Prices of TOCOM gold futures took it on the chin last week along with most other commodity and equity markets. The most actively traded forward contract dropped by 218 yen for the week and closed Friday’s day trading session at 4069 per gram. The weekly low was 4050 yen which was reached during Thursday’s trading. The 218 yen drop was equal to about a 5.1% downward move. Gold has recently been trading as a normal risk asset and has seemed to lose some of the safe haven status that it had enjoyed with some investors in recent years. Fresh worries about sovereign debt levels and economic stagnation in Europe helped to send most equity and commodity markets downward last week. Election results in both Greece and France brought fresh worries to markets about the ability of Europe to solve its debt woes. Further pressuring gold markets is the sentiment held by some traders that further monetary easing by the U.S. Federal Reserve will not happen due to recent announcements of increasing economic activity in the U.S. The spot price in U.S. dollars fell by around $60 an ounce last week which was less than the fall in Tokyo due to a stronger yen versus the U.S. dollar last week. This put further pressure on all commodities priced in yen. The recent sell-off has led some analysts to warn that some technical damage has been done to gold charts and that prices could fall further if current price levels don’t start to attract new buyers. There were reports last week that physical buying in India is still fairly soft due to a strong rupee and recent changes to import duties of gold. TOCOM gold futures open interest rose by about 10,000 contracts last week and trading volume was low to moderate.

TOCOM Gold Daily Chart – Forward Contract (as of May 11)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Prices of TOCOM platinum futures fared slightly worse than gold futures last week as the most actively traded forward contract fell by about 6.4% or 259 yen and closed the day trading session on Friday at 3814 yen per gram. The low for the week was reached during Friday’s trading at 3802 yen per gram for the forward contract and this level was last seen in January of this year. Industrial and base metals were clobbered as well last week due to renewed concerns on European debt problems and the possibility of further economic slowing in Europe. Since platinum is used as both an industrial metal and a precious metal, prices fell more than gold prices. Diesel engines which are popular in Europe use predominantly platinum in their exhaust systems whereas gasoline engines use more palladium so any worries of economic slowing in Europe will usually pressure platinum prices. Some analysts point to the rising costs of platinum production in South Africa as a support for global platinum prices. However, global supply of platinum is expected to continue to be greater than demand in 2012 as it has been in recent years. Light vehicle sales in the U.S. reportedly rose by around 2% in April which was slightly above expectations but sales remain sluggish in both Japan and Europe. TOCOM platinum future’s trading volume was moderate and open interest was little changed.

TOCOM Platinum Daily Chart – Forward Contract (as of May 11)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

TOCOM rubber futures got shellacked the worst last week as the benchmark forward contract lost just over 10% of its value last week as the contract price plunged by 31.8 yen. The forward contract closed the week at 283.8 yen per kilo after getting as low as 283.1 yen during Friday’s trading. Besides following other commodity and equity markets lower on the back of concerns about Europe and the possibility that China’s economic growth will continue to slow, rubber prices fell on reports that inventory levels of natural rubber in Japan hit nearly 5 year highs. This news coupled with lower oil prices got the week off to a poor start for TOCOM rubber futures as the price of the forward contract fell by more than 10 yen on Monday and continued its downward trend for most of the remainder of the week. Adding to rubber market price woes, the wintering or dry season is finishing up in Thailand and rubber production of rubber trees is expected to pick-up from now as the tapping of rubber trees increases. The Thai government previously announced plans to intervene in local rubber markets to support prices with a reported 15 billion baht (about $475 million) budget and there were reports that some buying has started last week. Trading volume was moderate last week and open interest increased by about 3,000 contracts and stood at 31,395 contracts as of last Friday.

TOCOM Rubber Daily Chart – Forward Contract (as of May 11)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

 Summary of April 2012 Activities at TOCOM

Click on the link below for details including trading volume for April 2012.

http://www.tocom.or.jp/data/geppou/gaikyo201204_e.pdf

TGE April 2012 Trading Report

Click on the link below for details on trading volume for April 2012.

