Statistics: London Gold Fix $1,691.75 +$12.75 LME Copper Stocks 247,400 tons +6,075 tons
SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market has started out on a positive track, with silver prices seemingly drafting off positive action in gold and US equities. As in gold, silver might be poised to benefit from an end to US election rancor and the accompanying uncertainty with that process. In other words, silver and a host of physical commodity markets might be poised for a "relief" rally once the election anxiety has run its course. Silver might also increase its track with US equities over the coming 24 hours, as election relief might be allowed to control, before the focus of the trade turns back toward the fiscal cliff. Given the sharp washout in silver prices last week, some measure of the gains this morning might be the result of classic technical short covering buying. In the end, silver is likely to trade in sync with US equities and a long list of physical commodity markets. Comex Silver Stocks were 142.166 million ounces down 300,872 ounces. Silver stocks have declined in 11 of the last 20 days.
OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) The Shanghai composite finished weaker today and the Hong Kong market was also weaker off residual concerns toward HSBC. Japanese shares were also weaker, as lingering fears of slumping car sales to China weighed on that index. European stocks were marginally higher off positive leadership from the tech sector. While UK September Manufacturing output rose minimally on the month, that reading was down compared to year ago levels and that in turn has kept some interest for BOE easing alive in the marketplace. In looking ahead to the US action today, the report slate will be mostly thin, with private weekly chain store sales figures due out and a 3rd tier job openings and labor turnover survey release. However, given the prospect of intense wall to wall US election coverage, traders probably shouldn't expect to see much of a reaction to basic economic headlines today.
*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
Copyright CME Group All rights reserved.