Compiled 09/07/11 6:00 AM (CT) Statistics: London Gold Fix $1,844.00 -$47.00 LME Copper Stocks 465,250 tons -125 SILVER MARKET FUNDAMENTALS: (6:00 AM CT) While silver showed signs of tracking its own course yesterday, the overnight weakness in gold prices has been difficult for the silver trade to discount. Cushioning silver indirectly this morning, is a weaker dollar, higher equities and strength in copper prices, as that suggests some physical commodity markets are garnering some fresh support from hope of a $300 billion US stimulus package. However, silver continues to exhibit characteristics of a safe haven or flight to quality market and therefore a wave of profit taking selling wouldn't be that surprising. The bull camp will suggest that the capacity to bounce $1.00 an ounce off the overnight lows, signals some form of value under the silver market, while the bear camp is suggesting the violation of a higher low pattern on the charts, serves to shift the technical bias in the market into the bear's advantage. In the short term, the direction of equities, followed closely by the action in gold, could dominate silver action. Comex Silver Stocks were unchanged at 102.891 million ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe were generally stronger during overnight trading, early indications are that US equity markets will open with moderate gains later on today. The US Dollar is weaker against most of the major currencies this morning. A German Constitutional Court has rejected a lawsuit that would have blocked German participation in Euro zone debt bailouts. Australian GDP during the second quarter was up 1.2%, higher than forecasts. UK Industrial Production during July was down 0.2%, lower than expectations. The Bank of Canada will announce their decision on Canadian monetary policy at 8:00 AM. The Federal Reserve will release their latest edition of The Beige Book at 1:00 PM. Major US economic numbers to be released this morning will include private surveys of store sales and weekly mortgage applications released during the early trade.
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