-- Posted Monday, 25 February 2013 | | Disqus

STATS

London Gold Fix $1,592.50, +$12.50 LME Copper Stocks 430,725 tons +6,375 tons

Gold Stocks 10.651 million ounces -68,316, Silver Stocks 160.814 million ounces +396,820

Chinese shares were marginally higher despite some sluggish Chinese data and an ongoing drag from property related issues. European shares were higher overnight, off positive feedback from the US Fed at the end of last week and apparently because few investors are concerned about the outcome of the Italian election. US stocks were just barely carving out gains in the early action today, as the sequestration deadline comes into view and leaders in Washington prepare for another last minute negotiation. The US economic report slate today will bring a Chicago Fed National Activity Index result and a Texas Manufacturing outlook, but the data might not result in a noted market reaction.

GOLD

After falling to multi month lows last week, gold prices seem to have found some value hunting or bargain hunting buying overnight. It also seems as if the gold market sees favorable equity market action as a positive, or perhaps gold is simply being lifted by suggestions from the Fed at the end of last week, that US easy money policy was set to stay in place for a long period of time. With the Chairman of the Fed scheduled to testify for two days starting on Tuesday, it is also possible that the gold market expects the Fed Chairman to further tamp down the fears of an early end to QE. Another issue that might be providing gold with some lift, is more supportive currency market action and less broad based liquidation pressure from physical commodity markets. Apparently gold saw a pick up in gold demand in China and for some that suggests the Chinese see value in gold prices around the $1,575 level in the April gold contract. Somewhat surprisingly gold was able to discount news that Chinese 2012 gold production rose by just under 12% from the year before. Comex Gold Stocks were 10.651 million ounces down 68,316 ounces. Comex Gold Stocks are now at the lowest levels since 05/24/2010. The Commitments of Traders Futures and Options report as of February 19th for Gold showed Non-Commercial traders were net long 98,380 contracts, a decrease of 30,201 contracts. The Commercial traders were net short 128,036 contracts, a decrease of 35,455 contracts. The Non-reportable traders were net long 29,655 contracts, a decrease of 5,255 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 128,035 contracts. This represents a decrease of 35,456 contracts in the net long position held by these traders.

SILVER

Like gold, the silver market has managed a quasi upside breakout in prices and in the process the silver market has taken out the two prior session's highs. Silver might have been lifted by news of a monthly rise in Chinese silver imports of 36% over the prior month and apparently silver didn't see the somewhat soft Chinese economic news overnight, as a negative perhaps because of the favorable Chinese silver import news. With slightly more supportive currency market action, than has been seen recently and a host of physical commodity markets back on the rise today, outside market conditions for silver seem to be improved relative to last week's action. Comex Silver Stocks were 160.814 million ounces up 396,820 ounces. The Commitments of Traders Futures and Options report as of February 19th for Silver showed Non-Commercial traders were net long 26,230 contracts, a decrease of 7,002 contracts. The Commercial traders were net short 38,248 contracts, a decrease of 10,249 contracts. The Non-reportable traders were net long 12,018 contracts, a decrease of 3,246 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 38,248 contracts. This represents a decrease of 10,248 contracts in the net long position held by these traders.

PLATINUM

With April platinum rejecting another downside breakout overnight and managing a low to high bounce of almost $33 an ounce, the bear camp might be temporarily knocked back on their heels. News the that Chinese platinum imports for the month of January showed a 13.7% increase from the prior month, that has probably helped to start the platinum market out on a positive footing today and with favorable currency market action and gains in a host of physical commodity markets, platinum is seeing more positive developments than negative developments. The Commitments of Traders Futures and Options report as of February 19th for Platinum showed Non-Commercial traders were net long 50,986 contracts, a decrease of 1,590 contracts. The Commercial traders were net short 57,698 contracts, a decrease of 1,543 contracts. The Non-reportable traders were net long 6,712 contracts, an increase of 47 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 57,698 contracts. This represents a decrease of 1,543 contracts in the net long position held by these traders. Critical support in April platinum moves up to $1,620 and resistance might not be seen today until the $1,636 level.

COPPER

At least in the early going today, the copper market has lagged behind the rest of the metals markets in what appears to be a short covering effort. However, another noted daily rise in LME copper stocks of 6,375 tons could make it more difficult for the copper market to rally, as rising exchange stocks could signal slack demand to many traders. In fact, with news of a 27% decline in January Chinese refined copper imports, the copper trade could see some added concern from the Chinese demand front but that news was effectively countervailed by strong imports in other copper import categories. For instance, Chinese copper concentrate imports actually rose by 26.7% on the month and the concentrate import number is a significantly larger tally than the refined imports. Perhaps the somewhat slack Chinese PMI readings overnight resulted in fewer bargain hunting buyers stepping up for copper. The Commitments of Traders Futures and Options report as of February 19th for Copper showed Non-Commercial traders were net long 9,260 contracts, a decrease of 6,568 contracts. The Commercial traders were net short 16,786 contracts, a decrease of 4,960 contracts. The Non-reportable traders were net long 7,526 contracts, an increase of 1,608 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 16,786 contracts. This represents a decrease of 4,960 contracts in the net long position held by these traders.

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 Monday, 25 February 2013 | Digg This Article | Source: GoldSeek.com

comments powered by Disqus
Previous Articles

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer