Compiled 05/30/12 6:00 AM (CT) Statistics: London Gold Fix $1,548.00 $-25.00 LME Copper Stocks 227,100 tons +1,300 tons. SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, silver has also managed a fresh new low for the move overnight and that would seem to leave the technical bias in favor of the bear camp. Clearly silver and many physical commodity markets are disappointed by the dampened Chinese stimulus prospects and it goes without saying that the markets are also undermined by residual fears of further debt troubles from Spain and Italy. While the last COT report showed a dwindling of the Non Commercial and Non reportable net long positioning in silver, conditions seem to favor even more liquidation ahead, especially since the silver market reportedly saw some fresh bargain hunting buying into the May 23rd low. For the time being, few traders think the US economy will be able to show enough strength to offset renewed fears of global slowing. Another issue that is likely to keep up the pressure on silver prices is ongoing weakness in the Euro and residual strength in the Greenback. Given the breadth of anxiety from Spain overnight it will take a much stronger than expected US showing in scheduled numbers, or some surprise central bank action just to alter the risk off tone in the silver market today. Comex Silver Stocks were 141.915 million ounces down 3,137 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Chinese stocks resumed a downward pattern overnight as recent Chinese stimulus hopes were reduced once again by regional media sources. Not surprisingly, European equity markets also resumed a downward march as Euro zone concerns were present again in the facing of rising Italian and Spanish debt yields. Some of the European equity market weakness overnight might also have been the result of the dampened Chinese stimulus talk. The US markets were showing moderate losses in the wake of the latest up tick in Italian and Spanish debt yields, as the pace of the US economy isn't thought to be strong enough right now to stand up to ongoing Euro zone and Chinese slowing threats. The US economic report slate today has pending home sales and an On-Line Help wanted index report but neither of those reports is expected to promote a return to a risk-on vibe.
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