Compiled 10/23/12 6:00 AM (CT)

Statistics: London Gold Fix $1,717.00 -$8.00 LME Copper Stocks 222,600 tons +175 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) December silver prices have drifted down toward the prior session's low in the face of mostly bearish outside market action and conditions. In addition to fears of slowing around the globe in the overnight trade, silver is also facing adverse currency market action and what appears to be a risk-off vibe. With a noted deterioration in global economic sentiment overnight, turning up the pressure on platinum and copper, silver is probably seeing some industrial demand based pressures and that in turn could make the Richmond Fed readings later this morning a noted event for the silver trade.

It probably goes without saying that silver will continue to track gold and equity market action, especially after seeing some reaction to US scheduled data. Some traders saw the failure to hold the $32.00 level on the charts as a bearish development and that level could take on added importance into the close later today.

Comex Silver Stocks were 141.856 million ounces down 684,423 ounces. Silver stocks have increased in 13 of the last 20 days.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Hong Kong stocks were closed for holiday, while mainland Chinese shares were mostly lower in the face of weakness in financial, Mining and manufacturing shares. European shares were also weaker because of discouraging earnings news and fears of slowing 3rd quarter growth. US shares were definitively lower to start today following the weakness in international markets overnight and also because of disappointing revenues and guidance from Caterpillar yesterday.

While some US scheduled data points recently have been positive, the market is apparently growing increasingly concerned about a slowing of sales activity into the coming US fiscal cliff. The Fed begins a 2 day FOMC meeting today, but the trade isn't expecting any news from that front until Wednesday afternoon. The US will also see a Richmond Fed Manufacturing survey released later this morning.

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