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

Statistics: London Gold Fix $1,767.00 -$.25 LME Copper Stocks 215,900 tons -3,650 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) While gold prices were able to waffle around both sides of unchanged in the early going today, silver prices were definitively weaker to start. The bull camp might suggest that December silver was able to hold above the prior session's lows but with platinum, copper, energies and grains all showing early weakness, there would appear to be a risk off vibe in place in the early trade action.

Apparently silver wasn't cushioned by an upward revision in a private silver price forecast for 2013 and apparently silver wasn't able to derive much support from a very minor early rally in US equities. Perhaps silver will get a temporary lift from what is expected to be a somewhat hot US PPI report, but more than likely silver will end up tracking the direction of gold prices.

Comex Silver Stocks were 144.467 million ounces up 47,150 ounces. Silver stocks have increased in 13 of the last 20 days.

In order for silver to throw off initial weakness, probably requires a strong upward pulse in US equities, as scheduled data from the US this morning isn't likely to result in a significant improvement in sentiment.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Hong Kong shares finished at multi month highs on the back of gains in banking shares and also because of lingering hope of more easing from the Chinese government. Even mainland Chinese markets were positive today and that action also seemed to be the result of ideas that the Chinese government was poised to provide more support for the slumping Chinese economy directly ahead.

European markets were weaker this morning, as ongoing Earnings news disappointed investors and in turn kept slowing fears in place. However, a minor rise in Euro zone Industrial output for August should have provided European stocks with some lift.

In the early action today US share prices were marginally higher, but not strong enough to signal a risk-on environment in the early going. Today the US scheduled report slate will present a US PPI reading that is expected to be a little hot, a private consumer sentiment reading and a Richmond Fed speech all in the morning trade.

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