Compiled 04/10/12 6:00 AM (CT) Statistics: London Gold Fix $1,643.75 LME Copper Stocks 268,400 tons +3,625 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) While the May silver contract attempted some upside action overnight, it generally remained well within the prior session's trading range and that would seem to suggest the silver trade is in need of fresh guidance from the Fed, or from the US equity markets. Unlike gold, silver has been unable to forge a recent pattern of higher highs and higher lows and that in turn would seem to suggest that silver isn't as upbeat on the potential for additional US easing as if a portion of the gold trade. With recent noted weakness in copper prices, it is also possible that silver is tracking with the industrial metals sector and that would explain a portion of the recent divergence between gold and silver prices. Therefore silver might take some direction from earnings news from Alcoa later today, as the fear of global slowing and more specifically the fear of slackening physical demand for commodities, has been a focal point for silver and copper traders this week. In a partially concerning development, the silver market continued to see a rise in silver exchange stocks, with Comex Silver Stocks yesterday afternoon, rising to 140.059 million ounces, with a single day gain of 539,505 ounces. Comex Silver Stocks are now at the highest level since 08/06/2008. Silver stocks have increased in 13 of the last 20 days. Silver looks to take most of its direction today from classic physical commodity market factors, but the action in the US equity market might have some influence on silver prices today. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian equity markets were mixed overnight, with the markets surprised by a positive Chinese Trade surplus reading. Apparently a pick-up in overseas demand countervailed slack domestic demand in China. The European markets were still generally off balance, because of last week's soft US payroll report and also because of residual slowing fears in China, in the wake of their monthly trade balance figures that showed a softening of domestic demand. From the US scheduled report front today, the market will see weekly private US chain store sales figures, US Wholesale trade and a flurry of Fed speeches throughout the trading session. Also due out today are the results of a US 3 Year Note auction at mid day and traders will also see a World Ag Supply and Demand estimate report which in turn could have some indirect impact on metals and other physical commodity prices.
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