https://www.tge.or.jp/english/whats/news/pdf/gyoumu/E20120501.report.pdf

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

Prices of TOCOM gold futures fell by around 1% last week with the most actively traded forward contract falling 45 yen per gram. The forward contract closed the week at 4326 yen after getting as low as 4250 yen during Wednesday’s trading. Trading was quiet last week as it was in other major gold markets as well. Recently released economic data in the U.S. has shown that economic growth continues to show slow progress and so has given some traders and investors the courage to put more funds into equities and bonds and sell gold. Trading activity in U.S. gold markets was also reportedly quite slow last week. Falling global oil prices last week also pressured other commodities including gold. However, a weaker yen versus the U.S. dollar kept gold futures prices from falling further on TOCOM last week. Early in the week, global gold prices were also sent lower because of renewed concerns on sovereign debt levels in Spain. In physical market news, demand was reported as being sluggish in most markets including India where many analysts were expecting demand to pick-up after the strike by many gold shops who were protesting new taxes on gold was called off. Some analysts see gold as being technically vulnerable as each new high is progressively lower than previous ones. Open interest for TOCOM gold futures were little changed last week.

TOCOM Gold Daily Chart – Forward Contract (as of April 20)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Prices of TOCOM platinum futures held their own last week and the most actively traded forward contract closed last Friday’s day trading session at 4184 yen per gram which was down 8 yen for the week. The low for the week was 4073 which was reached last Tuesday. Prices were pressured early in the week but recovered mid-week to finish little changed. Hopes for a continuing global economic recovery and a weaker yen against the dollar helped to pull prices higher on Wednesday after most commodities including platinum fell last Monday on worries about Spanish debt and slowing economic growth in China. Prices of platinum are back below prices of gold and so platinum jewelry demand is reportedly becoming more popular in India, especially for young people. Also in India, automobile sales are reportedly expected to increase by 10-12% in this year which is expected to keep demand for platinum strong there. However, automobile sales are expected to stay weak in most of Europe where diesel engines are popular and diesel engines use mainly platinum in their exhaust systems where gasoline engines use more palladium. In Japan, automobile sales are expected to show increases this year over last but that is mainly due to the low demand and production issues after the earthquake and tsunami disasters here last year. Trading volume was pretty quiet last week and open interest was little changed.

TOCOM Platinum Daily Chart – Forward Contract (as of April 20)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

Sentiment in rubber markets remain subdued and recent price action in TOCOM rubber futures reflects this. Rubber stock levels in both China and Japan remain high which has kept fresh buying at a minimum in physical markets in SE Asia. Last week, prices of TOCOM rubber futures fell last Monday along with most other commodities including oil prices. The same concerns over slowing Chinese economic growth and sovereign debt and economic contraction worries in Europe helped to send rubber prices lower as well. The 300 yen level did hold last week and traders again will be watching whether this support level will hold next week. The benchmark forward contract fell by 1.9 yen last week after prices rallied on Wednesday making up for most of the losses on the other four trading days and closed last Friday’s day trading session at 307.8 yen per kilo. The forward contract got as low as 301.8 yen during Tuesday’s trading. Automobile demand is a mixed bag globally with some areas like Japan and Europe showing slow sales but India and the U.S. showing fairly strong sales. Car sales reportedly fell for the sixth straight month in March in Europe. Stock levels at TOCOM designated warehouses increased by 220 tons from March 31^st to April 10^th and stood at 10,838 tons as of the 10^th.

TOCOM Rubber Daily Chart – Forward Contract (as of April 20)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

 No news this week.

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

Tepid market data released in China and the U.S. last week sent most commodities lower last week but one exception was gold. Gold prices decoupled from equities and most commodities as some market participants speculated that this might induce the U.S. Federal Reserve to further easy monetary policy which could pressure the U.S. dollar and push gold prices higher. The U.S. dollar spot price rose by over 3% but a stronger yen against the U.S. dollar mitigated gains in Tokyo. The most actively traded forward TOCOM gold futures contract rose by around 1% and closed the day trading session last Friday at 4371 yen per gram which was up 45 yen for the week. In physical markets there were reports that demand was fairly quiet but demand was higher in India compared to the previous few weeks due to the end of the strike by some jewelry shops there in protest of the proposal of new taxes on gold by the government there. Also, Hong Kong’s gold exports to mainland China in February were reportedly up by around 20%. Some analysts see gold being range bound in the near term due to the lack of any strong catalysts in the market to strongly move prices. The reported range of some analysts is between $1600 and $1700 for the USD spot rate. Trading volume for TOCOM gold futures was quiet last week and open interest slightly dipped.

