Morning Gold Fix – November 23, 2011

FMX | Connect – www.fmxconnect.com - (Reported 11/23/2011)

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.

December Gold settled at $1,702.40 per troy ounce on Tuesday, a gain of $23.80 for the day.

December gold was down $11.3 to $1691.1 per 100 troy ounces as of 8:15 am EST this morning. The December U.S. dollar index was up 0.545 to $78.980. January platinum was down $18.1 to $1552.9 50 troy ounces. December silver was down 133.1 cents to $31.620.

Market Recap:

It was December Gold options expiration today, and traders were focused on little else. While other markets were watching news item like GDP estimates, a revised credit program from the IMF and parsing the FOMC minutes for insights on quantitative easing, Gold was pulled and pinned to the 1700 strike. December 1700 Calls, December 1700 Puts, December 1700 Conversions and the sheer volume of open interest near the strike was stronger than the external forces on the metal. Volatility was sharply lower on the day.

Market Prices

In the News

Bloomberg (Reported 11/23/2011)

AngloGold (ANG) Ashanti Ltd., the third- largest producer of the metal, scaled back plans to extend the world’s deepest mine, saying it’s moving away from larger-scale South African projects to hasten returns and cut risk. The original proposal’s duration was “too long and as a consequence the return is not justified,” Mark Cutifani, AngloGold’s chief executive officer, said in a telephone interview yesterday. Instead of a $3 billion, 10-year program for a new shaft at Mponeng mine, AngloGold will ask its board early next year to approve using ramps to access deeper levels, Mike O’Hare, the company’s executive vice president for South Africa, told investors. AngloGold Ashanti Scales Back 10-Year Plan to Extend World’s Deepest Mine


Reuters (Reported 11/23/2011)

Gold fell on Wednesday in line with a drop in the euro, which came under pressure as investor anxiety deepened over the European debt crisis, prompting the resulting rise in the U.S. dollar to mitigate the impact of safe-haven bullion buying. Italian and Spanish bond yields were dragged off their intraday highs on Wednesday by more intervention in the bond markets from the European Central Bank, but remained near euro-lifetime highs, while poor demand at an auction of German debt triggered weakness in the euro and the equity market. Gold falls as dollar profits from euro worries


Kitco (Reported 11/23/2011)

Traders and investors worldwide got another negative jolt Wednesday when a German government bond auction turned in disastrous results. This rattled already shaky world stock markets and once again called into question the survivability of the Euro currency. The European Union debt crisis has now spread from the smaller, periphery countries to the major core countries of the EU. This situation just continues to deteriorate, which is prompting a “when in doubt, get out” mentality among most markets—including the precious metals and with the exception of the U.S. dollar and U.S. Treasuries. Despite the U.S.’s own debt and political problems, many investors worldwide still view the greenback as the safest asset. Comex Gold Lower As Commodity Sector Sinks, U.S. Dollar Rallies Amid "Risk-Off" Day 

The market signals a peaking turnover with selloffs against the 1667 objective. Trade is poised for follow through selloffs and a close under 1667 could add to selloffs around 163650. The modest recovery off 1667 hints for modest corrective action within Monday’s selloff. Trade contained by Friday’s sideways congestion will stay bearish. A close over 171950* is needed to boost a recovery to test 1752* resistance.

DEC SILVER

The market signals a negative turnover from the past two month flagging recovery and targets selloffs to 2980*. A close under 30945 will renew the slide to 2980*. A close under 2980* alerts for a larger unfolding break against the late September spike. Any corrections trapped within last Thursday’s downturn under 3377* will bear flag. A close over 3377* is needed for a turnaround.

DEC COPPER

The market is signaling for another bear wave and testing 33055* support. A close under 33055* is bearish and could add to selloffs into the 322-315 area. If trade holds again over 33055*, then we may see a couple rebounding days, but trade will likely hang in sideways consolidation under 34545*. A close over 35675* is needed to rekindle bull forces.

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