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OUTSIDE MARKET DEVELOPMENTS: Asian equity markets were generally higher overnight, as Chinese developers continued to garner some lift from the recent change in policy at the PBOC. However, European equity markets were weaker off some soft PMI data and renewed talk of slowing/recession in the Euro zone. The US equity markets are showing a mixed early track today, as those markets brace from a corporate tax reform plan and a National Association of Realtors home sales reading.
GOLD MARKET FUNDAMENTALS: From last week’s lows to the highs this morning, April gold forged a rather impressive $54 an ounce rally and that in turn might have left the market short term overbought. While concern toward the Euro zone economy was fostered again overnight in the wake of news of a softening of the Euro zone service sector, fears of a full blown financial contagion have generally remained in check. Clearly the gold market was lifted in part by news of fresh easing from the Chinese yesterday and it is also possible that gold saw some minor support this morning from news that the BOE might have eased even further, but the BOE feared aggressive action might foster anxiety toward the economy. Gold probably saw some minor support from favorable longer term gold import dialogue from Indian officials overnight and gold might also have benefited from favorable gold price forecasts from a major US investment banking firm. However, at the start of the Wednesday US trade, the gold market might be facing slightly adverse currency market action and a choppy track in global equities and that in turn might prompt some gold longs to bank profits from the recent surge in gold prices. On the other hand, gold might see some support from a US home sales report and gold might also see some lift off the unveiling of a US corporate tax reform plan. Comex Gold Stocks were 11.432 million ounces up 460 ounces. Stocks have declined 12 of the last 20 days.
SILVER MARKET FUNDAMENTALS: March silver was unable to definitively charge into a distinct upside breakout yesterday and that might have been the result of softer than expected Chinese silver import data or that might have been the result of gold maintaining the lion’s share of overall investment demand for metals. In fact, the silver market could have seen higher Indian silver import expectations as an offset to softer Chinese silver import news but silver in general doesn’t seem to be tightly tracking classic supply side fundamentals. The bull camp is probably fortunate that silver seems to be discounting classic physical supply side developments, as Comex Silver Stocks yesterday afternoon were put up to 129.282 million ounces, for another noted gain of 472,832 ounces. Silver stocks have now increased in 11 of the last 20 days.
PLATINUM: The platinum market continues to garner some support from fears of tightening supply off an ongoing strike at an Impala mine. In fact, the platinum market is starting to see forecasts of tightness developing later this year and that is lending some fresh support to platinum prices which recently have mostly been dominated by big picture macro economic issues. The bear camp might suggest that platinum is partially overbought technically, after the four day run up in prices of roughly $107 an ounce. At least in the near term, fears of more lost supply at the Impala mine could help platinum ignore a developing overbought technical condition on the charts. Initial support in April platinum is seen at $1,692.00 and then again down at $1,684.90. Resistance is seen up at $1,711.90.
Metals: Gold Might be Facing Adverse Currency Action Choppy Global Equities
by Dave Hightower on February 22, 2012
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: Asian equity markets were generally higher overnight, as Chinese developers continued to garner some lift from the recent change in policy at the PBOC. However, European equity markets were weaker off some soft PMI data and renewed talk of slowing/recession in the Euro zone. The US equity markets are showing a mixed early track today, as those markets brace from a corporate tax reform plan and a National Association of Realtors home sales reading.
GOLD MARKET FUNDAMENTALS: From last week’s lows to the highs this morning, April gold forged a rather impressive $54 an ounce rally and that in turn might have left the market short term overbought. While concern toward the Euro zone economy was fostered again overnight in the wake of news of a softening of the Euro zone service sector, fears of a full blown financial contagion have generally remained in check. Clearly the gold market was lifted in part by news of fresh easing from the Chinese yesterday and it is also possible that gold saw some minor support this morning from news that the BOE might have eased even further, but the BOE feared aggressive action might foster anxiety toward the economy. Gold probably saw some minor support from favorable longer term gold import dialogue from Indian officials overnight and gold might also have benefited from favorable gold price forecasts from a major US investment banking firm. However, at the start of the Wednesday US trade, the gold market might be facing slightly adverse currency market action and a choppy track in global equities and that in turn might prompt some gold longs to bank profits from the recent surge in gold prices. On the other hand, gold might see some support from a US home sales report and gold might also see some lift off the unveiling of a US corporate tax reform plan. Comex Gold Stocks were 11.432 million ounces up 460 ounces. Stocks have declined 12 of the last 20 days.
SILVER MARKET FUNDAMENTALS: March silver was unable to definitively charge into a distinct upside breakout yesterday and that might have been the result of softer than expected Chinese silver import data or that might have been the result of gold maintaining the lion’s share of overall investment demand for metals. In fact, the silver market could have seen higher Indian silver import expectations as an offset to softer Chinese silver import news but silver in general doesn’t seem to be tightly tracking classic supply side fundamentals. The bull camp is probably fortunate that silver seems to be discounting classic physical supply side developments, as Comex Silver Stocks yesterday afternoon were put up to 129.282 million ounces, for another noted gain of 472,832 ounces. Silver stocks have now increased in 11 of the last 20 days.
PLATINUM: The platinum market continues to garner some support from fears of tightening supply off an ongoing strike at an Impala mine. In fact, the platinum market is starting to see forecasts of tightness developing later this year and that is lending some fresh support to platinum prices which recently have mostly been dominated by big picture macro economic issues. The bear camp might suggest that platinum is partially overbought technically, after the four day run up in prices of roughly $107 an ounce. At least in the near term, fears of more lost supply at the Impala mine could help platinum ignore a developing overbought technical condition on the charts. Initial support in April platinum is seen at $1,692.00 and then again down at $1,684.90. Resistance is seen up at $1,711.90.
Tags: Gold, Metals, Platinum, Silver
About Dave Hightower