Dollar Weakness

Oil Slips Below $80, Metals Consolidate in Familiar Ranges

Commodities – Energy

Crude Slips Below Key $80 Level, Outlook Still Linked Risk Trends

Crude Oil (WTI)       $79.93       -$0.57       -0.71%
Crude prices slipped below the key $80 level, and from a technical perspective, the door is now open for a move to test support just above the $78 mark. The fundamental picture looks supportive of further losses: the Baker Hughes measure of rigs operating in the US rose to the highest since March last week while crude inventories have been trending steadily higher since June, pointing to abundant supply and that should be weighing on prices. However, broad trends in risk appetite across the capital markets’ landscape has proven to be a far more important driver of the WTI contract, so traders will be paying close attention to third-quarter earnings reports from German pharmaceutical giant Merck KGaA and US telecommunications powerhouse Verizon Communications. US equity index futures are trading 0.3% higher ahead of the opening bell in Europe, suggesting risky assets may continue to advance and hinting that crude may not remain below $80 for too much longer.

Commodities – Metals

Gold, Silver Look to Equities and the Dollar for Direction Cues

Gold       $1055.70       +$0.35       +0.03%
As with crude oil, gold prices are likely to find their most potent catalyst in the overall trajectory of risk appetite. To that effect, the aforementioned earnings reports will probably be of greatest interest in the day ahead. Technically, prices continue to consolidate in the familiar $1045 – $1068 range, with minor support at a rising trend line just above $1050.

Silver       $17.70       +$0.02       +0.08%
As with gold, silver continues to consolidate and will look to risk trends as the catalyst for directional momentum. Technically, a descending triangle looks to be forming above the key $17.15–24 support region, hinting at bearish bias that favors a break below the $17 handle to challenge $16.75.

Dollar Weakness

Crude and Metal Prices Consolidate, Risk Trends Remain Top Catalyst

Commodities – Energy

Crude Prices Consolidate, Risk Trends Remain Top Catalyst

Crude Oil (WTI)       $81.30       +$0.09       +0.11%
Crude prices have done little over the past 24 hours, consolidating the previous day’s gains above the $80 level. The fundamental docket is relatively uneventful, with only the Baker Hughes metric of on-line US oil rigs set for release. This leaves price action at the mercy of the US Dollar and the broad trajectory of risk sentiment once again. On that front, US Existing Home Sales data for September as well as third-quarter earnings reports from Microsoft Corp and Honeywell International will be significant. For the time being, futures on the top US equity indexes are in positive territory, suggesting the path of least resistance is higher for risky assets (stocks, commodities, high-yielding currencies) and lower for the battered greenback.

Commodities – Metals

Gold, Silver Look to Equities and the Dollar for Direction Cues

Gold       $1061.19       +$0.95       +0.08%
As with crude oil, gold prices are likely to find their most potent catalyst in the overall trajectory of risk appetite. US equities have been the pacesetter in that regard and there is little reason to think that this will change. Indeed, commodities generally ignored comments from Chinese central bank adviser Fan Gang who said the government should keep fiscal stimulus in place for another year to allow for a “full recovery in 2011”, which one supposes would translate into optimism about demand for raw materials. To that effect, earnings from Microsoft and Honeywell International are the most likely catalysts. Technically, prices remain confined to a range roughly defined between $1045 and $1068.

Silver       $17.68       +$0.02       +0.14%
As with gold, silver continues to consolidate and will look to risk trends to give prices impetus for directional momentum. Technically, a descending triangle looks to be forming above the key $17.15–24 support region, hinting at bearish bias that favors a break below the $17 handle to challenge $16.75.

Dollar Weakness

Oil, Metals May Correct Higher But Beige Book, Earnings Threaten Volatility

Commodities – Energy

Crude Validates Near-Term Bearish Outlook, Beige Book Now in Focus

Crude Oil (WTI)        $78.70        -$0.42       -0.53%
Crude prices behaved in line with yesterday’s technical forecast, breaking below support at the lower boundary of a bearish Rising Wedge formation to stall near $78 at the lower boundary of the rising channel that has guided prices higher since the beginning of the month after failing to build traction above the psychologically significant $80/barrel level. As expected, disappointing US construction sector data catalyzed the decline (the industry is the world’s largest consumer of crude). Tomorrow’s release of the Federal Reserve Beige Book, a survey of current conditions combined by the central bank’s regional branches, may further fuel downward pressure if traders see that the economic recovery is not as strong as seems to be priced given the breakneck pace of the rally in risky assets since March. Mortgage applications data is also due for release, but any weakness here may already be priced in after the housing data that has already crossed the wires this week. Finally, the Department of Energy is expected to report a jump in crude inventories, which points to ample supply and could weigh on prices. Continued bearish momentum from here will target just below the $76 handle.

