Compiled 06/06/12 6:00 AM (CT) Statistics: London Gold Fix $1,633.25 LME Copper Stocks 231,200 tons +325 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) With a sharp upside extension and breakout on the charts overnight, July silver has reached the highest level since May 10th. Like gold and global equity markets, the silver trade seems to be anticipating action from the ECB. In fact, some players are also thinking the US Fed is poised to easing and that has to have a portion of the bear camp in silver under pressure. Another issue that might be prompting buying of silver is the hope of a 3rd party budget control agreement in the EU. It is also possible that physical commodity markets are anticipating some fresh bank recapitalization plan. Silver might also be drafting some support from marginally support action in the Euro and perhaps silver is simply seeing bargain hunting buying in the wake of a heavy pattern of speculative liquidation that dominated the silver trade from the beginning of March to the May 16th spike low. At least in the early action today, silver looks to be vesting itself in some form of action from at least one central Bank. Comex Silver Stocks were 142.329 million ounces down 649,227 ounces. Silver stocks have increased 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Hong Kong shares managed more short covering gains overnight, while Shanghai equities simply marked time again on the charts. European equity markets were higher overnight off hopes of something positive from the ECB meeting early this morning. Early US equity market action was posting definitive gains, as there are expectations of central bank assistance in the air. Seeing a downward revision in Euro zone GDP readings overnight probably increased the hope of easing from the ECB. The US economic report slate today is rather thin, with a weekly mortgage application survey due out early, a couple Fed speeches due out during market hours and a Fed Beige Book scheduled for release in the early US afternoon trade. In general, there appears to be an attempt to fan risk-on sentiment but the question is whether or not the ECB meeting will contribute to that theme or detract from that theme.
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