Gold Market Commentary From Trader Dan Posted: Jun 30 2009 By: Dan Norcini Post Edited: June 30, 2009 at 2:05 pm
Filed under: Trader Dan Norcini
I am not sure what to make of today’s price action across a wide variety of commodity markets as it was one of the more bizarre sessions I have seen in some time. Considering the price action the last few months, that is saying something.
Last evening crude oil put on some sort of inexplicable price movement driving all the way to $73.38 in Asian trading on EXTREMELY HEAVY volume. Traders all across the globe were at a complete loss trying to figure out what was going on. Then as trading moved into the West, price began to retreat until it hit New York where it promptly collapsed over $2.00 a barrel all the way back down to $69.00.
Gold too was whipped around violently and as can be expected, was knocked flat on its rear in New York trading once again.
Some of what was occurring was probably related to end of month and end of quarter book squaring by various hedge funds but even at that, I am still at a loss to explain what happened in crude oil or why. It seemed that when crude got the rug pulled out from under it, buying gold evaporated and the usual suspects were able to pound it down once again.
I am going to therefore refrain from drawing any inferences from today’s price action in gold because there are simply too many weird price movements today across so many markets that I run the risk of looking like a complete fool in trying to come up with some sort of intelligent comment on its behavior today.
I will say that technically gold is still mired in a sideways chop with yesterday’s stochastic buy signal being negated by today’s poor price action. Sometimes I swear that someone with lots of money to spit away reads this site just to have some “fun” with us.
It did not help gold any today also for the grain market to get a very surprising bearish acreage report for corn. That took it limit down and pulled down wheat and even the beans along with it. With the grains moving sharply lower and the energy sector getting pulverized, gold had little chance of moving higher especially with the dollar once again miraculously managing to move higher (must be that cap and trade bill which will be so helpful to the average American consumer).
Let’s see what happens tomorrow and go from there. Having to sit here day after day and watching this utterly useless and meaningless price action in the screwed up markets that now exist, is becoming more and more a complete waste of time. Bonds are up; bonds are down; then they are up again. Stocks are up; stocks are down; then they go back up again. The Dollar is up; the Dollar is down; then it goes up again… this is what happens when monetary officials decide to play games in the markets and “stabilize” them.