TOCOM Gold Daily Chart – Forward Contract (as of April 13)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Due to the worse than expected economic data in China and the U.S. last week, prices of TOCOM platinum futures headed south last week. Also pressuring prices was the strengthening yen versus the greenback and fresh worries about Spain’s sovereign debt levels. China reported that economic growth there for the first quarter was clocked at its slowest pace in more than two years. Some traders sold platinum last week over concern that European debt woes and slowing growth in China will lower global industrial demand for platinum. Platinum production in South Africa is reportedly increasing after labor problems curtailed mine output there over the past few months. The most actively traded forward contract of TOCOM platinum futures fell by 138 yen per gram or roughly 3.2% last week. The most actively traded forward contract closed Friday’s day trading session at 4192. The low for the week was 4176 yen per gram which was reached during Wednesday’s trading. Trading volume was low early in the week before picking up some mid-week as prices fell. Open interest was little changed and as of last Friday it was at 45,134 open contracts.

TOCOM Platinum Daily Chart – Forward Contract (as of April 13)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

TOCOM rubber futures prices took it on the chin last week as the benchmark forward contract fell by 16.8 yen per kilo or about 5.1% for the week. Many of the same concerns that sent platinum prices lower last week also pressured prices of natural rubber. In addition to a stronger yen, lower than expected job growth in the U.S. and concerns on slowing economic growth in China and Europe, lower oil prices also added to the woes of rubber prices as this lowered the price of synthetic rubber which is an alternative to natural rubber. The forward contract closed the week at 309.7 yen after hitting a one month low of 308.5 yen earlier in Friday’s trading. There were reports from physical markets in SE Asia that demand from Chinese buyers has yet to pick-up. Production of natural rubber in India for March was reportedly lower but this was not enough to support prices in rubber markets. Next week, traders will be watching to see if the 300 yen level will be supported on TOCOM and some analysts think that if prices slide below this level, prices could then head towards the 290 yen level. Rubber stock levels at TOCOM designated warehouses increased by 258 tons from the end of March to April 10^th and stood at 11,058 tons as of the 10^th. Trading volume for TOCOM rubber futures was mostly subdued last week and open interest was little changed and was at just over the 25,000 mark as of last Friday.

TOCOM Rubber Daily Chart – Forward Contract (as of April 13)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

 No news this week.

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

TOCOM gold prices fell last week as the yen strengthened against the U.S. dollar and the U.S. dollar spot price fell overseas. The most actively traded forward gold futures contract on TOCOM fell by 66 yen per gram or about 1.5% for the week. The forward contract hit a weekly low of 4276 yen during Friday’s trading before closing the day trading session at 4326 yen. Prices of gold fell globally last week as the U.S. Federal Reserve hinted that they were not planning on further easing monetary policy  in the near future and this caused some traders to exit long gold positions. Many analysts and traders have become more confident that the economic recovery will continue in the U.S. and so gold lost some of its safe haven value last week. In physical news, there were reports out of India that jewelers there were readying to open their shops again after participating in a strike starting last month in protest against higher taxes and import levies on gold. Some analysts expect that demand for gold returning to normal levels in India could stabilize gold prices. TOCOM trading volume for gold futures was moderately low for most of the week and open interest fell slightly and stood at 125,675 contracts as of last Friday.

TOCOM Gold Daily Chart – Forward Contract (as of April 6)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Prices of TOCOM platinum futures held up better than gold futures last week due to surging automobile sales in the U.S., Japan and other countries. The most actively traded forward contract fell by 19 yen per gram last week and closed the day trading session on Friday at 4330 yen. Prices had plunged to 4224 yen earlier on Friday. A stronger yen against the U.S. dollar also put pressure on prices last week. It was reported that automobile sales in the U.S. rose by more than 15% in March as consumer confidence appears to be improving and the average age of automobiles on the road in the U.S. has risen in recent years. Rising gasoline prices have also given consumers a reason to shop for new automobiles to improve fuel efficiency with newer technology and more efficient performance of new engines. Automobile sales also dramatically increased in Japan in March year over year but due to the tragedies last March this was expected. Trading volume for TOCOM platinum futures was pretty quiet and open interest was little changed for the week.

TOCOM Platinum Daily Chart – Forward Contract (as of April 6)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

Prices of TOCOM rubber futures were virtually unchanged last week. The benchmark forward contract ended the week down 0.1 yen per kilo and closed the day trading session last Friday at 326.5 yen. The dearth of recent fresh buying from Chinese buyers in SE Asia physical markets has cast a pall over rubber markets in recent weeks even though output has reportedly been less than expected in recent weeks in SE Asia due to unseasonal rains which has curtailed the tapping of rubber trees. Output is expected to increase from next month as the wintering season finishes. During this dry season, output from rubber trees decreases markedly. In other physical news, recent strong automobile sales data in the U.S. and Japan has given some bullish news to traders but the lack of fresh demand for natural rubber in physical markets has offset this and hence the market has been range bound in recent weeks. Trading volume for TOCOM rubber futures was moderately low and open interest slipped by about 1,500 contracts and stood at 24,549 as of last Friday.

