Compiled 10/08/12 6:00 AM (CT)

Statistics: London Gold Fix $1,769.00 u.a. LME Copper Stocks 222,500 tons -175 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, silver has started out on a much weaker footing with the December silver contract falling to and even below last week's lows! In other words, a risk off environment seems to have settled back into position this morning and that is a little surprising in the wake of the surprisingly large decline in the US unemployment rate last Friday. It is also likely that silver is seeing some pressure from downwardly revised growth forecasts for both China and Asia.

With the US economic report slate empty due to a partial holiday today, the bull camp in silver might find it difficult to alter the initial profit taking track.

Comex Silver Stocks were 143.114 million ounces up 528,187 ounces. Silver stocks have increased 11 of the last 20 days.

The Commitments of Traders Futures and Options report as of October 2nd for Silver showed Non-Commercial traders were net long 42,948 contracts, an increase of 4,748 contracts. The Commercial traders were net short 63,558 contracts, an increase of 6,221 contracts. The Non-reportable traders were net long 20,609 contracts, an increase of 1,473 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 63,557 contracts. This represents an increase of 6,221 contracts in the net long position held by these traders.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Hong Kong and mainland Chinese shares were lower overnight off revived slowing fears and negative leadership from China Mobile. European equity markets were also weakened off slackening Asian growth expectations from the World Bank. US equities were weaker start as the trade seemed to be faced with a risk off day ahead.

The markets might be a little put off by the fact that US Consumer credit readings on Friday afternoon showed a rather large build, as that could suggest to some, that growth in the US is being facilitated by the unsustainable use of credit.

The US economic report slate is empty today, because of a partial holiday and that could allow the partial risk-off vibe to remain in place.

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