how much return you expect from commodity market
- Thread starter ashwani chadha
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Some speech by the American Finance Minister triggered a collapse. Wall street interpreted it to mean that the government may not give a further stimulus package (QE3).
http://finance.yahoo.com/news/stock-index-futures-point-firmer-101644658.html
http://finance.yahoo.com/news/stock-index-futures-point-firmer-101644658.html
most of our stop loses are already triggered.as i pointed out in advance that this rollover is expected on short side.all the base metal and precious metal is going to close on short side to day it self.but instead of taking overnight risk.we should try to get perfect trade set up tomorrow for going short .
Comex Gold Falls On Bernanke Remarks; Profit-Taking Cited Ahead Of $1,800 Region
(Kitco News) - Gold futures fell sharply Wednesday when market participants construed remarks from Federal Reserve Chairman Ben Bernanke to mean diminished prospects for a third round of quantitative easing. There was also profit-taking by technically oriented traders who sensed the market might be stalling shy of the $1,800-an-ounce level, analysts said.
As of 11:17 a.m. EST, April gold was down $52.60, or 3%, to $1,736 an ounce on the Comex division of the New York Mercantile Exchange. May silver was $1.20, or 3.2%, lower at $36.015.
Bernankes comments during his Humphrey-Hawkins testimony is leading to an increasing ideas that QE3 may in fact be a figment of peoples imaginations, said Sterling Smith, commodity trading adviser and market analyst with Country Hedging. Throw that in with the strong Chicago PMI (Purchasing Managers Index) report, particularly the employment section, and the idea of seeing any sort of new easing or printing of money is looking like a low order of probability. And with that, gold is getting crushed.
Bernanke said recently improving jobs reports have put policy-makers on alert to watch future data closely, considering the now somewhat different signals. Meanwhile, the Chicago PMI rose to a 64.0 reading in February from 60.2 in January.
Mike Daly, gold and silver specialist with PFGBEST, describes the reaction to Bernankes remarks as somewhat surprising since many of the Fed chairmans comments did not seem that much different than in the past. In particular, Daly cited Bernankes comments that U.S. economic expansion has been uneven and modest and unemployment still elevated, with a subdued price outlook.
One other factor that might have detracted from gold, Daly added, was news that North Korea has agreed to halt nuclear tests. If so, this would remove at least one of the worlds geopolitical concerns that can lead to safe-haven buying.
Daly commented that some of the selling might be from traders wanting to book profits ahead of month-end. And, he said, they are aware that gold has broken down from the $1,800 area before. The April futures peaked at $1,808 on Nov. 8 before later falling all the way back to $1,526.20 in late December. During Wednesdays slide, profit-taking accelerated below $1,780, Daly added.
Gold bugs have seen this movie before, Daly said. When we got up around $1,800 the last few times, we broke hard. Im actually looking at this as a buying opportunity.
Smith commented that gold was probably due for some sort of correction after a rise so far this year.
Weve been correction-free since toward the end of December, he said. So seeing a large move down like this shouldnt surprise anyone as the market was ripe for profit-taking.
The most important thing for gold today isnt what its doing right now. Its where it finishes. If we manage to come out of this and finish the day lets say with a less-than-$12 loss, the market will look quite healthy.
(Kitco News) - Gold futures fell sharply Wednesday when market participants construed remarks from Federal Reserve Chairman Ben Bernanke to mean diminished prospects for a third round of quantitative easing. There was also profit-taking by technically oriented traders who sensed the market might be stalling shy of the $1,800-an-ounce level, analysts said.
As of 11:17 a.m. EST, April gold was down $52.60, or 3%, to $1,736 an ounce on the Comex division of the New York Mercantile Exchange. May silver was $1.20, or 3.2%, lower at $36.015.
Bernankes comments during his Humphrey-Hawkins testimony is leading to an increasing ideas that QE3 may in fact be a figment of peoples imaginations, said Sterling Smith, commodity trading adviser and market analyst with Country Hedging. Throw that in with the strong Chicago PMI (Purchasing Managers Index) report, particularly the employment section, and the idea of seeing any sort of new easing or printing of money is looking like a low order of probability. And with that, gold is getting crushed.
Bernanke said recently improving jobs reports have put policy-makers on alert to watch future data closely, considering the now somewhat different signals. Meanwhile, the Chicago PMI rose to a 64.0 reading in February from 60.2 in January.
Mike Daly, gold and silver specialist with PFGBEST, describes the reaction to Bernankes remarks as somewhat surprising since many of the Fed chairmans comments did not seem that much different than in the past. In particular, Daly cited Bernankes comments that U.S. economic expansion has been uneven and modest and unemployment still elevated, with a subdued price outlook.
One other factor that might have detracted from gold, Daly added, was news that North Korea has agreed to halt nuclear tests. If so, this would remove at least one of the worlds geopolitical concerns that can lead to safe-haven buying.
Daly commented that some of the selling might be from traders wanting to book profits ahead of month-end. And, he said, they are aware that gold has broken down from the $1,800 area before. The April futures peaked at $1,808 on Nov. 8 before later falling all the way back to $1,526.20 in late December. During Wednesdays slide, profit-taking accelerated below $1,780, Daly added.
Gold bugs have seen this movie before, Daly said. When we got up around $1,800 the last few times, we broke hard. Im actually looking at this as a buying opportunity.
Smith commented that gold was probably due for some sort of correction after a rise so far this year.
Weve been correction-free since toward the end of December, he said. So seeing a large move down like this shouldnt surprise anyone as the market was ripe for profit-taking.
The most important thing for gold today isnt what its doing right now. Its where it finishes. If we manage to come out of this and finish the day lets say with a less-than-$12 loss, the market will look quite healthy.
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