TOCOM Rubber Daily Chart – Forward Contract (as of April 6)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

TGE Monthly Trading Report March 2012

Click on the link to view the report.

http://www.tge.or.jp/english/whats/news/pdf/gyoumu/E20120402.report.pdf

Summary of March 2012 Activities at TOCOM

Click on the link to view the report.

http://www.tocom.or.jp/data/geppou/gaikyo201203_e.pdf

TOCOM Mid-Term Management Plan Update

Click on the link to view the update.

http://www.tocom.or.jp/data/geppou/gaikyo201203_e.pdf

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

Prices of TOCOM gold futures ended the first quarter of 2012 up around 13%. Last week, which was the last week of the first quarter, was fairly quiet as the most actively traded forward contract was down 3 yen per gram for the week. The forward contract closed last Friday’s day trading session at 4392 yen. The U.S. dollar spot price increased slightly but a stronger yen against the U.S. dollar towards the end of the week caused prices on TOCOM to fall. The market has a wide variety of opinions on where gold prices will go from here which could increase market volatility in the second quarter. In physical markets, demand for gold reportedly remains strong in China but has slackened in India due to new taxes placed on gold which has caused many jewelers to close their shops in protest as this would raise their prices and hurt demand. Global prices of gold rose early in the week after the U.S. Federal Reserve Chairman said that the U.S. economy needs to grow more quickly which some analysts and traders took to mean that further monetary stimulus is still being considered. Later in the week positive economic data convinced some traders that the U.S. recovery will continue and led some to shift assets from gold into equities and other investments. Trading volume for TOCOM gold was fairly quiet and open interest increased slightly for the week.

TOCOM Gold Daily Chart – Forward Contract (as of Mar 30)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Prices of TOCOM platinum futures had a stellar quarter as the forward contract climbed by just over 25% during the first quarter. This gain easily outperformed increases made by gold futures during the quarter. Prices gained as market participants came to believe that the economic recovery was sustainable in the U.S., Europe looked like it successfully delayed any kind of implosion, Japanese automobile factories returned to pretty much full output and supply was hindered by labor woes in South Africa. Last week, the most actively traded forward contract fell by 20 yen per gram for the week and closed last Friday’s day trading session at 4349 after getting as low as 4329 earlier in Friday’s trading. The U.S. dollar spot price of platinum was little changed for the week and prices in Tokyo drifted downward in unison with gold later in the week on the back of a strengthening yen versus the greenback. In physical news, it was reported that South Africa’s government has negotiated a deal to invest in a project along with Pallinghurst resources. The new venture reportedly hopes to become the third largest platinum producer in five years. Trading volume of TOCOM platinum futures contracts was moderate and open interest was little changed for the week.

TOCOM Platinum Daily Chart – Forward Contract (Mar 30)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

TOCOM rubber futures prices almost matched the percentage increase of platinum futures for the first quarter as rubber prices gained about 24% of the quarter. Rubber prices rose sharply during the first quarter due to the heavy sell-off at the end of last year that convinced some traders that the market was oversold, higher oil prices and more confidence in the market that the recovery in global growth will continue. Last week, prices of the benchmark forward contract fell by 4.3 yen per kilo or by about 1.3%. Volume picked up towards the end of the week as market participants adjusted positions before the end of the quarter and fiscal year for many in Japan but was very quiet early in the week. Open interest increased by over 3,000 contracts and stood at 26,295 as of last Friday. Prices rose early in the week on reports of low supply in Thailand due to the dry or “wintering” season and that stock levels had decreased in Shanghai warehouses. Also supporting prices early in the week was news out of Thailand that the government may cut down up to 80,000 hectares of rubber trees this year to support prices. The average number of hectares cut down during a year of aging trees is reportedly around 30,000. Later in the week, oil prices fell and the yen strengthened against the U.S. dollar and this pulled prices lower on the last three trading days of the week.

