-- Posted Monday, 4 February 2013 | | Disqus
STATS
London Gold Fix $1,664.25, -$0.75 LME Copper Stocks 374,200 tons -1,800tons
Gold Stocks 10.940 million ounces -69,351, Silver Stocks 157.128 million ounces +2,550,787
Shares in Hong Kong were off slightly overnight, while mainland Chinese shares clawed out minor gains. European shares were higher overnight reportedly off catch up to Wall Street gains at the end of last week. The US markets were mostly mixed in the early going today as some investors catch their breath after last week's stellar pattern of gains. The markets will be presented with a US Factory Orders report today and a regional ISM business index reading, but after last week's US Non farm payroll results, data from the US might be given less attention. Weakness in some Euro zone Producer Prices overnight might serve to pressure the Euro in the early going today, but the metals markets in general might be looking for fresh direction from the Factory Orders report.
GOLD
The gold market starts the new trading week tracking back toward the lows forged at the end of last week. Apparently gold came away from the US economic news and strength in equities at the end of last week off balance, as safe haven liquidation continues to undermine gold prices. Gold might have been undermined by news from Randgold that the company expects to produce more gold than was initially targeted. However, Harmony mines indicated overnight that they might have lost up to 25,000 ounces of gold production due to labor problems at the end of last year and that news might mitigate the potential negative tilt from the Randgold production news flow. However, news from the supply front wasn't all bearish overnight, as Harmony mines warned of job cuts ahead, if workers fail to return to work at a South African mine. The news from India was mostly negative overnight, as middle men in India are reportedly flushed expensive supply and that could cool near term buying from that region. Comex Gold Stocks were 10.940 million ounces down 69,351 ounces. Gold stocks have increased in 12 of the last 20 days. The Commitments of Traders Futures and Options report as of January 29th for Gold showed Non-Commercial traders were net long 131,069 contracts, a decrease of 28,113 contracts. The Commercial traders were net short 172,449 contracts, a decrease of 32,036 contracts. The Non-reportable traders were net long 41,380 contracts, a decrease of 3,922 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 172,449 contracts. This represents a decrease of 32,035 contracts in the net long position held by these traders.
SILVER
Silver has also started the new trading week out on a softer track on the charts but silver prices are sitting much higher in the recent trading range than the gold market. Silver might have been undermined by news of a build in the speculative long positioning in last week's COT readings. Unfortunately silver isn't tracking with platinum prices this morning which are clearly diverging with the rest of the metals complex in the early Monday US trade action. Silver should continue to derive some support from news released at the end of last week that US silver coin sales were up sharply last month and in the process silver coin sales from the US Mint posted a record sales reading.
Comex Silver Stocks were 157.128 million ounces up 2,550,787 ounces and that might be responsible for some of the profit taking selling this morning. Comex Silver Stocks are now at the highest levels in a year, with stocks reaching up to the highest levels since 08/15/1997. The Commitments of Traders Futures and Options report as of January 29th for Silver showed Non-Commercial traders were net long 36,921 contracts, an increase of 2,971 contracts. The Commercial traders were net short 52,951 contracts, an increase of 1,923 contracts. The Non-reportable traders were net long 16,030 contracts, a decrease of 1,049 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 52,951 contracts. This represents an increase of 1,922 contracts in the net long position held by these traders.
PLATINUM
The platinum market is clearly diverging with the rest of the precious metals markets this morning, as the April platinum contract at times reached up to the highest level since October 9th of last year. News at the end of the week of a rising push for greater collection bargaining powers by South African unions is certainly something that might cause supply side concerns and in turn that in turn could lift platinum prices further. News of a Chinese investment in a South African platinum mine might also have sparked some fresh investment interest in platinum, as Chinese investment in physical commodity assets usually fosters talk of rising Chinese physical demand for that particular commodity. In short platinum continues to benefit from both supply and demand side issues. However, platinum might be limited somewhat by news that the "combined" spec and fund Net Long position in platinum hit a new record level at 55,870 contracts in the latest COT report. The Commitments of Traders Futures and Options report as of January 29th for Platinum showed Non-Commercial traders were net long 49,962 contracts, an increase of 3,449 contracts. The Commercial traders were net short 55,871 contracts, an increase of 3,806 contracts. The Non-reportable traders were net long 5,908 contracts, an increase of 355 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 55,870 contracts. This represents an increase of 3,804 contracts in the net long position held by these traders. The bulls control with key support in the April platinum contract moving up to the $1,693.60 level and resistance not seen until the $1,716.30 level.
COPPER
March copper prices managed an initial new high for the move and in the process copper prices reached up to the highest level since October 5th. International copper prices were generally higher overnight, as the copper trade remains up beat toward Chinese and global copper demand prospects ahead. Copper did see some supportive supply side news over the weekend, from news of a decline in Zambian 2012 copper production but many traders seem to be taking most of their guidance from the demand side of the equation. Therefore the copper trade this morning might take some fresh guidance from US Factory Orders figures which are expected to rise later this morning. The Commitments of Traders Futures and Options report as of January 29th for Copper showed Non-Commercial traders were net long 9,363 contracts, a decrease of 153 contracts. The Commercial traders were net short 16,441 contracts, an increase of 692 contracts. The Non-reportable traders were net long 7,077 contracts, an increase of 845 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 16,440 contracts. This represents an increase of 692 contracts in the net long position held by these traders.
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-- Posted Monday, 4 February 2013 | Digg This Article
| Source: GoldSeek.com
