Compiled 07/17/12 6:00 AM (CT) Statistics: London Gold Fix $1,595.00 +$11.00 LME Copper Stocks 252,900 tons +1,275 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, the silver market has managed a quasi upside breakout overnight, with September silver prices reaching up to the highest level since July 6th. Limiting silver this morning is news that silver derivative holdings declined yesterday, which suggests that broad based investor interest in silver, at least at the start of this week has remained soft. Perhaps silver investors have been discouraged from picking up fresh silver holdings by another brokerage firm silver forecast price reduction. However, silver does seem to be benefiting from a modest risk-on environment this morning, especially with generally higher international equity market action and supportive currency market action. At least in the morning trade, one should expect all eyes to be on the US Fed testimony, but traders should also expect the silver market to react to US scheduled data flows, which will preempt the dialogue from the Fed Chairman. Unfortunately for the bull camp, US CPI data isn't expected to boost silver prices, as soft or as expected inflation readings could point to a deceleration of US growth. Some bears think that a Fed testimony inspired rally will be unable to hold into the close today as they expect the Fed Chairman will remain in a wait and see stance. Comex Silver Stocks were 144.659 million ounces down 43,019 ounces. Silver stocks have declined 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) The Shanghai Composite managed a marginal gain overnight, but volume was low and hopes for fresh stimulus were not upgraded significantly. Similarly European shares were able to claw out some minor gains, perhaps in anticipation of the US Fed testimony later today. US equities were in an early positive track, with some players thinking another muted inflation reading (from CPI) could increased the expectation of easing hints from the Fed testimony. The markets will also be confronted with US industrial Production and Capacity utilization readings, which could be countervailing. The market will also see an NAHB housing index release that is expected to post a minor gain and that report could provide a slight lift to the risk-on crowd. Testimony from the US Fed Chairman is scheduled to begin at 9:00 am cst and that will be backed up by a speech from the Bank of Cleveland President at mid session.