Commodities – Metals

Metals May Correct Higher But Beige Book, Earnings Threaten Volatility

Gold       $1056.60       +$1.40       +0.13%
As we noted in yesterday’s forecast, gold prices put in a double below $1070 after showing a Bearish Engulfing candlestick formation, breaking below resistance-turned-support at the top of a minor rising channel pause just above the $1050 figure as PPI figures proved disappointing. As with oil, the Fed’s Beige Book will be important in setting the trajectory for risk appetite and the US Dollar, guiding gold trading by extension. A wealth of earnings reports is also on tap, with the triple threat of Morgan Stanley, Wells Fargo, and US Bancorp of note in particular after a disappointing result from Bank of America sunk capital markets earlier in the week. Continued bearish momentum will target near $1045. Equity index futures are pointing higher ahead of the opening bell in Europe so a bit of a bullish correction (at least) before Wall St comes online may be in the cards.

Silver       $17.47       -$0.02       -0.10%
Silver behaved much the same as gold yesterday and the fundamental drivers are analogous to its more expensive counterpart going forward. Technically, the $17.15–24 region remains critical, with sustained break below that paving the way for a move below the $17 handle to challenge $16.75.

Dollar Weakness

Oil Loses Steam Ahead of $80, Metals May Falter on US PPI

Commodities – Energy

Crude Loses Momentum Ahead of $80, US Construction Data Looms Ahead

Crude Oil (WTI)       $79.26        -$0.35       -0.44%
Crude prices have turned lower after failing to build traction above the psychologically significant $80/barrel level. The fundamental landscape offers room for further losses with September’s US Housing Starts and Building Permits data set to cross the wires. The American construction sector is the world’s largest consumer of oil, and positive readings here could add a much-needed story about rising demand to the more portfolio-driven catalyst of US Dollar weakness and inflation hedging. While expectations do in fact point to slightly higher figures from the previous month, yesterday’s unexpected drop in the National Association of Home Builders (NAHB) measure of construction-sector confidence may be hinting at a disappointing outcome. Technically, prices are testing below the lower boundary of a near-term Rising Wedge formation with momentum studies still negatively divergent coming down from overbought territory, which opens the door for a move to test support near $78 at the lower boundary of the rising channel that has guided prices higher since the beginning of the month.

Commodities – Metals

Metals Trading Focused on Risk, US Dollar but PPI Could Make a Splash

Gold       $1063.57       -$0.63        -0.06%
Gold rebounded test resistance below $1070 but prices now look on pace to form a double top, showing a Bearish Engulfing candlestick formation. Near-term support is seen at the top of a minor rising channel that was broken earlier, with a move lower to target just above the $1050 figure. The fundamental picture remains closely linked with equities and the US Dollar: A slew of high profile earnings reports are due late into European hours before the opening bell on Wall St, with positive outcomes likely to weigh on the greenback and boost optimism about the global economic recovery, both of which are gold-positive. That said, tomorrow’s US PPI figures may present potential for a downswing. A disappointing outcome (particularly in the Core PPI reading that excludes food and energy) would help to ease some near-term concerns about future inflation and help validate technical positioning.

Silver       $17.23        -$0.11       -0.62%
Fundamentally, the drivers remain much the same as with gold. The technical picture looks a bit less bearish, however, with prices unable to re-test the previous swing high above $18 and faltering below the figure. The $17.15–24 region remains critical, with sustained break below that paving the way for a move below the $17 handle to challenge $16.75.

