TOCOM Gold

Prices of TOCOM gold futures fell last week by around 2.0% on some technical selling, a slightly stronger yen versus the dollar and a weaker U.S. dollar spot price. The most actively traded forward contract fell by 101 yen per gram or roughly 2.3% last week and closed the day trading session last Friday at 4271 yen per gram. Trading volume on TOCOM last week was moderate to moderately low and open interest fell by around 9,000 to stand at 129,246 open contracts as of Friday. Early last week, the USD spot price of gold broke  below its 100 day moving average which pressured prices in Tokyo last Tuesday as the forward contract fell by 87 yen per gram. Then, prices fell again last Friday as trader were disappointed that the European Central Bank did not decide to do more to try and fix the sovereign debt problems in Europe last Thursday. Gold prices continue to trade closely with equity markets and last week saw this recent trend continue. The price correlation between gold and the S&P 500 reportedly hit a one year high last week as gold has lost some of its safe haven status over the past few months after hitting new highs in September. Some traders are looking at the next support level at around $1615 for the USD spot price.

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

 

TOCOM Gold Forward Contract Weekly Trading Data

Date	Open	High	Low	Close	Change	Volume	Open Interest
Dec 9	4342	4365	4253	4271	-75	60020	129246
Dec 8	4332	4354	4306	4346	18	39536	132056
Dec 7	4293	4335	4265	4328	34	42347	132132
Dec 6	4379	4380	4275	4294	-87	72816	135610
Dec 5	4372	4422	4367	4381	9	53649	139155

 

TOCOM Platinum

Prices of TOCOM platinum futures plummeted last week as the most actively traded forward contract fell on 4 out 5 trading days last week. The forward contract closed the week down by around 4.9% or 191 yen per gram. The U.S. dollar denominated spot price of platinum fell slightly last week. Prices plunged in Tokyo last week due to lower than expected economic data numbers in Japan and worries that slowing growth in China and fiscal problems in Europe will dampen demand for platinum. Recent strong demand for platinum has come from buyers of jewelry in China and for diesel engine production in Europe and some market participants are worried that this demand could fall in 2012. Also pressuring the market is the expectation that platinum supply will outstrip demand again in 2012. Overall, recent market sentiment has turned somewhat neutral if not a bit bearish but there are some analysts and traders who look at the spread between gold and platinum prices and see opportunity. Except for rare and short occasions, prices of platinum have been higher than gold prices.
Trading volume of TOCOM platinum futures was moderately low last week and open interest rose ever so slightly to stand at 46,865 open contracts as of last Friday.

TOCOM Platinum Daily Chart – Forward Contract (as of Dec 9)

 

TOCOM Platinum Forward Contract Weekly Trading Data

Date	Open	High	Low	Close	Change	Volume	Open Interest
Dec 9	3801	3830	3731	3732	-67	13780	46865
Dec 8	3845	3855	3791	3799	-47	9971	46615
Dec 7	3798	3858	3766	3846	52	10034	46138
Dec 6	3900	3903	3782	3794	-99	14428	46643
Dec 5	3926	3953	3884	3893	-30	9584	46066

 

TOCOM Rubber

TOCOM rubber futures prices were little changed last week as prices rose for most of the week until prices gave up most of those gains on Friday as prices plunged. The benchmark forward contract fell by only 0.2 yen per kilo and closed the day session Friday at 280.8 yen. The forward contract plunged by 10.1 yen on Friday to give up all the previous gains for the week after the European Central Bank disappointed markets with less than hoped for action to combat the sovereign debt crisis there. This perceived lack of  strong action by the ECB helped to push equity and commodity prices lower in  Europe and the U.S. last Thursday which in turn pushed prices lower in Tokyo on Friday. Recently, prices of natural rubber have  been on the weak side due to slowing economic growth prospects in China and Europe with additional worries coming out of India. However, some traders and analysts expect prices in Tokyo to  challenge the 300 yen level late this year or early next year due to supply constraints because of the rainy season in SE Asia producing countries and the action taken by the Asean Rubber Business Council who said that they will take stronger action  against any company who defaults on rubber shipments. TOCOM trading volume was moderately low and open interest was little changed.

TOCOM Rubber Daily Chart – Forward Contract (as of Dec 9)

 

TOCOM Rubber Forward Contract Weekly Trading Data

Date	Open	High	Low	Close	Change	Volume	Open Interest
Dec 9	290.5	291.2	280.6	280.8	-10.1	8919	22406
Dec 8	291.9	294.0	288.2	290.9	-1.0	7265	23012
Dec 7	283.5	291.9	283.5	291.9	7.1	8616	21824
Dec 6	284.3	284.8	280.2	284.8	1.3	4040	21152
Dec 5	281.0	286.4	280.0	283.5	2.9	4415	21208

 

Exchange and Industry News

Summary of November 2011 Activities at TOCOM

Click on the link for the summary.

http://www.tocom.or.jp/data/geppou/gaikyo201111_e.pdf

 

TOCOM End of Year/New Year Business Schedule

Click on the link for the detailed schedule.

http://www.tocom.or.jp/news/2011/20111207BusinessSchedule.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.