Compiled 02/08/12 6:00 AM (CT) Statistics: London Gold Fix $1,743.00 +$23.00 LME Copper Stocks 316,350 tons -3,650 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, the March silver contract initially managed a fresh upside breakout overnight. However, both gold and silver were waffling around both sides of unchanged in the early action, as the trade continues to have doubts on whether a final Greek deal will be seen today. Some silver traders saw testimony from the Fed Chairman yesterday, to be supportive of silver prices, as the Fed Chairman was up beat toward US manufacturing and he also prodded Congress to make a decision on the Bush tax cuts sooner rather than later. At least in the early Wednesday US action, silver seemed to be outperforming gold at times and that could suggest that silver is garnering some of its lift from classic physical commodity market developments. However, the bulls are anticipating a Greek deal and so far gold prices have been able to rise without consistent hard evidence of progress. Like gold, silver might have been somewhat held back by news that the Chinese raised retail fuel prices in an effort to curb demand and hold down inflation in their economy. Comex Silver Stocks were 128.970 million ounces down 1,925,768 ounces. Silver stocks have increased 14 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian equity markets were definitively higher overnight, with the Nikkei managing to reach a fresh 3 month high. European equity markets were also higher off optimism toward a Greek deal, but noted strength in financial sector shares gave that action some added credence. However, US stocks were waffling around both sides of unchanged early today and that could suggest the US markets will need further signs of progress from Greece to rise even further. The US economic report slate is almost empty today with a weekly mortgage application survey due out early and a mid day auction of $24 billion of 10 Year notes the only scheduled events. The trade will also see a Fed speech from the San Francisco Fed's Williams at mid morning and given a lack of scheduled news, that speech might have a more significant impact on the markets. In conclusion, follow through gains in international equity markets, higher energy price action and strength in the Euro early today has ushered in a mixed opening for the precious metals complex.
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