Compiled 07/18/12 6:00 AM (CT) Statistics: London Gold Fix $1,579.50 -$15.50 LME Copper Stocks 253,575 tons +675 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market has started off on a weaker footing today with the September silver contract falling back toward the middle of yesterday's trading range. Like gold and other physical commodity markets, it would seem like many central bankers are content to allow for more slowing and that could leave an uphill battle in place for the silver bulls. An issue that might present some added pressure to silver prices this morning is news overnight that a major silver producer (Fresnillo) has remained on track to hit their 2012 silver production targets. Just to add to the potentially negative track from the supply side of the equation, another silver producer (First Majestic) overnight predicted its 2012 silver production would probably come in even higher than initial targets. From the demand front, silver saw no change in silver derivative holdings overnight, which some see as a negative, as silver prices within relative striking distance of 14 months lows, haven't sparked a noted increase of investor interest recently. In the US action today, silver is facing a slight risk off trade, with adverse currency market action, weaker equities and surprisingly an initially weaker track in US grain prices. As in gold, the silver trade might expect to see a mixed result from the US scheduled report front early only today but the trade might also expect to see fresh pressure on prices pick up in the early afternoon in the wake of the US Fed Beige Book release. Comex Silver Stocks were 144.353 million ounces down 306,445 ounces. Silver stocks have declined in 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Share prices in China were mixed to weaker despite a recovery in Chinese home price readings. Apparently some investors saw positive economic data in China, as a development that could derail additional stimulus efforts in China. European shares were slightly higher as decent earnings news provided a distraction from recent slowing fears. European markets were able to spin the US Fed meeting into a slight positive, as the talk was that the US Fed didn't rule out easing action in the future. However, US stocks have started out weaker today as if the trade expects to be confronted with renewed slowing fears through the US housing Permits and starts reports. It also seems as if the US Fed Beige Book will provide further evidence of slowing in the early afternoon trade today.
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