Morning Gold Fix – September 13, 2010

FMX | Connect – www.fmxconnect.com - (Reported 9/13/2010)

The following is a summary of yesterday’s US gold activity and a recap of Asia & European markets overnight. It includes our proprietary options analytics and news stories from industry professionals.

Bollinger Band Clamor is Like No Other

Daily Bollinger Bands: Are at their tightest in 5 months.

Weekly Bollinger Bands: Are at their tightest in a year. Furthermore the top band is moving wider AS THE MARKET IS DROPPING.

These are signs that if you are a buyer of dips be careful. But also that no real downside momentum break out will come until we pierce the midline on a daily settlement.

Finally, the 6 Week Reversal trade is on my radar as well. If Gold pierces last week’s low we will short the market with a stop out at last week’s settlement. All in all,powerful combination of indicators if a sell off starts. That said, chop-city is possible so stick with your stop out numbers wherever they are. Not a good time to “wing it”. For Market Prices Click Here

-Vince Lanci vlanci@echobay.com

(Elizabeth Thawne is on Vacation)

Summary

October Gold settled at $1245 per 100 troy ounces on Friday, a net loss of $4.40 for the day.

October gold was down $.30 to $1244.70 per 100 troy ounces as of 7:15 AM EST, this morning. The September U.S. dollar index was down .536 to 82.48. October platinum was up $6.50 to $1549 per 50 troy ounces. December silver was up one cents to $19.95.

For Market Prices Click Here

Gold Options Report

FMX Morning Newswire

Bloomberg (Reported 9/13/2010)

“Gold fluctuated in London as a rally in equities that may curb demand for the metal as a protector of wealth was balanced by a weaker dollar.

The dollar fell against the euro and European equities climbed to a four-month high as regulators gave banks eight years to comply with new capital rules and a report showed Chinese industrial output rose the most in three months. Gold, which usually moves inversely to the greenback, is 1.6 percent below a record.” Gold Fluctuates in London Amid Advancing Equity Markets, Weakening Dollar

NS Futures (Reported 9/13/2010)

“With overnight international gold markets making time instead of exhibiting a definitive direction, it would seem like gold is mostly unmoved by the weekend events. However, it does seem as if the markets are viewing the Basel III requirements as something that is good for the global economy in the long run.

With equity markets in Asia and Europe generally stronger this morning, U.S. stock indices have moved higher during the early Monday trade. The Dollar is weaker against most of the major currencies during overnight trading.” Daily Metals Commentary 

Reuters (Reported 9/13/2010)

“Gold held largely steady on Monday, within about 1.3 percent of record highs, as improving consumer demand helped cushion the impact of upbeat Chinese economic data on investor desire for safe-haven assets.

Adding to confidence in the investment community was a deal at the weekend on global bank rules that gave lenders more time than analysts had originally expected to increase their capital to protect against any future potential credit crunches.” Gold steady as consumers offset impact of risk play

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