Compiled 10/18/12 6:00 AM (CT)

Statistics: London Gold Fix $1,748.00 +$.25 LME Copper Stocks 225,150 tons +700 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market clawed out a higher high on the charts today, but the market was unable to hold that initial push higher. The information from gold and platinum mining labor issues is mixed for silver today, with some striking gold miners returning to work and some platinum mining workers still refusing to return to work. One might have expected silver to have benefited like copper prices, from somewhat supportive Chinese economic data overnight, but apparently a portion of the silver trade wasn't overly impressed with Chinese economic activity. As suggested in the gold coverage today, silver and gold seemed to be diverging from minor strength in platinum and copper prices overnight and perhaps that is the result of adverse currency market action. However, the bull camp should be happy with a generally positive track in open interest since the end of July. While silver and gold prices earlier in the week seemed to shift back into a physical commodity market standing, they haven't entrenched that focus yet, or perhaps the longs in gold and silver need to see even more evidence of definitive growth to revive inflationary type buying interest in the precious metals markets. Comex Silver Stocks were 140.815 million ounces down 1,348,001 ounces. Silver stocks have increased in 12 of the last 20 days.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Chinese stocks were mostly higher again overnight, with Chinese data overnight providing a measure of improved confidence. Chinese GDP of +7.4% and Industrial Output gains of +9.2% apparently inspired some confidence in global economic prospects. However, European shares weren't overly inspired by the action and news from China, as stocks in Europe were mostly tracking sideways, perhaps because EU leaders are gathering for a two day summit to discuss budgeting, a bank supervisory Union and perhaps they will also discuss the creation of a currency commissioner. The markets were also presented with a rise in UK retail sales for September of +0.6% and therefore one could suggest that the outlook for the global economy continued to gradually improve overnight. In the US trade today, the markets will be presented with initial claims, which are expected to rise modestly, but the big question might be whether or not last week's big drop in claims will be readjusted after reports last week that one US state did not submit its weekly figures. The markets will also be presented with a Philly Fed Business survey, which is expected to make a minimal rise and the trade will also see a Leading Indicators Index, which is also expected to produce a minor improvement.

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