Compiled 12/28/11 6:00 AM (CT) Statistics: London Gold Fix $1,584.00 -$23.50 LME Copper Stocks 372,525 tons -675 SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market initially forged a fresh downside breakout on the charts and in the process the silver market reached down to the lowest level since December 15th. With the most recent COT positioning reports showing the silver market to be net spec long only 19,000 contracts and the March silver contract since that time, down by roughly $1.00 an ounce, the net spec long in silver has probably come down even further. However, in the face of ongoing global slowing fears and residual fears of trouble from upcoming Italian debt auctions, the bear camp might feel they still have an edge. In fact, with a vocal gold analyst overnight warning of technical vulnerability in gold, that could leave silver vulnerable to pressure from technical stop loss selling action. With a weaker dollar and slightly higher equities failing to lift silver prices early today, it would appear that silver isn't even poised to benefit from favorable outside market action. Comex Silver Stocks were 115.296 million ounces down 67,260 ounces. Stocks have increased 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Equity markets in Asia were generally weaker overnight. European stocks were weaker and the US equity markets appeared to be poised to open only marginally higher today. A shorter term Italian debt auction went off with yields coming in at half the level seen in the prior auction and that for the time being appears to have tamped down concerns toward the Euro zone debt crisis. However, Japanese data released overnight from the METI generally confirmed the ongoing threat of deflation in Japan. The US Dollar was marginally weaker against most of the major currencies. The scheduled data flow from the US today is rather light with a couple private weekly chain store sales reports to be released early in the session.
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