Compiled 01/27/12 6:00 AM (CT) Statistics: London Gold Fix $1,722.00 +$9.00 LME Copper Stocks 335,425 tons -2,450 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market enters the Friday morning US trade sitting very close to the prior session's highs and seemingly holding onto the bullish vibe left in the wake of the FOMC statements. The silver bears continue to suggest that silver prices are overbought, but the bull camp also thinks the fundamental setup continues to favor their positions. While Fortuna, a Canadian miner with mines in Mexico and Peru, posted higher silver production for 2011, the silver market appears to be focused on the demand side of the equation. Like gold, silver probably needs a clean sweep of US scheduled data flows and ideas that a Greek deal might be seen over the weekend, to continue to usher silver prices higher on the charts. Some traders think March silver needs to at least temporarily regain the $34.00 level on the charts today just to reconfirm the current up trend pattern. Comex Silver Stocks were 126.994 million ounces up 388,770 ounces. Silver stocks have increased 15 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian equity markets were generally stronger this morning, with the Nikkei again the only market in the region showing weakness. European equity markets were still garnering some lift from the US Fed but it also seemed as if some European gains were being forged off optimism that a Greek deal was very close to fruition. The markets also saw Italian bill yields fall to the lowest levels since last May this morning and that benefited the Euro this morning. With EU officials this morning also hinting at a Greek debt deal directly ahead and others suggesting the coming three days will be extremely critical to the Euro zone, there might be a measure of anxiety present today and that could keep some physical commodity markets off balance! The markets will also see a US 4th quarter GDP report, that is expected to show somewhat impressive growth and that report will be followed closely by a Michigan sentiment reading that the trade also thinks will show some improvement. Therefore the market seems to be getting generally positive EU news flow and there is the chance for mostly up beat economic vibes from the US report slate.
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