Kitco Market Nuggets
Market Nuggets: Nymex, Comex To Launch Gold, Crude Oil Volatility Index

13 October 2010, 4:56 p.m.
By Alex Létourneau
Of Kitco News
http://www.kitco.com/

(Kitco News) -- Beginning Monday, the New York Mercantile Exchange and its Comex division will launch a gold volatility index and crude oil volatility index for trading on the CME Globex electronic trading platorm. Both indexes, using market data from Nymex and Comex, will trade as futures contracts on Globex and the Chicago Board Options Exchange Volatility Index. The gold volatility index will have a 60-day forward looking index and the crude oil index will have a 30-day look-ahead. Both contracts will be listed on Nymex and Comex, which are part of the CME Group.

By Alex Létourneau of Kitco News; aletourneau@kitco.com

Market Nuggets: Watch Dollar Seasonalities For Gold Correction – Deutsche Bank

13 October 2010, 10:27 a.m.
By Debbie Carlson
Of Kitco News
http://www.kitco.com/

(Kitco News) -- The U.S. dollar weakness has given commodities in general support for the second half of the year, but investors should be aware for a short-term correction in the greenback during October. That could mean a setback to the recent gold rally, says Deutsche Bank in a research note on Wednesday. In an examination of the seasonal performance of the buck since 1999, the bank says it “found that the US dollar displays a strong tendency to weaken during September only for part of these gains to be lost in October.” It also says the correction will be short-lived, and U.S. dollar weakness will resume in November and December, representing a buying opportunity for gold bulls. “The next hazard for bullish gold investors will be the first four weeks of next year, which has seen the dollar strengthen in 9 out of the last 12 years,” the bank said.

By Debbie Carlson of Kitco News; dcarlson@kitco.com

13 October 2010, 9:13 a.m.
By Allen Sykora
Market Nuggets: Barclays: Palladium ETP Holdings Rise To Record High

(Kitco News) -- Barclays Capital reports that inflows into global exchange-traded products for platinum group metals were noteworthy Tuesday. Palladium ETPs gained 79,000 ounces to a peak of 1.88 million ounces, exceeding the record from April by 45,000 ounces. The U.S.-based palladium ETP rose 65,000 ounces, Barclays added. Meanwhile, platinum ETP holdings rose by 11,000 ounces to 1.026 million, its highest total since July. Barclays also reports that silver ETPs rose by 3 metric tons to a record 14,109.

By Allen Sykora of Kitco News; asykora@kitco.com

13 October 2010, 9:03 a.m.
By Allen Sykora
Market Nuggets: Comex Gold Technical Picture Remains Favorable—Pioneer's Meyers

(Kitco News) -- The technical-chart pattern for Comex gold remains favorable and the metal appears to be tracking equities higher lately, says Scott Meyers, technical analyst and New York branch manager with the Pioneer Futures division of MF Global. “The picture here is of a rally that hasn’t given way to any significant selling. There is no breakdown on the charts at all,” he says. December gold may soon take out last week’s most-active-contract record high of $1,366 an ounce, he continues. There are reports of numerous portfolio managers recommending that a small portion of investors’ assets go into gold, with more aggressive ones lifting the percentage, Meyers notes. He cautions, however, that gold is due for a correction at some point. At 8:44 a.m. EDT (1244 GMT), December gold was $12.60 higher at $1,359.30 an ounce. p>By Allen Sykora of Kitco News; asykora@kitco.com

13 October 2010, 8:03 a.m.
By Allen Sykora
Market Nuggets: MF Global Looks For Comex December Gold To Test $1,366 Resistance

(Kitco News) --MF Global analyst Tom Pawlicki looks for Comex December gold to test nearby resistance at $1,366 an ounce. The market is likely to be supported by prospects for another round of quantitative easing in the U.S., weak economic data, expected consumer demand from India and prospects for additional central-bank buying, he says in a research note. One factor exerting at least some pressure would be Anglogold Ashanti’s closed hedge book, which implies that it has completed its buybacks, he says. Pawlicki notes that rises in stocks and gold, but a fall in the dollar after September FOMC minutes were released Tuesday suggest markets anticipate further quantitative easing, although a sell-off in bonds made this “a bit confusing.” Still, Pawlicki says in his note, it appears as though the Fed will implement quantitative easing, although perhaps in smaller-than-expected form. “That could keep gold in favor as it could weigh on the dollar,” he says. The December contract peaked at $1,362 overnight and was up $12.50 to $1,359.20 as of 7:35 a.m. EDT (1135 GMT).

By Allen Sykora of Kitco News; asykora@kitco.com