Compiled 10/07/11 6:00 AM (CT) Statistics: London Gold Fix $1,651.00 +$2.00 LME Copper Stocks 467,100 tons -4,625 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market has clearly outperformed the gold market this week and in the process the silver market seems to have shifted back into a classic physical commodity market mode. In other words, the silver trade seems to be hoping for declining Euro zone debt anxieties and signs that the US economy will be able to avoid a return to recession. According to many traders silver's biggest lift this week, came off signs that the Euro zone is getting serious about shoring up capitalization and therefore the US payroll numbers this morning might not be a make or break event. In fact, some silver traders think that a number in the expected range today will allow silver to claw out even more gains, as a portion of the trade recently was of a mind the US was headed straight to recession and wouldn't even pass go in the process. On the other hand, December silver this morning is sitting as much as $3.57 an ounce above this week's lows and therefore some might suggest that silver has already priced in some measure of a decent number. Others suggest that silver bottomed off ideas that equities have bottomed and that angle will probably require further confirmation in today's action. Comex Silver Stocks were 106.533 million ounces down 1,052,240 ounces. Silver stocks have increased 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were generally higher during overnight trading, stock indices in Europe are moderately lower this morning. Early indications are that US equity markets will open with moderate losses later on today. The US Dollar is close to unchanged levels against most of the major currencies this morning, although posting a loss versus the Pound. The Bank of Japan kept Japanese benchmark interest rates unchanged at today's monetary policy meeting. A major credit ratings agency downgraded 12 UK and 9 Portuguese financial institutions, due in large part to the Euro zone debt crisis. A Senate vote on the Chinese Currency bill is expected to be delayed until next Tuesday. UK PPI during September was up 6.3% year-on-year, higher than market expectations. Major US economic numbers to be released this morning, will include September Non farm Payroll, September Private Payroll and September Unemployment at 7:30 AM, and August Wholesale Inventories at 9:00 AM. The market will also see a consumer credit report later in the trading session. In addition, Fed Regional Presidents Fisher and Lockhart will give speeches during the session.
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