Weakness in the USD and strength in the Euro, following commentary from French President Sarkozy and German Chancellor Merkel, was the focus of commodities today. The 2 leaders met in Berlin this weekend for a bi-lateral summit, and they set a deadline at the end of October to reach an agreement on a comprehensive package of measures to stabilize the EuroZone.

Precious metals rallied on the Greenback's weakness.

Gold posted a gainer of 2.2% to close at 1670.80 oz, and Silver prices added 3.2% to finish at 31.98 oz.

Crude Oil futures rallied on the USD's weakness and the strength in the equity market. Futures gained 2.9% to close at 85.41 bbl. Crude Oil put in highs at 86.09, its best levels since September 21.

Nat Gas finished up 1.7% at 3.54 per MMBtu.

Recap: 10 October 2011

The Gold market rallied today off of a risk on attitude that emerged upon the announcement over the weekend that German Chancellor Merkel and French President Sarkozy had pledged support the European banks.

The US Bond market and USD finished sharply lower, and there were across the board gains in equity markets and most commodities.

This came on the heels of better than expected US jobs data last week and some Stronger German and French economic data Monday morning.

Dec Gold has traded to the Top end of the consolidation pattern, but has yet to make the break out above the trading range.

The Silver market spent the day in positive territory, benefiting from the weaker USD and the positive moves in the equity and commodity markets overall.

Recent improvements in US economic data have eased concerns over a Double Dip recession and supported economically sensitive markets like Silver.

With Europe's leaders set to move forward to re-capitalize European banks and the US Fed President's acknowledgement last week that the US economy was still shaky also seemed to increase the chances for additional quantitative easing (QE-3) on both sides of the Atlantic, which will ultimately be inflationary.

 

Paul A. Ebeling, Jnr

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.