Compiled 01/09/12 6:00 AM (CT) Statistics: London Gold Fix $1,618.00 -$3.00 LME Copper Stocks 366,900 tons -1,225 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) March silver looks to have started the new trading week respecting last week's pattern of lower highs and lower lows. While silver and other physical commodities could have been lifted this morning by favorable currency market action and spotty gains in international equity markets overnight, the silver trade has instead started off on a back foot. In retrospect, the bull camp in silver has to be disappointed in last week's slide in prices, especially in the face of very favorable US data last week and with looming Euro zone supply ahead this week, there appears to be a feeling of vulnerability in many physical commodity prices to start the new trading week. Comex Silver Stocks were 122.303 million ounces up 1,177,175 ounces. Comex Silver Stocks are actually at the highest levels since 04/01/2009. Stocks have increased 16 of the last 20 days. Comex Silver stocks are at their highest levels in the past 10. The Commitments of Traders Futures and Options report as of January 3rd for Silver showed Non-Commercial traders were net long 13,561 contracts, an increase of 2,533 contracts. The Commercial traders were net short 20,523 contracts, an increase of 1,986 contracts. The Non-reportable traders were net long 6,962 contracts, a decrease of 546 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 20,523 contracts. This represents an increase of 1,987 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Equity markets in Shanghai were strong overnight and that action helped Hong Kong shares to throw off some early weakness. Indian stocks were slightly weaker overnight, while European stocks this morning were unable to show much in the way of definitive direction. In early action today, US equity markets were simply waffling around both sides of unchanged early in the Monday US trading session. The US Dollar has started out weaker against the euro, but it was showing some gains versus the Canadian and Aussie Dollar. Overnight the markets saw generally favorable Euro zone economic readings in the form of strong German export figures, but the market also saw a German auction that effectively resulted in the German government being the benefactor of negative inflation adjusted yields. In looking ahead, the markets will see a US Employment trends index, a Fed speech and US Consumer Credit readings. There is also a German/French meeting underway to discuss normalizing Euro zone fiscal rules.
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