-- Posted Monday, 10 June 2013 | | Disqus

STATS

London Gold AM Fix $1,376.75 -33.25 LME

Copper Stocks 609,000 tons -875 tons

Gold Stocks 7.970 million ounces +24,627, Silver Stocks 164.651 million ounces +1,207,141

Chinese equity markets were closed for a holiday, but the Japanese Nikkei made a strong rebound to start out the week and finished with a 4.94% gain. European stock indices are generally close to unchanged this morning, although the German DAX is more than 0.50% higher in early trading. The Chinese Trade surplus during May was $20.4 billion. Exports were up 1.0% and imports were down 0.3%, both of which were far below market forecasts. Chinese CPI during May was up 2.1% year-on-year, lower than forecasts. Japanese 1st quarter GDP was revised up to a 4.1% annualized gain, higher than market expectations. There are no major US economic numbers during today's trading, although the market will take note of St. Louis Fed President Bullard's comments in Montreal at midsession.

GOLD

Following Friday's steep sell-off, gold prices traded both sides of unchanged overnight, as the lower prices attracted some bargain hunting, but the bearish tone from Friday's jobs data prevailed. The data, showing that US added 175,000 jobs in May, has kept the Fed tapering idea alive, despite the slight uptick in unemployment. Philadelphia Fed President Prosser, an inflation "hawk," commented that the data shows that the federal spending cuts have not been as damaging to the economy as feared and that the Fed should stop its bond-buying program now. This is not a surprising statement from him, but it does show how the report boosts his side of the discussion. There are also ideas that disappointing economic data out of China could spark further interest in gold there, but that might be slow to develop due to the holidays this week. Deutsche Bank announced it plans to open a 200-tonne gold storage facility in Singapore, as Asian gold trading has increased since the gold market sold off in April. SPDR Gold Trust holdings fell 0.06% on Friday to 1007.14 tonnes, the lowest lowest in four years. Despite a weekly increase, the COT report showed that as of last Tuesday, the combined large and small spec net long position was still hovering around the November 2008 and May 2005 lows, leaving the market in an "oversold" condition. The report showed that as of June 4th non-commercial traders were net long 64,854 contracts, an increase of 9,651 contracts for the week. Non-commercial and nonreportable traders combined held a net long position of 65,630 contracts, an increase of 7,667. Comex Gold Stocks were 7.970 million ounces up 24,627.

SILVER

Silver is trading lower this morning in modest follow-through from Friday's steep sell-off. The better than expected monthly payrolls number on Friday brought renewed expectations that the Fed would begin tapering its bond-buying program or "Quantitative Easing" soon. This lent support to the dollar and pressured flight-to-quality commodities like gold and silver. It also sent July Silver prices to their lowest level since the May 20th spike low. The news also brought renewed strength to the stock market, which could eventually lend support to silver if it meant industrial demand was picking up, but for the moment silver is taking on a precious-metals persona. The COT reports showed that as of last Tuesday, speculators had added to their net long position, but we suspect that Friday's action wiped that out. The Commitments of Traders Futures and Options report as of June 4th showed non-commercial traders were net long 4,132 contracts, an increase of 1,183 contracts for the week. Non-commercial and nonreportable traders combined held a net long position of 7,408 contracts, an increase of 416. The combined position is hovering around the low set in 1997 at 5,271 (which is as far back as the options data goes), putting the market in a historically oversold posture. Silver Stocks were 164.651 million ounces, up 1,207,141.

PLATINUM

July platinum has started out the week with moderate losses but has managed to hold above last Friday's low and to not extend last Friday's severe reversal from 7-week highs. Sluggish global risk sentiment and modest strength in the Dollar have combined to keep platinum prices on the defensive this morning. There is still a strike threat with Lohmin that is hanging over the market, but the potential for South African labor problems appears to be a backburner issue early in this week's trading. Initial support in July platinum is seen down at the $1,480 level, with the next significant resistance area up around the $1,506 area. The Commitments of Traders Futures and Options report as of June 4th showed non-commercial traders were net long 26,142 contracts, an increase of 2,246 for the week. Commercial traders were net short 26,701 contracts, an increase of 2,160 contracts. Nonreportable traders were net long 558 contracts, a decrease of 88 contracts. Non-commercial and nonreportable traders combined held a net long position of 26,700 contracts. This represents an increase of 2,158 contracts in the net long position held by these traders.

COPPER

Copper prices have seen little relief from their recent downdraft, with a gap-lower opening last night and a slide down to a fresh, 6-week low early in this morning's trading. While there was a sharp 21% month-on-month rise in Chinese copper imports during May, imports were down 14.5% from last year's levels. They were also 25% lower than last year for the January-May period. While there were several Chinese economic numbers that matched expectations, slack readings from the Trade and CPI data are casting a long shadow over copper and other physical commodity markets this morning. LME Copper Stocks were at 609,000 tons, down 875 tons. They have declined in 14 of the past 20 sessions. There are reports that India's top copper smelter will be able to reopen on a temporary basis after emissions problems, which may also be weighing on copper prices early in today's session. While there will be no major US economic numbers for the market to digest, last Friday's positive read on US jobs data will continue to pressure copper, as concerns that the Fed will begin to "taper" their asset purchases during the near future are likely to hang over the market. The Commitments of Traders Futures and Options report as of June 4th for Copper showed Non-Commercial traders were net short 9,506 contracts, a decrease of 3,666 contracts. The Commercial traders were net long 18,607 contracts, a decrease of 1,807 contracts. The Nonreportable traders were net short 9,101 contracts, an increase of 1,859 contracts. Non-Commercial and Nonreportable combined traders held a net short position of 18,607 contracts. This represents a decrease of 1,807 contracts in the net short position held by these traders.

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-- Posted Monday, 10 June 2013 | Digg This Article | Source: GoldSeek.com

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