Dollar Weakness

Daily Commodities Fundamentals: Commodities Close Lower Entering the Weekend

North American Commodity Update, Last Updated 8/14/2009 3:51 PM EST (GMT = EDT +5:00)

Commodities – Energy

Crude Sold Following a Disappointing Consumer Confidence Report

Crude Oil (WTI)   $67.530                         -$2.990                             -4.24%
Crude Oil future prices plummeted today, ending the week with a 3.5% decline back below the psychological $70-per-barrel level. After a week’s worth of important fundamental data releases including the FOMC rate decision and Bank of England Quarterly Inflation Report, the University of Michigan’s Consumer Confidence report turned out to be the main market mover. While this may seem strange, it is not that surprising when put into context; recent data releases have encouraged investors to re-enter higher yielding assets in hopes of a global economic recovery. Equity markets have rallied, which has translated to a bid up of Crude future prices as speculators predict a short-to-medium term hike in demand. Many believed that the United States would be one of the first countries to successfully escape the prolonged global recession; however, today’s consumer confidence figure revealed that Americans are not willing to take the lead. Consumer confidence was expected to increase from 66.0 to 69.0, but upon release, the report showed that the figure had actually dropped to 63.2. As a result, Crude future prices faced a severe sell-off as investors return towards safer assets and wait for an economic turnaround. Looking towards next week, crude could potentially retest the $70-per-barrel level before giving in to the true, market-moving fundamentals.

Department of Energy Inventories

Commodities – Metals

Stronger Dollar and Bearish Outlook Drive Precious Metals Lower

Gold                   $949.000                      -$7.500                           -0.78%
Gold future prices finished lower to close out the week, again losing as the US dollar strengthened. After a worse-than-expected US Confidence Report, the greenback gained across the board as investors flocked towards the relatively safe dollar and fled from higher-yielding assets (equity markets fell significantly). Recall that Gold and the greenback tend to trade inversely as investors use the metal to hedge against dollar weakness/inflation. Simultaneous to the dollar’s advance, today’s Euro-Zone and US CPI reports revealed that inflation is not likely to be of concern in the near-term. This fact was already suggested in numerous global bank statements during the last two weeks. Though Gold’s correlation with the dollar index is not remarkably high, dollar strength should continue to be an indication for Gold price action. Therefore, any encouraging fundamental releases that heighten risk appetite will likely translate into future price increases as well.

Silver                 $14.675                    -$0.312                           -2.08%
Silver futures could not hold on to yesterday’s gains during a volatile day of trading; the metal lost nearly 2% as investors turned bearish following the University of Michigan’s Consumer Confidence report. Though Silver is considered a precious metal like Gold, it has seen far more drastic price action due to its other application. Because Silver doubles as an industrial input, it is particulary sensitive to any changes in global economic outlook. Despite a better-than-expected US Industrial Production figure (0.5% actual vs. 0.4% expected), investors’ recent bullish forecast was not carried into the weekend. As for next week, expect Silver to follow investor sentiment; only time will tell which direction that will be.

-Written by Jay Steinberg, CFDTrading Research
Questions/Comments about this article? Send them to JSteinberg@fxcm.com

Dollar Weakness

Daily Commodities Fundamentals: Commodities Advance Following Euro-Zone GDP, Dollar Weakness

North American Commodity Update, Last Updated 8/13/2009 4:03 PM EST (GMT = EDT +5:00)

Commodities – Energy

Crude Finishes Higher but Falls From Intraday Peaks

Crude Oil (WTI)   $71.010                         +$0.850                             +1.21%
Crude Oil future prices remained higher at day’s close despite falling significantly from intraday highs. The market for Crude had already been rather bullish following yesterday’s FOMC report; in its statement, the committee hinted that we are seeing a much slower rate of economic contraction and perhaps a turnaround in the near-term future. Future prices managed to surpass the $72-per-barrel level following the Euro-Zone GDP report – the EZ reported a 0.1% contraction for the 2nd quarter, a figure that exceeded the expected 0.5% contraction and last quarter’s 2.5% pullback. Speculators interpreted the report as a leading indicator for heightened Crude demand as the region escapes the prolonged economic recession (note that the IMF has forecasted the Euro-Zone’s recovery to be at a far slower pace than the United States). The commodity could not hold onto its gains through the US session, as prices fell back significantly following the US Advanced Retail Sales figure. Analysts had predicted a growth in retail sales by 0.8% only to find that, in reality, sales actually shrunk by 0.1%. the disappointing result is likely due to the expiration of government stimulus programs, removing a main source of disposable income for American consumers. Crude future prices should remain relatively stable tomorrow due to a shortage of market-moving fundamental data releases.

