Morning Silver Market Report 8/22

 
on August 22 2012 10:16 AM

Compiled 08/22/12 6:00 AM (CT) Statistics: London Gold Fix $1,640.50 +$16.50 LME Copper Stocks 234,175 tons -325 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Silver has forged a rather impressive 5 day rally of $1.61 an ounce and that has probably increased the overbought prospects significantly. Clearly silver was cheered this week by hopes of a solution to the EU debt problem, but silver was also lifted by fresh hopes of Chinese easing. Silver could get an additional lift today if the US Fed meeting minutes provide fresh hope of additional US easing. It would seem like calls from Greece for more time to meet EU targets is a slight volley against the recent wave of EU optimism. The press is touting the prospect of a continuation in the silver rally to the next even number level of $30.00 on the charts, but outside market adversity to start today, seems to have temporarily quelled the upward track in silver prices. Some traders think silver will benefit from the US existing home sales release this morning, but other traders think the Fed meeting minutes will only re-hash the company line of providing more stimulus only in the event the US economy needs additional assistance. Comex Silver Stocks were 139.398 million ounces down 1,063,730 ounces. Silver stocks have declined in 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Chinese stocks were weaker overnight, as fears of further slowing were front and center after the head of the PBOC suggested that China would need all the tools available to stimulate the Chinese economy. With Japanese exports down sharply overnight and Japanese exports to China down by double digits in July, the increased liquidity effort news from the prior trading session in China seems to have been partially discounted. French and German shares were weaker overnight, as the Japanese export data rekindled European slowing fears again. It also seems as if hope, optimism and progress in solving the Euro zone debt debacle have at least temporarily stalled again. The US scheduled report slate is rather thin again today with existing home sales from NAR the only scheduled US report due out. Expectations call for a slight increase in the home sales figures for July. During the session today, the market will see a Fed Speech from Charles Evans late today and the release of the FOMC meeting minutes in the early afternoon action.

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