Compiled 01/04/12 6:00 AM (CT) Statistics: London Gold Fix $1,603.00 +$13.00 LME Copper Stocks 369,150 tons -2,425 SILVER MARKET FUNDAMENTALS: (6:00 AM CT) While the bulls might claim that the March silver contract also managed a fresh higher high for the move overnight, the silver market was unable to sustain that positive initial track. Apparently optimism from the Euro zone and expectations for decent US numbers wasn't enough to leave the bull camp in complete control over silver prices. While the silver market might see the minimal decline in Peru silver production in November versus year ago levels as a positive development that news was largely countervailed by another rise in daily silver exchange stocks. In fact, Comex Silver Stocks were pegged at 117.909 million ounces yesterday afternoon for a rise of 610,289 ounces. Comex Silver Stocks are now at the highest levels since 06/16/2010. Apparently silver needs to see really definitive gains in global equity markets and very strong economic data to reverse a slight profit taking tilt that many suggest was needed in the wake of a 3 day rally of roughly $3.60 an ounce. Like gold, silver is behaving like a physical commodity market in need of fresh growth evidence and therefore it is possible that silver will take a lot of direction from the US Factory orders release. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Equity markets in Asia were stronger overnight, with Indian stocks finishing marginally weaker. European stocks managed to post some positive action, while US equity markets were mostly mixed to start the new trading session. The US Dollar has started higher against the euro but was weaker against the Canadian, Swiss and Yen. Overnight the market saw generally favorable Euro zone December services PMI readings and Euro zone inflation readings that were down from the prior month, but still holding at elevated levels. In other overnight developments, there were some slightly positive auction results from Germany and Portugal and in the absence of other more important headlines, that news was seen as a sign that the Euro zone debt crisis remains under control. In looking ahead, the markets will see a series of private US chain store sales figures, weekly mortgage application readings and a Factory orders report. Also due out later this session, is light US vehicle sales but the main reading of the day is expected to be the US Factory orders report. Expectations for the Factory orders report call for a modest improvement and for many that bodes well for the bull camp in precious metals.
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