-- Posted Tuesday, 19 February 2013 | | Disqus

STATS

London Gold Fix $1,613.50, -$19.75 LME Copper Stocks 411,250 tons +6,950 tons

Gold Stocks 10.820 million ounces -115,568, Silver Stocks 160.243 million ounces -350,997

Chinese shares were weaker after the prolonged Holiday period, as weakness in property and property management sectors led the Chinese markets lower overnight. Chinese shares might have been disappointed in talk overnight that Chinese growth might begin to settle in around the 8.5% level. European stocks were mostly positive after a German ZEW report came in much stronger than most expectations. US equities were slightly higher to start today. The US economic report slate is somewhat thin this morning with a private NAHB Housing Index release the only key scheduled data due out.

GOLD

Not surprisingly, gold has managed a slight recovery bounce this morning, after the sharp drubbing last week left the gold market oversold. Sentiment toward the metals complex remains somewhat vulnerable overnight but fortunately for the bull camp, the much better than expected German ZEW readings didn't rekindle the type of sharp washout action seen for most of last week. Indian gold buyers remained uninspired overnight but a partial holiday in that country might have tempered the trade action. Gold did see some light buying from Chinese players early on overnight and that was probably some value hunting buying, as gold prices overnight were at times as much as $64 an ounce below the levels where gold prices were when the Chinese markets started their long holiday. Not surprisingly, gold is facing negative dialogue from the press overnight as last week's slide in gold prices put gold down to the lowest levels since August 2nd of 2012. Slightly adverse currency market action to start today and mostly upbeat global equity market action early today suggests that some of last week's outside market conditions have continued into the new trading week. The Commitments of Traders Futures and Options report as of February 12th for Gold showed Non-Commercial traders were net long 128,581 contracts, a decrease of 15,914 contracts. The Commercial traders were net short 163,491 contracts, a decrease of 19,057 contracts. The Non-reportable traders were net long 34,910 contracts, a decrease of 3,142 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 163,491 contracts. This represents a decrease of 19,056 contracts in the net long position held by these traders. Comex Gold Stocks were 10.820 million ounces down 115,567 ounces. Comex Gold stocks are at the lowest in the past 10 readings.

SILVER

Like gold, silver has managed a short covering bounce after last week's aggressive downside washout. Silver seems to have clawed its way back to even numbers on the charts of $30.00 and that level could become some sort of pivot point later today. Somewhat surprisingly, silver is managing the initial gains this morning in the face of weaker copper prices and minimally adverse currency market action. As in gold, silver is probably catching some short covering action in the wake of last week's massive slide in prices. There would appear to be a risk-on vibe in place to start today, but recently silver hasn't performed well in the face of mostly positive macro economic vibes. The Commitments of Traders Futures and Options report as of February 12th for Silver showed Non-Commercial traders were net long 33,232 contracts, a decrease of 4,133 contracts. The Commercial traders were net short 48,497 contracts, a decrease of 5,747 contracts. The Non-reportable traders were net long 15,264 contracts, a decrease of 1,615 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 48,496 contracts. This represents a decrease of 5,748 contracts in the net long position held by these traders. Comex Silver Stocks were 160.243 million ounces down 350,998 ounces. Silver stocks have increased in 14 of the last 20 days.

PLATINUM

Platinum has recoiled from the sharp sell off lows posted at the end of last week. Not surprisingly, the platinum market was found to have been significantly overbought, with the "combined" spec and fund Net Long position in platinum hitting a new record level of 59,241 contracts as of early last week! The Commitments of Traders Futures and Options report as of February 12th for Platinum showed Non-Commercial traders were net long 52,576 contracts, an increase of 550 contracts. The Commercial traders were net short 59,241 contracts, an increase of 636 contracts. The Non-reportable traders were net long 6,665 contracts, an increase of 86 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 59,241 contracts. This represents an increase of 636 contracts in the net long position held by these traders. With violence surfacing again at an Anglo American mine overnight, the supply side threat in platinum has returned and that for the time being seems to have countervailed the technical damage on the charts and the bearish down draft that was seen in most precious metals markets recently. With police confirming that workers were injured and the press carrying news of some shaft closures, the trade is probably embracing fears of reduced supply again. Near term support in April platinum is now seen at $1,686 and there might be little in the way of resistance seen until the $1,704 level.

COPPER

Apparently the return of Chinese players wasn't supportive of copper overnight, as prices have fallen down to the lowest levels since January 29th in the early US Monday trade. Perhaps the markets are disappointed by a developing trend of rising copper exchange stocks, as stocks have forged a quasi upside breakout and have recently shown some rather surprising single day builds. With Chinese equity markets off slightly overnight because of ongoing property sector fears, adverse currency market action and damage on the copper charts this morning, the bear camp looks to have the advantage to start today. The markets might have expected the Chinese return from holiday to have been supportive of copper prices but instead Asian copper prices were soft and that might have resulted in some knock on selling pressure. The Commitments of Traders Futures and Options report as of February 12th for Copper showed Non-Commercial traders were net long 15,828 contracts, a decrease of 359 contracts. The Commercial traders were net short 21,746 contracts, a decrease of 2,175 contracts. The Non-reportable traders were net long 5,918 contracts, a decrease of 1,817 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 21,746 contracts. This represents a decrease of 2,176 contracts in the net long position held by these traders. Daily LME copper stocks posted another significant rise of 6,950 tons and that puts the total copper stock levels above 411,250 metric tons and for some that is a psychological negative for prices.

Insightful. Unbiased. Strategic.

Futures Market Research for Traders | Producers & End Users | Brokers

Whether you are an individual trader or broker who wants the best commentary around to help your clients, we have a suite of products to help you.

·         Daily Comments

·         Weekly Market Letter

·         2013 Commodity Trading Guide

To Get More Hightower Research Click Here

-- Posted Tuesday, 19 February 2013 | Digg This Article | Source: GoldSeek.com

comments powered by Disqus
Previous Articles

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer