Morning Gold Fix – October 24, 2011
FMX | Connect – www.fmxconnect.com - (Reported 10/24/2011)
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 $1,636.10 per troy ounce, a gain of $23.20 for the day.
December gold was up $19.70 to $1655.80 per 100 troy ounces as of 8:05 am EST this morning. The December U.S. dollar index was down 0.038 to $76.590. January platinum was up 25.90 to $1535.10 per 50 troy ounces. December silver was up 30.2 cents to 31.50.
Market Recap
Gold bounced from yesterday’s low, trading higher with most of the commodity sector. Coffee futures, for instance, rallied on news that European finance ministers would be up all weekend scrambling to put the details of a new rescue plan together. The euro was up strongly on the day, demonstrating increased investor confidence. Nonetheless, we can’t help but point out how fickle this market has reacted to European news of late and would like to see some more details emerge before reaching a stronger assessment.
After failing to break support near 1600 yesterday, December Gold futures rallied higher, briefly testing 1650 before settling at 1636.10. Buying interest this morning initially pushed the market higher, but found plenty of selling as it approached the mid 1600s. For example, there was a large buyer of the December 1810 Call on Globex this morning and he found plenty of options liquidity. Calls and straddles were heavily offered on the day, bringing volatility in across the term structure.
Market Prices
In the News
Bloomberg (Reported 10/24/2011)
Gold rose for a second day in London as concern about Europe’s debt crisis and monetary policy in the U.S. spurred demand for the metal as a protection of wealth. European leaders ruled out tapping the European Central Bank’s balance sheet to boost the region’s rescue fund and outlined plans to aid banks. Federal Reserve Vice Chairman Janet Yellen said on Oct. 21 that a third round of large-scale securities purchases may become warranted to boost the U.S. economy. Gold Climbs for Second Day as European Debt-Crisis Concern Stokes Demand
Reuters (Reported 10/24/2011)
Spot gold prices held steady on Monday, after European leaders moved closer to a concrete plan to solve euro zone's debt crisis during a weekend meeting, lifting sentiment in commodities and equities. Gold prices have followed moves in riskier assets in recent weeks, with its safe-haven appeal diminishing after wild price swings in the past two months. Gold prices seen steady; Europe debt deal eyed
Kitco (Reported 10/24/2011)
Comex December gold futures are trading higher Monday morning, as the raw commodity sector sees mostly higher prices across the board to start the trading week. Better physical demand coming out of Asia is also credited with boosting the gold market Monday. Comex Gold Higher Amid General Commodity Market Strength
Technical Overview
DEC GOLD
The downside objectives for this formation range from 1587.60 to 1559.60 with a close over 1646.23 needed to negate a bear trading stance. Market is within proximity of this week's projected resistance range of 1699.88- 1649.90, which may provide a likely zone for topping action or setbacks.
DEC SILVER
The downside objectives for this formation range from 2930.00 to 2835.50 with a close over 3143.57 needed to negate a bear trading stance. Market is within proximity of this week's projected resistance range of 3340.80- 3169.50, which may provide a likely zone for topping action or setbacks.
DEC COPPER
The downside objectives for this formation range from 284.55 to 278.40 with a close over 331.59 needed to negate a bear trading stance. Market is within proximity of this week's projected resistance range of 337.36-327.80, which may provide a likely zone for topping action or setbacks.
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