Compiled 08/15/12 6:00 AM (CT) Statistics: London Gold Fix $1,597.75 -$19.75 LME Copper Stocks 236,375 tons -1,125 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, the silver market also saw a fresh lower low in the overnight trade. In fact, September silver reached down to the lowest level since August 3rd with its initial slide today. Apparently acceptable data from the US yesterday and the expectation of decent data today has dampened the expectation of easing from the US Fed and that in turn has weighed on silver and other physical commodity markets. Silver did see evidence of higher silver production overnight from Pan American Silver and that probably added a slight measure of selling into the equation. It is also possible that a fresh lower low prompted some technically related selling in silver this morning. Even though the silver trade seems to be focused on the prospect of additional easing, weaker equity market action might be seen as another negative influence for silver prices today. Just to round out the initial negative bias, silver is also facing weakness in the Euro and weakness in platinum and copper prices. In the end, silver is likely to show its biggest reaction to US scheduled data flow early on today and it seems like the bear camp is already anticipating a move in its direction in the wake of the data flows. Comex Silver Stocks were 138.302 million ounces up 791,191 ounces. Stocks have declined 14 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Chinese shares were sharply lower overnight, as corporate earnings fears were ignited by poor performance at one of the largest Chinese insurers. German and French shares were lower to start today, while equities in the UK managed gains in the wake of better than expected UK data and news that the BOE didn't discuss cutting interest rates in their last meeting. In looking ahead to the US action today, there will be a very active US report slate with the trade seeing Industrial Production/Capacity Utilization as well as CPI, an Empire State Manufacturing report and a NAHB housing index release. The trade generally expects to see some growth from the scheduled data, but other data today could partially offset those expectations.
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