-- Posted Tuesday, 22 January 2013 | | Disqus

STATS

London Gold Fix $1,692.50, +2.50 LME Copper Stocks 342,450 tons -3,075 tons

Gold Stocks unchanged at 10.907 million ounces, Silver Stocks 152.094 million ounces +90,996

Mainland Chinese shares were off slightly in a profit taking reaction to a recent string of gains. Hong Kong shares were positive but some investors are now wondering if earnings will be able to live up to expectations that have been raised by persistent share price gains. European shares were off slightly in the wake of a renewed debate over the next tranche of Greek support. US equities were also showing some weakness to start the holiday shortened trading week. However, the US markets will see a rather active flow of critical blue chip earnings reports today and it is possible that earnings could temporarily take center stage over scheduled US data flows.

GOLD

Apparently the gold trade was anticipating efforts by the Indian government to moderate gold imports, as increased duties and other discouragements have been implemented and yet international gold prices weren't markedly undermined in the overnight action. In fact, Gold seemed to take more guidance from the promise of additional stimulus efforts from the BOJ, than it did to the Indian duty developments. Gold might also be drafting some minor indirect support from news that some South African Congress members might be poised to push for even more control of the South African platinum mining industry, as that could signal increased tensions in that region. With a weaker dollar and a revival of concerns toward Greece seen overnight, it is possible that gold was getting some lift from currency and safe haven sentiment. In a minor development, the gold market overnight also saw confirmation of a 5% decline in 2012 gold production from Nord Gold, but that potentially supportive news was mostly negated by predictions from Nord of a growth in 2013 gold production. Comex Gold Stocks were unchanged at 10.907 million ounces. Gold stocks have increased 13 of the last 20 days. The Commitments of Traders Futures and Options report as of January 15th for Gold showed Non-Commercial traders were net long 151,218 contracts, for an increase of 7,565 contracts. The Commercial traders were net short 192,906 contracts, an increase of 11,749 contracts. The Non-reportable traders were net long 41,688 contracts, an increase of 4,184 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 192,906 contracts. This represents an increase of 11,749 contracts in the net long position held by these traders.

SILVER

While March silver has forged a quasi double top around the $32.14 level overnight, silver prices still sit within relatively close proximity to their recent highs and that might embolden the bull camp technically. With the rest of the metals complex also trading higher overnight it would appear that the metals markets are indeed benefiting from the latest BOJ easing move. It is also likely that silver is garnering some fresh lift from supportive currency market action and generally positive Chinese equity market performance of late. Silver probably doesn't see much impact from news of steady silver production from Fresnillo in 2013, but news that they plan to boost production to 65 million ounces by 2018, could also be seen as a limiting news item for some silver traders. With March silver sitting right on the even number mark of $32.00 on the charts, it is possible that the level of prices into the close today, could be seen as an important technical pivot point for the silver market. Comex Silver Stocks were 152.094 million ounces up 90,996 ounces. Silver stocks have increased 13 of the last 20 days. The Commitments of Traders Futures and Options report as of January 15th for Silver showed Non-Commercial traders were net long 31,082 contracts, an increase of 726 contracts. The Commercial traders were net short 45,408 contracts, an increase of 1,114 contracts. The Non-reportable traders were net long 14,326 contracts, an increase of 388 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 45,408 contracts. This represents an increase of 1,114 contracts in the net long position held by these traders.

PLATINUM

The market has started the new trading week on a positive track off lingering supply side threats, but platinum is also drafting some fresh lift off the latest easing move from the BOJ. It is also possible that platinum is garnering some lift from talk that members of the South African Congress are poised to look into taking further control of the South African platinum mining sector in an effort to protect mining jobs. News of an Indian import duty on gold and platinum might be another minor negative for platinum prices, but Indian platinum demand isn't usually seen as a key headline force behind the movement in platinum prices. The Commitments of Traders Futures and Options report as of January 15th for Platinum showed Non-Commercial traders were net long 44,179 contracts, an increase of 5,741 contracts. The Commercial traders were net short 48,947 contracts, an increase of 6,640 contracts. The Non-reportable traders were net long 4,768 contracts, an increase of 899 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 48,947 contracts. This represents an increase of 6,640 contracts in the net long position held by these traders. There might be little in the way of close-in support in April platinum until the $1,674 level, with initial resistance seen up at $1,694 to start today. A loss of momentum on the charts concerns a portion of the bull camp and that combined with a net spec long of almost 50,000 contracts, could mean the platinum market is temporarily overbought.

COPPER

With March copper initially carving out a fresh new high for the move overnight, generally positive Asian copper market action and news of fresh easing from the BOJ, the bull camp in copper seems to have the benefit of the headline flow this morning. With the Chinese floating evidence of strong refined copper imports for 2012 (those figures hit a fresh record high) that suggests that Chinese demand for copper remains a supportive element, even in the face of a year where there were fears of a Chinese economic hard landing! Offsetting the mostly positive Chinese copper import news was news overnight that Chinese copper output for 2012 also rose sharply. The market might also be garnering some support from talk of a vote to strike by Southern copper workers in Peru. Ongoing gains in Hong Kong stocks overnight, favorable currency market action and a decline in daily LME copper stocks of 3,075 tons are other factors that favor the bull camp in copper this morning. While there are some key US economic reports due out this morning, the focus of the copper trade might not take much guidance from today's US data. The Commitments of Traders Futures and Options report as of January 15th for Copper showed Non-Commercial traders were net long 11,923 contracts, a decrease of 453 contracts. The Commercial traders were net short 16,223 contracts, an increase of 281 contracts. The Non-reportable traders were net long 4,300 contracts, an increase of 735 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 16,223 contracts. This represents an increase of 282 contracts in the net long position held by these traders. 

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-- Posted Tuesday, 22 January 2013 | Digg This Article | Source: GoldSeek.com

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