Department of Energy Inventories

Commodities – Metals

Gold Manages Slight Gain While Silver Wins Big

Gold                   $956.700                           +$4.200                           +0.44%
Gold future prices pushed higher during intraday trading, gaining an additional $4 to reach the $956-per-ounce level. A strong Euro-Zone GDP report coupled with a weak US Retail Sales figure did not bode well for the greenback, which lost against all of its major competitors (most noticeably to the high-yielding Australian and New Zealand dollars). Because Gold is a dollar-denominated commodity, it has historically traded inversely with the greenback as investors use the metal to hedge against dollar weakness/inflation. Yesterday’s BOE Quarterly Inflation Report and the FOMC’s statement both pointed towards low levels of inflation, which had temporarily applied downward pressure on Gold future prices. As we predicted yesterday, risk appetite/aversion guided the Gold market and will likely continue to do so barring any exceptional fundamental release or technical breakout.

Silver                 $14.970                          +$0.385                          +2.64%
Silver was the big winner during today’s trading session, testing the psychological $15-per-ounce level by adding another 2.5%. Price action happened early following the Euro-Zone’s GDP report and was sustained throughout the US session despite the disappointing Retail Sales figure. In addition to serving as a precious metal, Silver has its own industrial application that makes its price particularly sensitive to any changes in the global economic outlook. Within the EZ, both Germany and France had specifically encouraging GDP reports that showed QoQ growth by 0.3%. We could see moderate Silver price action tomorrow following the Euro-Zone and United State’s CPI reports. The US is also set to release July’s Industrial Production figure, but it will likely not be ultimately market-moving.

-Written by Jay Steinberg, CFDTrading Research
Questions/Comments about this article? Send them to JSteinberg@fxcm.com

Dollar Weakness

Daily Commodities Fundamentals: Crude Loses, Precious Metals Trade Sideways

North American Commodity Update, Last Updated 8/11/2009 2:52 PM EST (GMT = EDT +5:00)

Commodities – Energy

Crude Falls Near 2% During Intraday Trading

Crude Oil (WTI)          $69.360                         -$1.240                             -1.76%
Crude Oil future prices fell below the psychological $70-per-barrel level after losing nearly 2% during intraday trading. In order to avoid significant event risk surrounding tomorrow’s FOMC Interest Rate Decision, speculators are selling off their Crude positions, taking profits and waiting for a clearer signal regarding a potential  global economic recovery. Today’s sell-off did not face much resistance, as fundamental data supporting Crude’s recent surge has been hard to come by. demand for the commodity remains extremely low; just last week, the Department of Energy’s Crude stockpile report revealed a larger-than-expected in Crude inventory, pushing down future prices. The US Wholesale Inventories report revealed that inventories had plummeted by 1.7%, signaling that demand for Crude may remain weak as companies face diminished demand for their products. Tomorrow’s new DOE report will show any changes in Crude demand; this report combined with the FOMC Interest Rate Decision at 2:15 PM EST should yield significant price action tomorrow. Though no change of the key lending rate is expected, the commentary surrounding the event has potential to be market moving.

Department of Energy Inventories

Commodities – Metals

Precious Metals Waver, End Near Even

Gold                   $947.700                      +$0.800                           +0.08%
Gold future prices closed near even today, consolidating around the psychological $950-per-ounce level as speculators await tomorrow’s FOMC Rate Decision. US dollar activity has been a useful contrarian indicator for Gold price movement, as the two tend to trade inversely. Investors often use the metal to hedge against a weaker greenback or inflation. The commentary following tomorrow’s FOMC decision should provide better insight regarding near-term inflationary concern. If the Fed chooses to maintain the key lending rate (which it will) but continue to purchase treasuries as an economic stimulus, speculators may buy Gold to avoid a weaker greenback resulting from uncontrolled inflation. However, if the Fed hints that a rate hike may be in the near future, the US dollar would strengthen, potentially applying downward pressure on Gold. At 5:30 AM EST tomorrow, the Bank of England will release its Quarterly Inflation Report, which could also be market-moving for commodities.

Silver                 $14.325                    -$0.030                          -0.21%
Silver future prices traded sideways during today’s session, failing to rebound from yesterday’s small decline. As was the case for Gold, speculators seem to be waiting for tomorrow’s abundance of fundamental news reports that could all be potentially market moving. In addition to the FOMC Interest Rate Decision, we mentioned the Bank of England’s Quarterly Inflation Report. Historically speaking, this news release has been used as an opportunity for the Bank to make implications regarding its future monetary policy. The report is a broad assessment of various economic indicators in the UK, but the fact that the Bank’s Rate Decision was just last week may prevent significant market movement following the release. UK Unemployment is also expected to come across the wires; any changes in the UK job market could scare investors into relatively safer currencies such as the US dollar. Because Silver serves as both a precious metal and as an industrial input, it is particularly sensitive to the aforementioned fundamental reports. With that in mind, tomorrow has potential to be an eventful day for Silver future prices.

