Compiled 10/02/12 6:00 AM (CT)

Statistics: London Gold Fix $1,778.50 +$8.00 LME Copper Stocks 224,150 tons +650 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Relatively speaking December silver has forged an extremely narrow early trading range in the face of economic cross currents overnight. While the trade saw evidence of slackening growth in Europe overnight, the move to cut interest rates by the Royal Bank of Australia clearly countervailed a portion of the potential risk off vibe.

Somewhat favorable currency market action, higher equities and minimal gains in crude oil prices give off the hint of a risk-on vibe and that has seemingly given the bull camp a minor edge to start. However, as in gold, the silver trade recently has benefited from a number of days where the prospect of central bank easing was the main focal point of the trade and therefore scheduled US economic data, particularly from the jobs front, will be given significant consideration today.

In addition to the private jobs data, the market will also see US auto sales readings for September and that data could play down the need for imminent US easing and that in turn could prompt some profit taking in silver. It is also possible that silver will discount the scheduled economic data and instead take its direction from the action in US equities.

Comex Silver Stocks were 142.549 million ounces up 502,136 ounces.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) The Nikkei forged another downside breakout overnight on the charts and that weakness might have been truncated by an interest rate cut by the Royal Bank of Australia. Chinese stock markets were closed due to holiday. European stocks opened weaker, but managed to claw back into positive ground, perhaps because of the RBA rate cut. It is also possible that Spanish and European stocks were lifted slightly because of increased expectations of an upcoming bailout request from Spain. However, European investors are still on edge after recent PMI readings confirmed an ongoing pattern of slowing in the Euro zone into the end of the year.

The US stock market has started out on a positive note, from carry over beginning of quarter allocations and perhaps because of the easing move from Australia and the hints from the RBA of even more easing if it is necessary. Today the US will see private chain store sales figures, a private jobs report and New York ISM numbers and that data should increase the attention on the state of the US jobs sector into the Friday monthly payroll release.

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