Compiled 04/11/12 6:00 AM (CT) Statistics: London Gold Fix $1,654.00 +9.25 LME Copper Stocks 267,150 tons -1,250 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) At least in the early action today May silver has remained well within yesterday's trading range. Somewhat surprisingly silver and other physical commodity markets haven't seen a definitive lift off rumors that the Chinese might be poised to reduce their reserve rate requirements. At least in the early going today, equity markets were showing positive action and that has in turn allowed May silver to climb back into positive ground. However, a noted jump in Spanish debt yields could be holding back markets like silver, as a return to European contagion fears has applied pressure to silver prices in the recent past. On the other hand, silver isn't exactly facing a return to a fully entrenched risk-on environment this morning as some traders and investors seem to need further evidence of entrenched US growth ahead just to countervail the disappointment of the last US payroll report reading and more specifically to countervail the idea that the US Fed is now on hold. Therefore some silver bulls today might want to see signs from the Fed Beige book later today, that the Fed could easily shift back into a supportive stance. As in gold, the silver market will probably take a lot of direction from US stocks and from comments from the Fed's Lockhart early in the session. Comex Silver Stocks were 139.611 million ounces down 448,503 ounces. Silver stocks have increased in 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian equity markets were higher overnight, with the markets speculating on an upcoming Chinese RRR reduction. However, a series of earthquakes around the Pacific Rim and even into India sparked concerns of Tsunami's in coastal areas. The European markets tried to stabilize overnight but that might have simply been a reaction to a recent concentrated oversold status. However, a poor Italian auction result overnight might provide some late pressure to European shares. It should also be noted that a German auction wasn't fully covered overnight, but yields on that instrument were still very low and that might reduce the anxiety from the lack of auction demand. At least in the early US trade equities were trading moderately higher, perhaps because of a supportive earnings season kick off from Alcoa yesterday afternoon. From the US scheduled report front today, the markets will see a weekly mortgage application survey, US Import/Export prices, a 10 Year US auction result and the release of the Fed's Beige book. There will also be speech from the Fed's Lockhart early in the trading session today.
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