Compiled 12/29/11 6:00 AM (CT) Statistics: London Gold Fix $1,537.50 -$46.50 LME Copper Stocks 371,300 tons -1,225 SILVER MARKET FUNDAMENTALS: (6:00 AM CT) When it rains it pours and in the early action today the silver market has forged yet another new low for the move. Therefore it is likely that silver is seeing technically related stop loss selling and many traders think that silver prices are ultimately headed back to the late September spike low of $26.18. While some traders think that silver might be poised to post the lowest combined Non-commercial and Non-reportable net spec long positioning since 2001, even that news might not be enough to entice buyers back into the long side of silver without the outlook for Europe and the global economy improving. Even traders of the gold/silver ratio think that silver is poised to lose to gold in the short term and for some that suggests overall sentiment has become very bearish. With adverse currency market action to start today, ongoing big losses in gold and only modest gains in US equities, the bull camp in silver doesn't appear to have a strong case to start today. In fact, even classic physical supply news has come in negative for silver today, as Comex Silver Stocks yesterday afternoon were pegged at 116.597 million ounces for a large single day gain of 1,300,864 ounces. Comex Silver Stocks are now at the highest levels in a year and they are also at the highest levels since 06/18/2010. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Equity markets in Asia were lower overnight, with European stocks initially opening higher but mostly marking time ahead of the Italian debt auction results. The US equity markets also showed initial positive action but the trade wasn't giving off a definitive direction. The longer term Italian debt auction went off with yields coming in just below the supposedly unsustainable 7% level. In other developments overnight, Greek inflation was down from the prior readings, but was still at levels that might be considered unsustainable by some. The US Dollar was marginally stronger against most of the major currencies, which was somewhat surprising considering the acceptable Italian auction results. The scheduled data flow from the US today includes initial and ongoing claims, pending homes sales and a couple US regional economic reports.
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