Morning Gold Fix – December 5, 2011
FMX | Connect – www.fmxconnect.com - (Reported 12/5/2011)
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
February Gold settled at $1,751.30 per troy ounce, a gain of $11.50 for the day.
December gold was down $13.60 to $1737.70 per 100 troy ounces as of 7:50 am EST this morning. The December U.S. dollar index was down 0.211 to $78.52. January platinum was down $7.3 to $1541.5 per 50 troy ounces. March silver was up 2.4 cents to $32.710.
Market Recap
Gold recorded a small gain on Friday, closing out a strong week for the underlying. Markets were pleasantly surprised by a decrease in U.S. employment to 8.6% from 9%, even though a sizeable decrease in the labor force (by 315,000) calls for some reservations. Options, straddles and volatility were well offered on the day. The selling, in structures like the April 1750 Straddle and January call spreads, was relentless. Traders were active across the entire term structure however, looking at items like 3-ways in June and Butterflies in December. Volatility was in 1-2% across the term structure.
Market Prices
In the News
Bloomberg (Reported 12/5/2011)
European leaders will take another run at fixing the debt crisis this week after the failure of their fourth rescue blueprint sparked intensified concern the 17-nation euro area was on the brink of unraveling. German Chancellor Angela Merkel and French President Nicolas Sarkozy will hold talks in Paris today starting at 1:30 p.m. over lunch. With a European Union summit in Brussels looming Dec. 9, U.S. Treasury Secretary Timothy Geithner arrives in Frankfurt tomorrow to prod political leaders and the European Central Bank holds a policy meeting Dec. 8. Merkel Heads to Paris as EU Seeks Debt Strategy
Reuters (Reported 12/5/2011)
Gold prices were steady on Monday, after posting their sharpest weekly rise in more than a month, as the dollar weakened and on prospects that European Union leaders will finally come up with a firm plan to tackle the euro zone debt crisis.The two-year-old debt crisis has not only pushed a few euro zone nations to the brink of bankruptcy, but also threatened to split the single currency bloc and shake the global economy.Gold steadies as euro zone plan looms
International Business Times (Reported 12/5/2011)
Gold prices barely moved Monday as weak physical buying and easing investor interest tempered anticipation of good economic news from the U.S. and hope that this week's big European summit aimed at solving the debt crisis will not disappoint. Eurozone leaders gather Friday in another effort to reach an agreement on how to stanch the continent's two-year-old sovereign debt crisis before the bond market drives banks or even weak member nations into bankruptcy. Gold Steady Ahead of Big Eurozone Summit
Technical Overview
FEB GOLD The market is still in a bear trend, but last week’s rallies puts trade against key 175460* resistance. Posting a close over 175460* signals rallies to the recent downturn gap at 1770-1777 and chance to test against the last swing high. If trade backs off from 175460*, then look for a slip to defensive congestion in the 1730-170740* range. A close under 170740* is needed to recapture bear trend forces.
MAR SILVER
The market remains in the negative turnover, but closes under 3188* or drop below 30945 are needed to release a slide to 2981*. Last week’s rallies still hint for rebounding action to test 3379* resistance. A close over 3379* signals a bull turn that should spark rallies to attack the last 3568 swing high. Any congestion inside the upper half of Wednesday’s range over 32025+ should provide a staging level to attempt further rallies.
MAR COPPER
Last week’s rally signals a bull upturn out of the past month long selloff and targets rallies to attack the last swing high. A close over 37680 could spark a larger bull wave to 390+. Be prepared for modest corrective congestion inside the upper half of last Wednesday’s rally, but stable action over 34310* keeps trade into a strong alignment for rallies. A close under 33775* is negative.
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