Daily Update
Wednesday, September 10, 2009
Market Commentary
BLOOMBERG Gold opened at 997.50/998.50 and rallied on the back of a weakening USD
and stronger oil, finding resistance near 1000.00. It traded erratically within a
range for much of the session, touching a high of 1002.00/1003.00 but it could
not sustain this level very long. The metal became well offered during the
latter end of the day, slipping to an intraday low of 993.50/994.50 and later
closed marginally higher at 995.00/996.00.
BLOOMBERG Silver opened at 1655.00/1658.00 in New York. Rallying oil, stronger equities
and a slumping USD inspired good buying as the session got underway. The
metal stayed well bid, climbing to an intraday high of 1667.00/1670.00 before
it retreated, washing out longs. The selling continued as the trade day unwound,
finally closing on its lows at 1641.00/1644.00.
Technical Commentary
BLOOMBERG Gold failed to revisit yesterdays high of 1007 high and eventually was
sold down to current 989. After 6 up days that took the unit from 947
to 1007 it looks like we finally ran into sellers. The break of 990 has
triggered our stop loss on the long position recommended on a break
of 965. It will be interesting to see if the unit revisits former resistance
line at 975. This is only the first down day so we do not expect larger
selling unless the 965 breaks.
BLOOMBERG SILVER has registered its first down day in weeks with the unit dropping
back to current 16.31. We do not expect selling of silver to enter the
market until a move back below 16.00. The BLOOMBERG Gold Silver ratio has
moved higher today to 60.75 from yesterdays close of 60.14. The ratio
looks weak while below 61.8% Fibo level 61.42. Only a close back
above this level will stabilize the overall bearish pressure on the ratio.
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