Compiled 12/09/11 6:00 AM (CT) Statistics: London Gold Fix $1,712.00 -$27.00 LME Copper Stocks 386,075 tons -1,325 tons Shanghai Deliverable stocks were 72,712 tons +15,057 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market forged an initial range down move in the early Friday morning trade and in the process the March silver contract managed to reach the lowest level since November 30th. However, silver was able to claw back into positive ground in the early US trade and that suggests the trade was somewhat hopeful that EU news today might be supportive. Like gold, silver appeared to be slightly undermined as a result of the news flow from the Euro zone, where leaders continue to show a difference of opinion. On the other hand, while the silver trade hasn't paid that much attention to exchange stocks figures recently, seeing silver stocks rise toward 110 million ounces puts silver stocks back up to the highest level since the end of last year and that could be something that limits silver on the upside. However, silver looks to take a lot of direction from the ultimate risk-on or risk-off environment that could present itself in the wake of the EU summit dialogue. Ultimately scheduled US data and currency market action might be discounted in the silver trade today, as silver might be expected to maintain a tight correlation with the US equity markets. Also in the early going it would not seem like the EU result was as robust as many had hoped, but it is possible that the changes might be sufficient for a temporary pause in contagion fears. Comex Silver Stocks were pegged at 109.973 million ounces up 1,414,462 ounces yesterday afternoon. Comex Silver Stocks are now at the highest levels since 11/03/2010. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were generally lower during overnight trading, stock indices in Europe are slightly higher this morning. Early indications are that the US markets will open with moderate gains later on today. The US Dollar is slightly weaker against most of the major currencies this morning. Japanese GDP during the third quarter was up 1.4%, higher than market forecasts. Chinese CPI during November was up 4.2% year-on-year, lower than expectations. The German Trade surplus during October was 12.6 billion Euros, lower than projections. Major US economic numbers to be released this morning include the US October International Trade Balance at 7:30 AM, and a private survey of Consumer Sentiment just before 9:00 AM.
Join the Discussion