Compiled 10/10/12 6:00 AM (CT)

Statistics: London Gold Fix $1,763.00 -$7.75 LME Copper Stocks 219,425 tons -1,625 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) At least initially the silver market has held up somewhat better than gold, as December silver prices managed to avoid a full return to the prior session's lows in the early action today. However, silver prices are tracking lower to start and it would appear as if they are being pressured by slackening global growth expectations. The recent slide on the charts, pushed some silver derivative investors away from silver investments yesterday and therefore it is possible that silver will continue to track in the footsteps of equities in the coming trading sessions. While open interest has remained high in silver, recent volume stats have seemingly showed a slight slackening of sorts but the bull camp might spin that into a positive by suggesting that the price weakness from the October highs hasn't been widely embraced by the silver trade.

In addition to more IMF warnings toward the European economy overnight, silver is probably seeing some spillover pressure from a somewhat negative kick off to the US earnings cycle.

Comex Silver Stocks were 143.578 million ounces down 379,505 ounces. Silver stocks have increased in 12 of the last 20 days.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Chinese stocks were mixed overnight, as Shanghai shares managed a slight rally, while the Hang Seng finished a touch lower. Apparently some shares in China were lifted as a result of talk of fresh government subsidies that could stimulate rural auto sales. European markets were weaker to start today in the wake of growing concerns of soft earnings in that area. US stocks were also a touch lower in the early going perhaps because Alcoa kicked off the earning cycle yesterday with a loss.

Residual weakness in the Euro this morning might be another element weighing on gold prices early today but that action could be accentuated in the event that US wholesale inventories decline and the US Fed Beige book release later today, highlights the weakness that prompted the Fed to take aggressive action in their last meeting. There will also be two Fed speeches today, but the earliest speech isn't scheduled to begin until late in the afternoon.

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