Compiled 09/29/11 6:00 AM (CT) Statistics: London Gold Fix $1,620.00 -$35.00 LME Copper Stocks 470,700 tons +4,025 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, silver prices were showing some recovery action this morning after an initial slide in prices overnight. At least initially, the silver market was expected to benefit from the German vote. Since silver hasn't paid that much attention to classic supply side developments lately, the news overnight of an increase in Mexican silver production from the month of June, might be discounted. Mexican June silver production supposedly increased by over 4% and Mexico is one of the primary global silver producers. However, the silver market recently has been focused on investment and physical demand going forward and that is why the Euro zone developments have been so dominating recently. Some traders suggest that recent weakness in silver prices have pushed a portion of the bull camp back on its heels again, but some traders think a rally in equities and a yes vote from Germany will create a bullish environment for silver today. Early expectations for scheduled US data call for positive early readings, followed by softer data later in the trading session. Comex Silver Stocks were 106.907 million ounces up 258,610 ounces. Silver stocks have increased 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally stronger this morning. 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, although posting a small gain versus the Japanese Yen. The German Parliament apparently voted on expanding the powers and scope of the Euro zone bailout fund this morning. Japanese Retail Sales during August were down 2.6%, weaker than forecasts. German Unemployment during September was 6.9%, lower than expectations. A survey of Euro zone Economic Sentiment during September was at 95.0, lower than projections. Major US economic numbers to be released this morning include the final revision of second quarter GDP and Weekly Jobless Claims at 7:30 AM, and a private survey of Pending Home Sales at 9:00 AM. In addition, Fed Regional Presidents Plosser and Rosengren will give speeches during the session. The final leg of the Treasury's current refunding, the 7-Year Note auction, will have results announced at 12:00 PM.
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