Morning Silver Market Report 8/28

  on August 28 2012 10:23 AM

Compiled 08/28/12 6:00 AM (CT)

Statistics: London Gold Fix $1,663.50 -$3.00 LME Copper Stocks 234,200 tons -1,350 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) While silver prices were also under some liquidation pressure overnight, silver seemed to hold together relatively better than gold overnight. Silver prices this morning remain roughly $4.00 an ounce above the early August lows and that suggests silver could be technically vulnerable to some back and fill action. However, silver and other physical commodity markets continue to draft some support off hopes for more hints of economic assistance at the end of the week from the Jackson Hole Fed meeting. Therefore silver is likely to take some direction from a series of scheduled US economic reports later this morning, with the Consumer Confidence report potentially the key headline reading of the day.

The silver trade is likely to take some direction from a private home price survey early on as housing news from the US has shown some improvement recently. In the end, traders will be watching silver's reaction to US data closely, as silver has been able to benefit from positive numbers, even though strong numbers could ultimately dampen the Fed's interest in providing additional QE.

Comex Silver Stocks were 138.971 million ounces down 948,613 ounces. Silver stocks have declined in 12 of the last 20 days.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Chinese equity markets were mixed overnight with shares attempting to rebound on extremely low trading volume. In fact, Shanghai shares reached the lowest levels in 3 1/2 years before recovering and that suggests the fear of a hard landing was revisited Chinese investors once again.

European stocks were slightly weaker this morning off lingering concerns of slowing in Spain, but shares were being underpinned by hope of something supportive from the Fed symposium later this week.

US shares continued to outperform the rest of the world, as investors have been spurred on by a surprise increase in merger and acquisition moves.

The US economic report slate today is fairly active, with a private home price survey release, Consumer confidence and a Richmond Fed Manufacturing Survey.

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*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.

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