Compiled 01/30/12 6:00 AM (CT) Statistics: London Gold Fix $1,720.50 -$1.50 LME Copper Stocks 333,125 tons -2,300 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market has started out softer this morning, with some technical traders pointing to the overnight high of $34.015 as a quasi double top formation. However, silver is seeing pressure from weakness in a host of physical commodity markets, which in turn might be feeling the pressure of adverse currency market action. In addition to the lack of a fresh easing move from the PBOC, the silver market might also be partially discouraged by the lack of a weekend Greek debt deal. However, silver bulls are probably hopeful of some assistance from a US Personal Income reading later today, but after a measure of disappointment from the latest US GDP reading, the silver bulls might need some help from the data just to diffuse the initial downward bias in silver prices. Comex Silver Stocks were 128.238 million ounces up 1,244,747 ounces. Comex Silver Stocks are at the highest levels since 12/09/2008. Stocks have increased 15 of the last 20 days. The Commitments of Traders Futures and Options report as of January 24th for Silver showed Non-Commercial traders were net long 18,878 contracts, an increase of 2,213 contracts. The Commercial traders were net short 28,558 contracts, an increase of 4,121 contracts. The Non-reportable traders were net long 9,680 contracts, an increase of 1,908 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 28,558 contracts. This represents an increase of 4,121 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian equity markets were weaker this morning, as traders and investors in that region were apparently disappointed with the lack of a cut in the Chinese reserve rate requirement. European equity markets were also weaker in the face of a lack of definitive forward movement on the Greek debt talks and perhaps because of a lack of confidence in the coming EU summit. Somewhat surprisingly, European markets didn't see much benefit from news that Italian auction yields fell from prior auction levels this morning perhaps because of the lingering uncertainty over the EU summit. Euro zone consumer confidence levels improved slightly overnight, but those figures remained in negative territory. The markets will see a US Chicago Fed Midwest Manufacturing report, Personal Income, Personal Spending and a Texas manufacturing report in the morning trade today, but some in the trade might already be looking ahead to the week ending US monthly non farm payroll report for most of their macro economic guidance.
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