Compiled 01/13/11 6:00 AM (CT) Statistics: London Gold Fix $1380.75 -$2.75 LME Copper Stocks 377,350 tons -825 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market seems to be under a bit of spillover pressure from the gold market this morning, but it is also possible that some of the pressure today is the result of a slightly stronger US Dollar. It also seems as if a slight tempering of Euro zone credit concerns is causing silver weaken in the early Thursday morning trade. However, the silver market continues to get favorable price forecasts for 2011, with many analysts touting the argument that silver prices are still relatively less expensive than gold prices. While some analysts touted the prospect of a correction in silver, the last COT position reports showed a relatively benign spec long positioning and a decline back to the early January lows could serve to balance the technical position even further. It is also possible that silver is seeing some negative impact from the talk of an impending Indian interest rate hike. Comex Silver Stocks were 104.129 million ounces down 112,637. Stocks have declined 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were generally stronger during overnight trading, stock indices in Europe are mixed this morning. Early indications are for the US stock market to open slightly lower this morning. The Dollar is near unchanged levels against most of the major currencies during overnight trading. Two major credit agencies warned that they may lower the US's credit rating if the fiscal situation is not corrected. There are reports that China will launch new price control measures if their first quarter inflation measures are high. The German Finance Minister stated that Euro zone nations are working on a comprehensive package in order to solve the EU's debt crisis. Spain had a well-received auction of 3 billion Euros worth of 5-year bonds this morning, with lower yields and higher demand than expected. Japanese Machinery Orders during November were down 3.0%, lower than forecasts. French CPI during December was up 2.0% year-on-year, in line with expectations. UK Industrial Production during November was up 0.4%, in line with forecasts. Major US economic numbers this morning include Weekly Jobless Claims, the December Producer Price Index and November International Trade Balance, all to be released at 7:30 AM. The Treasury will have a 30-year bond auction, with results announced at 12:00 PM. Fed Chairman Bernanke will give a speech later during the session.
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