TOCOM Rubber Daily Chart – Forward Contract (Mar 30)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

 Revised Weighting Percentages for Nikkei-TOCOM Index

Click on the link below for more information.

http://www.tocom.or.jp/news/2012/20120330_rev_index_weight.html

TOCOM Opens Chinese Language Website

Click on the link to access the site.

http://www.tocom.or.jp/cn/index.html

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

Last week prices of TOCOM gold futures fell slightly as the most heavily traded forward contract fell by 35 yen per gram and closed Friday’s day trading session at 4395 yen. The forward contract fell on every trading day during the holiday shortened week. The main reason for gold prices falling last week was the strengthening of the yen versus the U.S. dollar. The U.S. dollar priced gold spot rate was little changed overall for the week so the stronger yen led gold futures prices lower in Tokyo. Overall market sentiment for gold seems to becoming slightly more positive as some analysts and traders think that Europe will have to do more quantitative easing to strengthen balance sheets in Europe and lower than expected housing starts which were announced at the end of the week in the U.S. could lead the U.S. Federal Reserve Bank to further loosen monetary policy. The end of the five day closing of jewelry stores in India as a protest over a gold import duty increase along with stubborn higher oil prices also helped boost market sentiment late in the week. One worry on the minds of some is the recent uptick of interest rates in the U.S. If this were to continue it could boost the dollar and pressure commodity prices. TOCOM trading volume was quite light last week and open interest was little changed.

TOCOM Gold Daily Chart – Forward Contract (as of Mar 23)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

After platinum prices rose above gold prices the week before last after an abnormally long run of being cheaper than gold, gold futures prices in Tokyo and the U.S. dollar gold spot price retook the lead over platinum as platinum prices fell more than 4% on TOCOM. There are concerns in the market that a slowdown in Chinese economic activity will reduce demand for PGMs (platinum group metals). The stronger yen against many major currencies also helped to send prices lower  along with a lower U.S. dollar spot price. The most actively traded forward contract on TOCOM closed Friday’s day trading session at 4369 yen per gram after falling 200 yen for the week or about 4.4% after earlier falling to the weekly low of 4295 yen in Friday’s trading. In physical market news, South Africa based Implats reportedly reached an agreement with the Zimbabwean government to hand over 51% of the company to abide by recently passed laws there requiring local ownership. In India, there have been recent reports that young Indian women are starting to choose more and more platinum jewelry instead of the traditionally popular gold based jewelry. TOCOM platinum futures trading volume was fairly quiet last week and open interest rose slightly and stood at 44,775 open contracts as of last Friday.

TOCOM Platinum Daily Chart – Forward Contract (Mar 23)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

TOCOM rubber futures were little changed last week with much lower volatility than usual. The benchmark forward contract fell by 1.7 yen per kilogram and closed Friday’s day trading session at 330.7 after reaching the weekly low 0f 327.6 yen earlier Friday. Like base metal markets, sentiment in rubber markets were subdued due to continuing data coming out of China pointing to slower economic growth there which would damper demand for many commodities including rubber. It was reported that Australian miners of iron ore said that demand for the ore from China was slowing down. In physical news, there have been recent reports of ample inventory of natural rubber in China which has dampened the amount of fresh demand coming into markets. Even though Thailand is in its seasonal dry season, where rubber tree output drops by as much as 50%, prices are not increasing much due to the dearth of fresh buying. Lastly, Indonesian car sales reportedly leapt by more than 24% in February compared with the previous year’s figures. Trading volume was light and open interest was little changed.

TOCOM Rubber Daily Chart – Forward Contract (Mar 23)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

TOCOM Gold Market Marks 30th Anniversary

http://www.tocom.or.jp/news/2012/20120323Gold30.html

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

Prices of TOCOM rubber futures were little changed last week as a weakening yen prevented much movement to the downside even though the U.S. dollar spot rate of gold fell last week. The most actively traded forward contract fell by 6 yen last week and closed the trading week at 4474 yen per gram. Economic data that was released in the U.S. last week was viewed positively by the market and this caused some traders and analysts to sell gold and silver as the chances of further monetary easing by the U.S. Federal Reserve Bank dimmed in the opinion of some market participants. As the outlook for QE3 happening diminished and most banks in the U.S. passed the government mandated “stress test”, traders became more bullish on equities and the potential for further economic growth going which meant that some holders of long gold and silver positions liquidated as the perceived safe haven status of gold lost some of its luster. Market participants looked for more risk in their portfolios to capitalize on the apparent bullish news on economic fronts. The weaker yen not only supported commodity prices last week but also pushed equity markets higher in Tokyo last week. Trading volume for gold futures last week was moderate and open interest increased by about 5,000 contracts and stood at 126,085 as of the close of the day trading session last Friday.

