Metals – Market Recap – July 31,2009

Commitment of Traders as of July 24,2009

Bloomberg (Reported 7.31.09):

”July 31 (Bloomberg) -- Gold rose for a second day, set for a monthly gain, as the dollar declined against major currencies, boosting the metal’s appeal as an alternative investment.

Bullion has advanced this month as the dollar has weakened against the euro as better-than-estimated results from companies including Sony Corp. and Motorola Inc. helped drive U.S. and Japanese stock gauges to the highest this year. Gold tends to rise as the dollar weakens.” Gold Gains in Asia, Set for Monthly Rise, as Dollar Declines

Reuters (Reported 7.31.09):

“TOKYO, July 31 (Reuters) - Gold rose towards $940 on Friday as it continued to benefit from a weaker U.S. dollar, which has lost its allure as a safe-haven asset amid hopes for an economic recovery stoked by solid corporate earnings.  The precious metal is on course for a roughly 1.4 percent fall on the week, but is off a two-week low of $925.10 touched on Wednesday, when rising risk aversion due to gloomy U.S. economic news boosted the dollar.” PRECIOUS-Gold rises towards $940, ETF unchanged

NS Futures (Reported 7.31.09):

“Aggressive traders should buy a GDP inspired setback today…”
”The gold market comes into the Friday morning action with a slightly positive early bias in prices that mostly looks to be a function of ongoing recovery hopes and certainly because of a weaker bias in the US Dollar…”  Full Report

ScotiaMocatta (Reported 7.30.09):

“Gold opened at 932.50/933.50 and gathered momentum on the back of stronger oil prices, finding resistance near 935.00. Profit taking took the metal lower, dipping to an intraday low of 931.00/932.00. Gold quickly recovered as the dollar lost ground, equity markets rallied and oil continued to climb, peaking at 937.00/938.00. Light selling during the latter end of the session pulled it from its highs to finally close at 934.75/935.75.” Full Report