Compiled 05/15/12 6:00 AM (CT) Statistics: London Gold Fix $1,559.00 $-4.00 LME Copper Stocks 216,350 tons -1,950 tons. SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, July silver managed another fresh new low for the move but silver prices have managed to claw back above the prior session's lows in the wake of a minor improvement in global sentiment. With minimally positive German GDP/export readings overnight and higher initial action in US equities, it is possible that silver is seeing some short side profit taking buying this morning. However, while the gold trade saw some evidence of value hunting physical buying overnight, the silver market failed to see any evidence of increased prompt demand. In fact, the silver trade was actually confronted with a forecast of rising silver production in 2013 from a key Mexican producer Fresnillo. It should also be noted that another smaller silver producer in Peru predicted an increase in 2012 production and therefore supply side news overnight was probably negative to silver prices. As in a number of physical commodity markets, the fear of slowing demand off a softening global economy remains the main focal point of the trade and that could make the US retail sales report this morning a critical pivot point for the silver trade. In fact, many traders are suggesting that evidence of positive growth in the US, is currently needed just to countervail the expanding negatives flowing from the Euro zone and China. Comex Silver Stocks were 140.490 million ounces down 92,315 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) The Hong Kong market overnight managed a positive session after a long string of recent losses. A decline in foreign direct investment in China also left economic views suspect in the region but it did appear as if somewhat favorable German economic numbers overnight helped the Asian markets find some support. European equity markets were initially mixed overnight with gainers barely out numbering the losers. While news of a +0.5% gain in German GDP wouldn't normally be a big development, expectations for activity in the Euro zone have really been deflated recently and the trade seems to have garnered a small measure of confidence from the positive quarter over quarter performance in Germany. Early action in the US equity markets also showed some strength, but it was unclear whether today's gains were simply short covering or an actual improvement in sentiment. The focus of the trade later today is likely to center on the US retail sales report, which is expected to post a very minimal gain.
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