Compiled 10/09/12 6:00 AM (CT)

Statistics: London Gold Fix $1,770.75 +$1.75 LME Copper Stocks 221,050 tons -1,625 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Despite slightly higher Asian equity market action overnight and positive copper price action overnight, the December silver contract has started out on a weaker footing. Clearly silver is taking a lot of direction from gold and equities right now and that focus might be expected to continue today in the wake of a fairly thin US economic report slate. Silver might be expected to take some direction from Alcoa earnings after the close today, as silver recently has periodically tracked industrial commodity market fundamentals.

For today, silver is showing early weakness despite some signs of another liquidity injection from the PBOC overnight. Clearly silver was distracted by negative IMF economic views overnight and perhaps silver is also seeing some pressure from adverse currency market action in the early Tuesday US trade. Like gold, silver might have to track equities, as the US economic report slate isn't expected to provide a significant catalyst to prices today.

Comex Silver Stocks were 143.958 million ounces up 843,291 ounces. Silver stocks have increased in 12 of the last 20 days.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Chinese stocks were higher overnight as investors in that region were temporarily emboldened off renewed signs of stimulus from the PBOC. European markets were somewhat supported off dialogue from the ECB overnight with some officials relieved by the efforts of Greece to get control of their economy. However, the IMF discouraged some commodity buyers overnight with a downward revision in global growth forecasts.

Indian equities were higher today especially because of a visit from a visit by the US Treasury Secretary and by US Fed officials. US equities were weaker this morning, as the trade has started to look ahead to a less than stellar kick off to the next US corporate earnings cycle.

The US economic report slate remains relatively thin today, with a series of 3rd and 4th tier private surveys and chain store sales reports due out. After the surprise decline in the US unemployment rate last Friday, the Employment Trends Index release today might garner some added attention.

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