TOCOM Gold Daily Chart – Forward Contract (as of Mar 16)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Platinum futures prices on TOCOM raced past gold prices last week as optimism over the prospects for global economic growth rose. The most actively traded forward contract increased by around 4% or 174 yen per gram and closed the day trading session last Friday at 4569 yen per gram. Prices of platinum have also risen because of concerns over supply coming out of South Africa in the near future as output is expected to wane due to recent strikes and safety stoppages. Factories in Japan also continue to increase production after the devastating damage from the earthquake and tsunami last year. Prices of platinum futures have risen by about 25% so far this year on TOCOM due to a weaker yen and increased confidence that global economic output will continue to grow. Trading volume was moderate last week while open interest gained slightly and stood at 43684 as of the end of trading on last Friday’s trading system.

 TOCOM Platinum Daily Chart – Forward Contract (Mar 16)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

After TOCOM rubber futures strongly rallied over the last month or so, prices took a breather last week in spite of the weaker yen and bullish outlooks for economic growth by some analysts and traders. Stronger global oil prices have also helped support rubber prices in recent weeks. There were reports last week out of Thailand cash markets that demand for natural rubber has dried up in recent weeks due mainly to recent higher prices. The wintering or dry season has started in Thailand and other areas in SE Asia when rubber tree output greatly slows down and rubber tapping also greatly slows down. This is expected to crimp supply over the next few months but rubber buyers do not seem ready to place big orders at current levels. The benchmark forward contract fell by 3.0 yen per kilo last week and closed the week at 332.4 yen. Trading volume was moderate and open interest was little changed for the week. Next week, some traders are looking for TOCOM rubber futures prices to stay in a pretty tight trading range barring any major market news, staying pretty close to the 330-340 range.

TOCOM Rubber Daily Chart – Forward Contract (Mar 16)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

 No news this week.

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

TOCOM gold futures prices fell last week by 40 yen per gram on the most actively traded forward contract. The February 2013 contract closed the day trading session last Friday at 4480 yen after briefly passing the 4500 mark earlier in Friday’s trading session. Prices fell on the first three trading days of the week before recovering some of those losses on Thursday and Friday. The U.S. dollar spot price of gold fell early in the week leading Tokyo prices lower as China announced that they were cutting their expectations for 2012 economic growth from 8% to 7.5%. Other factors that weighed on gold prices last week was data showing a further slowing of economic activity in many parts of Europe including Italy and Spain. However, later in the week it became apparent that Greece would work out a deal with bond holders to swap debt with losses given to bond holders. The U.S. Federal Reserve also announced that they were considering a new scheme to buy bonds to keep interest rates artificially low. In physical gold markets, there were reports of strong demand for physical gold in Asia as prices swooned the previous week and early last week. Many analysts are still expecting gold prices to remain strong in 2012 due to negative real interest rates and ongoing easy monetary policies by central banks in Japan, the EU and the U.S. Open interest was little changed last week and trading volume was moderate.

TOCOM Gold Daily Chart – Forward Contract (as of Mar 9)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Prices of TOCOM platinum futures followed gold prices lower on the first three trading days last in Tokyo. The most actively traded forward TOCOM platinum futures contract on TOCOM fell by around 2.5% or 112 yen per gram last week. Like gold futures, prices did recover some of the early losses in the week on Thursday and Friday. The forward contract closed the trading week at 4395 yen per gram. Besides the drag on platinum prices by the fall in gold prices, automobile sales in China are reportedly having a slow start in 2012 due to high gasoline prices and a slowing economy. Additionally, the GDP of Europe reportedly fell by 0.3% in the fourth quarter compared to the third quarter last year. In platinum industrial news, labor problems affecting the huge Rustenburg mine in South Africa owned by Impala Platinum were looking like they would be settled and production was reportedly getting back to normal levels. Trading volume was moderate and open interest gained about 2,000 contracts to stand at 43,702 at the end of Friday’s day trading session.

