Compiled 12/16/11 6:00 AM (CT) Statistics: London Gold Fix $1,589.50 -$.50 LME Copper Stocks 381,250 tons -825 tons Shanghai Deliverable stocks were 79,570 tons +6,858 SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, the silver market appears to be catching some short covering action to start the Friday morning US trade. As mentioned in the gold market coverage this morning, there appears to be a slightly positive shift in all things Euro this morning. The most important development is that countries outside of the EU are promising support to the IMF, which in turn is expected to provide assistance to the EU. In other words, the Germans and French were unwilling to throw themselves totally under the train to save the Euro zone but apparently comments from the new IMF head, that the failure to get outside help, could result in a 1930's style depression, prompted countries like Russia, Sweden and others to pledge support. If one really wants to spin the overnight events into a positive, you could also suggest that the German political faction against the EU bailout package might lack the votes to prevent German support of the bailout fund. In other developments that look to assist the bull camp in silver today, is mostly favorable global equity market action and somewhat supportive currency market action. However, silver is likely to be a little disappointed with an unchanged or slightly lower US CPI report later on today. At this point, one can only guess at the impact on silver prices from three US Fed speeches today. Furthermore, given the inability to get necessary legislation through the US Congress earlier this year one should reserve a large measure of skepticism toward talk that a spending extension/stimulus package might be getting closer to passage. Comex Silver Stocks were 111.149 million ounces down 1,897 ounces. However, Silver stocks have increased in 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Equity markets in Asia were higher today after a string of losses recently. Stocks in Europe also showed some minor strength to start the Friday trade. Early indications are that the US markets will open with modest gains later on today. The US Dollar was slightly weaker against most of the major currencies to start this morning. In the overnight action, the markets saw signs that large Japanese banks performance was holding together and that the Euro zone was able to post a trade surplus for October. The German upper house also reportedly passed its 2012 budget. Major US economic data to be released this morning is limited to the monthly CPI report, which is expected to show a minimal gain, or an unchanged reading. The market will also see commentary from the Chicago Fed President, the Dallas Fed President and the New York Fed President later today.
Join the Discussion