Compiled 01/26/11 6:00 AM (CT) Statistics: London Gold Fix $1335.50 +$9.50 LME Copper Stocks 394,700 tons +5,625 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, the March silver contract has managed to bounce off the prior session's low in the overnight action. In the last COT positioning report, the Non Commercial and Non reportable combined net long position was 48,402 contracts and since that report was measured, silver prices to their low yesterday, declined by as much as $2.37 an ounce and that probably served to pull down the net long positioning somewhat. Not surprisingly, demand news for silver has been mostly absent this week, with falling prices and broad based commodity selling pressures potentially putting off would-be bargain hunting silver buyers. Clearly silver has been at least partially undermined by selling pressure in energies, grains and copper this week and therefore outside market action is likely to be a partial focal point in the silver trade again today. With gold and silver seemingly undermined by fears of rising interest rates, the new home sales report and the FOMC statement later today are likely to be major market moving events. With expectations calling for a minor gain in new home sales and many analysts expecting the FOMC statement to be largely unchanged, the bears don't seem to have a conclusive edge. Comex Silver Stocks were 104.976 million ounces down 132,044 ounces. Silver stocks have declined 12 of the last 20 days. 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 higher this morning. The Dollar is weaker against most of the major currencies during overnight trading. The Japanese Ministry of Finance said that new issuance of Japanese government debt would be over 20% above their spending cap within three years. Germany had an auction of 30-year bunds today that received a bid-to-cover ratio of less than 1-to-1. The Irish central bank has said that any measure of prospective loan losses is likely to rise during new capital reviews of banks in that nation. German Import Prices during December were up 2.3%, higher than expectations. The Federal Reserve's Open Market Committee meeting will conclude their 2-day meeting today, and will have their post-meeting announcement around 1:15 PM. Major US economic numbers to be released this morning include December New Home Sales at 9:00 AM, and a private survey of mortgage applications released before the opening. The second leg of the Treasury's monthly refunding, the 5-year note auction, will have results announced at 12:00 PM.
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