Compiled 10/03/11 6:00 AM (CT) Statistics: London Gold Fix $1,660.00 +$31.00 LME Copper Stocks 474,950 tons +1,250 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Unlike the gold market, December silver was unable to forge a quasi upside breakout on the charts this morning. However, December silver is trading within relatively close proximity to last week's late highs. Silver might be somewhat held back by its physical commodity market standing today, but seeing early gains of almost $1.00 an ounce would seem to suggest that even silver is garnering some spillover flight to quality buying interest. In other words, weaker Copper and platinum prices probably held back silver prices this morning, especially with a noted brokerage firm overnight lowering its price targets for silver, for the coming month and quarter. At least in the near term, silver is likely to take more direction from the gold market and perhaps silver is poised to track inversely with the equity markets, in the face of renewed Greece default fears. Like gold, silver also saw a decline in the speculative positioning in weekly COT report and to some that might be a bearish signal, but to others that is old or backward looking information. The Commitments of Traders Futures and Options report as of September 27th for Silver showed Non-Commercial traders were net long 19,894 contracts, a decrease of 8,908 contracts. The Commercial traders were net short 30,248 contracts, a decrease of 18,522 contracts. The Non-reportable traders were net long 10,354 contracts, a decrease of 9,615 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 30,248 contracts. This represents a decrease of 18,523 contracts in the net long position held by these traders. Comex Silver Stocks were 106.742 million ounces down 482,339 ounces. Stocks have increased 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Equity markets in Asia and Europe were weaker during overnight trading. Early indications are that US equity markets will open with moderate losses later on today. The US Dollar was stronger against most of the major currencies this morning but posting a loss versus the Yen. Greece passed a new austerity budget this morning, which was unable to reach their deficit targets. The official Chinese PMI index during September was 51.2, slightly below expectations but well above the critical 50 level. The Bank of Japan's Tankan survey of Japanese economic conditions during the third quarter of 2011 was plus 2, in-line with expectations and a move back into positive territory. A private survey of German manufacturing during September was 50.3, higher than market expectations. A private survey of UK manufacturing during September was 51.1, was higher than market forecasts. Major US economic numbers to be released this morning include August Construction Spending as well as a private survey of US manufacturing at 9:00 AM. In addition, Fed Regional President Lacker will give a speech after the session.
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