Compiled 01/20/11 6:00 AM (CT) Statistics: London Gold Fix $1364.50 -$9.25 LME Copper Stocks 380,525 tons -1,225 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Yesterday the silver market seemed to ignore news of record sales of the American Eagle silver coin. Some press reports suggested that sales of the silver coin had posted a record for the month of January and with a number of days left in the month, that would seem to be a potentially significant development. However, just as the silver market has discounted talk of rising physical silver production, it also seems to discount news of rising physical demand for coins. In conclusion, the silver market continues to be primarily driven by the ebb and flow of big picture investment interest. Some traders have suggested that the physical trade in coins is dwarfed by derivative investments in silver, but the surge in US silver coin sales does highlight a trend of interest in silver nonetheless. With some press reports of producer hedging seen overnight, that could add a fresh bullish element to the silver equation today and traders should be on the lookout for more evidence of that type of action ahead. Like other physical commodity markets, silver seems to be off balance because off softening macro economic views and therefore the silver trade might be set to take a moderate amount of direction from US equities in the trade today. Some traders will take note of the reaction in silver prices this morning, to US scheduled data, as that could confirm or discount ideas that slowing fears are weighing on silver prices. Comex Silver Stocks were 104.415 million ounces up 51,976 ounces. Silver stocks have declined 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were generally lower during overnight trading, stock indices in Europe are mixed 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, although posting a small gain versus the Yen. President Hu Jintao of China will meet with US legislators as part of the US/Chinese summit meeting. North Korea has proposed high-level military talks with South Korea in order to diffuse tensions between the two nations. The Chinese CPI during December was up 4.6% year-on-year, higher than forecasts. Chinese Retail Sales during December were up 19.1% year-on-year, higher than expectations. Chinese GDP during the fourth quarter was up 9.8% year-on-year, higher than forecasts. The German PPI during December was up 5.3% during December, higher than expectations. US economic numbers to be released this morning include Weekly Jobless Claims at 7:30 AM, the January Philadelphia Fed Business Outlook survey, a private survey of Leading Indicators, and a private survey of Existing Home Sales at 9:00 AM.
Join the Discussion