Morning Silver Market Report 8/30

   on August 30 2012 10:22 AM

Statistics: London Gold Fix $1,657.00 -$7.25 LME Copper Stocks 230,175 tons -3,850 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) December silver was able to remain within a consolidation zone overnight, that was situated just above the $30.61 level on the charts. Surprisingly silver wasn't able to benefit from news that the Chinese were willing to support the Euro zone bond program. Silver also doesn't seem to be garnering much support from a modest rally in the Euro and gains in both platinum and copper prices overnight. Silver did see some buying interest in Asia overnight and that probably served to shore up support just under the current trade.

Silver will probably take some direction from a somewhat active US scheduled report slate today but it is unclear whether silver wants weak data to rally, or if the silver trade wants strong data to keep slowing fears out of the headlines. Many traders think that the silver bulls want to see soft data, but initial expectations for the US data calls for marginally better data this morning.

Comex Silver Stocks were 140.206 million ounces down 300,240 ounces. Silver stocks have declined in 12 of the last 20 days.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Chinese equity markets were weaker again overnight extending a pattern of recent declines. European stocks also started out weaker again this morning, as Euro zone Consumer Confidence fell to some of the lowest levels in 3 years. Surprisingly, the Euro saw only marginal lift in the wake of suggestions from Chinese officials that they would purchase Euro bonds.

At least initially, the US equity markets were marginally weaker, which might have been the result of suggestions from Moody's that the Euro area crisis continues to pose the greatest risk to the global economy. However, with the Fed's Jackson Hole symposium capable of generating some headlines later today, the markets attention might shift forward to the Bernanke speech on Friday.

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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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