Compiled 07/31/12 6:00 AM (CT) Statistics: London Gold Fix $1,622.75 +$6.25 LME Copper Stocks 248,825 tons -250 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) September silver has started out with a fresh upside breakout on the charts, with the market reaching up to the highest level since July 5th. Silver is probably drafting some support from increased hope of US easing directly ahead, but could also be drafting off ongoing gains in grain prices and positive early US equity market action. As opposed to yesterday, the silver market is seeing a more positive outside market condition, with gains in energies and industrial metals being seen and perhaps even more importantly, a more positive early US gold trade. Fresnillo, a Mexican silver miner, posted a slight decline in 1st half silver production of 20,072 kg compared to 21,460 kg in their prior period. The Fresnillo CEO also suggested that supply and demand in silver might be generally balanced for the remainder of 2012, but he also projected a range for silver prices that ranged from $3.00 per ounce under the current nearby futures level, to as high as $2.75 an ounce above the current nearby futures price level. For the coming 36 hours, the silver trade is likely to see a noted increase in predictions of US easing, especially with a major US payroll report looming at the end of the week. Comex Silver Stocks were 139.089 million ounces down 1,989,149 ounces and perhaps that is a positive development, as the magnitude of the single day decline in silver stocks, could catch the attention of some traders. Silver stocks have now declined in 15 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Chinese Shares were mixed overnight, with the Shanghai market remaining weak and Hong Kong shares forging a minor rally. European shares broke a recent pattern of strength, as the promise of additional central bank easing appears to have temporarily lost its supportive capacity. The US scheduled report slate today is active, with Personal Spending/Income, a private Home price survey, Chicago PMI and Consumer Confidence all due out. Expectations on the reports are mixed, with the early numbers expected to be unchanged to slightly positive and the later data flows expected to be somewhat soft. The market will also see the beginning of a 2 day US FOMC meeting today.
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