TOCOM Platinum Daily Chart – Forward Contract (Mar 9

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

Prices of TOCOM natural rubber futures also did not escape losses in the first three trading days last week as the benchmark forward contract lost 6.7 yen per kilo or roughly 2.0%. The forward contract closed Friday’s day trading session at 335.4 yen after hitting a weekly low of 320.4 during Wednesday’s trading. For similar reasons for drops in platinum and gold prices, China’s announcement of slower growth expectations than previously announced spooked markets and the TOCOM rubber futures market was no exception. Prices did recover some of the early week losses on Thursday and Friday due to higher oil prices and global market equity and commodity rallies on news that Greece came to an agreement with most of the private bond investors that they had been negotiating with for a bond swap on their sovereign debt. Some traders are now expecting pretty strong resistance in the 340-350 yen range going into trading next week. In physical market news, many tire manufactures have announced more price increases for their retail prices including Goodyear Tire & Rubber Co. last week. It was reported that they would be raising prices from April 1^st by up to 6% in North America. Earlier this year other tire manufactures, including Japanese tire manufactures, announced prices increases due to higher raw material costs. Also, the Philippine government announced that they would be increasing support to further develop their natural rubber production in the coming years. This will take time to develop the new plantations but will eventually add to global rubber production and Philippine rubber exports in the coming years. Trading volume for TOCOM rubber futures was moderate last week and open interest fell back below the 25,000 contract mark.

TOCOM Rubber Daily Chart – Forward Contract (Mar 2)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

TOCOM February 2012 Trading Data and Activities

http://www.tocom.or.jp/data/geppou/gaikyo201202_e.pdf

TGE Monthly Trading Report February 2012

http://www.tge.or.jp/english/whats/news/pdf/gyoumu/E20120306.report.pdf

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

TOCOM gold futures prices continued to make gains last week as the most actively traded forward contract gained 178 yen or about 4.1%. The forward contract increased every trading day last week and closed the trading week at 4599 yen per gram after hitting a weekly high of 4618 yen earlier in Friday’s trading session. Gold prices inTokyo rose on the back of a weakening yen against the U.S. dollar and a rising spot price in global markets. The USD denominated spot price rose by around $50 last week on news that Europe finally looked as though they would come to an agreement on keeping Greece afloat for a while longer and on fresh concerns of the possibility of rising inflation due to strongly rallying global oil prices. There was also speculation in the market that large investment funds were buying gold last week due to bullish technical factors. Some analysts and traders are expecting the yen to further weaken against the dollar and this would help to push gold priced in yen higher. TOCOM open interest for gold futures decreased by around 10,000 contracts last week and stood at 119,175 at the end of Friday’s day trading session. Trading volume was moderately low early in the week but picked up as prices continued to make gains later in the week.

TOCOM Gold Daily Chart – Forward Contract (as of Feb 24)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Prices of TOCOM platinum futures continued their upward path as the most actively traded forward contract gained 284 yen or around 6.8% last week and closed the trading week at 4456 yen per gram. TOCOM platinum prices have gained more than 25% since the beginning of the year which has outpaced the U.S. dollar denominated spot price which has gained about 20%. The outperformance of TOCOM platinum futures is mainly due to a weakening yen against the greenback and the increasing recovery pace of factory production in Japan after last years devastating earthquake and tsunami disasters. Prices rose last week due to a weaker yen and a higher USD spot price. Global platinum prices rose last week as Impala Platinum (Implats), the world’s second-largest platinum producer, told customers that April deliveries will fall by around 50% due to ongoing labor strife at its large producing Rustenburg mine. Prices also rose last week on increasing confidence that global economic activity will not fall off a cliff as Europe looked to kick the can further down the road by agreeing on another bailout of Greece and the China Central Bank announced that they would decrease its reserve requirement ratio to try and goose lending by banks after increasing the ratio numerous times last year. Like gold futures, trading volume was quiet early in the week but picked up dramatically from Wednesday through Friday as prices continued to increase. Open interest was little changed for the week.

TOCOM Platinum Daily Chart – Forward Contract (Feb 24)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

On a percentage basis TOCOM rubber futures prices kept pace with platinum prices as the benchmark forward contract rose by around 6.9% for the week. The forward contact closed the week up 22.1 yen per kilogram at 340.1 yen after hitting a weekly high of 342.8 yen during Friday’s trading. For similar reasons that boosted platinum prices, rubber prices rallied in Tokyo on the back of a weaker yen, China’s Central Bank cutting the reserve requirement ratio to boost lending, Europe’s agreement for a new bailout of Greece in addition to higher global oil prices. In physical market news, it was reported that world demand for tires is expected to rise by 4.7% on an annual basis through the year 2015. Demand is expected to rise because of increasing income levels in many developing economies which will allow more people to afford motorcycles and automobiles. It was also reported that heavy rains in southern Thailand was curtailing rubber tree tapping. Traders will be watching currency movements closely next week to see if the yen will further weaken against the dollar which would push commodity prices higher in Tokyo. Trading volume for rubber futures was moderate last week and open interest made slight gains and stood at 26,172 open contracts as of last Friday.

