Compiled 09/06/11 6:00 AM (CT) Statistics: London Gold Fix $1,891.00 +$37.00 LME Copper Stocks 465,375 tons -225 SILVER MARKET FUNDAMENTALS: (6:00 AM CT) At least in the early US Tuesday action, the December silver contract was unable to take out the prior session's high and that seems to have prompted talk overnight that silver is destined to lag behind gold prices. It is possible that silver is being partially held back by its industrial component, but with the intervention seen against the Swiss, some traders are suggesting that the list of effective flight to quality instruments has been reduced and that in turn could ultimately benefit the silver market. In another element that could be detracting from the bullish bias in silver, the trade saw news recently that Mexico had become the world's largest silver producer, but since that was the result of a 1st half 2011 decline in silver production from Peru, many traders probably come away from that news with a somewhat bullish supply side vibe for silver. Comex Silver Stocks were 102.891 million ounces down 1,446,794 ounces. Stocks have declined 11 of the last 20 days. The Commitments of Traders Futures and Options report as of August 30th for Silver showed Non-Commercial traders were net long 33,577 contracts, a decrease of 1,936 contracts. The Commercial traders were net short 53,599 contracts, a decrease of 3,704 contracts. The Non-reportable traders were net long 20,022 contracts, a decrease of 1,767 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 53,599 contracts. This represents a decrease of 3,703 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were generally lower during overnight trading, stock indices in Europe are stronger this morning. Early indications are that US equity markets will open with substantial losses later on today but well above their overnight lows. The US Dollar is close to unchanged levels against most of the major currencies this morning, with large gains forged versus the Swiss Franc and Japanese Yen. The Swiss National Bank announced that the Swiss Franc will have a minimum exchange rate of 1.20 Francs to the Euro. The German Finance Minister stated that Greece will get no more emergency debt aid if that nation does not receive a positive result from ECB and IMF inspectors. Euro zone Retail Sales during July were up 0.2%, above market forecasts. Euro zone GDP during the second quarter was up 1.6% year-on-year, in line with expectations. The only major US economic number to be released this morning will be a private survey of US non-Manufacturing industries during August at 9:00 AM. In addition, Fed Regional President Kocherlakota will give a speech during the session.
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