-Written by Jay Steinberg, CFDTrading Research
Questions/Comments about this article? Send them to JSteinberg@fxcm.com

Dollar Weakness

Daily Commodities Fundamentals: Commodities Close Lower to End Week

North American Commodity Update, Last Updated 8/7/2009 5:19 PM EST (GMT = EDT +5:00)

Commodities – Energy

Crude Prices Fall on U.S. Dollar Strength

Crude Oil (WTI)   $70.420                         -$1.500                             -2.09%
Crude traded lower after a choppy day of trading, losing roughly 2% by the session’s close. Today’s main market mover was the US Non-Farm Payrolls report, which led to a swing towards risk appetite but also a strengthening of the US dollar. The NFP revealed a loss of 247K jobs last month, a dramatic improvement when compared to the 328K analysts expected. The US unemployment rate actually fell from 9.5% to 9.4%; it was the first decline since April of 2008. The positive release out of the United States led to an impressive dollar rally. When the dollar gets stronger, dollar-denominated commodities like Crude lose. However, the better-than-expected NFP report heightened investor confidence, leading many to believe that the recession is over. If this is truly the case, demand for Crude would likely increase as the global economy begins to expand. Note that just Wednesday, the Department of Energy inventory figures showed a significant year-over-year decline in Crude demand, a threat to any sustainable economic recovery. It will be interesting to see what direction, if any, Crude prices take next week.

Department of Energy Inventories

Commodities – Metals

Precious Metals Retrace Slightly to End Week

Gold                   $956.900                           -$6.000                           -0.62%
Gold finished slightly lower today, leaving it nearly even over the past week at approximately $957-per-ounce. The reason for Gold’s decline today was certainly US dollar strength; the greenback closed higher against all of its major competitors (excluding the New Zealand dollar), specifically gaining over 2% on the Japanese Yen. As was the case with Crude, the US NFP report was the fundamental driving factor. Investors continue to regain confidence in the global economy, many of whom believing that the US will lead the world out of the recession. Gold losses were subdued today despite the dollar’s impressive performance because when speculators prepare for an economic recovery, inflationary fear sets in, helping to support Gold future prices. Recall that Gold and the greenback tend to trade inversely as investors use the metal to hedge against dollar weakness/inflation. Expect Gold prices to increase next week due to heightened risk appetite and inflationary concern.

Silver                 $14.600                          -$0.045                          -0.31%
For the first time all week, Silver’s price move was less extreme than Gold’s. Silver future prices lost only 0.3% due to conflicting fundamental data that applied pressure on opposite sides of the metal. Usually, dollar weakness and risk appetite go hand-in-hand, leading to volatile swings in prices. In addition to serving as a precious metal, Silver also has an industrial application, which makes it particularly sensitive to a changing global economic outlook. Today’s better-than-expected US NFP report bid up the US dollar while still encouraging investors to re-enter higher yielding assets. Next week, the Bank of Japan and the FOMC are due for their interest rate decisions. Though they are both expected to maintain their respective key lending rates, the commentary that follows may provide some direction in the global marketplace, leading to changes in commodities.

-Written by Jay Steinberg, CFDTrading Research
Questions/Comments about this article? Send them to JSteinberg@fxcm.com

Dollar Weakness

Daily Commodities Fundamentals: Crude and Gold Trade Sideways, Silver Falls

North American Commodity Update, Last Updated 8/6/2009 3:50 PM EST (GMT = EDT +5:00)

Commodities – Energy

Crude Pares Early Losses, Ends Near Even

Crude Oil (WTI)   $71.920                         -$0.050                             -0.07%
Crude Oil future prices closed nearly even today after paring more significant losses that had tested the psychological $70-per-barrel level. Prices began their initial descent right before the US trading session began, when both the Bank of England and European Central Bank released their Interest Rate decisions. Though neither bank decided to adjust its key lending rate, the meetings did have very differing results. Jean-Claude Trichet of the ECB expressed a sentiment of guarded optimism, hinting that a recovery is on the horizon. The Bank of England, however, decided to extend its Asset Purchase Program by an additional £50B, which indicated that the UK remains in a period of financial turmoil. The fear of a prolonged economic recession drove down Crude future prices by nearly $2. Also putting pressure on Crude was a weaker equity market in anticipation of tomorrow’s US Non-Farm Payrolls report. Risk aversion took control as investors await a clearer signal regarding the health of the global economy. Expect tomorrow to be a volatile day in the Crude market leading into the weekend.

