Statistics: London Gold Fix $1,791.00 +$4.50 LME Copper Stocks 222,675 tons -725 tons
SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, silver is showing some modest corrective action to start today but the market doesn't appear to be facing a noted fundamental headline shift from yesterday. Perhaps a lack of definitive direction from US equities and unfavorable currency market action early on has simply prompted some long profit taking and position squaring ahead of the US monthly payroll report. With the precious metals markets capacity to spin soft US data into a positive from the fresh easing angle recently, even a weak number might eventually be supportive of silver prices. However, in the event that non farm payrolls come in near the bottom of the anticipated range, or around +100,000 that could prompt some initial additional liquidation in December silver.
In the end, the direction of US equities and perhaps gold will dictate the reaction in silver to the key US numbers today. The bull camp might continue to draw some support from a rather consistent ongoing rise in silver open interest, which recently posted a figure of 142,290 contracts.
Comex Silver Stocks were 142.587 million ounces down 847,268 ounces. Silver stocks have increased in 11 of the last 20 days.
OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Hong Kong shares managed to extend to yet another gain on the day to finish the week out on a very positive track. Apparently Chinese auto sales were positive with BMW posting a 55% gain in auto sales for September. European stocks were up slightly in anticipation of something positive from the US Non Farm payroll report later in the trading session.
There has been some buzz that the non farm payroll report in the US will see some upward revisions to prior months data today and seeing the current month come in above +120,000 would probably be enough to leave a risk-on vibe in place today. The markets in general didn't seem to get much of an additional lift from the BOJ meeting, perhaps because there has been a flurry of central bank meetings this week, or the trade is somewhat on hold ahead of the US data.
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