Ruida Futures: Nonferrous Metals Gold and Silver Swung Higher

Quotations tendency: The prices of AU 1912 on Nov 13 swung higher. The trading price was 332.15-327.8RMB/g, it closed at 331.85RMB/g which was 1.08% higher than that of the last trading day.The volume was 220,000 lots, it decreased 16,580 lots daily. The open interest was 126,000 lots, decreasing 7,902 lots. The opening price of AG 1912 swung higher too, the closing price was 4,123RMB/g, increasing 1.25% compared with the previous closing price.

Market Focus: (1) US dollar index in Asian market fell into consolidation and was trading at 98.335, increasing slightly by 0.009%. (2) U.S. national economic adviser kurdallo: the U.S. economy is running well, and he does not think it is necessary to implement negative interest rates. (3) Huck from Federal Reserve: at present, I do not support interest rate cut or increase; I am opposed to October interest rate cut.

Sell position: AU1912’s long position of the top 20 was 30,246 lots, the short position was 19,103 lots, the net long position was 11,143 lots, it decreased 2,288 lots daily. The long position decreased and the short one increased. AG1912’s long position of the top 20 was 102,732 lots, the short position was 86,540 lots, the net long position was 16,192 lots, decreasing 3,522 lots daily. The long position decreased and the short one increased.

Buy position: On Nov 12, the open interest of SPDR Gold Trust gold ETF was 897.09 tons, decreasing 4.1 tons than that of the last trading day. It dropped to a new low since Sep 20, indicating a decline of longtions. Meanwhile, the open interest of Shares Silver Trust silver ETF was 11793.57 tons, fat for five consecutive days. The trading of long position and short position was cautious.

Market study and determine: On November 13, precious metals in Shanghai market all swung higher and continued to consolidate at a low level. During this period, it was mainly affected by the continued downturn of domestic stock market, and the risk aversion sentiment boosted the bullish atmosphere of precious metals. But at the same time, the U.S. index was still in high volatility, and the strong performance put pressure on gold and silver. Technically, gold and silver were both under the track of Boll, KDJ index showed signs of upward crossing, but it was subject to 5-day average resistance. In terms of operation, it is suggested that AUM can be sold and absorbed between 330-332RMB/g with stop loss of 1RMB/g respectively. AGM can be sold high and absorbed low between 4,140-4,040RMB/kg, with stop loss of 50RMB/kg each.

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