Compiled 01/27/11 6:00 AM (CT) Statistics: London Gold Fix $1337.50 +$2.00 LME Copper Stocks 397,275 tons +2,575 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) While the March silver market managed a new high for the move overnight and reached the highest price since January 24th, some technical traders are not inclined to predict an end to the January downward bias. In fact, technical traders point to a down trend channel resistance line that was drawn off the January 3rd high and the January 19th high at $28.51 as an area that might have to be regained today to shift technical sentiment around. The silver market did see some evidence of rising silver production overnight, but the market seems to be focused on the ebb and flow of physical and investment demand and less interested in classic supply side news. Silver should be deriving some support from a fresh downside probe in the US Dollar and perhaps silver is also benefiting from higher price action in copper and platinum. However, silver and other physical commodities have to be somewhat concerned about talk of limiting speculation at the Davos forum. Furthermore, silver will probably continue to monitor the threat of rising interest rates in the wake of an extremely active US report flow this morning but that focus might be dampened somewhat by the FOMC statement that was released yesterday afternoon. At least in the early action today, it would not appear as if silver will see distinct support flowing from the grain markets. Comex Silver Stocks were 104.841 million ounces down 134,851 ounces. Silver stocks have declined 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe are generally mixed during overnight trading, early indications are for the US stock market to open near unchanged levels this morning. The Dollar is slightly weaker against most of the major currencies during overnight trading, although posting a small gain versus the Yen. A major credit ratings agency has cut the sovereign debt rating of Japan one level, due to expectations for larger issuance of government debt. Protests in Egypt against the Mubarak government have continued for a third day, with a large demonstration scheduled for tomorrow. The Japanese Trade surplus during December was 728 billion Yen, with double-digit gains on both the export and import side on a year-on-year basis. A survey of Euro zone Economic Sentiment during January was 106.5, slightly below expectations. Major US economic numbers to be released this morning include Weekly Jobless Claims and December Durable Goods at 7:30 AM, and a private survey of Existing Home Sales and the KC Fed manufacturing survey at 9:00 AM. The final leg of the Treasury's monthly refunding, the 7-year note auction, will have results announced at 12:00 PM.
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