Compiled 11/29/11 6:00 AM (CT) Statistics: London Gold Fix $1,717.00 +$3.00 LME Copper Stocks 390,525 tons -2,250 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market just didn't get as big of a reaction on the charts as gold over the last two trading sessions. Clearly silver saw some limited short covering, as the Euro zone situation improved slightly and strong US holiday sales improved sentiment toward the US. However, some traders see the lack of an upside breakout in silver prices over the last two trading sessions, as a sign that the silver market lacks a definitive bullish bias. Perhaps the silver market is skeptical that the EU will be able to contain the contagion threat, but in the face of acceptable EU debt auctions overnight, one might have expected silver to be trading in positive ground this morning. Apparently the silver market has some doubts on the Euro zone front and perhaps the silver market is also unconvinced that the US economy can continue to grow in the face of a severe Euro zone recession ahead. In the end, the bull camp needs favorable US data and perhaps something positive from the Euro zone summit to put the bull camp in a position to forge an upside breakout on the charts. Comex Silver Stocks were 107.322 million ounces down 21,876 ounces. Silver stocks have declined 11 of the last 20 days. The Commitments of Traders Futures and Options report as of November 22nd for Silver showed Non-Commercial traders were net long 16,935 contracts, a decrease of 3,294 contracts. The Commercial traders were net short 26,655 contracts, a decrease of 6,280 contracts. The Non-reportable traders were net long 9,720 contracts, a decrease of 2,986 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 26,655 contracts. This represents a decrease of 6,280 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe were generally higher during overnight trading, early indications are that US equity markets will open with sizable gains later on today. The US Dollar is weaker against most of the major currencies this morning. Euro zone finance ministers will meet today to agree on how to leverage their emergency bailout fund and to approve their next aid tranche for Greece. A major credit rating agency warned that the US would receive a rating downgrade if there was no credible plan to lower the budget deficit by 2013. Japanese Unemployment during October was 4.5%, higher than expectations. Japanese Retail Sales during October was up 1.9% year-on-year, higher than forecasts. Euro zone Economic Sentiment during November was 93.7, slightly below expectations. Major US economic numbers to be released this morning include a private survey of Home Prices during October at 8:00 AM, a private survey of Consumer Confidence at during November at 9:00 AM, and a private survey of store sales will also be released during the session today. In addition, Fed Vice Chair Yellen and Fed Regional Presidents Kocherlakota and Lockhart will speak during the session.
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