Department of Energy Inventories

Commodities – Metals

Gold Trades Sideways, Silver Loses

Gold                   $965.600                      -$0.700                         -0.07%
Gold future prices also traded flat by the day’s close despite a volatile US session. Gold prices had peaked above $974-per-ounce before completely retracing and falling all the way down to near $958. The US dollar was stronger across the board, making it difficult for Gold to sustain any gains. Recall that Gold and the greenback tend to trade inversely as investors use the metal to hedge against dollar inflation and/or weakness. During tomorrow’s trading, Switzerland, Canada, and the United States all release their respective unemployment rates. These figures will likely guide the market, determining whether or not investors will return to risk aversion remain generally bullish on the global economy forecast.

Silver                 $14.575                        -$0.185                            -1.25%
As has been the case for weeks, Silver futures have proved to be much more volatile than Gold futures. Whereas Gold remained even on the day, Silver lost over a full percentage point as risk aversion dominated the marketplace. Silver’s industrial application, in addition to its function as a precious metal, makes the commodity particularly sensitive to any news regarding the global economic outlook. The commentary surrounding the two interest rate decisions likely contributed to Silver’s decline, as investors remain wary about the prospect of a near-term economic turnaround. Traders flocked en masse to the relatively safe US dollar in anticipation of tomorrow’s fundamental data releases.

-Written by Jay Steinberg, CFDTrading Research
Questions/Comments about this article? Send them to JSteinberg@fxcm.com

Dollar Weakness

Daily Commodities Fundamentals: Commodities See a Choppy Day of Trading

North American Commodity Update, Last Updated 8/5/2009 4:45 PM EST (GMT = EDT +5:00)

Commodities – Energy

Crude Prices Retrace Manage Slight Gains

Crude Oil (WTI)   $71.830                         +$0.570                             +0.57%
Crude Oil future prices managed to close higher after a choppy day of trading. Crude opened the day on a high note as the Asian markets internalized the encouraging fundamental US data from the day before. Soon thereafter, the United Kingdom released its own Industrial Production report that pointed towards economic expansion, a good sign for Crude bulls. However, Crude fell nearly two dollars following the release of the Department of Energy stockpile figures. Crude Oil inventory were expected to climb by 600K barrels, when in reality, it climbed by 1670K barrels. Gasoline inventory fell by less than expected; Distillate inventory fell despite an anticipated increase (see below). The report showed that despite the recent bid up of future prices, demand for the commodity still remains weak. OPEC has hinted towards a decrease in output for the month of September as a result. Though it was predicted that a disappointing report like this one would lead to a reversal of Crude’s recent upswing, prices pushed even higher. Investors seem to be confident that the global economic recession is coming to a close and as a result, consider today’s Crude cheap.

Department of Energy Inventories

Commodities – Metals

Precious Metals Near Flat, Waiting for Direction

Gold                   $967.300                           -$2.400                           -0.25%
Gold future prices remained mostly flat during today’s trading session, failing to establish a new direction for the remainder of the week. Though nothing too extreme, the dollar was mixed against the major currencies today, beating the Australian and New Zealand dollars but losing most to the British Pound, the outperformer on the day due to their encouraging Industrial Production report. The majors continue to float around YTD highs against the dollar; a catalyst could determine whether or not the dollar breakout from Monday is sustained or retraced. Expect the Bank of England and European Central Bank’s Interest Rate Decisions to indirectly impact risk sentiment and the US dollar, which will in turn, swing Gold future prices.

Silver                 $14.750                    +$0.055                          +0.37%
Silver future prices remained mostly flat also on the session but ended higher on the day. The UK Industrial Production report had pushed Silver higher during early trading, but poor fundamental data from the world’s largest economy pared any gains. In the US, Factory Orders fell by more than expected (not completely surprising after last week’s Durable Goods Orders figure). The ADP Employment Change also came in worse than expected; this report is often considered a precursor for Friday’s NFP report, which will be a market mover for commodities.  Volatility may arise in the Silver market before Friday however, as tomorrow’s interest rate reports may provide future direction for prices.

-Written by Jay Steinberg, CFDTrading Research
Questions/Comments about this article? Send them to JSteinberg@fxcm.com

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