Good as Gold!
Gold futures ended the month on a high note, climbing to highs not seen since August 10th, as traders reacted to both Federal Reserve Chairman Ben Bernanke’s speech, as well as President Bush’s plan to help out delinquent homeowners. Both pieces of news were seen as supportive to the Gold market, as traders became convinced that the Fed will lower rates this year and hopefully keep the economy buoyant. In addition, lower rates may hurt the Dollar, which would be further supportive for Gold prices. Traders noted fresh buying emerging once the December contract moved above the recent highs of $679.00. $688.10 is seen as the next resistance point for December Gold, with support found at $670.20. December Gold closed the month at $681.90, up $8.00.
Lean Hog futures were weak to close the month, despite hints that China may still need to import pork from the U.S. Today’s trade was quiet overall, as most of the focus was on position squaring ahead of the long Labor Day holiday. Spread trading was moderate, as traders position themselves ahead of the start of the “Goldman Roll.” Cash Hog markets were generally quiet, as packers have already obtained adequate supplies in light of meat-packing plants being closed on Monday. Support for October Hogs is seen at the August 16th lows at 65.67, with resistance found at 68.57. October Hogs closed at 66.82, down 1.02.
Mike Zarembski, Senior Commodity Analyst
