Compiled 11/30/11 6:00 AM (CT) Statistics: London Gold Fix $1,704.00 -$13.00 LME Copper Stocks 386,625 tons -3,900 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) March silver overnight returned to the prior session's high but then reversed course and forged a new low for the week. Apparently gold and silver were somewhat disappointed with the lack of aggressive EU action and perhaps silver was also undermined as a result of very weak Euro zone employment figures. The bull camp in silver has to hope that a flurry of scheduled data points today will foster some optimism toward the US economy but that might only dampen the initial downside tilt in silver prices. In other words, news that the US economy is holding together is supportive of silver and other physical commodities, but there is the constant fear that a collapse of the Euro zone will derail US momentum. At least in the early action, silver wasn't cheered by the latest EFSF rumor flow, but silver is likely to catch a slight bid through today's US scheduled data window. The silver market might also get some support from news that the Chinese cut their bank reserve requirement overnight. It is also possible that silver will derive some afternoon support from the Fed Beige book release, which might offer more confirmation of forward movement in the US economy. Comex Silver Stocks were 108.192 million ounces up 869,115 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally lower this morning. Early indications are that US equity markets will open with moderate gains later on today. The US Dollar is stronger against most of the major currencies this morning. Euro zone finance ministers agreed on plans to leverage their emergency bailout fund but they were not specific on the new expanded size for the fund. A major credit rating agency lower downgraded several of the largest US and European financial institutions by one level. Japanese Housing Starts during October were down 5.8% year-on-year, a smaller decline than expectations. Japanese Industrial Production during October was up 2.4%, higher than forecasts. German Retail Sales during October were up 0.7%, higher than expectations. German Unemployment during November was 6.9%, lower than projections. Euro zone Inflation during November was 3.0% year-on-year, in-line with estimates. Euro zone Unemployment during October was 10.3%, in-line with expectations. Major US economic numbers to be released this morning include a private survey of Private Employment at 7:15 AM, third quarter Productivity at 7:30 AM, a private survey of Consumer Confidence at during November at 9:00 AM, a private survey of Chicago area manufacturing at 8:45 AM, a private survey of Pending Home Sales at 9:00 AM, and a private survey of mortgage applications released before the opening.
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