On the Commodities Front: Precious Metals and Energies

Trade in commodities was focused on what's next in Greece. Late in the session headlines crossed the wires which indicated that a referendum vote is not likely in Greece, causing the USD to give back some of its gains and saw commodities recoup some of their losses.

Gold futures ended lower by 0.7% at 1711 oz and Silver lost 4% to close at 32.97 oz.

Crude Oil finished lower by 1.1% at 92.19 bbl, rallied into the close, recouping around 1.5 pts in afternoon trade. Futures finished just off of overnight highs around 92.50.

Nat Gas fell 3.7% to close at 3.79 per MMBtu. Forecasts for mild weather across the Midwest and Northeast pressured prices during the session.

I expect Gold prices to move between 1,680 and 1,780 this week. Japan's currency market inter-vention, to weaken the Yen, pushed the USD higher Monday, which weighed on the Gold price.

Such an intervention raises big questions about some of the fiat currencies like the Yen that are considered safe havens. The concerns IMO are positive for Gold prices.

Gold holdings in physically backed exchange traded funds reached 72.9-M oz on 28 October, up 740,885 oz from the prior week.

The total open interest in the Comex Gold contract rose last week, reaching 44.2-M oz on 28 October, up from 43.5-M oz on 21 October.

The FOMC meeting this week + the G-20 meeting and the release of US unemployment data later in the week should continue to provide volatility to the Gold market this week. Stay tuned...

Paul A. Ebeling, Jnr.

 

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.