Compiled 02/21/12 6:00 AM (CT) Statistics: London Gold Fix $1,737.00 +$5.00 LME Copper Stocks 305,425 tons -450 tons Shanghai Deliverable stocks were 217,142 tons +18,940 SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Silver forged a modest upside breakout in the charts but generally remained well below the February highs. The progress on the Greek debt deal provided an early lift, but the market might need to confirm the initial bullish track, with a positive reaction to the Chicago Fed national Activity index results. Silver might draft some support from favorable Indian silver demand stories floated overnight from Mumbai, as those sources expect silver imports into India to climb by 200 metric tons over the prior year. Like gold, silver is getting some lift from up beat vibes flowing from Europe, but that thinking doesn't seem to be a full on shift back into a risk-on environment. At least to start today favorable Euro action, higher equities and strength in energy prices seems to have given the silver bulls an added lift. The silver bulls probably need to see something positive from the Chicago Fed National Activity Index release, as silver appears to be tracking physical commodity markets and the hope for positive progression toward sustained global recovery. Comex Silver Stocks were 128.809 million ounces down 322,200 ounces. The Commitments of Traders Futures and Options report as of February 14th for Silver showed Non-Commercial traders were net long 28,280 contracts, an increase of 1,630 contracts. The Commercial traders were net short 40,918 contracts, an increase of 2,067 contracts. The Non-reportable traders were net long 12,637 contracts, an increase of 435 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 40,917 contracts. This represents an increase of 2,065 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian equity markets were generally higher overnight, mainly in reaction to the Greek deal but perhaps from hopes that China was moving to a more supportive policy stance. European equity markets were also higher off the news of the Greek deal but those markets were unable to hold all of the initial gains. The US equity markets are showing positive action to start but some analysts and press outlets are suggesting that the markets are under whelmed with the EU outcome. The markets will see a Chicago Fed National Activity Index release this morning and that report might be given added importance due to the lack of economic news on the docket today. It is also possible that a US Treasury auction will be seen as an important measure of the level of safe haven interest, especially in the wake of the Greek debt deal.
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