Compiled 01/28/11 6:00 AM (CT) Statistics: London Gold Fix $1316.00 -$21.50 LME Copper Stocks 398,075 tons +800 tons Shanghai Deliverable stocks were 129,250 tons -1,114 SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like the gold market, the silver market managed another new low for the move overnight and in the process the market temporarily reached the lowest level since mid November 2010. However, the March silver market has managed to reject a portion of the sharp overnight slide into the US Friday morning trade action. In fact, the March silver contract even managed to temporarily rise back above the prior three session's lows. Like gold, the silver market seems to be under pressure because of reduced inflation pressures in a host of physical commodity markets. Some traders are suggesting that the outlook for the US economy is also softening and that has undermined the silver market. Surprisingly, other traders have even suggested that the fear of rising interest rates is serving to undermine the silver market and that means fears of slowing and fears of growth have managed to weigh on silver prices this week. Apparently weakness in the US Dollar is of little interest to silver prices this week and apparently fears toward the US credit rating are also being seen as a negative to silver instead of a positive to prices from the safe haven angle. Therefore the trade might have difficulty charting a path off the US GDP reading today, as the outlook on the economy is cloudy and a backward looking economic report might not provide that much overall direction. Comex Silver Stocks were 104.684 million ounces down 156,749 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 slightly lower this morning. The Dollar is near unchanged levels against most of the major currencies during overnight trading, although posting a moderate gain versus the Pound. A major credit ratings agency has warned that the United States has a small but increasing chance that their sovereign debt credit rating may be reduced. Japanese Unemployment during December was 4.9%, lower than forecasts. The Japanese CPI during December was down 0.4% year-on-year, in-line with expectations but the 22nd month in a row of deflation. Major US economic numbers to be released this morning include fourth quarter Gross Domestic Product and the fourth quarter Employment Cost Index at 7:30 AM, and a private survey of US Consumer Sentiment just before 9:00 AM.
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