Compiled 07/29/11 6:00 AM (CT) Statistics: London Gold Fix $1,613.75 -$3.75 LME Copper Stocks 466,550 tons -1,800 tons Shanghai Deliverable stocks were 117,067 tons +5,021 SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market has started the Friday morning US trade off on a weaker footing and is exhibiting weakness in the face of slight gains in gold prices. However, silver seems to have mixed feelings toward the current mess in Washington and that might be partly the result of fears of severe slowing in the event that no deal is found ahead of the quickly approaching US debt ceiling deadline. In fact, some technical traders are pointing to the fresh new low for the move this morning, as a negative signal but silver could spring back into a flight to quality mode if there is evidence that Congress will extend the fight into the weekend. In the end, silver is potentially being pulled in two directions, as a flight to quality instrument at times and at times as a classic physical commodity market that is fearful of slowing physical demand in the event that the US situation starts to knock the air out of global economic activity. Comex Silver Stocks were 102.985 million ounces up 514,731 ounces. Stocks have increased 12 of the last 20 days. Comex Silver stocks are at their highest levels in the past 10. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe were generally weaker during the overnight session, early indications are that US equity markets will open with moderate losses later on this morning. The US Dollar is stronger against most of the major currencies this morning, although posting a loss versus the Yen. House Republicans were unable to bring a debt ceiling bill to a vote last night. A major credit ratings agency has warned that Spain may receive a downgrade of their sovereign debt. Japanese core CPI during June was up 0.4% year-on-year, in-line with forecasts. Japanese Unemployment during June was 4.6%, higher than projections. Japanese Industrial Production during June was up 3.9%, lower than forecasts. German Retail Sales during June were up 6.3%, well above expectations. A private survey of UK Consumer Confidence during July was -30, weaker than expectations. Major US economic numbers to be released this morning will include second quarter Gross Domestic Product at 7:30 AM, a private survey of Purchasing Managers in the Chicago area at 8:45 AM, and a private survey of US Consumer Sentiment just before 9:00 AM. In addition, Fed Regional Presidents Lockhart and Bullard will participate in a panel discussion during the session.
Join the Discussion