Compiled 09/22/11 6:00 AM (CT) Statistics: London Gold Fix $1,765.00 -$44.50 LME Copper Stocks 466,075 tons -875 SILVER MARKET FUNDAMENTALS: (6:00 AM CT) December silver has also managed a downside breakout overnight and in the process the market fell to the lowest level since August 12th. Like gold, a higher dollar and fears of slowing have resulted in a negative vibe toward commodities and precious metals. Certainly the fear of equity market margin calls, has fostered some liquidation of silver and gold but one would think that relationship would become less significant going forward. Apparently silver traders are seeing a return to global slowing as a negative and it could take something very significant like a US credit rating downgrade or a Euro zone break up to rekindle flight to quality interest again. Given the fact that December silver has fallen below a series of points on the charts overnight, some traders expect to see a measure of follow through technical selling today. As in gold, the silver market is likely to see some reaction to the US claims data, but it is unlikely that a single second tier economic reading will be able to dramatically alter what is becoming an entrenched expectation of a return to recession. A number of traders are suggesting that silver might have little in the way of support until the $37.50 level, which was a pivot point for the market back in the early August correction. Comex Silver Stocks were 104.393 million ounces down 858,819 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe were sharply lower during overnight trading, early indications are that US equity markets will open with substantial losses later on today. The US Dollar is sharply higher against most of the major currencies this morning. A study conducted by the European Central Bank stated that the current sovereign debt crisis may put the sustainability of the Euro into question. There are reports that Qatar may be in negotiations to take a stake in major French bank BNP Paribas. A private survey of Chinese Manufacturing during August came in at 49.4, a decline of 0.5 from July. A private survey of German Manufacturing during September was 50.0, roughly in-line with forecasts. A private survey of Euro zone Service Industries during September was 49.1, roughly 2 points below market expectations. Euro zone Industrial New Orders during July were down 2.1%, weaker than projections. The Treasury's quarterly auction of 10-Year TIPS securities will have results announced today at 12:00 PM. Major US economic numbers to be released this morning include Weekly Jobless Claims at 7:30 AM, and a private survey of Leading Economic Indicators at 9:00 AM.
Join the Discussion