Compiled 06/04/12 6:00 AM (CT) Statistics: London Gold Fix $1,552.50 N.A. LME Copper Stocks 230,875 tons N.A. SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, the silver market has started out on a weaker footing, but it does seem as if the silver market was able to hold a large portion of last Friday's steep gains. With across the board weakness in the metals complex to start today and ongoing weakness in many global equity markets, it would seem like the silver trade remains concerned about the global economy. The Commitments of Traders Futures and Options report as of May 29th for Silver showed Non-Commercial traders were net long 11,920 contracts, a decrease of 417 contracts. The Commercial traders were net short 18,374 contracts, an increase of 864 contracts. The Non-reportable traders were net long 6,456 contracts, an increase of 1,283 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 18,376 contracts. This represents an increase of 866 contracts in the net long position held by these traders. Some players are suggesting that the silver net spec long position was mostly liquidated at last week's lows, as July silver to last week's lows, was as much as 82 cents an ounce below the level where the COT positioning was measured. However, like gold, silver might attempt to garner some lift from central bank easing expectations into the Wednesday and Thursday time frame. Comex Silver Stocks were 143.150 million ounces up 701,262 ounces. Comex Silver Stocks are now at the highest levels since 08/06/2008. Silver stocks have increased in 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian and Chinese equity markets were weaker again overnight with some measures falling down to the lowest levels of 2012. Clearly fears of global slowing remain in place from last week and ongoing fears toward the Spanish banking sector also remain in place. European equity markets weaker led by sharp declines in Germany, where prices might have been playing catch up to part of the Friday US losses. While there continues to be talk of easing action from either the ECB or the US Fed later this week it would appear that many markets are still poised to move lower until some type of official easing action is seen or until the economic headline flow improves dramatically. Unchanged Euro zone PPI readings for April overnight were probably seen as another sign of weakening and it is unlikely that a US Factory orders report release later this morning will be able to completely alter an entrenched expectation of global slowing.
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