Compiled 05/29/12 6:00 AM (CT) Statistics: London Gold Fix $1,573.75 $+13.75 LME Copper Stocks 225,800 tons +2,750 tons. SILVER MARKET FUNDAMENTALS: (6:00 AM CT) July silver initially managed a fresh upside breakout this morning but the market wasn't able to hold those gains through the brunt of the European trade. Clearly the bull camp in silver was cheered by the relative strength in equities overnight and at least in the early action today the bull camp in silver also had the benefit of supportive currency market action. The silver market probably saw some lift off a bullish silver analyst forecast for the second half of 2012 overnight, but that potentially supportive development might have been partially offset by calls to reign in Chinese speculation in gold and silver. As in gold, the silver market probably needs to see something positive from today's sweep of US economic data, as that type of news recently has distracted the market away from the trouble in the Euro zone. Comex Silver Stocks were 141.918 million ounces up 473,833 ounces. The Commitments of Traders Futures and Options report as of May 22nd for Silver showed Non-Commercial traders were net long 12,337 contracts, a decrease of 350 contracts. The Commercial traders were net short 17,510 contracts, a decrease of 220 contracts. The Non-reportable traders were net long 5,173 contracts, an increase of 129 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 17,510 contracts. With the Non commercial and Non reportable net spec long in silver falling down to a multi year low and July silver from the COT report mark off date falling another 9 cents, some might suggest that silver was largely liquidated technically at last week's lows. This represents a decrease of 221 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) After some initial weakness Asian equity shares recovered off a growing anticipation of additional Chinese stimulus directly ahead. European equity markets were also slightly higher off Chinese stimulus talk and perhaps because of ideas that pro-bailout forces might be regaining some ground in Greece. The US markets were showing initial gains early this morning, as the US has become the preferred global equity market in the wake of relatively stronger US data from last week. The economic report slate today has a Chicago Fed Midwest Manufacturing Index, a Texas Manufacturing reading and a Case-Shiller home price survey and it remains to be seen if the US numbers can maintain their recent slightly better than expected pattern.
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