Compiled 01/03/12 6:00 AM (CT) Statistics: London Gold Fix $1,590.00 +$15.50 LME Copper Stocks 371,575 tons +675 SILVER MARKET FUNDAMENTALS: (6:00 AM CT) March silver looks to enter the new trading week right on the December 28th highs and in what would seem to be a bullish track. In addition to positive global economic expectations from favorable scheduled data flows overnight and positive Chinese monetary dialogue, the bull camp in silver appears to have a quasi fundamental edge. With March silver also taking out a series of chart resistance points on the charts this morning, it is possible that silver is set to see some minor technically related buying action. However, silver has to hope that positive economic dialogue will be enhanced through the scheduled US data window and that fear toward the euro zone is kept on a back burner. Comex Silver Stocks at the end of last week were pegged at 117.299 million ounces for another noted gain of 607,290 ounces. Comex Silver Stocks are now at the highest levels since June 17th of 2010. Silver stocks have increased in 14 of the last 20 days. The Commitments of Traders Futures and Options report as of December 27th for Silver showed Non-Commercial traders were net long 11,028 contracts, a decrease of 584 contracts. The Commercial traders were net short 18,537 contracts, a decrease of 1,154 contracts. The Non-reportable traders were net long 7,508 contracts, a decrease of 572 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 18,536 contracts. This represents a decrease of 1,156 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Equity markets in Asia were stronger overnight, with European stocks also showing some noted gains to start. The US equity markets were also showing positive action to start the new holiday shortened trading week. The US Dollar has started lower and is now weaker against most of the major currencies going into this morning's US trading. In addition to favorable Chinese PMI services data overnight, the markets also saw an improvement in German unemployment readings and talk that China might be poised to drift away from a tightening stance in the face of 2012 slowing evidence. Scheduled data flow from the US today will bring forth Construction Spending and an ISM manufacturing report, both of which are expected to show positive progression. Later in the trade today, the markets will be presented with FOMC meeting minutes and that news could influence the late afternoon action in metals.
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