TOCOM Rubber Daily Chart – Forward Contract (Feb 24)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

 No news this week.

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.

TOCOM gold futures prices rose last week as the most actively traded forward contract gained 87 yen per gram or about 2% for the week and closed last Friday’s day trading session at 4421 yen per gram which was near the weekly high. The U.S. dollar spot price of gold was little changed last week but a weaker yen against the greenback helped to send gold prices higher inTokyo. Many analysts now expect the USD spot price of gold to be range bound in the $1700-$1800 range with resistance at just over the $1800 mark. If prices push over $1800, some analysts then think that prices could run higher and test previous highs. Traders inTokyoturned more bullish on gold prices priced in yen due to the weaker yen and easy monetary policy emanating from the Japanese Central Bank. As interest rates remain near zero and easy monetary policies continue gold looks to continue to have a place in many investment portfolios according to analysts. TOCOM trading volume for gold futures was moderately low last week but open interest rose by around 7,000 contracts and stood at just over 130,000 as of last Friday.

TOCOM Gold Daily Chart – Forward Contract (as of Feb 17)

TOCOM Gold Forward Contract Weekly Trading Data

TOCOM Platinum

Platinum futures prices on TOCOM also rose last week but not to the same extent as gold. The most actively traded forward contract managed to gain 28 yen per gram for the week. The forward contract closed Friday’s day trading session at 4172 yen after hitting a weekly high of 4188 earlier in the trading day. The USD spot price of platinum fell slightly last week and some analysts are now predicting that platinum and palladium prices will find it hard to gain much traction in 2012 due to expected slowing of economic activity in Europe and other major economies. However, labor and power disruptions continue to affect mining operations in many areas ofSouth Africaand this has given prices some support in the market. In industry news, the CEO of Anglo American Platinum (Amplats) was recently quoted as saying that recent depressed platinum prices could cause some mining companies to cut investment levels inSouth Africa. Trading volume of platinum futures on TOCOM was moderate last week and open interest was little changed last week and stood at just over 40,000 open contracts as of last Friday.

TOCOM Platinum Daily Chart – Forward Contract (Feb 17)

TOCOM Platinum Forward Contract Weekly Trading Data

TOCOM Rubber

TOCOM rubber futures prices also gained last week and the benchmark forward contract gained 3.0 yen and closed Friday’s day trading session at an even 318.0 yen per kilo. The forward contract hit 325.0 yen in Wednesday’s trading but slipped all the way down to 312.6 yen per kilo on Thursday before recovering on Friday. Prices fell on Thursday as doubts in markets arose over the ability of an agreement to be worked out in Europe on Greek debt but recovered on Friday because of positive economic data released in the U.S. and reports of progress being made inEuropeon Greek bailout negotiations. Overall, rubber futures prices made slight gains for the week inTokyo on the back of a weaker yen and higher global oil prices. Traders will be watching whether resistance for the forward contract will hold up again next week at the 325.0 yen level. If prices can breakthrough the 325 yen level, some traders think that prices could then make further gains towards the 340 yen level. Wintering season has slowed rubber tree production in Thailand so this has also lent support to rubber prices. TOCOM trading volume for rubber futures was moderately low and open interest decreased by around 2,000 contracts and stood at 24,822 as of last Friday.

TOCOM Rubber Daily Chart – Forward Contract (Feb 17)

TOCOM Rubber Forward Contract Weekly Trading Data

Exchange and Industry News

TOCOM Trading Volume for January 2012

http://www.tocom.or.jp/data/geppou/gaikyo201201_e.pdf

Disclaimer:

This market review and news report contains information and data from sources believed to be reliable and accurate as of the date of publication but has not been independently verified. This report is for informational purposes only and no employee, director or connected person to Dot Commodity, Inc. takes any responsibility for the information or correctness of the content contained in the report. Dot Commodity, Inc. is strictly an online commodity futures broker and does not give any trading recommendations or financial advice to any of its clients, perspective clients or readers of this report. No part of this market review & news report is to be construed as an offer or solicitation to buy or sell any commodity futures or financial contract or product of any kind.