Compiled 07/25/11 6:00 AM (CT) Statistics: London Gold Fix $1,618.50 +$30.50 LME Copper Stocks 471,200 tons -1,125 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) While September silver hasn't forged a new contract high like gold this morning, it has reached the highest level since May 4th with the rise this morning. With copper and platinum prices weaker and a host of other physical commodity markets under pressure, silver is clearly locked onto its flight to quality status. Like gold, the silver trade is heavily dependant on the lack of a deal in Washington, or perhaps the market only needs to see a debt downgrade for the US to extend the safe haven track beyond any upcoming deal. While a Russian silver miner floated news of higher 2nd quarter output, the market right now doesn't seem to be poised to take significant direction from classic supply side developments. At least in the short term, the flow of scheduled US data might be partially discounted, as the ebb and flow of debate on US spending and deficits takes the spotlight. Comex Silver Stocks were 102.227 million ounces down 639,844 ounces. Silver stocks have increased 11 of the last 20 days. The Commitments of Traders Futures and Options report as of July 19th for Silver showed Non-Commercial traders were net long 28,925 contracts, an increase of 2,106 contracts. The Commercial traders were net short 48,988 contracts, an increase of 4,204 contracts. The Non-reportable traders were net long 20,063 contracts, an increase of 2,098 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 48,988 contracts. This represents an increase of 4,204 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe are generally weaker during the overnight session, early indications are that US equity markets would open with sizable losses this morning. The US Dollar is slightly weaker against most of the major currencies this morning, but is posting substantial losses versus the Yen and Swiss Franc. Negotiators in Washington failed to come to any agreement over the weekend with raising the US debt ceiling. A major credit ratings agency has lowered their rating on Greek sovereign debt 3 levels, down to their second lowest level above default status. The only major US economic number to be released this morning will be the Chicago Fed National Activity index at 7:30 AM.
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