Below is a sample of The Hightower Report’s Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
OUTSIDE MARKET DEVELOPMENTS: While equity markets in Asia and Europe are generally weaker during the overnight session, early indications are that US equity markets would open with moderate losses later on this morning. The US Dollar is higher against most of the major currencies this morning, although posting a loss versus the Yen. The Prime Minister of Greece will reshuffle his cabinet and pursue a vote of confidence in order to pass new austerity measures as part of a potential new aid package for his nation. The ruling party in Japan may raise corporate and income taxes to repay government bonds used for funding post-earthquake reconstruction. Euro zone CPI during May was up 2.7%, in line with market forecasts. UK Retail Sales during May were down 1.4%, weaker than expectations. Major US economic numbers to be released this morning include Weekly Jobless Claims and May Housing Starts at 7:30 AM, and the Philadelphia Fed’s survey of US Business Conditions during June at 9:00 AM. In addition, Fed Regional President Fisher will give a speech during the session.
GOLD MARKET FUNDAMENTALS: While gold prices seemed to forge some upside action yesterday off the uncertainty in the US economy yesterday, others were simply impressed with gold’s ability to hold together in the face of weakness in a broad cross section of physical commodity markets. Perhaps the gold market was partially undermined by news of rising Chinese gold production from the first four months of 2011, but that negative impact could be partially countervailed by news overnight that Russian gold and currency reserves reached up to the highest level in almost 3 years. News that the Russian central bank has generally been building its gold and currency reserve base in each of the prior two years might also cushion the gold market against what appears to be a pattern of weakness in a host of physical commodity markets. At least at times yesterday, the gold market seemed to benefit from evidence of slowing in the US economy, but initial expectations for the scheduled data today wouldn’t seem to give a definitive signal on the direction of the US economy. More than likely, gold remains in a position to garner some lingering support from the Greek debt crisis, especially since the Euro has started the Thursday US trade off on a slightly weaker footing. However, a stronger Dollar probably countervails some of the flight to quality lift for gold off the ongoing Euro zone debt saga. Comex Gold Stocks were 11.267 million ounces down 26,783 ounces.
SILVER MARKET FUNDAMENTALS: The silver market seems to be somewhat off balance as a result of broad based slowing fears and perhaps because of weakness in a host of physical commodity markets. While Comex silver stocks remained below the potentially psychological level of 100 million ounces overnight, the stocks yesterday saw a daily increase of 600,511 ounces to stand at 99.4 million ounces. Comex Silver Stocks have declined in 12 of the last 20 days. Talk of strong Asian demand for silver might also be providing the market with some support against what at times seems to be a broad based physical commodity market liquidation bias. Silver continues to see generally up beat analysts forward price projections, although some forecasts have recently been pulled down from levels forecasted earlier this year. In the mean time, silver might have to rely on flight to quality or safe haven support, as classic physical commodity market fundamentals could be undermining in the short term. So far, the silver market hasn’t taken much in the way of direction from earnings and production news from a series of silver miner results this week.
PLATINUM: The platinum market saw noted downside action on the charts overnight and given the apparent softening of the US economic outlook, the initial weakness today isn’t that surprising. With the market also seeing evidence of Indian tightening overnight and renewed Greek problems in the headlines it would seem like the platinum market almost totally discounting evidence of strong Chinese platinum import data. Typically seeing a physical commodity market discount favorable Chinese import/demand news story is usually a sign of broad based macro economic negativity in the marketplace. With the expectation of lower equities and some strength in the Dollar, the platinum market also looks to face a wave of negative outside market factors. Near term downside targeting is seen at $1,750 basis the July platinum contract.
Metals: Slowing Fears and Other Outside Market Forces Influence
by Dave Hightower on June 16, 2011
Below is a sample of The Hightower Report’s Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
OUTSIDE MARKET DEVELOPMENTS: While equity markets in Asia and Europe are generally weaker during the overnight session, early indications are that US equity markets would open with moderate losses later on this morning. The US Dollar is higher against most of the major currencies this morning, although posting a loss versus the Yen. The Prime Minister of Greece will reshuffle his cabinet and pursue a vote of confidence in order to pass new austerity measures as part of a potential new aid package for his nation. The ruling party in Japan may raise corporate and income taxes to repay government bonds used for funding post-earthquake reconstruction. Euro zone CPI during May was up 2.7%, in line with market forecasts. UK Retail Sales during May were down 1.4%, weaker than expectations. Major US economic numbers to be released this morning include Weekly Jobless Claims and May Housing Starts at 7:30 AM, and the Philadelphia Fed’s survey of US Business Conditions during June at 9:00 AM. In addition, Fed Regional President Fisher will give a speech during the session.
GOLD MARKET FUNDAMENTALS: While gold prices seemed to forge some upside action yesterday off the uncertainty in the US economy yesterday, others were simply impressed with gold’s ability to hold together in the face of weakness in a broad cross section of physical commodity markets. Perhaps the gold market was partially undermined by news of rising Chinese gold production from the first four months of 2011, but that negative impact could be partially countervailed by news overnight that Russian gold and currency reserves reached up to the highest level in almost 3 years. News that the Russian central bank has generally been building its gold and currency reserve base in each of the prior two years might also cushion the gold market against what appears to be a pattern of weakness in a host of physical commodity markets. At least at times yesterday, the gold market seemed to benefit from evidence of slowing in the US economy, but initial expectations for the scheduled data today wouldn’t seem to give a definitive signal on the direction of the US economy. More than likely, gold remains in a position to garner some lingering support from the Greek debt crisis, especially since the Euro has started the Thursday US trade off on a slightly weaker footing. However, a stronger Dollar probably countervails some of the flight to quality lift for gold off the ongoing Euro zone debt saga. Comex Gold Stocks were 11.267 million ounces down 26,783 ounces.
SILVER MARKET FUNDAMENTALS: The silver market seems to be somewhat off balance as a result of broad based slowing fears and perhaps because of weakness in a host of physical commodity markets. While Comex silver stocks remained below the potentially psychological level of 100 million ounces overnight, the stocks yesterday saw a daily increase of 600,511 ounces to stand at 99.4 million ounces. Comex Silver Stocks have declined in 12 of the last 20 days. Talk of strong Asian demand for silver might also be providing the market with some support against what at times seems to be a broad based physical commodity market liquidation bias. Silver continues to see generally up beat analysts forward price projections, although some forecasts have recently been pulled down from levels forecasted earlier this year. In the mean time, silver might have to rely on flight to quality or safe haven support, as classic physical commodity market fundamentals could be undermining in the short term. So far, the silver market hasn’t taken much in the way of direction from earnings and production news from a series of silver miner results this week.
PLATINUM: The platinum market saw noted downside action on the charts overnight and given the apparent softening of the US economic outlook, the initial weakness today isn’t that surprising. With the market also seeing evidence of Indian tightening overnight and renewed Greek problems in the headlines it would seem like the platinum market almost totally discounting evidence of strong Chinese platinum import data. Typically seeing a physical commodity market discount favorable Chinese import/demand news story is usually a sign of broad based macro economic negativity in the marketplace. With the expectation of lower equities and some strength in the Dollar, the platinum market also looks to face a wave of negative outside market factors. Near term downside targeting is seen at $1,750 basis the July platinum contract.
Tags: Gold, Metals, Platinum, Silver
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