-- Posted Monday, 6 May 2013 | | Disqus
STATS
London Gold AM Fix $1,476.50, N.A. LME Copper Stocks 608,700 tons N.A. tons.
Gold Stocks 8.034 million ounces -65,504 ounces, Silver Stocks 165.642 million ounces -439,437 ounces
Chinese equity markets were higher on carry-over support from gains in the US market on Friday but mainland Chinese share gains were forged on stronger volumes. In Europe, the markets were seemingly banking some profits, as the French and German markets were slightly weaker early on, while the UK market was closed for a Bank holiday. The US market was chopping around both sides of unchanged early on, as last week's events might already be in the rear view mirror. With US equities mixed overnight, physical commodity price action lacking a definitive pattern and early European economic data soft this morning there appears to be more risk off sentiment in place than risk-on sentiment at the start of the new trading week.
GOLD
Gold prices have remained on a positive footing this morning despite adverse currency market action and signs of ongoing slowing from the Euro zone. Talk of ongoing physical gold demand in Asia overnight contributed to the initial higher price action but a slight rise in open interest in gold futures on the May rally has fostered a measure of technical optimism. Unfortunately for the bull camp, gold saw a key gold derivative instrument holdings decline again at the end of last week.
but some analysts are hopeful that further gains off the April low, will serve to reverse the investment exodus from certain gold vehicles. With some divergence within the metals complex early this morning and some noted weakness in grain prices some traders might see more risk-off psychology in place today which is in stark contrast to the sentiment seen last Friday. Gold might also lose some footing in the wake of suggestions from Warren Buffett that gold wasn't appealing to him, even after the steep washout in gold prices. Comex Gold Stocks were 8.034 million ounces down 65,504 ounces. Gold stocks have declined in 14 of the last 20 days. The Commitments of Traders Futures and Options report as of April 30th for Gold showed Non-Commercial traders were net long 85,890 contracts, for an increase of 2,199 contracts. The Commercial traders were net short 83,831 contracts, a decrease of 2,242 contracts. The Non-reportable traders were net short 2,058 contracts, an increase of 4,441 contracts which represents a change from a net long to net short position. Non-Commercial and Non-reportable combined traders held a net long position of 83,832 contracts. This represents a decrease of 2,242 contracts in the net long position held by these traders.
SILVER
The silver market has clawed out a minor gain today and part of those gains might be the result of positive leadership in gold prices. Some of the gains in silver of late might have been the result of technical short covering, as the recent positioning report showed silver to have posted another net short record in the Non-reportable category. The Commitments of Traders Futures and Options report as of April 30th for Silver showed Non-Commercial traders were net long 11,607 contracts, a decrease of 986 contracts. The Commercial traders were net short 13,865 contracts, a decrease of 1,229 contracts. The Non-reportable traders were net long 2,258 contracts, a decrease of 243 contracts. Non-Commercial and Non-reportable combined traders held a net long position of only 13,865 contracts. This represents a decrease of 1,229 contracts in the net long position held by these traders. Weakness in both copper and platinum this morning prices might be serving to hold back silver as the overall view toward industrial commodities is significantly less up beat this morning than the condition seen that was after the US payroll data was released last Friday. Comex Silver Stocks were 165.642 million ounces down 439,437. Stocks have declined 11 of the last 20 days.
PLATINUM
Platinum prices have started out a little sloppy, as global equity market action overnight was mixed to weaker and perhaps platinum has been put off balance because of negative demand news floated on the platinum market at the end of last week. While some players expect to see evidence of lower platinum supply from South Africa this week, in the wake of Anglo American restructuring news, news
Gold Fields Mineral Services at the end of last week of a temporary surplus because of slumping demand might have taken some bullish sentiment out of the market. The Commitments of Traders Futures and Options report as of April 30th for Platinum showed Non-Commercial traders were net long 31,484 contracts, an increase of 3,749 contracts. The Commercial traders were net short 32,476 contracts, an increase of 3,563 contracts. The Non-reportable traders were net long 992 contracts, a decrease of 185 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 32,476 contracts. This represents an increase of 3,564 contracts in the net long position held by these traders. Some traders might suggest platinum is short term overbought from the recovery off the April lows of $120 an ounce and others will suggest that the market needs several closes back above $1,500 to confirm a bottom has been put in place.
COPPER
Asian copper prices soared overnight in a catch up move to the action seen in the US copper market at the end of last week. Clearly the copper market was overly bearish toward prices into the April and May lows on the charts, as the copper market posted record and near record short positioning in the Non-reportable and Non-commercial combined positioning over the last two months. In fact, the "combined" spec and fund Net Short position in copper hit a new record level at 30,016 contracts in the most recent report. The Commitments of Traders Futures and Options report as of April 30th for Copper showed Non-Commercial traders were net short 23,342 contracts, an increase of 2,772 contracts. The Commercial traders were net long 30,016 contracts, an increase of 1,905 contracts. The Non-reportable traders were net short 6,674 contracts, a decrease of 866 contracts. Non-Commercial and Non-reportable combined traders held a net short position of 30,016 contracts. This represents an increase of 1,906 contracts in the net short position held by these traders. With the initial high overnight, July copper did manage a fresh new high for the move and in turn the copper market reached up to the highest level seen since April 17th and therefore the noted short spec positioning might remain under pressure, even through early prices are showing some weakness. Some traders think that copper prices were too cheap at the April lows, but it could take a return to the $3.40 level for some to really signal a reversal of the down trend that seems to have become entrenched in copper since the February highs.
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-- Posted Monday, 6 May 2013 | Digg This Article
| Source: GoldSeek.com
