-- Posted Monday, 14 January 2013 | | Disqus

STATS

London Gold Fix $1,667.75, -1.75 LME Copper Stocks 329,725 tons -725 tons tons.

Gold Stocks 10.874 million ounces -26,178, Silver Stocks 148.960 million ounces -1,811,210

Mainland Chinese shares were higher again overnight off strength in property shares, while Hong Kong shares posted less significant gains. News of a large spending project for the Beijing airport might have provided some additional lift to Chinese shares but apparently many investors were still garnering confidence off last week's positive Chinese trade figures. European shares were also higher off series of mergers and acquisition stories that were announced overnight. US shares were also showing minor early gains but a fresh new high for the move in the early action has put some US equity market measures into five year highs! Today's US scheduled economic report slate is mostly empty, but there will be a series of Fed speeches and or Fed public appearances today and that might result in some fresh market reactions.

GOLD

Gold seems to be getting an initial lift off further improvement in global macro economic conditions. In addition to favorable action in Chinese equities overnight, European stocks are also higher and one US equity market measure has already posted a fresh five year high. With the Euro catching a lift from the favorable economic environment, gold seems to have garnered support from a number of outside market developments early today. With some evidence of increased physical gold demand from Asia overnight, it is clear that some bargain hunting buying was being seen. While Indian gold interest overnight was reportedly subdued, compared to brisk levels last week, the beginning of the festival season in India directly ahead is expected to become a supportive condition in the coming weeks and months. At least to start today, gold appears to have become a physical commodity market capable of benefiting from a return to a risk-on environment. Comex Gold Stocks were 10.874 million ounces down 26,178 ounces. Stocks have increased 12 of the last 20 days. Comex Gold stocks are at the lowest in the past 10 readings. The Commitments of Traders Futures and Options report as of January 8th for Gold showed Non-Commercial traders were net long 143,653 contracts, a decrease of 10,013 contracts. The Commercial traders were net short 181,157 contracts, a decrease of 14,625 contracts. The Non-reportable traders were net long 37,504 contracts, a decrease of 4,612 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 181,157 contracts. This represents a decrease of 14,625 contracts in the net long position held by these traders.

SILVER

Like gold, silver is showing some noted early upside action on the charts. Clearly a partial risk-on vibe is providing the silver market with some lift, but many traders view last week's quasi double top up around $30.94 to $30.95 as a critical pivot point. Silver might also be garnering some lift from residual strength in the Euro, as that action is starting to become a pattern. A minor rise in silver derivative investment holdings at the end of last week might also be providing some minor support to silver prices today, but strength in both precious and industrial metals prices leaves the bull camp in silver with a fundamental edge to start the new trading week. Comex Silver Stocks were 148.960 million ounces down 1,811,210 ounces. Stocks have increased 12 of the last 20 days. The Commitments of Traders Futures and Options report as of January 8th for Silver showed Non-Commercial traders were net long 30,356 contracts, a decrease of 1,024 contracts. The Commercial traders were net short 44,294 contracts, a decrease of 4,006 contracts. The Non-reportable traders were net long 13,938 contracts, a decrease of 2,983 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 44,294 contracts. This represents a decrease of 4,007 contracts in the net long position held by these traders.

PLATINUM

The platinum market looks to be the leadership market today with the April contract forging the highest price level since the December high in the early going today. With strong gains in Chinese equities and a general improvement in overall macro economic psychology, it is possible that the relative tightness of the platinum market is being given more credence. In fact, news that Anglo American platinum expects a record loss per share in 2012, in a way, highlights the lack of production incentive for many platinum producers. News of strong Chinese auto sales last week and talk of an improvement in auto sales expectations in Europe has probably boosted industrial demand expectations for platinum recently. As in other metals markets today, a risk-on vibe and favorable currency market action is also providing a lift for platinum prices. The Commitments of Traders Futures and Options report as of January 8th for Platinum showed Non-Commercial traders were net long 38,438 contracts, an increase of 1,737 contracts. The Commercial traders were net short 42,307 contracts, an increase of 1,039 contracts. The Non-reportable traders were net long 3,869 contracts, a decrease of 698 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 42,307 contracts. This represents an increase of 1,039 contracts in the net long position held by these traders. There might be little resistance in the April platinum contract until the $1,651.50 area on the charts. Support in April Platinum moves up today to $1,637.70.

COPPER

The copper market would seem to be lagging behind the rest of the metals complex in the early action today, perhaps because Asian copper prices were weaker overnight. In other words, recent slackening of Chinese copper import data, talk of burdensome Chinese copper warehouse supply and slack near term Chinese copper demand expectations are set to hold back copper prices somewhat. However, news of a fresh Chinese infrastructure project (Beijing Airport), soaring equities and favorable currency market action have given the bull camp an early edge today. Countervailing the upward track in copper today is a somewhat negative story on copper from a weekly US business paper. It is also possible that recent gains in European copper warehouse stocks and news of weaker industrial output from the Euro zone early this morning are serving to limit copper on the upside. The Commitments of Traders Futures and Options report as of January 8th for Copper showed Non-Commercial traders were net long 12,376 contracts, an increase of 3,060 contracts. The Commercial traders were net short 15,942 contracts, an increase of 5,800 contracts. The Non-reportable traders were net long 3,565 contracts, an increase of 2,740 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 15,941 contracts. This represents an increase of 5,800 contracts in the net long position held by these traders.

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-- Posted Monday, 14 January 2013 | Digg This Article | Source: GoldSeek.com

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