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The gold market initially started the session out weak and under pressure from a stronger Dollar and lower global equity market trade that seemed to inspire a bit of profit taking in the metal as some investors reduce exposure in riskier assets. Another sharp break in oil prices may have added to the early selling interest in gold perhaps lowering some trader's inflation concerns. Without any economic reports out this session, outside markets have been the primary influences on the gold trade. However, the gold market has been able to recover as the morning session progressed, despite the higher Dollar trade, with the metal finding good buying support at lower levels which at times has lifted gold back into positive territory and as a result, December gold has been as much as $15.60 off session lows. Rising fears of a possible Ukraine debt default may have brought a safe haven bid back to gold in the morning trade. But despite periodic bouts of profit taking the gold market still appears to be strongly underpinned by broad based demand from central banks, funds and even on a retail level as both the UK Royal Mint and the US mint have reported strong gold coin demand. With both bearish outside influences and good investment demand evident, trading in gold has turned two-sided and choppy ahead of mid-session.
The daily commentaries provide a recap of each commodity's traded price activity, an analysis of the factors that influenced price activity, a recap of any reports released that day, and a look ahead at the next day's schedule. CME Group provides market commentaries for corn, wheat, soybeans, gold and silver.
The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.