Compiled 02/09/12 6:00 AM (CT) Statistics: London Gold Fix $1,733.00 -$10.00 LME Copper Stocks 313,600 tons -2,750 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market has generally managed to hold above the prior closing level in the early Thursday US trade. Traders continue to note that March silver is sitting in the middle of the last two weeks trading range, as if the trade is poised for a decision and that decision would seem to be locked onto the Greek debt talks. The bears suggest that the silver market has part of a deal factored into prices, but many traders still think that even more gains might be seen if and when a deal is ultimately inked. However, silver was probably held back slightly by hotter than expected Chinese inflation news overnight and it might also have been undermined by sloppy equity market action overnight. In the trade today, the silver market might discount US scheduled numbers, as the trade waits for direction from Athens. The last two week's consolidation high was $34.52 and the last two week's consolidation low was $32.98 and a breakout of that range could lead to a technical extension. Comex Silver Stocks were 129.270 million ounces up 300,197 ounces. Stocks have increased 14 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian equity markets were mixed overnight, with the resurgent Chinese inflation readings derailing hopes that the PBOC might shift away from tightening policies. European equity markets were also mixed with some gains seen off residual optimism toward the Greek situation, and that comes despite news that the parties were hung up on at least one issue (pension cuts). Early US stock market action was mixed to lower because of uncertainty off the EU situation. The overnight economic news flow showed a hotter than expected Chinese January inflation reading, with most of the heat coming from soaring food prices. In other economic developments, Japan showed some weakness in December core machinery orders, while UK December manufacturing output increased by 1%, which was slightly above estimates. The US economic report schedule today brings initial and ongoing claims, which are expected to show minor gains. Also out today from the US is a wholesale trade reading, which is also generally expected to rise. In the end, US data might have an impact, but the real focus of the trade is likely to remain on Greece.
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