Metals – Market Recap – July 21,2009

Commitment of Traders as of July 17,2009

Bloomberg (Reported 7.21.09):

“July 21 (Bloomberg) -- Gold’s recent advance may stall as the metal meets two important resistance points, Standard Bank Group Ltd. said, citing trading patterns.

The $965.25 and $995 levels represent “resistance trendlines of short-term and medium-term consolidation phases,” Darran Grabham, the bank’s technical analyst, wrote in a note yesterday. Resistance levels are where sell orders tend to be clustered. ” Gold’s Rally May Stall, Standard Bank Says: Technical Analysis

Reuters (Reported 7.21.09):

“TOKYO (Reuters) - Gold prices steadied near $950 on Tuesday after hitting a six-week high the day before, with the dollar continuing to drive bullion as its drop and better U.S. corporate earnings raised the metal's appeal as an inflation hedge.

Rising oil prices, a rally in stock markets and a weak dollar have encouraged investors to take more risks, buying high-yielding currencies and commodities including gold.” Gold hovers near $950 as dollar eyed, ETF unchanged

NS Futures (Reported 7.20.09):

“A weaker dollar and rising equities leaves the bulls in control…”  Full Report

ScotiaMocatta (Reported 7.20.09):

“Gold opened at 952.00/953.00 and ticked higher as the USD weakened and oil prices rallied where the metal reached an intraday high of 955.00/956.00. However, the metal lost steam as oil prices slumped, causing the metal to dip to an intraday low of 946.25/947.25. Gold climbed marginally higher where it traded quietly as the session unwound, finally closing at 948.50/949.50.” Full Report