Compiled 10/25/12 6:00 AM (CT)

Statistics: London Gold Fix $1,715.00 +$6.50 LME Copper Stocks 218,700 tons -3,650 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) As in gold, silver is facing a more supportive overall environment at the start of the Thursday US trade. Higher equities, favorable currency market action and gains in a host of physical commodity markets seems to favor the bull camp to start today and with expectations for scheduled US data to be mostly up beat, the bull camp might expect some additional assistance in the wake of formal economic news flow. Unfortunately for the bull camp in silver, derivative holdings of silver saw a minor decline in yesterday afternoon's release. With December silver prices taking out the prior session's high and seemingly climbing back toward this week's quasi double high level, it is possible that some of the initial gains in silver today were the result of technical short covering action. For the time being, higher equities and higher gold prices will probably serve as a leading indicator for silver prices. However, the bull camp probably wants to see open interest reverse a recent pattern of declines and it would add to the bull's case to see that take place on an up day in silver prices. Comex Silver Stocks were 141.798 million ounces down 25,715 ounces. Silver stocks have increased 12 of the last 20 days.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Hong Kong stocks continued to outperform Shanghai and Shenzhen markets, with the Hang Seng index forging the highest close in roughly 14 months. European stocks were reportedly lifted because of up beat Chinese Factory output forecasts. US equities started out on a mostly positive track today perhaps because of expectations of generally positive scheduled data flows later in the trading session. Expectations call for a fairly robust increase in US durable goods, a noted decline in initial claims and a jump in pending home sales results. Also due out today, are a Chicago Fed National Activity Index and a couple of private consumer and business surveys.
 

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