June 2012 1300/1200 Put spread. Calls were also offered, with November and December hardest hit. November options expiration is only a week away.
Market Prices
In the News
Dow Jones (Reported 10/20/2011)
Spot gold is stabilizing in Europe Thursday after heavy liquidation on the Asian markets overnight, however industry participants warn the yellow metal could still have further to fall. At 1006 GMT, the spot price of gold was $1,629.82 a troy ounce, down 0.8% on the day. It had earlier fallen as low as $1,607.06/oz, its lowest level since Oct. 5. Spot Gold Stabilizes In Europe After Heavy Selling
Reuters (Reported 10/20/2011)
Gold fell on Thursday in its fourth consecutive daily decline, moving more closely in tandem with the stock market than at any time in the last six months, as concern about Europe's debt crisis weighed on most asset classes. Palladium rose following data that showed monthly exports from Switzerland rose to their highest in three years, while platinum remained under pressure. Gold falls, sticks more closely to stocks
FX Street (Reported 10/20/2011)
Gold had introduced bearish momentum within the wedge patter last time testing support during 10/18. The market continued lower in the Wednesday Asian session breaking below the wedge pattern support. Gold Breaks Below Wedge Pattern Support
Technical Overview
DEC GOLD
The downside objectives for this formation range from 1598.30 to 1589.50 with a close over 1675.52 needed to negate a bear trading stance. Market is within proximity of this week's projected resistance range of 1710.78- 1660.80, which may provide a likely zone for topping action or setbacks.
DEC SILVER
The downside objectives for this formation range from 2984.50 to 2859.00 with a close over 3199.70 needed to negate a bear trading stance. Market is within proximity of this week's projected resistance range of 3349.20- 3177.90, which may provide a likely zone for topping action or setbacks.
DEC COPPER
Market showing a preliminary breakout under a previous daily swing low and needs to quickly extend selloffs into a close beyond 323.05. Failure to extend the breakout today-tomorrow alerts for a bear failure. A close over 330.44 helps confirm a breakout failure. Market is challenging a previous daily swing low and may attempt a breakout. Closing beyond 323.05 calls for continuation selloffs. A failure around 323.05 cautions for a reactionary rebound.
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