Compiled 02/10/12 6:00 AM (CT) Statistics: London Gold Fix $1,715.50 -$17.50 LME Copper Stocks 312,750 tons -850 tons Shanghai Copper stocks SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, the silver market is showing some early weakness. In fact, March silver at least temporarily saw some technical weakness this morning, as silver prices took out the prior two session's lows. With silver recently tracking classic physical commodity market fundamentals, the failure to come away from the Greek deal with a positive overall vibe, seems to have deflated bullish sentiment toward silver. While a number of outside market forces look to favor the bear camp to start today, (weaker equities, weaker Euro, weaker copper prices) the silver market might garner some support from news of a reduction in futures margins. Another factor that might lend some support to silver is talk from two analysts who are suggesting that silver prices might be able to outperform gold directly ahead. It is also possible that silver might see some minor support from US scheduled data flows and perhaps a small measure of support from US Fed dialogue around mid session. Comex Silver Stocks were pegged at 129.268 million ounces yesterday afternoon for a decline of 1,955 ounces. Silver stocks have increased 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian equity markets showed some weakness in the face of evidence of slowing in the Chinese January import/export data but some markets were able to recover off ideas the PBOC might now be ready to shift away from a tightening stance. Some traders also suggested that the Chinese numbers were weakened by the extended Chinese holidays. European equity markets were also mixed, with some gains seen, but a larger portion of the action was coming in weaker. European markets were clearly disappointed with calls for even more austerity efforts from Greece. Early US stock market action was weaker in response to ongoing EU bickering and also because of revived fears of slowing in China. In the US trade, the markets this morning will see a US Trade balance reading that is generally expected to show a modest increase in the deficit. Also out during the US trade is a private consumer sentiment reading that is expected to produce a minor up tick. There will also be a couple Fed speeches just ahead of mid session today.
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