Compiled 10/04/11 6:00 AM (CT) Statistics: London Gold Fix $1,672.00 +$12.00 LME Copper Stocks 474,950 tons +1,250 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) With silver still generally underperforming gold, one gets the sense that silver is being held back because of its physical commodity market standing. Some traders point to recent consolidation highs up at $31.43 in December silver contract as a key point but it would seem like the positive action in gold is only partially serving to support silver prices. On the other hand, ongoing weakness in platinum and copper prices appears to have discouraged some would-be safe haven buyers of silver. With several press outlets touting the prospect of sharply increased volatility in silver and silver failing to breakout and display definitive flight to quality action recently, it is possible that fears of a return to recession could remain the key focus for a noted portion of the silver trade directly ahead. Weakness in silver derivative holdings overnight might also add to the physical commodity market focus in silver today, especially if US equities remain weak and the outlook for the economy softens further. Comex Silver Stocks were 107.970 million ounces up 1,228,314 ounces. Comex Silver Stocks are at the highest levels since 12/08/2010. Stocks have increased 14 of the last 20 days. Comex Silver stocks are at their highest levels in the past 10. 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 is posting a small loss versus the Yen. Euro zone Finance Ministers will delay an aid payment to Greece until November, and they are reviewing their current debt swap agreement for banks to take larger losses on Greek sovereign debt. Euro zone PPI during August was up 5.9% year-on-year, slightly higher than market expectations. Australia's trade surplus during August was 3.1 billion Australian Dollars, much above estimates and the second largest on record. Major US economic numbers to be released this morning, include August Factory Orders at 9:00 AM, and private survey of store sales released during the session. In addition, Fed Chairman Bernanke will speak in front of a joint Congressional committee today.
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