Gold Leads Rally in Commodities Market

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July 15 (Bloomberg) -- Bloomberg senior market correspondent Julie Hyman and Alan Kuckman, senior market analyst at Trading Advantage focus on the recent rebound in the price of gold and other commodities, plus a look at the latest market statistics in "On The Markets." They speak on Bloomberg Television's "In The Loop."

Not much movement when you look at stocks today.

A little bit of a decline across the board.

Really, it has been mixed here as we look at the overall market.

Some declines based on retail sales coming in weaker than estimated.

Not being overbalanced by the empire manufacturing number that eat estimates.

You can see what is going on with the citigroup.

That is one of the bright spots today.

Financials are the best performing group in the s&p 500. overall, not helping the case when it comes to stocks.

Looking at the bond market, seeing some moderation in yields, coming down slightly after that retail sales report.

You can look at a couple of the metals and see weakness there.

Aluminum and nickel in particular after chinese gdp came in and just matched estimates.

Look at gold futures.

Let's head over to the cme and focus on futures.

Last week we saw the gold futures up the most sense 2011. we are seeing a little bit of an extension of that today.

What are you watching in of gold?

Gold finally had a little bottoming breakout last week.

When it broke above the $ 1267 level, that was a positive.

That had been the top of the site with action.

Look for that as a support base to focus on on a weekly basis.

If you look at the balance, the $87 range, that projects a move up to 1000 $357 . the dollar made new highs last week but gold to not make new lows.

Seeing some bullish diversion.

How long can something like that last?

It does not seem like that would be sustainable, that the dollar could keep gaining and gold could keep gaining as well.

I like to look at the price action to give me the keys.

I think the last downside and gold was a little bit overdone.

1350 was the old support.

In the bigger picture, gold has gone from $1600 recently to $1200. $1400 was that pivot point we traded in for a couple weeks in may.

From a risk reward standpoint, look for some follow-through in this breakout.

Target is $1357 in the futures market.

Technically, things are set up for this and we did see a bounce here because things got so overdone to the downside.

Let's say a brief word about what is going on in some of the other metals.

Aluminum and nickel futures have been suffering because the chinese data.

Chinese data matched estimates, but these metals are very tied up to what is going on there.

There seems to be disappointment.

Right, and that seems to be an old story.

If you look at commodities, they have been drifting lower.

There is still significantly below the halfway point from the extreme highs of 2007 and the extreme lows of 2009. if you look at the charts longer-term, you see something like crude which has achieved its near-term objective.

It has bounced up to $106. i think if you look at the big picture, commodities will start to track like the equities do on the upside.


You so much.

That does it for on the markets.

This text has been automatically generated. It may not be 100% accurate.


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