Compiled 09/27/11 6:00 AM (CT) Statistics: London Gold Fix $1,671.00 +$56.00 LME Copper Stocks 469,350 tons +3,825 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, the silver market has also managed a rather impressive recovery attempt overnight, with the December contract forging a climb above the $32.50 level. Silver seems to have established a tight positive correlation with the equity markets, which seem to be signaling a continuation of risk-on from the prior trading session. At least to start, a large measure of the optimism in the markets this morning, seems to be the result of hopes that the EU is coming together on a plan to bolster their back up fund. Since the silver market hasn't paid that much attention to physical supply side developments recently, the silver market probably isn't deriving that much support from news overnight of a minor silver production shutdown. All things considered, silver and other physical commodity markets appear to be emboldened by hope for calm waters from the Euro zone debt crisis. Given the recent fear of a global recession, the silver and equity markets are also likely to take some direction from a rather active slate of US economic data today. The 200 day moving average in the December silver contract is seen at $36.06 today, while the initial Fibonacci retracement level off the September slide was regained at $32.77 overnight. Comex Silver Stocks were 107.230 million ounces up 1,461,966 ounces and one has to wonder if that rise is the direct result of the steep liquidation in silver prices this month. Comex Silver Stocks are at the highest levels since 12/08/2010. Stocks have increased 12 of the last 20 days. Comex Silver stocks are at their highest levels in the past 10. 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 substantial gains later on today. The US Dollar is weaker against most of the major currencies this morning. The Spanish Prime Minister stated that there was no current proposal to expand the Euro zone bailout fund to 2 trillion Euros but that didn't seem to dent optimism in many markets. The Greek Prime Minister said that he would guarantee that his nation would meet all commitments to receive further bailout funds from the IMF, EU and ECB. A private survey of German Consumer Sentiment during September was 5.2, higher than market expectations. Euro zone money growth during August was 2.8%, higher than forecasts. Major US economic numbers to be released this morning include a private survey of US Home Sales at 8:00, a private survey of US Consumer Confidence at 9:00 AM, and private surveys of store sales released during the session. In addition, Fed Regional Presidents Lockhart and Fisher will give speeches during the session.
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