Compiled 10/19/11 6:00 AM (CT) Statistics: London Gold Fix $1,651.00 -$7.00 LME Copper Stocks 452,175 tons +250 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) At times in the prior trading session, the silver market clearly outperformed the gold market. In other words, silver clearly seemed to benefit from the sharp range up move in US equities, while gold did not. In retrospect, the silver market seems to be poised to embrace positive US housing starts readings today but for the bulls to fully control might require calm strikes and limited protests in Athens. In fact, with the dollar weaker and equities showing some initial gains, one might expect December silver to retest the prior session's high, in the event that US scheduled data this morning points to anything positive in terms of US growth. On the other hand, silver and gold prices early this morning seem to be divergent with platinum and copper prices and that in turn would seem to suggest that a measure of safe haven influence is still at work in the marketplace. Off recent action, the bull camp in silver might be hopeful of higher equities and improved macro economic sentiment, even if that news undermines the gold market. Comex Silver Stocks were 106.201 million ounces up 393,879 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally higher this morning. Early indications are that US equity markets will open close to unchanged levels later on today. The US Dollar is generally weaker against most of the major currencies this morning, although posting a small gain versus the Yen. US tech stock Apple released their third quarter earnings after yesterday's close, which were below analyst expectations for the first time since 2001. A major credit ratings agency downgraded Spain's credit rating by two levels overnight. There is a general strike in Greece this morning, as that nation's Parliament prepares to vote on additional public sector cuts. Foreign direct investment in China during the first three quarters of 2011 was up 16.6% above 2010 levels. The Federal Reserve will release their latest edition of the Beige Book at 1:00 PM. Major US economic numbers to be released this morning include the September Consumer Price Index and September Housing Starts at 7:30 AM, and a private weekly survey of mortgage applications released before the opening. In addition, Fed Regional Presidents Rosengren and Lockhart will give speeches during the session today.
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