-- Posted Monday, 29 April 2013 | | Disqus

STATS

London Gold AM Fix $1,472.50, +$10.25 LME Copper Stocks 619,600 tons +1,125 tons.

Gold Stocks 8.143 million ounces +152,449, Silver Stocks 166.141 million ounces -477,691

Hong Kong shares were minimally higher overnight but the volume was extremely low, while Mainland Chinese markets were closed for a 3 day holiday. European shares were showing positive action early on, after Italy managed to form a new government. While slack economic data from the Euro zone business confidence readings from April undermined some investors and the trade also saw some soft Italian April Business confidence readings that news was countervailed by falling Italian debt yields overnight and the formation of a new Italian government, that clearly leaves the balance of the European situation in positive territory. Apparently the somewhat positive spin from the European markets has drifted into the early US trade action. US stocks might be somewhat relieved that US sequestration impacts on US air travel have reportedly been solved. Today the US trade will see Pending Home sales, Personal Income and Personal Spending readings, with estimates for the data today mostly calling for very minimal gains.

GOLD

The gold market was showing positive action in the early going today, but prices still remained roughly $13 an ounce below last Friday's highs. Supportive currency market action and ongoing hope for central bank assistance later this week seems to have given the bull camp an initial edge today. An item that could eventually undermine gold prices, is news that the Indian government increased the base rate for calculating import taxes on gold again as that story line in the past has played in past liquidation efforts. Gold has also managed to discount bearish views toward gold from a major brokerage firm overnight who questioned the sustainability of the gold recovery off the recent lows. Gold this morning also has to discount news from last Friday, that gold derivative holdings in a closely watched instrument fell down to the lowest levels since September of 2009. However, the bull camp in gold does have a strong demand period ahead in Indian for the month of May and that combined with evidence of active physical gold buying since the April lows, has put some would-be sellers of gold back on their heels. Comex Gold Stocks at the end of last week were pegged at 8.143 million ounces for a gain of 152,449 ounces. Gold stocks have declined in 14 of the last 20 days. The Commitments of Traders Futures and Options report as of April 23rd for Gold showed Non-Commercial traders were net long 83,691 contracts, a decrease of 22,386 contracts. The Commercial traders were net short 86,073 contracts, a decrease of 36,578 contracts. The Non-reportable traders were net long 2,383 contracts, a decrease of 14,190 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 86,074 contracts. This represents a decrease of 36,576 contracts in the net long position held by these traders.

SILVER

The July silver contract was showing positive early action to start the new trading week, but silver prices were still roughly 61 cents an ounce below the Friday highs. Positive action in gold, favorable currency market action and perhaps even some fresh lift from global equity market action provided a mostly positive environment early on. Perhaps silver is also drafting some added lift from ongoing hopes of supportive central bank dialogue ahead and perhaps silver is also somewhat cheered on by the news that Italy was able to form a new government. Silver might have drafted some fresh support from news at the end of last week of a rise in holdings at a key silver derivative instrument, as that was the first rise in holdings seen since March 27th. Comex Silver Stocks were 166.141 million ounces down 477,691 ounces. The Commitments of Traders Futures and Options report as of April 23rd for Silver showed Non-Commercial traders were net long 12,593 contracts, a decrease of 3,572 contracts. The Commercial traders were net short 15,094 contracts, a decrease of 6,558 contracts. The Non-reportable traders were net long 2,501 contracts, a decrease of 2,986 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 15,094 contracts. This represents a decrease of 6,558 contracts in the net long position held by these traders. The Non-reportable Net Short position in silver did hit a new record level at 2,501 contracts and for some traders that is a sign of a technically oversold market.

PLATINUM

The platinum market managed a higher high overnight and in the process the July contract reached up to the highest level since April 12th. Strength in gold, gains in equities and favorable currency market action provides platinum with a positive environment to start today and that track is partially enhanced by some fresh residual supply side concerns. Apparently Anglo American Platinum is close to reaching a deal with the South African government to close some mines and while the government appears to have brokered the deal, that doesn't mean the South African mine workers Union will be happy with the news. At least in the short term, platinum is likely to take the most direction from a partial risk on vibe and also from hopes that central bankers will provide some fresh assistance to physical commodity markets later this week. The Commitments of Traders Futures and Options report as of April 23rd for Platinum showed Non-Commercial traders were net long 27,735 contracts, a decrease of 317 contracts. The Commercial traders were net short 28,913 contracts, a decrease of 1,296 contracts. The Non-reportable traders were net long 1,177 contracts, a decrease of 980 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 28,912 contracts. This represents a decrease of 1,297 contracts in the net long position held by these traders. Initial support in July platinum is seen today at $1,488 and resistance is seen at the overnight high of $1,502.00.

COPPER

The copper market is showing a noted recovery attempt this morning but the copper market has now exhibited significant two sided volatility in the last 4 trading sessions. With parts of China closed for a three day holiday, the focus of the copper trade is likely to shift back toward Europe and the US, but with European and US equities higher, favorable currency market action and hope for supportive central bank talk later this week, the bull camp might feel like they have most of the cards in their hands to start the new trading week. In fact, the market even saw a decline in daily LME copper stocks last night and that is followed by news of a weekly decline in Shanghai copper stocks at the end of last week. Copper might also see some generally supportive economic news from the US this morning from Pending Home sales, but it is unclear if Personal Income and Spending data will be definitively supportive of copper prices. The Commitments of Traders Futures and Options report as of April 23rd for Copper showed Non-Commercial traders were net short 20,570 contracts, a decrease of 2,838 contracts. The Commercial traders were net long 28,111 contracts, a decrease of 1,477 contracts. The Non-reportable traders were net short 7,540 contracts, an increase of 1,360 contracts. Non-Commercial and Non-reportable combined traders held a net short position of 28,110 contracts. This represents a decrease of 1,478 contracts in the net short position held by these traders.

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-- Posted Monday, 29 April 2013 | Digg This Article | Source: GoldSeek.com

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