Compiled 04/04/12 6:00 AM (CT) Statistics: London Gold Fix $1,631.00 -$43.00 LME Copper Stocks 259,675 tons -975 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Not surprisingly, the silver market is also seeing a wholesale liquidation that is probably being accentuated by technical follow through selling. In additional to a downshift in US growth prospects, the silver market is also seeing some currency related pressure, as the lack of clear cut support for the US economy going forward has undermined the Euro. While the silver bears don't seem to need any additional help, news of rising Spanish debt yields overnight has served to gloss over potentially supportive UK economic readings. As in many other markets, the silver trade now shifts its focus toward US economic readings at the end of the week but given estimates for upcoming reports, there might not be enough good news to markedly alter negative sentiment. While some players might suggest that silver wasn't as overbought in the last COT report as the gold market, silver was long enough to suggest that part of the steep losses this week were probably technical in nature. Others are suggesting that silver's relative out performance of gold recently, is now set to add to the downside action in silver prices. In fact, press coverage on silver in a major US publication released overnight, suggests that silver is likely to decline sharply and then become bound in a tight trading range. It could take a series of better than expected US scheduled numbers to rekindle positive macro economic vibes and today's numbers might not be of a high enough caliber to shift sentiment. Comex Silver Stocks were 138.488 million ounces down 109,320 ounces. Silver stocks have increased 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian equity markets were weaker overnight, with the New Zealand market managing to go against the regional down trend with a minor gain. However, reaction to news that China might move to break up a bank monopoly was unclear overnight, due to a market holiday. European stocks were weaker overnight off the disappointment from the US Fed but perhaps some selling pressure was also seen from a concerning Spanish debt auction that saw yields climb to the highest level since January and that in turn seemed to apply some added pressure to European equities. The European markets didn't seem to be getting much support from the prospect of something positive from today's ECB meeting. US stocks were definitively weaker overnight, with the FOMC meeting minutes pushing many investors toward the exits. Given the downgrade in US growth prospects in the wake of the FOMC meeting minutes release yesterday, it is possible that the bar on upcoming US economic readings will be raised slightly. In other words, numbers under estimates could have a noted negative impact on physical commodity prices. From the scheduled report front, the US markets today will see a private jobs forecast, that supposedly will come in around +200,000 and there will also be an ISM Non Manufacturing report released in the early Wednesday trade.
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