Compiled 03/02/12 6:00 AM (CT) Statistics: London Gold Fix $1,714.50 -$6.50 LME Copper Stocks 289,000 tons -3,250 tons Shanghai Copper stocks +5,401 tons to 221,487 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) With a massive trading range this week in silver of roughly $3.73 an ounce that has probably undermined a portion of the bull camp. Clearly silver was indirectly undermined by the lack of definitively movement toward more US QE3 earlier this week and it is also possible that a slight correction in the Euro has provided some bearish currency related impact on silver prices. The silver market might be seeing some downward pressure from news of a sharp decline in demand for US Mint silver and gold coins on a month over month basis. Other traders think that the recent spike up in energy prices at least temporarily increased fresh concerns of slowing and that in turn appears to have applied some pressure to silver and other physical commodity prices. Unconfirmed reports of a pipeline fire at a major global oil exporter was attributed to Iran yesterday, but that news seems to have been a hoax but that news might have prompted some temporary negative macro economic psychology over the last 24 hours. Some players saw a speech from the San Francisco Fed as undermining last night as he labeled the US recovery as anemic and that in turn certainly detracted from the risk-on vibe this week. Comex Silver Stocks were 130.417 million ounces down 571,470 ounces. Silver stocks have declined 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Hong Kong and Chinese equity markets were stronger overnight off ongoing strength in real estate related shares. European equity markets were also generally higher off ongoing gains in banks and financial issues. However, early US equity market action was weaker in what seemed to be an ongoing disappointment over the perception of slightly reduced US QE3 prospects. While the trade generally remains positive toward the situation in the Euro zone and recent US economic numbers have provided enough positives to provide support to most physical commodity markets, the metals trade seems to lack a definitively positive risk-on vibe in the early US Friday trade action. Today's economic report slate only has a couple US reports due out and they might be considered third tier readings. The primary number this morning will probably be the New York ISM regional business index and that will be followed by a weekly economic activity index from the Economic Cycle Research Institute. However, the scheduled reports this morning aren't expected to have a noted impact on macro economic sentiment. The only scheduled Fed speech today probably won't be an impact on the markets either, partly because it is scheduled after prime market hours.
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