Compiled 01/18/11 6:00 AM (CT) Statistics: London Gold Fix $1368.75 -$.50 LME Copper Stocks 377,925 tons -1,075 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market is making an attempt to return to the highs posted on Friday and the initial gains look to be partially the result of supportive currency market action, favorable German ZEW data and a somewhat hot UK inflation reading. As opposed to gold, where the trade overnight was presented with a series of rising production stories, silver actually saw evidence of a decline in silver output from Russian miner Polymetal. It should also be noted that two brokerage/Bank analysts overnight floated seemingly bullish 2011 price forecasts for silver and that might have contributed to some of the early strength in silver prices this morning. Comex Silver Stocks were 104.409 million ounces down 250,241 ounces. Comex Silver Stocks are at the lowest levels since 01/11/2011. Silver stocks have declined 11 of the last 20 days. The Commitments of Traders Futures and Options report as of January 11th for Silver showed Non-Commercial traders were net long 31,476 contracts, an increase of 58 contracts. The Commercial traders were net short 49,869 contracts, a decrease of 2,425 contracts. The Non-reportable traders were net long 18,394 contracts, a decrease of 2,483 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 49,870 contracts. This represents a decrease of 2,425 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally stronger this morning. Early indications are for the US stock market to open near unchanged levels this morning. The Dollar is weaker against most of the major currencies during overnight trading. Euro zone Finance Ministers have postponed any decision over increasing the size of their rescue fund, but may have agreed to add a liquidity component to the next round of bank stress tests. In front of this week's Sino/US summit, Chinese President Hu Jintao has said that he does not accept US arguments that the Yuan is undervalued versus the Dollar. A private survey of German economic sentiment during January was at 15.4, higher than forecasts. The UK Consumer Price Index during December was up 1.0%, higher than expectations. US economic numbers to be released this morning include the NY Fed Empire State Manufacturing index for January at 7:30 AM, a private survey of the US housing market during January at 9:00 AM, and several private surveys of store sales released during the session.
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