-- Posted Monday, 4 March 2013 | | Disqus

STATS

London Gold Fix $1,578.00, +$8.00 LME Copper Stocks 450,325 tons +3,625 tons

Gold Stocks 10.248 million ounces -41,093, Silver Stocks 163.425 million ounces +595,107

Chinese shares were weaker overnight off renewed talk of tightening policies in the Chinese property sector, with mainland Chinese shares under more pressure than Hong Kong shares. Indian and UK shares were also weaker in the wake of the Chinese news and also because of weakness in global mining shares. It is also possible that some of the weakness in global equity markets is the result of the US sequester, but that issue didn't seem to be an overly negative development, which in turn might suggest that the sequester could eventually be viewed as a positive toward the global economy. The economic report slate from the US is mostly empty today but there will be a series of Fed speeches seen throughout the Monday trading session.

GOLD

Recently the gold market has maintained a pattern of weakness in the face of up beat US economic data flows and that would seem to suggest that gold is indeed tracking safe haven issues. Perhaps gold was able to draft some support this morning from the residual influence of the US sequester at the end of last week, as that event has fostered some level of uncertainty. However, gold is forging the initial gains this morning in the face of adverse currency market action and in the face of definitive weakness in global mining shares. One might have expected to see some pressure on gold prices from news of tightening Chinese property rules overnight, but instead Asian players showed some fresh interest in gold. In general, Indian gold importers didn't join the buying bias overnight, as adverse local currency market action and lackluster economic conditions probably discouraged some of those players. With the US economic report slate empty today, gold might have to look to US Fed speeches and or policy statements from Washington for fresh direction. Interest in gold derivative instruments remained soft into the end of last week and that would seem to leave a lid of sorts sitting over gold prices. Comex Gold Stocks were 10.248 million ounces down 41,093 ounces. Comex Gold Stocks are now at the lowest levels since 05/06/2010. Gold stocks have declined in 12 of the last 20 days. The Commitments of Traders Futures and Options report as of February 26th for Gold showed Non-Commercial traders were net long 113,638 contracts, an increase of 15,258 contracts. The Commercial traders were net short 134,298 contracts, an increase of 6,262 contracts. The Non-reportable traders were net long 20,660 contracts, a decrease of 8,995 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 134,298 contracts. This represents an increase of 6,263 contracts in the net long position held by these traders.

SILVER

Silver is tracking higher this morning and is doing so in the face of noted weakness in global equity markets and also in the face of mostly adverse currency market action! Perhaps silver and other industrial metals are being lifted because the forced US spending cuts effectively gets the world beyond the Washington gridlock issue. In fact, the black cloud from Washington with respect to budgets, debt ceilings, fiscal cliffs and etc. has been hanging over the markets for a number of years now and seeing the forced spending cuts implemented, could mean that Washington will become marginalized and that could allow the global economy to claw its way forward again. However, the prospect of a definitive risk-on vibe is clearly dampened by weakness in equities and adverse currency market action. With no major US scheduled data due out during the US Monday trade, the silver market might have to take most of its direction from a series of Fed speeches today. Comex Silver Stocks were 163.425 million ounces up 595,107 ounces. Comex Silver Stocks are now at the highest levels in a year. Comex Silver Stocks are at the highest levels since 08/15/1997. Silver stocks have increased in 13 of the last 20 days. The Commitments of Traders Futures and Options report as of February 26th for Silver showed Non-Commercial traders were net long 21,196 contracts, a decrease of 5,034 contracts. The Commercial traders were net short 30,906 contracts, a decrease of 7,342 contracts. The Non-reportable traders were net long 9,710 contracts, a decrease of 2,308 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 30,906 contracts. This represents a decrease of 7,342 contracts in the net long position held by these traders.

PLATINUM

April platinum starts the new trading week sitting roughly $15 an ounce above last week's spike low. Platinum appears to be fighting outside market adversity this morning, with adverse currency market action, weaker equities and generally down beat global economic views facing the early trade. One almost gets the impression that platinum and other physical commodity markets are happy to get beyond the US budgetary dance, even if the upshot is some minor fears of slowing in the face of forced U.S. spending cuts. News from the South African mining sector remains thin, especially with respect to fresh labor issues and that might be the main reason behind the weakness in platinum prices over the last several weeks. Platinum could eventually see some support from news that the South African Energy Regulator has granted the right to raise electricity rates for the next 5 years by 8%, as that in turn presents yet another boost to already rising mining costs. The Commitments of Traders Futures and Options report as of February 26th for Platinum showed Non-Commercial traders were net long 43,219 contracts, a decrease of 7,767 contracts. The Commercial traders were net short 49,216 contracts, a decrease of 8,482 contracts. The Non-reportable traders were net long 5,997 contracts, a decrease of 715 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 49,216 contracts. This represents a decrease of 8,482 contracts in the net long position held by these traders. Initial support in April platinum is seen at $1,573 and resistance today is seen up at $1,589. While getting beyond the sequester window seems to be a positive, we can't call for an end to the downtrend pattern off that development alone.

COPPER

The copper market has also managed to bounce off last week's spike low and that action seems to be the result of "relief" in the wake of the forced spending cuts. In other words, some markets like copper are seemingly happy to get beyond the Washington sideshow and there is hope that Washington might become less of a headline story and more of a background situation. Limiting the upward track in copper this morning, is yet another increase in daily copper exchange stocks, renewed Chinese property curbs, weak global equity market action and adverse currency market action. However, copper recently has seen the US copper action as the leading market and therefore the weakness in Asian copper prices overnight has been discounted somewhat this morning. With a lack of scheduled data this morning, it will be interesting to see if the markets can effectively put on a more positive face and look ahead to slow, but positive growth trends. The Commitments of Traders Futures and Options report as of February 26th for Copper showed Non-Commercial traders were net short 736 contracts, an increase of 9,996 contracts which represents a change from a net long to net short position. The Commercial traders were net short 1,965 contracts, a decrease of 14,821 contracts. The Non-reportable traders were net long 2,701 contracts, a decrease of 4,825 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 1,965 contracts. This represents a decrease of 14,821 contracts in the net long position held by these traders.

Insightful. Unbiased. Strategic.

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

For daily updates on the Gold, Silver, Platinum and Copper markets, Click Here!

-- Posted Monday, 4 March 2013 | Digg This Article | Source: GoldSeek.com

comments powered by Disqus
Previous Articles

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer